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Importance of production
Definition:
Creation of value
Goods and services are produced to satisfy needs and wants of the people.

Chain of production
The chain of production involves a series of stages, which add value to the
end product.
Production chain is the steps taken to convert raw materials into goods
Primary, Secondary and Tertiary

Branches of production
Primary production
Secondary production
Tertiary production

Primary production
Primary sector involves changing natural resources into primary products
The primary sector of the economy extracts or harvests products from the
earth.

Examples:
• Fishing , mining
• Farming
• Forestry

Secondary production
Secondary sector converts the primary goods into manufactured goods
The secondary sector of the economy manufactures finished goods.

Examples:
• Construction
• Textile production
• Processing

Tertiary production
Tertiary sector is the service industry which only provides services to its
customers.

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Examples:
• Banking
• Haircutting
• Teaching

Types of industries
• Extractive industries
• Manufacturing industries
• Construction industries
• Tertiary industries

Extractive industries
The extractive industry is concerned with the physical taking out of metals
and minerals from the Earth
Examples:
• Mining
• Quarrying
• Dredging

Manufacturing industries
The industry where raw materials are converted to finished goods by the use
of tools and machines
Examples:
Car manufacturing
Textile manufacturing

Construction industries
The industry where land development is done.
Repairing, building or renovating
Examples:
• House building
• Plaza building

Tertiary industries
The industries which are providing services
Examples:
• Banking

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• Haircutting
• Doctors

Specialisation and Division of Labour

Specialisation
To do something at which you are best
Division of labour
To divide the work into stages
Separation of work process into tasks, and each task is performed by a
separate person or group

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