Notesale: Turn your study into money

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PRODUCTION: TYPES OF PRODUCTION, FACTORS OF PRODCTION
Production is a process of value addition which is developed to transform a set of input
elements like man, raw material, capital, energy, information etc into finished products and
services in proper quality and quantity
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Factors of Production
Nature: It is a very important factor for any production
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Suitable land and the availability of
water make production easier
Labour: human effort is a necessary factor for production
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The combination of an adequate number of labor
with suitable skills and reasonable labor wages can highly benefit the production process
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This is
because money is not directly involved with the production of product or services
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Buying a car for
personal use and family transport is not considered capital but buying a vehicle for
commercial use is considered as capital
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Types of Production
There are four types of production system that are generally employed
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1
...
A typical example of job production is tailored outfits that are made just for
you and according to your size
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Batch production

It is commonly used in consumer durables or other such industries where there are a large
variety of products being manufactured with variable demands
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The manufacturer needs to know the number of units he has to manufacture, and
they are manufactured in one batch
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3
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An assembly
line or mass production plant is typically made for specialized product manufacturing
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4
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It can be
differentiated by the amount of mechanical work involved
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