Production and stages of Production. Additional slides

2. What is Production?
 The processes by which raw material, semi-
finished goods, and intangible inputs, such as
knowledge or ideas are transformed into
tangible goods or services.
 Production is the act of creating goods and
services to satisfy individual needs and wants.

3. Stages of Production
 Primary Level
 Secondary Level
 Tertiary Level

4. Stages of Production?
 Primary
This type of production is directly aligned
to extractive industries, and is therefore the first
level of production. It involves extracting raw
materials (natural resources) from the earth.

5. Stages of Production
 Secondary
At the secondary stage of production,
manufacturing industries convert the raw
materials from the extractive industries into the
desired products.

6. Stages of Production
 Tertiary
The tertiary level of production refers to
all the services that are provided to consumers
and to manufacturers. If goods are produced then
they must get to the consumers through various
services. If producers or manufacturers are to get
the goods to the consumers, then they need to
access funds from financial institutions to
finance distribution and other related activities.

7. Industries Associated With Primary
Level
 Extractive Industries: In the extractive
industries, raw materials are removed directly
from the natural environment. Therefore,
agriculture, mining, fishing and forestry are
extractive industries. In the Caribbean, bauxite
mining takes place in Jamaica and Guyana.
However, the bauxite industry is undergoing
some challenges given a decline in the demand
for bauxite on the world market.
 Oil drilling and mining take place in Trinidad

8. Industries Associated With Primary
Level
 Lumber that is used in the furniture and building
industries comes from Guyanese and Belizean forests.
 The agricultural industry produces sugar cane, bananas,
fruits, vegetables, spices and ground provisions such as
yam, and dasheen for domestic and export purposes.
Fruits such as bananas and mangoes are in abundant
supply and can be used as they are, or can serve as raw
material in the food processing industry. Horticultural
produce is also added to the list of exports.

9. Industries Associated With Primary
Level
Primary Production
(Extractive Industries)
Some Caribbean Products Some products of More developed Countries
Agriculture:
Sugar cane
Yam
Bananas
Vegetables
Fruits
Dasheen
Spices
Cocoa
cofee
Forestry:
Timber
Fishery:
Fish
Mining:
Bauxite
Ore
Gold
Petroleum
Quarrying:
Stone
Gravel
Agriculture:
Wheat
Barley
Tobacco
Oats
Soya bean
Potatoes
Vegetables
Tobacco
cotton
Forestry:
Timber
Fishery:
Fish
Mining:
Copper
Iron
Nickel
Zinc
Tin
Diamond
Gold
Petroleum
Quarrying:
Stone
Gravel

10. Industries Associated With
Secondary Level
Manufacturing Industries
 Bauxite ore is converted into aluminum
 Oil is used to generate electricity
 Trees are inputs in the production of furniture and building
construction
 Some fruit and ground provisions are inputs in the
production of processed food items
 Cement is used in building and road construction
 Oil is used in the production of petroleum-based products

11. Industries Associated With
Secondary Level
The Construction Industry
 The construction industry, another major secondary
level industry, engages in building and other types of
construction activities. The industry uses mainly
manufactured products, for example cement made
from limestone and clay (primary products) in the
construction of buildings and sidewalks. Asphalt, a
by-product of oil, is used with limestone and clay
(marl) in road construction.

12. Industries Associated With
Secondary Level
 The assembling of prefabricated materials is a
popular method used in the construction industry.
Prefabrication means that parts of the products are
produced in factories and then assembled. Houses,
aeroplanes, bridges, and some swimming pools
are assembled on site.
 Other products are assembled, not on site, but in
other factories or manufacturing plants. All these
products are examples of secondary level
production or what is commonly referred to as
manufacturing.

13. Industries Associated With
Secondary Level
 Garment Industry
The garment industry, another major secondary
level industry, engages in the production of
garments and other related products. The
materials used for the construction of garments
come from cotton and oil-based materials,
among others.

14. Examples of outputs from
Secondary Production.
 Machinery
 Paper, petroleum
 Oil
 Wood products
 Steel
 Iron
 Motor vehicles
 Aeroplanes
 Processed food
 Rum
 Garments

15. Examples of outputs from
Secondary Production
 Caribbean countries that engage in production
often depend on more developed countries for
the supply of some raw materials they need.
Also, because of the scarcity of financial
resources, Caribbean countries tend to borrow
from the more developed countries or
international lending institutions or agencies to
finance major projects.

16. Industries Associated With Tertiary
Level
 The tertiary level of production refers to all the services that
are provided to consumers and to manufacturers. If goods are
produced then they must get to the consumers through various
services. If producers or manufacturers are to get the goods to
the consumers, then they need to access funds from financial
institutions to finance distribution and other related activities.
 Some organizations participate in production at the three
stages: primary, secondary and tertiary while others participate
at the secondary and tertiary, or only at the tertiary level. All
countries are involved in offering services of one kind or
another and are thus involved at the tertiary level of production.

17. Industries Associated With Tertiary
Level
 Services can be direct, whereby the customer and the
provider of the service work together.
 Service can be indirect, whereby the service is routed
through other companies.
 Service can be commercialized, whereby a company
provides the services to an entire population.