World Geo 3200/3202March / April 2011

OverviewUnit 5 gives us insight into selected secondary activities

in which humans engage as they transform raw materials, provided by primary activities, to more finished forms.

Manufacturing utilizes capital and labour inputs to move materials through a series of processes until a higher-value added product is obtained.

Services involve the “manufacturing” of intangible goods or services for human use. 

You are encouraged to examine the importance of the secondary and tertiary sectors and factors that help to account for their location.

Outcomesdemonstrate an understanding of what

manufacturing entails, including the following delineations: 5.1.1 Identify natural and human inputs in a

manufacturing operation. (k)5.1.2 Analyze the processes in a manufacturing

operation. (a)5.1.3 Describe the three processes that may be

used to change a raw material into a useable form. (k)

Manufacturing: An introSectors of the economy

Primary

Secondary

Tertiary

Economic SectorsPrimary economic activity involves the

collection of raw materials from the earth. Farming, fishing, mining, forestry are the

classic parts of the primary economy. The farmer takes plants from the land, the

forester takes trees from the forest, the fisher takes fish from the ocean and the miner takes ore from the ground.

All involve collecting natural resources.

Economic SectorsSecondary economic activity involves

processing or manufacturing raw materials into products for people to buy.

It is often referred to as the manufacturing or processing sector.

Examples: The cows are butchered in to roasts, T-bone steaks and ground beef and packaged for sale at the grocery store; the trees are milled into lumber or pulped into paper; the fish are gutted, filleted, and frozen for market; while the ore is refined into steel ribbons or copper wire.

Economic SectorsYou can see that there would be a multitude

of examples for secondary processing but all the activities start with a raw material and convert it to a product for sale.

This is sometimes referred to as Value adding.

The tree would be much less expensive to buy than the lumber. The lumber has value added. Ship building, as depicted above, is an example of the manufacturing sector.

Economic SectorsTertiary economic activity does not involve

raw materials rather it involves providing service to people.

Often referred to as the service industry. Nurses, doctors, lawyers, teachers,

waitresses, hairdressers, sales people all provide services for other people.

Tourism is an important part of the tertiary sector and golf has become a thrust for investment in Newfoundland & Labrador.

Language of Manufacturing In all manufacturing processes we have to look at inputs &

outputs

Inputs: materials & factors that go into making a product. Examples; raw material, power, buildings, land, labor, decisions, capital, machinery

Manufacturing processes: those processes that change a raw material to a usable form. Three types: Conditioning: minimal change to a resource. Example; logs into

lumber; fish into fillets; berries into jam. Raw material is almost useable in its natural state

Analytical: resource converted to a number of different products. Example; cow into leather, milk & cheese, beef

Synthetic: several resources are combined to make one resource. Example; light bulb as a product has glass, tungsten, Nitrogen & aluminum. It is developed from the mining industry. Car parts would also be a good example

Language of Manufacturing

Outputs: finished product from a manufacturing process. For example the output from the fish plant is fish sticks or frozen fish fillets.

Processes & ProfitProfit = the difference between the price

charged for the product and the money spent in getting it to market (manufacturing, shipping & selling the product)

Many aspects of cost involved in setting the price of a product

Manufacturing businesses are in the business of value adding so they must consider the cost of adding value

CostsWhat are some of the costs associated with

manufacturing products?Labor (often most expensive)Included are wages, CPP, EI, Pensions, sick days,

holidays, etcThe cost of raw materialPrice of materials may fluctuateCost of equipment & utilitiesTraining costs money but increase efficiency & qualityHigh volume products like pop can have a low profit

margin while low volume products like jewelry require a high profit margin

Question #10For a small fish plant that produces frozen

fish fillets, identify each component: Inputs

Raw material:

Power:

Buildings: Land:

Question #10Machinery: 

Labor: 

Capital: 

Decisions: 

Question #10For a small fish plant that produces frozen

fish fillets, identify each component: Inputs

Raw material: COD, RED FISH, FLOUNDER Power:Buildings: Land:

Question #10For a small fish plant that produces frozen

fish fillets, identify each component: Inputs

Raw material: COD, RED FISH, FLOUNDER Power: MODERATE ELECTRICITY

REQUIRED FOR COOLING UNITS AND MACHINERY

Buildings: Land:

Question #10For a small fish plant that produces frozen

fish fillets, identify each component: Inputs

Raw material: COD, RED FISH, FLOUNDER Power: MODERATE ELECTRICITY

REQUIRED FOR COOLING UNITS AND MACHINERY

Buildings:  MODERATE SIZE BUILDING REQUIRED WITH STORAGE ROOM

Land:

Question #10For a small fish plant that produces frozen fish

fillets, identify each component: Inputs

Raw material: COD, RED FISH, FLOUNDER Power: MODERATE ELECTRICITY

REQUIRED FOR COOLING UNITS AND MACHINERY

Buildings:  MODERATE SIZE BUILDING REQUIRED WITH STORAGE ROOM

Land: SMALL LAND REQUIREMENT BUT LOCATION ON THE WATER IS KEY

Question #10Machinery: 

Labor: 

Capital: 

Decisions: 

Question #10Machinery:  SMALL AMOUNT OF

MACHINERY, MOST WORK DONE BY HAND

Labor: 

Capital: 

Decisions: 

Question #10Machinery:  SMALL AMOUNT OF

MACHINERY, MOST WORK DONE BY HAND

Labor:  SKILLED CUTTERS REQUIRED AND LESS SKILLED LABORERS

Capital: 

Decisions: 

Question #10Machinery:  SMALL AMOUNT OF

MACHINERY, MOST WORK DONE BY HAND

Labor:  SKILLED CUTTERS REQUIRED AND LESS SKILLED LABORERS

Capital:  FAIR AMOUNT OF MONEY REQUIRED TO BUILD OR PURCHASE A PLANT

Decisions: 

Question #10Machinery:  SMALL AMOUNT OF

MACHINERY, MOST WORK DONE BY HAND

Labor:  SKILLED CUTTERS REQUIRED AND LESS SKILLED LABORERS

Capital:  FAIR AMOUNT OF MONEY REQUIRED TO BUILD OR PURCHASE A PLANT

Decisions:  MANY DECISIONS LIKE BRINGING IN FROZEN FISH TO KEEP WORKING THROUGH TOUGH TIMES

Question #10Outputs ?

Conditioning or analytic or synthetic processing? 

Question #10Outputs ? FROZEN FISH FILLETS Conditioning or analytic or synthetic

processing?  CONDITIONING

ActivitiesRead the introduction to Chapter 13

"Patterns in Manufacturing" on page 216

Read "The Manufacturing Process" on pages 216-217.