21 August 2019

Concept of production

Production is the transformation of inputs into output where inputs are used in many ways such as land, labour, capital, raw material etc. 

Production concept emphasis on low production costs, and high production efficiency and mass production simply said a large amount of the cheapest goods. 

The function of production :

The function of production is the technological relationship between inputs and output in physical terms. An algebraic expression for production is Q = f (K, L)

Where Q = The quantity of output produced per unit time
K = Capital 
L = Labour 

Characteristics of the production system : 

  • The production system has its own objective.
  • The system transforms the various inputs to the useful output.
  • Does not operate in isolation from the other organization system. 
  • There exists a procedure which controls and improve system performance. 

Types of production : 

  • Continuous production 
  • Batch production 
  • Mass production 
  • Job-shop production