Types of Production Chapter 13 Section 1

Goals Describe the role of producers in the economy and the forms of production. Differentiate among the various types of manufacturing.

Role of Producers The three categories of products used by businesses and consumers are natural resources: raw materials supplied by nature agricultural products: crops and animals raised by farmers processed goods: products that have been changed in form to increase their value and usefulness

Four Types Production Businesses Producers – develop products to sell to other businesses or consumers Extractors – obtain natural resources from the earth for processing and use Farmers – tend land and other natural resources to grow corps and livestock that are later sold and processed Manufacturers – obtain materials from other producers and convert them into products for sale to consumers and other businesses

Forms of Production Extraction & Cultivation Processing Crops, livestock, fish, other agricultural products Most basic form of production Processing Changing & improving the form of another product Water must be filtered Timber is cut to form lumber, make paper

Forms of Production Manufacturing Cabinetmaker using tools & materials to build an entertainment center Design of microchip for a computer Each form of production is required to make all of the goods and services demanded by businesses and consumers.

Types of Manufacturing Procedures Mass Production – assembly process that makes a large number of identical products using continuous, efficient procedure. AKA: repetitive production Automobiles, beverage bottles Can produce at low cost Employee training cost is lower and quality to be higher Monotonous work; reduction in employee motivation

Types of Manufacturing Procedures Custom Manufacturing – building a specific and unique product to meet the needs of one customer Dentures, Special running shoe for a professional athlete Materials Processing – changing the form of raw materials so they can be consumed or used to make other products. Refine of crude oil to form gasoline Process grain to make flour, cereal, feed for animals

Types of Materials Processing Continuous processing – raw materials constantly move through specially designed equipment. Intermittent Processing – uses short production runs to produce a precise amt. of a variation of a product.

Use a Highlighter Highlight the following items in your notes. What are the three forms of production What are the three types of manufacturing procedures What are the two types of materials processing.