Production
FACTORS IN THE PRODUCTION OF GOODS AND SERVICES
Land or Natural Resources - refers to all gifts of nature
Labour - refers to all physical and mental contributions of an employee
Capital - refers to all the man-made items that go into producing other things
Enterprise - refers to bringing all factors together to produce goods to make profit while taking risks
Production- is the process of using raw materials (inputs) and transforming them in some way to produce goods and services (outputs)
Productivity - is a measure of how much output can be produced from a given level of input
How to Calculate Productivity
Quantity of Output / Quantity of Input
IMPORTANCE OF PRODUCTIVITY
Improving labour supply
Productivity is vital for enhancing the efficiency of labour utilization. By increasing productivity, fewer hours may be required to achieve desired output levels, potentially incentivizing more people to enter or remain in the workforce, thereby improving the overall labour supply
Human Resource Development
Productivity is a key metric for assessing the effectiveness of human resource development efforts. Improving productivity through skill development, training, and education, enhances individual performance and also contributes to the overall growth and competitiveness of the workforce.
Use of capital to increase productivity
Productivity optimizes the utilization of capital investments. By increasing output per unit of capital input, productivity improvements maximize the returns on investment in machinery, technology, and infrastructure, enhancing the overall efficiency and competitiveness of businesses.
Importance of positive work ethic
Productivity reinforces the value of a positive work ethic by demonstrating that efficient and effective work leads to tangible results. A focus on productivity encourages employees to take pride in their work, strive for continuous improvement, and maintain high-performance standards, fostering a culture of excellence.
Land use and declining productivity in the region
Productivity is crucial for sustainable land use management. Declining productivity in a region can result in inefficient utilization of land resources, leading to economic losses, environmental degradation, and decreased agricultural output. Improving productivity helps mitigate these challenges and promotes sustainable land use practices.
ROLE OF CAPITAL IN PRODUCTION
Capital plays a crucial role in production by providing the necessary resources, such as
Machinery
Equipment
Infrastructure
To facilitate the transformation of inputs into outputs. It enhances efficiency, increases output per worker, and drives economic growth by enabling businesses to produce goods and services more effectively and competitively.
TYPES OF CAPITAL
Fixed Capital - refers to durable capital equipment the can be used repeatedly in the production process
Working Capital - refers to the capital needed to pay for the day-to-day operations of the business
Venture Capital - refers to the money that is provided by investors to start-up the business
METHODS OF PRODUCTION
Job Production - when individual products are made one time to meet specific customer preferences
Batch Production - when a group of identical products are produced simultaneously
Flow Production - when there is a continuous 'flow' of goods along an assembly line
Lean Production - when teams of employees work together in small groups to identify ways of improving production and eliminating waste
TYPES OF PRODUCTION
Primary Production
Extractive - (agricultural, mining, quarrying and fishing)
An extractive industry is any form of industry that removes resources supplied naturally
Construction - (building)
Construction refers to the erection of all types of buildings and other infrastructure
Manufacturing- (assembling, refining)
Manufacturing is concerned with making finished products from raw materials and semi-manufactured goods
Service (transport, communication, tourism)
A service industry provides a direct service to people
FACTORS IN THE PRODUCTION OF GOODS AND SERVICES
Land or Natural Resources - refers to all gifts of nature
Labour - refers to all physical and mental contributions of an employee
Capital - refers to all the man-made items that go into producing other things
Enterprise - refers to bringing all factors together to produce goods to make profit while taking risks
Production- is the process of using raw materials (inputs) and transforming them in some way to produce goods and services (outputs)
Productivity - is a measure of how much output can be produced from a given level of input
How to Calculate Productivity
Quantity of Output / Quantity of Input
IMPORTANCE OF PRODUCTIVITY
Improving labour supply
Productivity is vital for enhancing the efficiency of labour utilization. By increasing productivity, fewer hours may be required to achieve desired output levels, potentially incentivizing more people to enter or remain in the workforce, thereby improving the overall labour supply
Human Resource Development
Productivity is a key metric for assessing the effectiveness of human resource development efforts. Improving productivity through skill development, training, and education, enhances individual performance and also contributes to the overall growth and competitiveness of the workforce.
Use of capital to increase productivity
Productivity optimizes the utilization of capital investments. By increasing output per unit of capital input, productivity improvements maximize the returns on investment in machinery, technology, and infrastructure, enhancing the overall efficiency and competitiveness of businesses.
Importance of positive work ethic
Productivity reinforces the value of a positive work ethic by demonstrating that efficient and effective work leads to tangible results. A focus on productivity encourages employees to take pride in their work, strive for continuous improvement, and maintain high-performance standards, fostering a culture of excellence.
Land use and declining productivity in the region
Productivity is crucial for sustainable land use management. Declining productivity in a region can result in inefficient utilization of land resources, leading to economic losses, environmental degradation, and decreased agricultural output. Improving productivity helps mitigate these challenges and promotes sustainable land use practices.
ROLE OF CAPITAL IN PRODUCTION
Capital plays a crucial role in production by providing the necessary resources, such as
Machinery
Equipment
Infrastructure
To facilitate the transformation of inputs into outputs. It enhances efficiency, increases output per worker, and drives economic growth by enabling businesses to produce goods and services more effectively and competitively.
TYPES OF CAPITAL
Fixed Capital - refers to durable capital equipment the can be used repeatedly in the production process
Working Capital - refers to the capital needed to pay for the day-to-day operations of the business
Venture Capital - refers to the money that is provided by investors to start-up the business
METHODS OF PRODUCTION
Job Production - when individual products are made one time to meet specific customer preferences
Batch Production - when a group of identical products are produced simultaneously
Flow Production - when there is a continuous 'flow' of goods along an assembly line
Lean Production - when teams of employees work together in small groups to identify ways of improving production and eliminating waste
TYPES OF PRODUCTION
Primary Production
Extractive - (agricultural, mining, quarrying and fishing)
An extractive industry is any form of industry that removes resources supplied naturally
Construction - (building)
Construction refers to the erection of all types of buildings and other infrastructure
Manufacturing- (assembling, refining)
Manufacturing is concerned with making finished products from raw materials and semi-manufactured goods
Service (transport, communication, tourism)
A service industry provides a direct service to people
