Kamis, 16 April 2009

PRODUCTION

PRODUCTION

THE MEANING OF PRODUCTION
An activity to make or create a commodity or service
Or
Is an activity to established or add the utility value of a thing or service to accomplish human necessity

THE PURPOSE OF THE PRODUCTION ACTIVITY
  1. Fulfilling the human requirement
  2. Obtaining the advantages
  3. Improving the prosperity
  4. Replacing the damaged or used up goods and service
  5. Accomplishing the needs of the market

KIND OF GOODS VALUE
  1. Form utility
  2. Place utility
  3. Time utility
  4. Ownership utility
  5. Service utility
  6. Element utility

THE PRODUCTION FACTOR
  1. Natural production factor
  2. Manpower production factor
  3. Capital production factor
  4. Entrepreneurship production factor

NATURAL PRODUCTION FACTOR
Consist of :
  1. Land
  2. Water
  3. Natural power
  4. Minerals
  5. Climate

MANPOWER PRODUCTION FACTOR
Skilled labor
labor who have certain skills through education process
Trained labour
is one who has a certain artifice through course
Uncultived labor
is one who does not has any craftsmanship, education, experience and special training

CAPITAL
Capital production factor
According its form :
Concrete/real capital is one which is applied in the production process (money or commodity)
Abstract capital is an object which is still in the form of a stock and not yet used as a production process.

According its charactersitic :
Circulating capital is one which is use up in production process
Equity capital is the owner’s own capital

According to the source :
Privat capital/ownerships capital.
Capital charges is a capital which does not from the owner but from another party

According to the purpose :
Individual capital is a capital with an intention of giving profit to the capital owner
Public capital is a capital which heads to make profit for community

ENTREPRENEURSHIP
  1. Planning is an ability to make a plan determinization of his corporate goals
  2. Organizing is ability to create an organization structure with sharing task among those who has his own task
  3. Actuating/directing is a prosperity to encourage and guide toward all organization in order to accord with the control of task performance
  4. Controlling is a capability in evaluating the result of each organization member

KIND OF PRODUCTION
  1. Extractive is kind of production with put direct the natural resource.
  2. Agrarian is kind of production with manage and control the natural resource.
  3. Industryradechange the raw material to goods.
  4. Trade is change the value of goods with distribute the goods from factory to user.
  5. Service is kind of production in service.

ECONOMIC ETHICS IN EXPLOITING PRODUCTION FACTOR
  1. Utilization of a forest which is followed by reforestation effort.
  2. Employment of manppoer by giving thought the pair prosperity.
  3. Exertion of machines provided with waste water processing unit that fulfills the healt standard
  4. Competition withh the other companies fairly and properly.

INCREASING THE AMOUNT AND QUALITY OF PRODUCTION
Extensification
an effort to raise the products by adding the production factors which are employed. Example :
Founding new factory branch.
Extension the farm area.
Addition of new employees.
Intensification
an exertion to improve the production by up-grading the capability of the production factor. Example :
Preparing the agriculture soil.
Improving the quality of the labour.
Diversification
is an extension action of production by adding the sort of production.
Rehabilitation
is a way to increase product by cleaming the old production factor with the new ones.
Mechanization
is a method of rising the quality and product by applying machines as a means of instrument aid so that the work can be completed swiftly.

REASON OF PRODUCTION INCREASE
  1. The growth of population
  2. The advancement of culture
  3. The progress of science and technology
  4. Providing again the good and service that have been used up and damaged
  5. Human requirement is not limited

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