Because the company is running at a higher level it has more of risk of machine break down due to not having time for routine check-ups.
By increasing productivity the expenses increase as you have to pay staff more and hire more staff to run at the higher level of capacity. Also as the staff feel as though they have to work harder due to stress levels many problems in productivity can happen as they can make mistakes.
The machinery’s life span may decrease due to it being used more so thus decreasing the life span from what is expected.
Budget Committee: This is a group of people who look at the company and make a budget plan after doing the necessary research and they discuss, plan and present a budget plan to a company. It is mainly people of management who have the responsibility of the financial factors of the business. They have the responsibility of the yearly proposed budgets for the upcoming financial year by giving a budget for action. The committee review the business and predict the budget of the year including things such as salaries, capital budgets, incomes and expenditure. The committee has to decide the amount of resources offered to each department. Also by doing the budgets it sets a level of resources which can be used by the departments and for expenditures not to go higher and the income not to go lower. The committee will provide TJ Limited with a plan with which they should go by and so that the expenses don’t increase and they stay at a minimal and also to provide a sales amount that the company should reach.