Production: Meaning, Definition, Types and Factors
If a number only has itself and 1 as factors, then the number is "prime". Unit test . Level up on all the skills in this unit and collect up to Mastery points!. Factors of production are the resources used to produce goods and services. Economists divide the factors of production into four categories: land, labor, It's time to test your knowledge with a little game I like to call, Name That Resource. AN ANALYSIS OF FACTOR PRODUCT RELATIONSHIP. IN PRAWN FARMING-A PRODUCTION FUNCTION APPROACH. DISSERTATION SUBMITTED BY.
Examples of control factors are equipment settings, material used to manufacture the product, or product design features.
Production: Meaning, Definition, Types and Factors
Noise factors Noise factors are process or design parameters that are difficult or expensive to control during manufacturing. Examples of noise factors are ambient temperature or humidity. Consider a cake mixture manufacturer who wants to optimize cake flavor under various conditions. The manufacturer wants to determine control factors that reduce the effect of noise factors on cake flavor. Control factors, which are in the manufacturer's control include cake mixture ingredients. Noise factors, which are out of the manufacturer's control, include the air temperature and humidity while the consumer is making the cake.
Using noise factors to identify optimal control factor settings In Taguchi designs, noise factors are factors that cause variability in the performance of a system or product, but cannot be controlled during production or product use. You can, however, control or simulate noise factors during experimentation. You should choose noise factor levels that represent the range of conditions under which the response should remain robust.
Common types of noise factors are: Technology must be chosen with the end-users in mind. Knowledge Management In many organizations today; knowledge is treated like gold dust and guarded by its owners as they would stolen treasure. Unfortunately, the creation of knowledge silos like these makes it impossible for knowledge to be effective.
Likewise user research data can be highly valuable to the marketing team but once again — only if they can access it. However, there is nothing preventing the design team from advocating for open knowledge management structures or indeed persuading senior management to support such structures. This means that the design team will have some input into the strategies chosen and will be able to influence these strategies with their user research to guide the strategy to fit the needs of their users.
It is probably fair to say that product management will normally have the final say on a strategic direction but designers have plenty of room to negotiate with product managers to ensure better outcomes. New Product Development Speed Speed to market is a critical factor in success. New Product Development Process Having clear processes for design and development are essential. This means two things: In fact, any economic activity takes place to satisfy the consumers.
And, consumption demand provides the business people with the incentive to undertake production. Peculiarities of Labour as a Factor: In examining labour markets, it is important to recognise that labour has a number of special characteristics which distinguish it from ordinary commodities. First, labour market transactions are particularly significant for: First, labour market transactions are particularly significant for the individual worker.
Labour is an end and means in itself: A commodity is only a means of production and the object of production is its consumption by labour. Labour, therefore, becomes a means to its own end. Thirdly, the individual sells his services but not himself: The employer, however, must be able to exert some control or authority over the actions of employees.
This is not a very simple matter, which can be covered unambiguously by a contract of employment. A great deal of energy has been devoted to planning systems for the direction of employees, and even a brief examination of the state of industrial relations in most countries shows that still much remains to be done.
Labour is inseparable from the labourer: In other words, labour and the labourer go together. But the labour can supply his labour only when he goes with it.
Moreover, when a seller sells a commodity he parts with it. But when a labourer sells his labour, he retains the quality with him. He may gain the satisfaction of his services, but he cannot be separated from the labour. Fifthly, the individual must be present when the labour services are used and thus a fifth feature is that labour services are not transferable: For example, a person who has agreed to carry out certain tasks cannot transfer his services to someone else to do the work, while he does something else.
This contrasts with commodities which can be transferred among individuals. Working conditions are of central importance to workers. It also means that workers must live near their place of work. The location may significantly affect labour market decisions. Sixthly, labour services cannot be stored: A commodity, if it is not disposed off today, can be disposed off the next day and it may not lose its value.
Labour, however, is perishable in this that if the labourer is not able to sell his services for a day he cannot get the value for that day.product product relationship- classification of product- optimum combination of product- avinash
It is lost forever; it is because of this that labour has a weak bargaining power. Labour is affected by surroundings: A commodity is usually very much affected by its surrounding; a labourer is very much affected by the surroundings because he is a living being. The supply of labour is independent of its demand: In case of most commodities we see that supply usually varies with demand but in case of labour its supply is in no way related to demand.
Both are determined by different factors. Finally, labour services are enhanced by training: Skill acquisition is often a lengthy and costly process.
This also means that individuals do not usually train for more than one occupation as they only have a limited working life over which to justify the investment. The mobility of labour has two aspects: It may apparently seem that labour is the most mobile of all factors—both occupationally and geographically.
Workers can move both freely from one industry to another and from one region to another. The reward or price that is paid to labour in return for the services it performs is known as a wage or salary. In general, the supply of labour varies directly with wages and compensation. Normally, when wages are relatively low, increases in wages will tend to lead to an increase in the supply of labour. However, as wages continue to rise a stage ultimately comes when higher wages incomes make leisure more attractive.
When incomes are relatively high, therefore, higher wage rates may actually lead to a fall in the number of hours worked and, thus, in the amount of labour offered by an individual worker. This is why the supply curve of labour bends back to the left and this is often cited as an important exception to the empirical law of supply. Capital, the third agent or factor is the result of past labour and it is used to produce more goods. In a board sense, any product of labour-and-land which is reserved for use in future production is capital.
To put it more clearly, capital is that part of wealth which is not used for the purpose of consumption but is utilised in the process of production. Tools and machinery, bullocks and ploughs, seeds and fertilizers, etc.
Even in ancient times, capital was created for producing food, hunting animals and for the transportation of goods. At that stage capital goods consisted of simple tools and implements.
Even in the least developed countries some capital is used.
Theory of production | economics | senshido.info
In such countries people make use of simple ploughs, axes, bows and arrows, and leather bags to carry water. Thus, if a doctor goes out in his motor car to examine a patient he is using his car as capital. But if he goes out for a joy ride in his motor car, he is using it as a consumption good.
Similarly, when coal is used in a factory, it is capital, but when coal is used as domestic fuel, it is a consumption good. Economists use the term capital to mean goods used for further production. In the business world, however, capital is always expressed in terms of money.
But money is not capital because money, by itself, cannot produce anything. The business-person thinks of money as capital because he can easily convert money into real resources like tools, machines and raw materials, and use these resources for the production of goods.
Also capital is measured in terms of money. So the amount of resources used or possessed by a business-person is conveniently expressed as a sum of money.
Capital can be classified in two broad categories that which is used up in the course of production and that which is not. Fixed and Circulating Capital: Fixed capital means durable capital like tools, machinery and factory buildings, which can be used for a long time.
Things like raw materials, seeds and fuel, which can be used only once in production are called circulating capital. Circulating capital refers to funds embodied in stocks and work-in- progress or other current assets as opposed to fixed assets. It is also called working capital. Two Features of Capital: Two important features of capital are: In fact, it is this enhanced productivity which represents the reward for the sacrifice involved in creating capital. Hence we can predict that new capital is only created so long as its productivity is at least sufficient to compensate those who make the sacrifices involved in its creation.
Factors in Taguchi designs
These two features may now be discussed in detail. People use capital goods like machines, equipment, etc. But this is not the whole truth. People use capital for another important reason to produce goods with less effort and lower costs than would be the case if labour were not assisted by capital.
But in order to use capital goods people must first produce them. This calls for a sacrifice of current consumption. When people use their labour to produce capital goods like textile producing machines, they can use the same labour for producing consumer goods like textiles. The creation of capital depends on two things: Saving is the difference between current income and current consumption.