Reduce the production quantity
There are necessary to revise the production budget to adjust to the different between actual labour hours and the labour budget. Once the production budget is revised then all the budgets are need to be revised as well. Once the labour hours was not enough to meet the production level in budgeting, there force to rearrange or revised the production quantity to amend how much is the cost for other material or resources need to decrease for the situation as a balance for the budget. When there cannot meet the target profit depends on the insufficient of labour hour, consideration on reducing the closing stock would be needed. When there are insufficient in labour hour will fail to produce fulfill the market demand, they need to decreasing the closing stock so that there have more stand by product to sell to the market. Based on the limiting factor which is the labour hours that affecting the production level, directly it is affected the sales quantity since the production quantity would be decreasing. They need to decide which brand either canon or casio have to reduce the sales when the closing stock quantity is become zero because then will follow by the shortage of product in the market when zero stock investment. The decision making should be depends on the profitablity of each brand while they still need to watch out for the profit of the product. Reduce labour hour per unit
Improvement for the labour efficiency are needed to decrease the labour hour per unit. There had several ways to meet the target, invested in new equipment such as machinery would be a good way. More machine in works can directly reduce the use of labour while still could meet the high productivity. The technology equipment can reduce the time and human resources for the working process and meet the higher productivity, therefore investment on this new technology are necessary to reduce labour hour per unit. Beside that, labour motivation is such a...
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