THE MEANING OF PRODUCTION
An activity to make or create a commodity or service
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
- Fulfilling the human requirement
- Obtaining the advantages
- Improving the prosperity
- Replacing the damaged or used up goods and service
- Accomplishing the needs of the market
KIND OF GOODS VALUE
- Form utility
- Place utility
- Time utility
- Ownership utility
- Service utility
- Element utility
THE PRODUCTION FACTOR
- Natural production factor
- Manpower production factor
- Capital production factor
- Entrepreneurship production factor
NATURAL PRODUCTION FACTOR
Consist of :
- Natural power
MANPOWER PRODUCTION FACTOR
labor who have certain skills through education process
is one who has a certain artifice through course
is one who does not has any craftsmanship, education, experience and special training
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
- Planning is an ability to make a plan determinization of his corporate goals
- Organizing is ability to create an organization structure with sharing task among those who has his own task
- Actuating/directing is a prosperity to encourage and guide toward all organization in order to accord with the control of task performance
- Controlling is a capability in evaluating the result of each organization member
KIND OF PRODUCTION
- Extractive is kind of production with put direct the natural resource.
- Agrarian is kind of production with manage and control the natural resource.
- Industryradechange the raw material to goods.
- Trade is change the value of goods with distribute the goods from factory to user.
- Service is kind of production in service.
ECONOMIC ETHICS IN EXPLOITING PRODUCTION FACTOR
- Utilization of a forest which is followed by reforestation effort.
- Employment of manppoer by giving thought the pair prosperity.
- Exertion of machines provided with waste water processing unit that fulfills the healt standard
- Competition withh the other companies fairly and properly.
INCREASING THE AMOUNT AND QUALITY OF PRODUCTION
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.
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.
is an extension action of production by adding the sort of production.
is a way to increase product by cleaming the old production factor with the new ones.
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
- The growth of population
- The advancement of culture
- The progress of science and technology
- Providing again the good and service that have been used up and damaged
- Human requirement is not limited