1. Meaning Of Production
2. Types And Forms Of Production
3. Factors Of Production
4. Effects Of Production On Environment And Society
WHAT IS PRODUCTION
Production is the transformation of raw materials into finished goods, as well as the distribution of the finished goods to the final consumer. Production involves the creation of goods and services for the purpose of satisfying human wants.
Types/Forms Of Production
There are three types/forms of productions;
1) Industrial Production
2) Service Production
3) Commercial Production
(1) Industrial Production: This involves all the activities associated with extracting and transforming raw materials into goods as well as adding utility to the goods making it available to the consumer.
Industrial Production is classified into three:-
a) Extractive Industry: This industry involves people who are responsible for bringing out raw materials (natural resources) from the earth, soil or river.
b) Manufacturing Industry: This industry involves people who are responsible for transforming the raw materials extracted from soil or river into finished goods.
c) Constructive Industry: This Industry makes use of the goods produced to build things thereby adding further utility to them.
(2) Service Production: This involves the activities of direct or indirect service providers. Direct services involves the services one enjoys directly, Example: the services of a doctor, nurse, teacher, barber, etc.
(3) Commercial Production: This involves the activities associated with moving goods to the final consumers. It is classified into;
i. Trade: The buying and selling of goods and services.
ii. Aids To Trade: Activities Which facilitate trade such as banking, transportation, communication, insurance, Warehousing etc.
Factors Of Production
Factors of production refers to the elements which helps to facilitate Production and they are as follows:
1.) Land: This comprises all kinds of natural resources-fertile soil, forest, mineral deposits.
2.) Labour: This involves the human efforts both physical and mental (skilled and unskilled).
3) Capital: This is a wealth or resources set aside for more generation of wealth/resources.
4) Entrepreneur: This is also known as an organiser who coordinates the other factors of production to ensure effective Production.
Effects Of Production On Environment And Society
The effects of production on environment and society varies on the practices or mechanism used in Production but it’s general effects ranges from deforestation to pollution, soil degradation, climate change, improper waste disposal among others.
Production activities has brought about the loss of forest reserves, as trees are being cut down to be used as raw materials for the manufacturing of one product or the another.
Likewise, Production brings about pollution of the sir and water bodies which poses a great health risks to the society.
Production has also brought about soil degradation which affects the soil fertility, changes in the soil acidity and erosion through contamination of the soil with the waste generated through Production activities.