Unit 5

Secondary and Tertiary Activities

Introduction to Manufacturing

Chapter 13 (text)

3 Sectors of the Economy

1. Primary economic activity

– involves the collection / extracting…

– of raw materials / resources from the earth…

– through farming, fishing, mining, and forestry.

– Completed in the LAST UNIT!!!

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EXAMPLES INCLUDE:

•Farmer takes plants from the land.

•Fisher takes fish from the ocean.

•Miner takes ore from the ground.

•Forester takes trees from the forest.

2. Secondary economic activity– involves turning a raw material or resource into a finished

or refined product.

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

– Also called the manufacturing or processing sector.

EXAMPLES INCLUDE:

•Cows butchered into roasts, T-bone steaks and ground beef then packaged for sale at the grocery store.

•Trees milled into lumber or pulped to make paper.

•Fish gutted, filleted, put into frozen dinners sold at markets.

•Ore refined into steel ribbons or copper wire or gold ingots.

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.

3. Tertiary economic activity– The focus is on people interacting with people and

serving the customer rather than transforming physical goods

– Often referred to as the service industry.

– A service occurs when a person performs some type ofACTION.

EXAMPLES INCLUDE:

•Nurses, doctors, mechanics

•lawyers, teachers, waitresses, technicians

•hairdressers, repair and sales people

•Tourism is an important part of the tertiary sector & golf

has become a thrust for investment in NL.

Primary economic activity

Secondary economic activity

Tertiary economic activity

Secondary Economic Activities

Manufacturing Operation

• refers to a vast range of

human activity, from

handicraft to high tech…

• Most commonly applied to

industrial production…

• Raw materials are

transformed into finished

goods on a large scale…

• Ex. Assembly lines,

factories, use of technology

and machines common

Applied to the Systems ModelInputs

~ materials and factors that go into making a product.

Examples:

raw material

power,

buildings,

land,

labor,

decisions,

capital,

Machinery,

Etc., etc…

Processes

~ those processes that change a raw

material to a usable form.

3 types:

1. Conditioning

2. Analytical

3. Synthetic

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Processes

1. Conditioning:

• minimal change to a resource.

• Simple processing of the resource.

• Ex: logs into lumber or fish into fillets.

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Processes

2. Analytical:

• resource converted to a number of different products.

• Maximize use / utility of resource (pick apart and

identify ALL potential uses)

• Ex: cow into

– leather,

– meat,

– manure,

– milk,

– Cheese etc..

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Processes

3. Synthetic:

• several resources are COMBINED to make one product.

• Ex: light bulb has glass, tungsten, nitrogen &

aluminum.

• Motor vehicles….

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Outputs

• The finished product from a manufacturing

process.

- Ex: outputs from a fish plant are fish sticks,

frozen dinners or fish fillets.

For a small fish plant that produces frozen fish fillets,

identify each component:

INPUTS

• Raw material _____________

• Power _____________

• Buildings __________________

• Land __________________

• Machinery ______________

• Labor ________________

• Capital ________________

• Decisions ______________

OUTPUTS _____________

PROCESSING: Conditioning, analytic or synthetic?_________