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A process map of the current set up (1) Figure revealed that the manpower requirement was based on the product order receipt; any shortfall was handled by additional casual labor. In theory, any increase in casual labor should match a corresponding increase in production volume. High casual labor costs is not a problem in and of itself. When the casual labor cost increase is higher than the production volume increase, however, it becomes a problem, as signified by a negative manufacturing leverage index.
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