ABC Sdn. Bhd. (ABC) is a furniture manufacturer with 20 years of history in the local...

 

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ABC Sdn. Bhd. (ABC) is a furniture manufacturer with 20 years of history in the local market. The production factory is located at an industrial zone in Selangor. Its stated mission is: to provide quality furniture with affordable price to create a comfortable space for the customers. Assign has built a strong reputation among its customers for producing high quality furniture and good services. Most of the raw materials used by ABC are imported from Mainland China. The raw materials used in making furniture included wood, plastic, metal, stone and aluminum. The method used by Assign to keep track of the movement of inventories is the first in, first out (FIFO) method of valuation. All materials are input at the commencement of the process. ABC comprises three production departments: cutting department, machining department and assembly department. Direct labour hour, a blanket overhead absorption rate is being used for all the factory production. This approach has been used for years and the management has a concern that this approach will not provide accurate product cost information as one of the departments is machine intensive. Due to the Covid-19 pandemic, most of the people are forced to stay at home, either home schooling. working-from-home or dining-at-home. Hence, the desire to improve the living space has become stronger. The demand for home furniture, especially for the usage of home offices, was suddenly in high demand. This has led to a spike up in number of orders in ABC. However, the majority of the employees were reluctant to work extra to fulfill the orders during the peak period because they felt it was unfair as they only paid with a fixed salary of RM1,500 minimum wages. The reputation of ABC was impacted severely due to late delivery to the customers. As a consequence, the director is currently concerned that the future labour market will be challenging as industries are having high potential to replace human labour with machine technologies. The director of ABC has a plan to invest more on technological machinery and reduce its workforce. The director had recently come across a government policy that has been implemented in 2015, namely Automation Capital Allowance and the director is considering to adopt for ABC. Required: You are the consultant of ABC Sdn.Bhd., you are required to answer the following based on the scenario above: (d) Provide your suggestions on how ABC Sdn. Bhd. can build their future workforce. State at least 3 suggestions, give your explanation and provide specific examples. The word count should not more than 350 words. ABC Sdn. Bhd. (ABC) is a furniture manufacturer with 20 years of history in the local market. The production factory is located at an industrial zone in Selangor. Its stated mission is: to provide quality furniture with affordable price to create a comfortable space for the customers. Assign has built a strong reputation among its customers for producing high quality furniture and good services. Most of the raw materials used by ABC are imported from Mainland China. The raw materials used in making furniture included wood, plastic, metal, stone and aluminum. The method used by Assign to keep track of the movement of inventories is the first in, first out (FIFO) method of valuation. All materials are input at the commencement of the process. ABC comprises three production departments: cutting department, machining department and assembly department. Direct labour hour, a blanket overhead absorption rate is being used for all the factory production. This approach has been used for years and the management has a concern that this approach will not provide accurate product cost information as one of the departments is machine intensive. Due to the Covid-19 pandemic, most of the people are forced to stay at home, either home schooling. working-from-home or dining-at-home. Hence, the desire to improve the living space has become stronger. The demand for home furniture, especially for the usage of home offices, was suddenly in high demand. This has led to a spike up in number of orders in ABC. However, the majority of the employees were reluctant to work extra to fulfill the orders during the peak period because they felt it was unfair as they only paid with a fixed salary of RM1,500 minimum wages. The reputation of ABC was impacted severely due to late delivery to the customers. As a consequence, the director is currently concerned that the future labour market will be challenging as industries are having high potential to replace human labour with machine technologies. The director of ABC has a plan to invest more on technological machinery and reduce its workforce. The director had recently come across a government policy that has been implemented in 2015, namely Automation Capital Allowance and the director is considering to adopt for ABC. Required: You are the consultant of ABC Sdn.Bhd., you are required to answer the following based on the scenario above: (d) Provide your suggestions on how ABC Sdn. Bhd. can build their future workforce. State at least 3 suggestions, give your explanation and provide specific examples. The word count should not more than 350 words.

Answer rating: 100% (QA)

The Automation Capital Allowance is a government policy that provides incentives for businesses to invest in automation and technological machinery The policy was implemented in 2015 with the aim of e... View the full answer