What does production mean in business?

Some businesses are said to specialize in production. It is their niche. When you ask them what they deal with, they would tell you production. What does production really mean in business?

There are many man- made products. They include; technology, clothes, bags, vehicles, chairs , and in summary all the products that didn't come from nature- items made by man. They are called man made to distinguish them from natural products. Their name implies that their birth was done by humans. 

How many man made products do you know? You very likely know many. You likely make use of Soaps for bathing. You surely put on clothes. You likely use a mobile phone or any electronic gadget. As you know, all of those items are many made. 

They didn't create theirselves. You would always find this fact indicated on the products. They always come with a label that indicates the producers of those items. 

Humans created them. Not by hoping or wishing for those never gave birth to products. But rather by series of efforts which differ from one product to the other. 

The act of bringing those products into existence through engagement in those steps, is what is considered production.

It is the transformation of raw materials into finished goods, and creation of services for the fulfilment of the wants and needs of consumers.

 Production is a cycle that is complete when distribution of created products are distributed to consumers. All the various activities involved in creation of goods and services and their distribution to the final consumers for the satisfaction of human wants constitutes the activities involved in production.

Anything that is done to bring to birth entities that were not once in existence is considered production. Production is done by the producer. Anyone that produces items is a producer. As we know, there are many businesses that involves in production. 

For one to be said to be a producer, he must be one that has given birth to something. For instance, when after creating the e-product Facebook, Mark Zuckerberg was considered the producer of the product. 

Production and it's entire cycle is not something that happens on its own. It is an act that humans trigger. Raw materials can never transform theirselves into finished goods. Someone must play the role. Those involved in the roles of production includes;   three major groups of people; producers, distributors and consumers. 

All of the characters are distinguished by the roles that they play. The producer is the father of products. He is the one that engages in the actions that resulted in production. We know that without engagement in production steps, production does not occur. Only when the roles of production are played are items brought to birth. Thus the producer is the one to be attributed the creation of goods by virtue of the roles that he played. 

When the producers finishes creation, and stores it in their business store, those goods cannot locate the various consumers, those in want of it. There is thus the need for someone to distribute them to various outlets that makes it more accessible for the consumers.

The consumers as the name implies are the target of the producers. They are those the goods were created or meant for. They are those who buy and make use of the created products.

Production is accomplished with the use of equipments. Those equipments are used in the operations of transformation, which usually differs. They are usually bulky and large in size. Being immobile they need to be kept in one place, where the usage of them would occur. The place, the buildings where production equipments are usually kept, and production is done with them is the company. Companies throughout history are associated with and considered to be places where production occurs. Companies also helps to distinguish one business from the other, and serves as a place of location for customers. The activities in production usually occurs in a company. 

The company is to the business man, what the school is to the teacher. The teachers teach at schools, while producers produce at the company. Owning a company is therefore an intrinsic requirement in production. Exceptions are when productions occur on a small scale with mobile and small equipments at home. All businesses that produce one item or the other have companies.

          CLASSIFICATION OF PRODUCTION 

Production is grouped into two major categories; direct and indirect Production.

              A. DIRECT PRODUCTION

Two things distinguishes this kind of production. The target and the objective. The target of this kind of production is not the public. When this kind of production is done it is so as to produce items for a relatively small group of people which may include; families, and friends. The objective is not to exchange the produced item with them for money. No, there is no monetization of products in this kind of production.

The actualization of this kind does not necessarily require owning a company. One could simply use mobile equipments to produce products. Family members may acts as the workers in this kind of production.

              2. INDIRECT PRODUCTION

It is the type in which goods are produced in excess. The amount of products made are usually surplus. This type involves the use of modern equipments and plenty skilled workers.  The goal of those who engage in this kind of production is profit. They produce in large quantities to exchange it with the consumers for money. Indirect production is of three kinds.

A. Primary production: This kind involves extracting raw materials from any source. It may be soil or water. They are extracted in their natural form and used for further production. Typical examples of primary production includes; agriculture, mining, fishing, lumbering, quarrying oil drilling etc. 

B. Secondary production: This type involves transformation of those raw materials into finished products. All manufacturing activities are involved in this kind. 

C. Tertiary: It is concerned with provision of commercial and professional services to satisfy consumers wants. The goods produced at the primary and secondary level are distributed to consumers. Wholesalers, retailers and providers of professional services consists those involved in this kind of production.