Defining The Key Terms of Production
Define The Conversion Process
The process where the inputs turn into products.
Define Economic Resources
All of the resources used to fulfill economic needs or wants
The release/export of a product with a designated location and task.
Dispatching
Define Inputs
All of the resources put into the production process to produce the outputs. Some examples of inputs include the timber used to manufacture furniture, the fabrics used to produce clothing, and the flour used to make baked goods.
Define Capital Goods
All of the resources involved in producing goods or services
The step in the production process where the sequence/order of the production steps is determined.
Routing
Define Outputs
The goods and services produced from putting the inputs into the production process. Some examples of outputs include the furniture produced with timber, the clothing produced with fabrics, and the baked goods produced with flour.
Define Raw Materials
All of the resources obtained from the Earth, such as wood from trees or ores/minerals from the mountains.
The process of production in which a business determines what products will be produced and how much of a product to produce.
Planning
Define production
Production is the economic process of using resources to produce goods and services.
Define Scarcity
The condition that comes as a result of the gap between the unlimited want for goods and services and limited resources to fulfill those wants.
Involves allocating time to the different parts of production. It establishes the amount of steps in production and the amount of time each step will last. It also determines when the inputs for production (resources) will be delivered to the place where production occurs, such as a factory.
Scheduling
Define operations
Operations is all of the day-to-day activities a business engages in during the production process.
Define the Factors of Production
The factors of production are capital goods, raw materials/natural resources, and human resources.
Systematically checking the different activities/steps of its production process and ensures that everything lines up with the plan the business outlined. It ensures that all of the raw materials and parts used in the production process are traveling through the process correctly, and not being misused.
Follow-up