Classwork 24th May 2011
Methods of Production
Basic Terms
Needs and Wants
Needs are things which we must have in order to survive, for example:
•Food
•Water
•Warmth
•Shelter
•Clothing
Wants are things we want, but don’t need to survive, for example:
•Mobiles
•Computers
•iPods and Music Systems
•Television
•Chocolate
Primary Production
Primary Production involves acquiring raw materials. For example, metals and coal have to be mined. Oil drilled from grounds; rubber rapped from trees; foodstuffs farmed; fish trawled.
Secondary Production
Secondary Production is the manufacturing and assembly process. This involved converting raw materials into components, e.g. making plastics from oil, and assembling the product e.g. building houses, bridges and roads.
Tertiary Production
Tertiary Production refers to the commercial services that support the production and distribution process e.g. insurance, transport, advertising, warehousing and retaul, teaching and health care.
Gross pay
The amount of money you earn from your job, but you don’t keep this.
Net pay
The amount of money you take home after all the taxing and deductions.
Deductions
The money taken away from your gross pay to go towards taxes and contributions.
PAYE
Pay As You Earn – You pay taxes before you get the money you earn in your job.
Nations Insurance Contributions
Money deducted from your gross pay to go towards your insurance.
Ownership
Franchise
Franchise means where a franchisee buys the right to open a store under the Franchisor’s name.
Franchisee
Franchisee is the person/people who buy the right to use the name of the Franchisor’s company.
Franchisor
Franchisor is the name of the person who owns th original company and sells the right to use their name and open up another store elsewhere.
Sole Trader
A sole trader describes any business that is owned and controlled by one person, although they may employ workers.
Partnership
Partnerships are businesses owned by two to twenty people. A contract called a deed of partnership is normally drawn up.
Deed of Partnership
The deed of partnership is a deed drawn up when a partnership is formed.
Marketing
Promotion
Advertising Media
People
Stages in the Recruitment Process
Training – Resonns and Types
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Production
Batch Production
Flow Production
Primary Production
Location