World Geo 3200/3202 March / April 2011

Overview Unit 5 gives us insight into selected secondary activities in which humans engage as they transform raw materials, provided by primary activities, to more finished forms. Manufacturing utilizes capital and labour inputs to move materials through a series of processes until a higher-value added product is obtained. Services involve the “manufacturing” of intangible goods or services for human use. You are encouraged to examine the importance of the secondary and tertiary sectors and factors that help to account for their location.

Outcomes demonstrate an understanding of what manufacturing entails, including the following delineations: Identify natural and human inputs in a manufacturing operation. (k) Analyze the processes in a manufacturing operation. (a) Describe the three processes that may be used to change a raw material into a useable form. (k)

Manufacturing: An intro Sectors of the economy Primary Secondary Tertiary

Economic Sectors Primary economic activity involves the collection of raw materials from the earth. Farming, fishing, mining, forestry are the classic parts of the primary economy. The farmer takes plants from the land, the forester takes trees from the forest, the fisher takes fish from the ocean and the miner takes ore from the ground. All involve collecting natural resources.

Economic Sectors Secondary economic activity involves processing or manufacturing raw materials into products for people to buy. It is often referred to as the manufacturing or processing sector. Examples: The cows are butchered in to roasts, T-bone steaks and ground beef and packaged for sale at the grocery store; the trees are milled into lumber or pulped into paper; the fish are gutted, filleted, and frozen for market; while the ore is refined into steel ribbons or copper wire.

Economic Sectors You can see that there would be a multitude of examples for secondary processing but all the activities start with a raw material and convert it to a product for sale. This is sometimes referred to as Value adding. The tree would be much less expensive to buy than the lumber. The lumber has value added. Ship building, as depicted above, is an example of the manufacturing sector.

Economic Sectors Tertiary economic activity does not involve raw materials rather it involves providing service to people. Often referred to as the service industry. Nurses, doctors, lawyers, teachers, waitresses, hairdressers, sales people all provide services for other people. Tourism is an important part of the tertiary sector and golf has become a thrust for investment in Newfoundland & Labrador.

Language of Manufacturing In all manufacturing processes we have to look at inputs & outputs Inputs: materials & factors that go into making a product. Examples; raw material, power, buildings, land, labor, decisions, capital, machinery Manufacturing processes: those processes that change a raw material to a usable form. Three types: Conditioning: minimal change to a resource. Example; logs into lumber; fish into fillets; berries into jam. Raw material is almost useable in its natural state Analytical: resource converted to a number of different products. Example; cow into leather, milk & cheese, beef Synthetic: several resources are combined to make one resource. Example; light bulb as a product has glass, tungsten, Nitrogen & aluminum. It is developed from the mining industry. Car parts would also be a good example

Language of Manufacturing Outputs: finished product from a manufacturing process. For example the output from the fish plant is fish sticks or frozen fish fillets.

Processes & Profit Profit = the difference between the price charged for the product and the money spent in getting it to market (manufacturing, shipping & selling the product) Many aspects of cost involved in setting the price of a product Manufacturing businesses are in the business of value adding so they must consider the cost of adding value

Costs What are some of the costs associated with manufacturing products? Labor (often most expensive) Included are wages, CPP, EI, Pensions, sick days, holidays, etc The cost of raw material Price of materials may fluctuate Cost of equipment & utilities Training costs money but increase efficiency & quality High volume products like pop can have a low profit margin while low volume products like jewelry require a high profit margin

Question #10 For a small fish plant that produces frozen fish fillets, identify each component: Inputs Raw material: Power: Buildings: Land:

Question #10 Machinery: Labor: Capital: Decisions:

Question #10 For a small fish plant that produces frozen fish fillets, identify each component: Inputs Raw material: COD, RED FISH, FLOUNDER Power: Buildings: Land:

Question #10 For a small fish plant that produces frozen fish fillets, identify each component: Inputs Raw material: COD, RED FISH, FLOUNDER Power: MODERATE ELECTRICITY REQUIRED FOR COOLING UNITS AND MACHINERY Buildings: Land:

Question #10 For a small fish plant that produces frozen fish fillets, identify each component: Inputs Raw material: COD, RED FISH, FLOUNDER Power: MODERATE ELECTRICITY REQUIRED FOR COOLING UNITS AND MACHINERY Buildings: MODERATE SIZE BUILDING REQUIRED WITH STORAGE ROOM Land:

Question #10 For a small fish plant that produces frozen fish fillets, identify each component: Inputs Raw material: COD, RED FISH, FLOUNDER Power: MODERATE ELECTRICITY REQUIRED FOR COOLING UNITS AND MACHINERY Buildings: MODERATE SIZE BUILDING REQUIRED WITH STORAGE ROOM Land: SMALL LAND REQUIREMENT BUT LOCATION ON THE WATER IS KEY

Question #10 Machinery: Labor: Capital: Decisions:

Question #10 Machinery: SMALL AMOUNT OF MACHINERY, MOST WORK DONE BY HAND Labor: Capital: Decisions:

Question #10 Machinery: SMALL AMOUNT OF MACHINERY, MOST WORK DONE BY HAND Labor: SKILLED CUTTERS REQUIRED AND LESS SKILLED LABORERS Capital: Decisions:

Question #10 Machinery: SMALL AMOUNT OF MACHINERY, MOST WORK DONE BY HAND Labor: SKILLED CUTTERS REQUIRED AND LESS SKILLED LABORERS Capital: FAIR AMOUNT OF MONEY REQUIRED TO BUILD OR PURCHASE A PLANT Decisions:

Question #10 Machinery: SMALL AMOUNT OF MACHINERY, MOST WORK DONE BY HAND Labor: SKILLED CUTTERS REQUIRED AND LESS SKILLED LABORERS Capital: FAIR AMOUNT OF MONEY REQUIRED TO BUILD OR PURCHASE A PLANT Decisions: MANY DECISIONS LIKE BRINGING IN FROZEN FISH TO KEEP WORKING THROUGH TOUGH TIMES

Question #10 Outputs ? Conditioning or analytic or synthetic processing?

Question #10 Outputs ? FROZEN FISH FILLETS Conditioning or analytic or synthetic processing? CONDITIONING

Activities Read the introduction to Chapter 13 "Patterns in Manufacturing" on page 216 Read "The Manufacturing Process" on pages