Factors of production

1. Factors of production Natural resources There is six types of recourses and those are agriculture, fishing, mining, water, fuel, logging and forestry. Agriculture provides wheat for flour to make bread. Mining supplies bauxite that we use for making aluminum. Fuel provides energy for the machines that makes these machines operate. Primary industries are the six natural resources also referred as extractive industries.

2. Raw Materials Raw materials are goods used for manufacturing of other goods. Ingredients are the raw materials that consume a project. Processing is the state where all ingredients are taken from its original, natural state and converted into another product. Supplies are raw materials that do not become part of a new product- but the running of a business requires supplies to function.

3. Labour -A combination of mental and physical effort that employers provide, is called Labour. -Numerous tasks are being done by machinery now- automated. – or consolidated- consolidation occurs when a business site closes down and re opens in a new site, closer together. -Outsource- higher another company to perform a specific task- outsourcing companies use cheap Labour in India, Kenya, and Sri Lanka. - Outsourcing affects Canadians by the unavailability of jobs for Canadians.

4. Capital • Capital is the money you invest into a business, capital is referred as cash, stocks, bonds and accounts. • Liquid capital is the way to turn something into cash. • Non-liquid capital are items that a business owns that are used for every operation.

5. Information • Is a way to produce goods and services for people around the world. • Information refers to new technology, customers, competition, political conditions and sources of supply. • Information is what tells the customer about the company and their business and how many people use this and whether the people like their products or not.

6. Management • People who control the factories. Management gives the companies resources. Higher level managers decides how profits will be distributed, for instance, paying off debts, dividing amongst owners. • A manager can be a single person making all of the decisions or the head of a huge organization.

7. The Production Process Purchasing -In order to have enough raw materials for a business to produce service for people, somebody is required to be responsible for purchasing. -retailers employ buyers, who search for products to sell in their stores • Considerations when buying more bags… • The quality of the bag, the price of the bag, the hidden costs of the bag. • The main job of the purchasing department is to gather the needed products at the best price.

8. Improving productivity • Training programs are essential for improving productivity the four major types of training are initial training: is when employees receive pay during their first few days on the job, on going training: training time must be given to help employees learn the new material, retraining: when employees transfer into a different job and specialized training: is training that helps workers upgrade there skills

9. The production process processing -other countries provides us with the product so we can make aluminum cause the product used to make aluminum is not found in B.C so it gets imported from other places where it exists. - Refining is a way to converts unfinished products into fine and finished products.

10. Quality Control - They company makes sure that their products are good and they product testers are tested for any problems and if the product is not recyclable then it gets rejected.

11. Grading - Grading is how the product is produced and the quality of the product. After the product is produced then it gets graded A is better then grade B prime is better then choice and so on. These grades are on the packaging on the products. - Not all the products are rated.

12. Training • Employees tend to stay on task when they know what they are doing • Training is essential • There are four types of training • Initial when you first start a job • Ongoing when a new task is involved • Retraining transferring jobs • Specialized training upgrading

13. Capital investment • Capital investments contribute to increased productivity and before choosing a new item to invest in you have to ask yourself will it pay for itself

14. Investment in technology • Investments in technology is important because it helps the producers communicate with suppliers and sales representatives • Technology allows companies to track shipments and get information on other competition • Robotics and automation increases productivity by a lot

15. New inventory systems - production cant function if all the raw materials aren't there, Production is quicker when all parts are available - just-in-time is a process by which required items are delivered immediately before they are needed. - Using the factory systems, information is sent to suppliers to tell them how much inventory is needed to ship- and how much they should have on hand so there isn't an inventory shortage.