3. Lesson Objectives:
By the end of this lesson you will:
a. Describe the meaning of production.
b. Describe the ways of managing resources effectively to
produce goods and services.
c. Differentiate Production and productivity.
d. Evaluate the benefits of increasing efficiency and how to
increase it, i.e. increasing productivity by automation and
technology, improved labour skills.
4. Production
• Production is the process by which inputs are turned
into finished products which are of economic value.
• If the finished products have no economic value then
the resources which could have been used for an
alternative product would have gone to waste.
• While it is the aim of an organisation to earn profits
an organisation should identify ways in which the
resources can be used in the most economic manner.
5. Ways Of Managing Resources
Effectively
• In order to produce goods and
services in the most effective
manner, proper allocation of
resources are required
• In order to make the best use of
resources, producers should
identify the most suitable
method of production which
would eliminate wastage and
increase productivity.
• This involves in employment of
the best method of production
which suites the production of
the intended product.
6. Capital Intensive Or Labour
Intensive Production
• Capital intensive productions require more capital or
machineries, whereas labour intensive methods
require more labour involvement.
7. Production vs productivity
• While production is to
combine the factors of
production in order to
create a good or
service (converting
inputs into outputs),
productivity can be
referred to as the rate
at which goods and
services are being
produced
8. How To Increase Productivity and Its
Benefits
• Productivity is more related with the efficient
use of factors of production, eliminating waste
• Technology plays a vital role in enhancing
production as with the use of technology some
tasks can be completed much quicker than
getting them done by manual labour.
– Also, technology eliminates the possibility of
boredom faced by individuals when been employed
in repetitive work.
• Nevertheless, to make the best use of
technology the skills of labour have to be
improved.
9. Lesson Objectives:
By the end of this lesson you will:
a. Describe the meaning of production.
b. Describe the ways of managing resources effectively to
produce goods and services.
c. Differentiate Production and productivity.
d. Evaluate the benefits of increasing efficiency and how to
increase it, i.e. increasing productivity by automation and
technology, improved labour skills.
