1. Types of Production
Chapter 13
Section 1

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

3. 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

4. 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

5. 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

6. 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.

7. 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

8. 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

9. 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.

10. 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.