Scope of Production in Economics
Production means creating utility. Utilities can be of different types. All these utility related activities are considered as scope of production. Therefore, the sum of all the activities that have to be done to keep the production activities going is called the scope of production. The scope of production is discussed below:
1. Creation of utility: Man cannot create or destroy anything. They simply transform nature's resources into usable products. Production is the production of products suitable for human consumption through such transformations. People can create different types of utilities, one of which is morphological utility, temporal utility, spatial utility, personal utility, service utility etc. All kinds of utilities created in this way are covered by production.
2. Factory planning: Production activities are carried out in one or another factory. Therefore factory plan must be prepared before production. Plans related to the nature, location, design, etc. of the factory where the desired product will be produced are called factory plans. Factory plans used in production are also covered by production activities.
3. Production planning: Production planning is the process of thinking about the product that will be produced to the satisfaction of the consumers, how it will be produced, when it will be produced, how much will be produced, etc. Without this plan it is not possible to conduct production. Therefore, it is necessary to formulate a production plan before conducting production work. Such production planning is also one of the issues covered by production.
4. Selection and Maintenance of Equipment: Production also includes the selection and maintenance of equipment engaged in production. If the equipment used in production is not selected, collected, installed and maintained properly, the production work is severely hampered. For this reason, the officials involved in production have to give utmost importance to this issue.
5. Collection of elements: From the point of view of economics, there are four elements of production. These are land, labor, capital and organization. All these material collection activities are also considered to be included in the production. Moreover, from a general point of view, raw materials, labor, machinery, etc. are also considered as essential elements of production. If all these elements are not collected in time, it is not possible to conduct production under any circumstances.
6. Conversion process: Products are produced by converting the raw materials given by nature. All the work involved in such a transformation process falls under production. Extraction of commodities from dense, extraction of fish and other materials from the sea, extraction of timber and honey from forests, collection of agricultural products as raw materials from farms etc. are all covered under production.
7. Product design: Product design is a part of product planning. Product design is the process of fixing the size, weight, colour, packaging, etc. of a product before production. The product is manufactured according to the design made. Product design plays an important role in attracting consumers in today's competitive business environment. Even if the design work is done before the production of the product, it falls under the scope of production.
8. Selection of production method: There are different methods of production of goods. Out of all these methods, the work related to the selection of the method of production activities is also subject to production. Not all products can be produced in the same way. Due to the nature of the product, space constraints, use of technology, etc., wide differences in production methods can be noticed. That is why the best production method should be selected considering all the aspects of the organization.
9. Quality control: Quality control is the process of monitoring the quality of the product, determining the deviation and taking necessary corrective action. If the product is not quality then it cannot gain the trust of the buyers. Then you have to fall behind in the competition. So it is very important to control the quality of production. Product quality control is subject to production.
10. Production control: Like quality control, production control is also subject to production. Quality control relates to product quality, while production control involves product manufacturing activities. Production control is to see if the right number of products are being produced at the right time according to the pre-determined method and to take necessary correction measures if necessary. Production control activities are also subject to production.
11. Inventory control: The activities related to the availability of raw materials and other commodities for production are also under production. Existing control is the process of storing raw materials, parts and other products used in production and using them as required. If the materials used in the production work are not properly controlled, on the one hand, the components may fall at the right time and on the other hand, the cost may also increase due to excess stock.
12. Research & development: The present age is the age of competition. In this age of competition, extensive research and development is needed to provide quality products and services. Through research and development, high quality products can be produced, which greatly helps to stay competitive. Production also includes research and development activities on products, product production methods, technology, etc.
13. Factory layout: Factory layout is the arrangement of equipment, commodities, movement of workers etc. inside the factory. If the factory layout is not correct and desirable, production is severely hampered. For this reason, the officer in charge of production has to pay strict attention to the factory layout. Therefore, factory layout is also included in the production activities.
14. Keeping proper factory environment: The environment in which production work is carried out properly is called good factory environment. If the factory environment is not production friendly, then it is not possible to produce the desired product from that environment. Therefore, good factory environment is very important for production. Protecting such an environment is also part of manufacturing activities.
15. Training to the production workers: Training makes any worker skilled. Increases the productivity of skilled workers. As a result, on the one hand, the cost of production decreases, on the other hand, the quality of the product also increases. For this reason, necessary training arrangements are made to make the workers engaged in production efficient. Such training activities are also included in the scope of production.
In conclusion, from the general point of view, production refers only to the transformation process, but other direct and indirect factors involved are also considered to be included in production. All these things are covered by production.
