Table Of Contents
1. Meaning Of Production
2. Types Of Production
3. Effects Of Production On The Environment
Meaning Of Production
Every day, people do different kinds of work to make money, to meet basic needs of life. Some are street cleaners. Office clerks, company executives, street traders and so on. All the efforts and activities have one thing in common, and that it, to make money. Any activity whose aim is to make money and which succeeds in making money for the work done is s productive activity. Those who provide goods and services that are paid for are said to have engaged in production.
Production therefore is the act of converting raw materials into finished product. It means the development and creation goods and services. Using resources to encourage exchange. It is the physical output of a manufacturing company. It is an act of providing service for payment.
Production involves three processes:
i. Raw Materials: This is the primary product needed for production.
ii. Work In Process: This has to do with the total labour or the input the company makes for the production of a particular good or service.
iii. Finished Goods: The Visible goods that are to be sold.
Types Of Production
Types Of Production Are Explained Hereunder:
1. Industry:
This is the production of goods and services within an area. It involves the extraction if resources directly from their natural sources like soil, river, forest. It also includes the following activities, farming, fishing, hunting, mining, logging, forestry and lumbering. It can also be a specific aspect of manufacturing and sale of goods. It can be defined as the production of goods from raw materials.
Industry is divided into 3 major parts namely : extractive, manufacturing and constructive.
a. Extractive Industry:
This is an industry that is mainly involved in the extraction(bringing out) of a raw materials from the earth, sea and forest. Example of extractive industry is the mining industry include diamond, gold, coal iron ore, lead, tim ore.
Other Forms Of Extractive Activities are:
i. Agricultural Production Known Also As The Agro Industry: This specializes in the following areas ;
i. Cultivation and harvesting of crops
ii. Catching of fish from the sea
iii. Forestry and lumbering activities
>> Firms specialize in the planting of trees and or felling of trees and subsequently cutting them into appropriate sizes called ”logs” for Sale.
>> Dredging/Excavation Industry: This involves in the excavation of shallow seas or fresh water with the purpose of keeping water ways navigable. Excavation of sand, and fishing for edible sea foods for sale.
>> Quarrying Industry: This specializes in the extraction of granite (gravels), building stones, sand etc.
b. Manufacturing Industry:
Manufacturing industry refers to those activities that involves the processing and finishing of items to produce new commodities. The final products can either serve as finished goods for sale to customers, or as party finished goods which could be used in further production. It involves the use of tools, machines and labour to produce for sale. In other words, it is range of human activity. Raw materials are transformed into finished goods on a large scale, which in turn could be used to manufacture other products. Lets take a tree as an instance. When a tree is cut into logs, the furniture industry either processes the logs into woods for sale to customers as a finished product, or as partly finished products which will be reprocessed to get furniture as a final product.
c. Constructive Industry:
This is a specialized industry that involves a wide range of activities in construction, fabrication and repairs. It has 3 major segments which are:
i. Building Construction: Like building of schools. Residential houses. Hospitals, churches, etc.
ii. Heavy/Civil Construction: Like the building of roads, bridges, tunnels, etc.
Iii. Trade Contractors: Perform specialized activities like carpentry, plumbing, painting and electrical works.
The construction industry makes it possible for the process of production to be quickly and efficiency completed. For instance, without roads. Raw materials and finished goods will not get to the market. The Construction industry plays a key role in the production process.
2. Commerce:
As already stated earlier on our Article, commerce is briefly referred to as trade and aids trade. It embraces all the activities that are involved in the effective and efficient movement of goods from the factories to the final consumers. It is the buying and selling of goods as well as rendering of services like banking, insurance, warehousing, transport etc.
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Commerce here has 3 major segments namely trade, aids to trade and services.
1. Trade:
This is the transfer of ownership of goods and services from one person or entity to another. It is sometimes called commerce or financial transaction or barter. A network that allows trade is called market. Trade allows finished goods to be sold in the open shop or market. Trade is necessary in commerce because without trade there will be no production.
2. Aids To Trade:
Aids to trade refer to those activities which directly facilitate smooth exchange of goods and services. As trade involves several difficulties, aids to trade helps to ease off the problems.
3. Services:
Services refer to work done for people for which they pay a person. They are intangible products such as accounting, banking, cleaning, education consultancy, insurance, tailoring, hair dressing, electrical works, barbering, etc.
Effects Of Production On The Environment/Society
1. Production provides food and improves the standard of living of the people: Through production food and other nutritive goods are made available for the people. People are afforded the opportunity of choice of goods and services which improve their lives and living standards. This promotes health and longevity.
Production has made life more comfortable as varieties of products-goods, medicines etc have been introduced to ease the burden of life.
2. Production promotes commerce including the exchange of goods and services. This is results in wealth creation and social development.
3. Production enhances job creation and employment opportunities for the learning youths and school leavers. This helps to stabilize society by reducing crime rate and anti social behaviour in the society. Job creation increases wealth and improved living conditions of the people.
4. Production promotes national development: When people are employed and enjoy higher conditions, they pay tax and development levies. They become patriotic citizens.
5. Production enhances trade, both internal and foreign, including import-export activities, which bring in foreign exchange and boosts foreign reserve. All these enable government to provide services and infrastructural development.
6. Production on the other hand creates problems in the environment. Industrial production produces poisonous gases like carbon monoxide which pollutes the air, dangerous chemical waste resources, causing death to fish and other aquatic organisms. It destroys agricultural production. Oil production In Nigeria has degraded the Niger Delta Region/environment and brought a lot of harm to the inhabitants. People have been rendered homeless, jobless and poverty stricken. The ogoni land is a case crying for justice and retribution.