Unit 5

Secondary and Tertiary Activities

Introduction to Manufacturing

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.

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

product for people to buy.– Also called the manufacturing or processing sector.

EXAMPLES INCLUDE:• Cows butchered into roasts, steaks and 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 or copper wire.

This is referred to as “Value Adding”. The log would be much less expensive to buy than the lumber. The lumber has value added.

3. Tertiary economic activity – The focus is on providing services to people. – Often referred to as the service industry.

EXAMPLES INCLUDE:• nurses, doctors, mechanics• lawyers, teachers, waitresses• hairdressers, repair and sales people

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 materialpower buildings land labourdecisions capital machineryEtc., etc…

Processes - the activities that change a raw material into a

usable form.

3 types of manufacturing processes:

1. Conditioning:• minimal change to a resource.• Ex: logs into lumber or fish into fillets.

2. Analytical:• resource converted to a number of different products.

• Ex: cow into – leather – meat– milk

3. Synthetic:• several resources are COMBINED to make one product.

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

• Motor vehicles….

Outputs - finished product from a manufacturing process.

- Ex: outputs from a fish plant are fish sticks, frozen dinners or

fish fillets.