Presented By: Mr R R Harriparsad

Pitlochry Primary School Educator

Production takes place when INPUTS such as natural and processed resources are used to create other consumable items which are known as OUTPUTS. The resources used are also known as the factors of production. (Entrepreneurship, capital, labour and natural resources)

The image on the right is the production process of chicken, it starts in the feed mill and ends when the chickens are delivered to the customers

The production process is divided into 3 stages which is the Primary, Secondary and Tertiary stage)

The primary stage of production consists of the extraction of raw materials from the earth, this stage of production is linked to the Primary sector as the primary sector deals with the first stage of production.

Primary sector companies deal with the extraction of resources like metal, trees, crops , fishing, mining and farming.

In the secondary stage of production, products are manufactured from the natural resources extracted in the primary stage. Businesses in the secondary sector, process the primary sector resources and change them into finished goods.Examples are car manufacturing plants, flour mills, furniture factories, etc.

Furniture manufacturers Car manufacturers

The third or last stage of production is done by businesses that offer services rather than make goods. Some tertiary sector businesses buy goods from manufacturers and resell them to customers, by this action alone, they are providing a service to the manufacturers and to customers, other businesses in this sector offer services to individuals such as healthcare, banking or transport.Examples of businesses in the tertiary sector include banks, shops, doctors, accountants and transport companies.

Inputs in the production process consist of the factors of production.The factors of production include entrepreneurship, labour, natural resources and capital

Natural resources (land) - are the things provided by nature that people use to produce goods, examples are air, water, land, minerals, animals, plants and wind

Labour - Describes the people involved in the production process. Labour refers to the physical and mental effort that people provide to produce goods and services. The human part of any production process is classified as labour.

Capital – Describes all the man made objects that are used in the production process such as equipment, machinery, vehicles, money, technological items and furniture.

Entrepreneurs – are the people who start businesses, they are individuals who identify business opportunities, plan the production process and then produce the good or service

Outputs refer to the goods and services that come out of the production process.Outputs come in two forms as mentioned above:

Goods: Are the physical products that are manufactured and sold by businesses, goods are tangible because we can see and touch them. Example: a bag of chips, box of chocolates, can of cool drink

Services: Are non –tangible products that are produced and sold by businesses. For example, a hair cut is a service, accountants, lawyers, doctors, plumbers, electricians, carpenters, drivers, are all services

Most of the natural resources that are used in the production process are items such as trees for wood, fruit for beverages, animals for meat etc. These resources can be renewed. Some resources which we use are non-renewable, such as fossil fuels ( oil, coal, gas) and minerals like copper.

Some natural resources are in an endless supply and some are being depleted, if it is a non renewable resource, once it is used up , it will be gone forever.Therefore it is important the process of sustainability is conducted, to ensure that all of these resources are used in such a way that they are not depleted.In order to use resources sustainably, we need to find a way to use the resources in ways that will require less consumption and making it reusable.

Reuse resources – This is the simplest way to make resources last longer, reusing them whenever possible instead of throwing them away, for example reuse plastic containers instead of throwing them away.

Reduce use of resources – Using a lower amount of a resource, will ensure a reduction in the rate of depletion of that resource, for example we can use less water when having a shower by reducing the time spent in the shower.

Recycle – Is a process of putting some waste products like paper and plastic, through a process that transforms it into another reusable form.

REMEMBER!!!!

“ WATCH……words, thoughts, actions, character and heart”

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