Production

Business Studies J.S.S 1 Second Term

WEEK 2

Production

Performance Objectives

The student should be able to

     1. Define production.

     2. Explain the types of production.

     3. State the effects of production on the environment and society.

Content

Meaning of Production

Production may be defined as any human activity that involves the making of physical goods and provision of services for the satisfaction of human wants. It is also seen as the creation of utilities, utility means the ability of goods and services to satisfy human wants. In a nutshell, Production is any activity which gives services or changes the form, place or time of anything that is used to satisfy human needs.

Forms of Production/Types of Production

There are three forms of production and they are:

1. Primary Production (Extractive Industry): This type of production involves digging of raw materials or tapping and harnessing of natural resources from the land, sea and atmosphere.  It includes farming, fishing, hunting, mining, quarrying, oil drilling etc.  This form of production is referred to as primary production.

2. Secondary Production (Manufacturing and Constructive Industry): This is the process of converting raw materials or primary products from the extractive industry into finished or semi-finished goods.  This class of products includes furniture making, road construction, bridges, paper milling, food processing, car production, chemical, textile etc. Constructive: this form of production is concerned with the design and manufacture of capital goods. Capital goods are equipment or machinery that can be used for a long period of time to make more wealth. it involves contract construction work such as building roads, bridges, factories, equipment and residential and public building. Examples of companies in the construction industry include Costain, Julius Berger

3. Tertiary Production (Commercial and Professional Services): Commercial services make it possible for the goods produced to reach the consumer. Indeed, production cannot be completed until what is produced reaches the final consumer i.e. the person that desires it and would make use of it. Commercial activities include distribution (storage and transportation), exchange of products and aids to trade (banking, advertising, warehousing, insurance, transportation and communication). 

The professional services which are equally known as direct or personal services are provided or rendered directly or indirectly by people to give satisfaction to those who want them.  These are services like teaching, catering, tailoring, hairdressing etc.

Services

These are work done in order to give relief or satisfaction to people. As some workers provide a utility that satisfies man’s want and needs through their activities of producing goods, some offer satisfaction through the provision of services and these services can be divided into direct and indirect services.

I. Direct services: These are services rendered to the consumers for immediate satisfaction of their wants a paid for directly. These include the services of private lawyers, taxi drivers, household servants, stewards, hairdressers, barbers etc. These people bargain with their employers directly and receive their wages/salaries from their employers.

II. Indirect services: These are services rendered to members of the public but which the government through revenue generated from direct and indirect tax, settle on behalf of the public e.g the services of the Nigerian police, army, customs, civil servant, lawyers etc.

Positive effects of production on the environment/society

The environment is the place where people live and work including all the physical and natural conditions that affect them such as air, water, rivers, oceans and land. Below is the positive effect of production on the environment or society.

1. The production makes goods and services available for the consumption/satisfaction of human wants.

2. It makes us enjoy a better standard of living.

3. It provides employment opportunities.

4. The factories and big offices make our environment look beautiful and admirable.

5. Society is developed.

Negative effects of production on the environment/society

1. The extraction of mineral resources in a place may destroy the land on which people farm. This may lead to hunger and starvation because they will have no place to farm.

3. Production causes air and water pollution. This because waste materials or gases released into the air and water can pollute them.

3. Some factories produce dangerous chemicals/products, which are dangerous to the health of the workers and can cause the death of the people in general. Examples are the production of cement, germicides and pesticides.

4. The vehicles cause a lot of accidents which lead to the destruction of life and property.

5. The heavy vehicles destroy our roads earlier than expected.