Professional Documents
Culture Documents
• Inputs – these are raw materials, machines, man-hours, components or parts, drawing, instructions
and other paper works
• Conversion process – it includes operation (either manual, mechanical or chemical). It also includes
supporting activities such as:
o Production planning and control
o Purchase or raw materials
o Inspection of parts and work-in progress
o Testing of products
o Quality control
• Output – it includes finished products, finished goods and services
o Tangible Goods – consider an example of a manufacturing industry like a sugar industry.
Sugarcane is used as an input; the juice of the sugarcane is processed; refined sugar is the
output for mass consumption.
o Intangible Goods – consider an example from a service industry of a software development
firm or company. Written program codes are used as inputs; through conversion process,
the codes are integrated in some database and are provided with a user-friendly interface;
the application program is the output.
FACTORS OF PRODUCTION
Nature
• It is impossible to carry out production without land, water, and other resources
• Suitable land and the availability of water make production easier
Labour
• Human efforts is a necessary factor for production. Skilled labour can make a significant difference
in any production. Another important factor is the availability of labor near the factory
• Adequate member of labour with suitable skills and reasonable labour wages can highly benefit the
production firm
ENSC 95: LECTURE 01 - 03
Capital
• Generally, refers to money (money is not a factor of production) and is not directly involved with the
production. It is used to buy capital goods such as machine, equipment, raw materials etc.
• Private Capital - Buying vehicle for commercial uses is considered as capital
• Personal Capital - Buying a car for personal use and family transport is not considered capital
Enterprise
• It is the activity that combines all the other factors of production into a product of service for
consumer market
• It also involves application of government rules and regulation and working discipline in an
operating unit
FOUR TYPES OF PRODUCTION SYSTEM
Which type is suitable is decided by;
• It is the most commonly observed when you need to produce one single unit of a product at a time.
• Example: Tailored outfits. It is made just for you according to your size or a cake that is made just
like you want it.
• This type of production depends a lot on the skill of the worker
• Dependency is more on manual work than mechanical work because every product is different from
others
• Customer service plays an important role in Unit or Job Production
ADVANTAGES DISADVANTAGE
product is usually high quality cost of producing one unit or job is higher
producer meets individual consumers needs labour intensive
greater job satisfaction – involved in all stages of production requires investment in skills and training
2. Batch Production
• It is most commonly used in consumer durable and fast-moving consumer goods (FMCG) these are
cheaper products that sell quickly such as milk, gum, fruit and vegetables.
• The manufacturer needs to know the number of units he has to manufacture. Demand and supply
play a major role in batch production.
• Example: the production the seasonality of products heavily depends on the demand.
ADVANTAGES DISADVANTAGE
making in batches reduces unit costs time lost switching between batches
it can still address specific consumer needs (size, weigh, machinery may need to be reset
style etc.)
use of specialist machinery and skills can increase output need to keep stocks of raw materials
and productivity
3. Mass Production
• Also known as Flow Production or Assembly Line Production. Used in the automobile industry and is
also used in industries where continuous production is required.
ENSC 95: LECTURE 01 - 03
• There are multiple workstations installed and the assembly line goes through all the workstations one
by one. The work is done in such a manner. Each workstation is responsible for one single type of
work.
• Mass production requires huge initial investment and working capital demand is not necessary but
the production capacity dictates the success of the production.
ADVANTAGES DISADVANTAGE
labor costs are usually lower machinery is very expensive to buy, so production
lines are very expensive to set up
materials can be purchased in large quantities, so not very flexible as a production line is difficult to
they are often cheaper adapt
large number goods are produces if one part of the line breaks, the entire production
line will be affected until it is repaired
• It characterized by relationships that exists between industries and between the industries and their
environment. These relationships are described as “SYMBIOTIC RELATIONSHIPS”
INDUSTRIAL SYMBIOSIS
• Domestic, Industrial, Municipal activity contribute to waste that will be transformed to increase
stocks.
• Recyclables such as selective collection will undergo materials rehabilitation to produce outputs that
will increase the company sales.
• Green wastes such as garden wastes collection will undergo process in composting plant to
produce output for fertilizer in agriculture.
• Residual waste will undergo mechanical treatment to produce fuels and metals to be used by the
powerplant.
• This will also undergo biological treatment and eventually will be end up in the landfill.
• This may also undergo mechanical and biological treatment to produce biogas for biofuel company.\
BENEFITS OF INDUSTRIAL SYMBIOSIS
ECONOMIC BENEFIT
1. Enhance profitability and competitiveness among companies by lowering resource costs.
2. Opens up new & creative industries emerging from previously untapped industrial flow opportunities.
3. Creating a Circular economy
ENVIRONMENTAL BENEFIT
1. Reduce greenhouse gas emissions.
2. Natural resource depletion decrease.
3. Reduce environmental footprint of the industries involved.
4. Reducing pollution to land, air and water.
5. Reducing industrial water use.
KALUNDBORG SYMBIOSIS
• Standardized methodology
• Internationally recognized assessment tool allowing decision makers to:
o Reduce the negative environmental impact of a new product
o Identify what can be improve in existing products
o Avoid product modification that may cause more significant issues at another stage of the
product
o Compare the environmental performance of a similar products
• Life Cycle Assessment is a technique that tries to identify, measure, and characterize different
potential environmental impacts associated to each one of the stages of the life cycle of a product.
Cradle to Grave – is the full cycle assessment from resourceextraction to use phase and disposal phase.
• From raw material to end of life
Raw Material
Material
End of Life
processing
Part
Product Use
Manufacturing
Assembly
Cradle to Cradle – specific kind of cradle to grave assessment, where the end-of-life disposal step for the
product is a recycling process; used to minimize the disposal practices
ENSC 95: LECTURE 01 - 03
Goal of LCA
Understand the flows of matter and energy involved in
the product, material manufacturing, process, packaging,
etc. and find out what are the environmentally critical
points, and prevent or remove them using other materials
or systems
What can be done with LCA?
1. Product or project development and
improvement
2. Strategic planning
3. Public policy making
Phases of LCA Study
Goal and Scope Definition
1. What impact categories are we trying to assess?
- air pollution
- effects on particular species or ecosystem
2. Determining the boundaries of the study
3. Product system to study
4. Functions of the product system
5. The functional unit
6. The systems limit
Inventory Analysis
• Creating an inventory flows from and to nature for aproduct system
• It includes inputs of water, energy, and raw materials, andreleases to air, land, and water
Impact Assessment
• Understand and assess the magnitude and importance of potential environmental impacts
• Environmental impacts is an alteration of the initial characteristics of the environment caused
by a project, work or activity. It is the set of consequences for human health, welfare of the flora
and fauna and the future availability of natural resources attributable to the input or output
streams of a system.
Interpretation
• Method to identify, quantify, check, and evaluate the information collected from the LCI and Life
Cycle Impact Assessment (LCIA)
• Results are summarized and discussed as basis for the conclusions recommendations and
decision making.
LCA APPLICATIONS
• Decision making • Learning/Exploration
• Product/design development • About production systems
• Purchase • Identification of improvement possibilities
• Regulative measure