Today’s Response Journal What is production? In the past, what things have you produced or helped to produce? ***Save as Oct. 14 in your Response Journal Folder***

Factors of Production  If you have ever made anything, you have been involved in production If you have buttered a piece of toast, you have produced something that wasn’t there before You need other items to make the toast – a toaster, bread, butter and a knife  Another name for factors of production is ____________________  Economic resources are the means through which goods and services are made available to consumers Economic Resource

Factors of Production Factors of Production include the following;  Natural resources  Raw materials  Labour  Capital  Information  Management

Natural Resources It may be hard to believe, but everything in the world is made from only 6 types of natural resources; 1. Agriculture 2. Mining 3. Water 4. Fuel and energy 5. Fishing and trapping 6. Logging and forestry TThese industries are known as __________ industries, because they are where all items start out SSince primary industries often require taking something out of the earth or sea, they are also called ____________ industries (“extract” means to take out) Primary Extractive

Raw Materials ________________ are any goods used in the manufacturing of other goods Raw materials can be considered ingredients that are transformed into other products E.g. wheat, a natural resource, is the raw material that makes flour. Flour is the raw material that makes bread. Bread is the raw material that creates toast OOccasionally we buy raw materials E.g. fish, fruits and vegetables TThere are 2 main types of raw materials; 1. Ingredients 2. Supplies Raw Materials

Raw Materials - Ingredients  _______________ are the raw materials that go into a product Ingredients are items that have been _____________ in some manner _____________ involves converting raw materials into a product ○ E.g. Flour mills process wheat into flour, so that it can be used to make products such as bread HarvestStoreProcess Ingredients Processed Processing

Raw Materials - Supplies  ___________ are raw materials that DO NOT become part of a new product  Instead, supplies are used in the __________ of a business. They are used to maintain machinery and equipment, help in the administration of offices and to keep the business clean E.g. oil, detergent, envelopes, paper, etc. Supplies Running

Labour  __________ includes all the physical and mental work needed to produce goods or services  Labour is a significant ______ for business owners  There are 3 ways companies can cut down on labour costs;  Many jobs done manually in the past have now been ______________ (using machines) E.g. use of robots in a car assembly plants or ATM instead of bank tellers  Some companies ____________ (centralize) their operations Read example in paragraph 2, pg 158 (Tim Hortons) Some companies ___________; hire another company, to perform part of their operation Read example in paragraph 3, pg 158 Labour Cost Automated Consolidate Outsource

Capital  __________ is the money invested in a business Includes cash, stock, bonds, accounts receivable, etc.  The owner of a business can use capital to buy things(capital goods) the business needs to operate Capital

Types of Capital 1. Liquid Liquid capital CAN be transformed into other things very quickly ○ E.g. If your business needs a new truck, you can easily exchange the money in your bank account for it 2. Non-liquid Non-liquid capital CANNOT be easily transformed into other things ○ E.g. If you want to sell your current office building, it may take weeks or months to find an interested buyer

Information TTo produce goods and services competitively in a global economy requires ____________ IIt is necessary to gather information on … Customers Competitors The economy Technology AAccess to information minimizes _______ and can lead to increased __________ IInformation can also be a product that is bought and sold E.g. market research Information Risk Profit

Management ______________ are the people who control the factors of production. They decide … What products will be made? Who will make them? Where to sell them? Etc. AAlso decide how business profits will be divided up Given to owners Paying off debt Reinvesting back into the business Management

Day 1 – Assigned Work Students please complete the following;  Read Profile: Ganong Bros Limited on pages 153 – 154 and answer the 2 corresponding questions  Review Questions #2 & 5 on page 161

Today’s Response Journal If you are looking to buy a new smartphone, what factors would you take into consideration before making the purchase? ***Save as Oct. 15 in your Response Journal Folder***

Production Process TThe ___________________ outlines the steps involved in making a product The 4 Stages in the Production Process are; 1. Purchasing 2. Processing 3. Quality Control 4. Grading Production Process

Purchasing PPurchasing ensures that the right __________ of raw materials are on hand when needed SSometimes businesses directly hire people to work within the company to make purchases or they hire purchasing agents outside of the company TThe goal of purchasing is to … Acquire the products needed at the best price possible RRead the example in paragraph 3 on page 162 Quantity

Processing  _____________; converting raw materials into a product  Processing will differ depending on the raw materials involved and the product/service being created Read the example in paragraph 3 on page 163  Processing could involve … ___________; a form of processing used by metal- producing firms, oil companies and sugar companies to convert a raw material into a semi- finished or finished product Processing Refining

Quality Control (QC)  ___________________ ensures that the product made by a company meets certain standards  In most cases, these standards are set by the company, but certain products, such as food, medicine and toys must meet government standards as well  Quality standards are also set by the _______ (International Organization for Standardization) Quality Control ISO

What is the ISO?  ISO is a worldwide organization that sets standards for numerous industries  ISO helps businesses, consumers, governments and trade officials  If your product is ISO-certified, then other businesses, consumers, governments and trade officials know that your product meets international standards

Grading  ___________ is the process of checking products for size and quality, against fixed standards for the product  After a product is checked, a __________ is assigned E.g. grade A is better than grade B  Grades are often displayed on the product, and are commonly found on eggs, fruits and vegetables  Many products are not graded, but their quality can be determined by how the product is advertised E.g. “seconds” – implies that the product has slight defects or was previously used/owned Grading Grade

Day 2 – Assigned Work Students please complete the following;  ISO Activity Handout provided  Review Questions #7 & 8 on page 166

Today’s Response Journal Read the Ethical, Moral & Legal Considerations section in your textbook on page 165. Do you care more about the availability of inexpensive chicken or the treatment of these animals? Explain your reasoning. ***Save as Oct. 20 in your Response Journal Folder***

Productivity  ________________ is a measure that compares the amount of resources used to make a product/service with the actual number of products/services made If fewer resources are used per unit produced, productivity ___________  Read paragraph 4 on page 166 and paragraph 1 on page 168 Productivity Increases I Love Lucy

Productivity Increased productivity consists of … 1. Maintaining quality while increasing speed 2. Increasing quality while maintaining speed 3. Increasing both quality and speed Read the example in paragraph 2 on page 168

Ways to Improve Productivity PProductivity can always be improved 4 ways a business can improve productivity include … 1. Training 2. Capital Investment 3. Investment in Technology 4. New Inventory Systems

1. Training EEmployees are productive when they know what they’re doing The 4 Major Types of Training include; A. Initial training B. Ongoing training C. Retraining D. Specialized training

A. Initial Training UUsually occurs within the first few days or weeks on the job SSome business try to minimize the training period so the employee will become productive quicker IIf training is too short, employees may … Become frustrated Make mistakes Damage equipment

B. Ongoing Training & C. Retraining  _____________________ is needed when new systems, technology or procedures become part of the business, training must be given to employees so that they can learn how to use it effectively Employees may also need periodic refresher courses on important aspects of the job  _______________ is needed if an employee takes on a new job (may require additional training) Ongoing Training Retraining

D. Specialized Training  Can include the upgrading of skills in order to remain current  Also known as ________________________ Professional Development

2. Capital Investment TThere are a number of capital investments that could lead to an increase in productivity including; New technology (e.g. a new computer, new machinery, etc) New plant or office building MMust consider the _______________ of these large purchases How long will it take to recover your cost? Will the cost of your new capital good increase productivity enough to pay for itself within a reasonable period of time? Cost/Benefit

3. Investment in Technology New technologies can lead to increased productivity as new technology allows companies to … Track shipments Research the competition Order raw materials and inventory when needed Complete the production process more quickly Generate accounting information faster to allow for better decision making EE.g. BlackBerry’s Q10 or Z10 is a phone, database, Internet, text-messaging centre and appointment calendar all in one. These types of products have helped businesses increase their productivity

4. New Inventory Systems  Production of a product stops if all the needed raw materials are not at the business  On the other hand, production speeds up if all the needed parts are there precisely when needed  ___________________________________ co- ordinate suppliers, storage and factory floor delivery so that no material is out on the production line that won’t be used up in a short period of time JIT saves time, wasted materials and factory space, therefore increasing productivity Just-in-Time Inventory Systems (JIT)

DVD – Waterslides: Making A Splash While watching the DVD listen for answers to the below questions. As a class, we will discuss after the video. 1. How large is the amusement park business in the U.S.? $19 billion/year 2. What gave Rick Hunter his big break? When Disney came calling - he built Disney’s Blizzard Beach water park 3. Who is Rick’s major competitor? White Water West Industries – Richmond, B.C. 4. What do amusement parks rely on most for a successful season? Good weather

DVD – Waterslides: Making A Splash 5. How does ProSlide illustrate the six factors of production?  Natural Resources Water  Raw Materials Need the plastic, steel, etc. to build the water slides  Labour Needs employees to make the components and assemble the waterslides on site  Capital Need lots of money to develop and build them Sell for $900K to $1 million each  Information Need to know what will sell; what will give the guests a thrill Need to know what your competition is building  Management Rick controls everything; decides what will be made, where and by whom

Day 3 – Assigned Work Students please complete the following;  Review Question #11 on page 171  Review Questions #1 & 2 (not c) on page 172