Today’s Response Journal

What is production? In the past, what things have you produced or helped

to produce?

***Save as Oct. 14 in your Response Journal Folder***

Factors of Production If you have ever made anything, you have

been involved in production If you have buttered a piece of toast, you have

produced something that wasn’t there beforeYou need other items to make the toast – a

toaster, bread, butter and a knife Another name for factors of production is

____________________ Economic resources are the means through

which goods and services are made available to consumers

Economic Resource

Factors of Production

Factors of Production include the following; Natural resources Raw materials Labour Capital Information Management

Natural ResourcesIt may be hard to believe, but everything in the world is

made from only 6 types of natural resources; 1. Agriculture2. Mining3. Water4. Fuel and energy5. Fishing and trapping6. Logging and forestry

These industries are known as __________ industries, because they are where all items start out

Since primary industries often require taking something out of the earth or sea, they are also called ____________ industries (“extract” means to take out)

Primary

Extractive

Raw Materials _______________ are any goods used in the

manufacturing of other goodsRaw materials can be considered ingredients that are

transformed into other productsE.g. wheat, a natural resource, is the raw material that makes

flour. Flour is the raw material that makes bread. Bread is the raw material that creates toast

Occasionally we buy raw materials E.g. fish, fruits and vegetables

There are 2 main types of raw materials; 1. Ingredients

2. Supplies

Raw Materials

Raw Materials - Ingredients _______________ are the raw materials that go into a product

Ingredients are items that have been _____________ in some manner

_____________ involves converting raw materials into a product○ E.g. Flour mills process wheat into flour, so that it can be used to make

products such as bread

Harvest Store Process

Ingredients

Processed

Processing

Raw Materials - Supplies

___________ are raw materials that DO NOT become part of a new product

Instead, supplies are used in the __________ of a business. They are used to maintain machinery and equipment, help in the administration of offices and to keep the business cleanE.g. oil, detergent, envelopes, paper, etc.

Supplies

Running

Labour __________ includes all the physical and mental

work needed to produce goods or services Labour is a significant ______ for business owners There are 3 ways companies can cut down on labour

costs; Many jobs done manually in the past have now been

______________ (using machines)E.g. use of robots in a car assembly plants or ATM instead

of bank tellers Some companies ____________ (centralize) their

operationsRead example in paragraph 2, pg 158 (Tim Hortons)

Some companies ___________; hire another company, to perform part of their operation Read example in paragraph 3, pg 158

Labour

Cost

Automated

Consolidate

Outsource

Capital __________ is the money invested in a business

Includes cash, stock, bonds, accounts receivable, etc.

The owner of a business can use capital to buy things(capital goods) the business needs to operate

Capital

Types of Capital

1. LiquidLiquid capital CAN be transformed into other things

very quickly○ E.g. If your business needs a new truck, you can

easily exchange the money in your bank account for it

2. Non-liquidNon-liquid capital CANNOT be easily transformed

into other things○ E.g. If you want to sell your current office building, it

may take weeks or months to find an interested buyer

Information To produce goods and services competitively in a global

economy requires ____________ It is necessary to gather information on …

CustomersCompetitorsThe economyTechnology

Access to information minimizes _______ and can lead to increased __________

Information can also be a product that is bought and soldE.g. market research

Information

RiskProfit

Management _____________ are the people who control

the factors of production. They decide …What products will be made?Who will make them?Where to sell them? Etc.

Also decide how business profits will be divided upGiven to ownersPaying off debtReinvesting back into the business

Management

Day 1 – Assigned Work

Students please complete the following; Read Profile: Ganong Bros Limited on

pages 153 – 154 and answer the 2 corresponding questions

Review Questions #2 & 5 on page 161

Today’s Response Journal

If you are looking to buy a new smartphone, what factors would you take

into consideration before making the purchase?

***Save as Oct. 15 in your Response Journal Folder***

Production Process

The ___________________ outlines the steps involved in making a product

The 4 Stages in the Production Process are; 1. Purchasing

2. Processing

3. Quality Control

4. Grading

Production Process

Purchasing Purchasing ensures that the right __________

of raw materials are on hand when needed Sometimes businesses directly hire people to

work within the company to make purchases or they hire purchasing agents outside of the company

The goal of purchasing is to … Acquire the products needed at the best

price possible Read the example in paragraph 3 on page 162

Quantity

Processing _____________; converting raw materials into

a product Processing will differ depending on the raw

materials involved and the product/service being created Read the example in paragraph 3 on page 163

Processing could involve …___________; a form of processing used by metal-

producing firms, oil companies and sugar companies to convert a raw material into a semi-finished or finished product

Processing

Refining

Quality Control (QC) ___________________ ensures that the

product made by a company meets certain standards

In most cases, these standards are set by the company, but certain products, such as food, medicine and toys must meet government standards as well

Quality standards are also set by the _______ (International Organization for Standardization)

Quality Control

ISO

What is the ISO? ISO is a worldwide organization that sets

standards for numerous industries ISO helps businesses, consumers, governments

and trade officials If your product is ISO-certified, then other

businesses, consumers, governments and trade officials know that your product meets international standards

Grading ___________ is the process of checking products for

size and quality, against fixed standards for the product

After a product is checked, a __________ is assignedE.g. grade A is better than grade B

Grades are often displayed on the product, and are commonly found on eggs, fruits and vegetables

Many products are not graded, but their quality can be determined by how the product is advertisedE.g. “seconds” – implies that the product has slight

defects or was previously used/owned

Grading

Grade

Day 2 – Assigned Work

Students please complete the following; ISO Activity

Handout provided

Review Questions #7 & 8 on page 166

Today’s Response JournalRead the Ethical, Moral & Legal Considerations

section in your textbook on page 165.

Do you care more about the availability of inexpensive chicken or the treatment of these

animals? Explain your reasoning.

***Save as Oct. 20 in your Response Journal Folder***

Productivity

________________ is a measure that compares the amount of resources used to make a product/service with the actual number of products/services madeIf fewer resources are used per unit produced,

productivity ___________

Read paragraph 4 on page 166 and paragraph 1 on page 168

Productivity

Increases

I Love Lucy

Productivity

Increased productivity consists of …

1. Maintaining quality while increasing speed

2. Increasing quality while maintaining speed

3. Increasing both quality and speed Read the example in paragraph 2 on page 168

Ways to Improve Productivity Productivity can always be improved

4 ways a business can improve productivity include …

1. Training

2. Capital Investment

3. Investment in Technology

4. New Inventory Systems

1. Training Employees are productive when they know

what they’re doingThe 4 Major Types of Training include; A. Initial trainingB. Ongoing trainingC. RetrainingD. Specialized training

A. Initial Training

Usually occurs within the first few days or weeks on the job

Some business try to minimize the training period so the employee will become productive quicker

If training is too short, employees may … Become frustrated Make mistakes Damage equipment

B. Ongoing Training & C. Retraining _____________________ is needed when

new systems, technology or procedures become part of the business, training must be given to employees so that they can learn how to use it effectivelyEmployees may also need periodic refresher

courses on important aspects of the job

_______________ is needed if an employee takes on a new job (may require additional training)

Ongoing Training

Retraining

D. Specialized Training

Can include the upgrading of skills in order to remain current

Also known as ________________________Professional Development

2. Capital Investment There are a number of capital investments that

could lead to an increase in productivity including; New technology (e.g. a new computer, new

machinery, etc)New plant or office building

Must consider the _______________ of these large purchasesHow long will it take to recover your cost?Will the cost of your new capital good increase

productivity enough to pay for itself within a reasonable period of time?

Cost/Benefit

3. Investment in Technology

New technologies can lead to increased productivity as new technology allows companies to …

Track shipmentsResearch the competitionOrder raw materials and inventory when neededComplete the production process more quicklyGenerate accounting information faster to allow for better

decision makingE.g. BlackBerry’s Q10 or Z10 is a phone, database, Internet, text-messaging centre and appointment calendar all in one. These types of products have helped businesses increase their productivity

4. New Inventory Systems Production of a product stops if all the needed raw

materials are not at the business On the other hand, production speeds up if all the

needed parts are there precisely when needed ___________________________________ co-

ordinate suppliers, storage and factory floor delivery so that no material is out on the production line that won’t be used up in a short period of timeJIT saves time, wasted materials and factory space,

therefore increasing productivity

Just-in-Time Inventory Systems (JIT)

DVD – Waterslides: Making A SplashWhile watching the DVD listen for answers to the below questions. As a class, we will discuss after the video.

1.How large is the amusement park business in the U.S.?$19 billion/year

2.What gave Rick Hunter his big break?When Disney came calling - he built Disney’s Blizzard

Beach water parkWho is Rick’s major competitor?

White Water West Industries – Richmond, B.C.

1.What do amusement parks rely on most for a successful season?

1. Good weather

DVD – Waterslides: Making A Splash

5. How does ProSlide illustrate the six factors of production?

Natural Resources Water

Raw Materials Need the plastic, steel, etc.

to build the water slides

Labour Needs employees to make

the components and assemble the waterslides on site

Capital Need lots of money to develop

and build them Sell for $900K to $1 million

each

Information Need to know what will sell;

what will give the guests a thrill Need to know what your

competition is building

Management Rick controls everything;

decides what will be made, where and by whom

Day 3 – Assigned Work

Students please complete the following; Review Question #11 on page 171 Review Questions #1 & 2 (not c) on page 172