Meaning of Production
Production can be defined as any human activity that involves the creation of goods and the provision of services to satisfy human wants. It is a process that transforms factors of production or inputs (land, labour, capital, and entrepreneurship) into output of goods and services.
Goods are tangible items or physical things that we can touch and see with our eyes, such as television sets, shirts, rice, etc. Services, on the other hand, are intangible things we cannot touch, such as medical services, teaching services, transportation, etc. A production process is not complete until the good or service reaches the final consumer.
Types of Production
Production may be categorised into three (3) main types: primary, secondary, and, tertiary.
1) Primary Production:
This is the type of production that involves the tapping and harnessing of natural resources. It is concerned with the process of obtaining raw materials or resources in their natural form from the air, land, and water e.g. agriculture, mining, fishing, quarrying, etc.
2) Secondary Production:
This type of production entails the processing of primary products or raw materials into finished or semi-finished products e.g. processed food, houses, roads, clothes, cars, furniture, paper milling, etc. It involves all stages that the good passes through after extraction to manufacturing.
3) Tertiary Production:
This is a type of production that is concerned with the provision of commercial and professional services to the people. The people involved in this aspect of production include those who render services e.g. teachers, doctors, hairdressers, soldiers, policemen, lawyers, musicians, etc. It also includes those who render commercial services like wholesalers, retailers, transporters, etc.
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