Question

describe various stages of production in industry

Answer 1

Stages of Production

Production within an economy can be divided into three main  

stages: primary, secondary and tertiary.

Primary Production

Also known as the extractive industries

Primary production involves the extraction of raw materials  

(e.g. farming, forestry, fishing, and mining).  

There is little value added in primary production. The aim is  

usually to produce the highest quantity at lowest cost to a  

satisfactory standard.

Secondary Production

Also known as manufacturing industries

Secondary production involves transforming raw materials into  

goods.  

There are two main kinds of goods:-

Consumer goods – e.g. washing machines, DVD players. As  

the name implies, these are used by consumers

Industrial / capital goods – e.g. plant and machinery,  

complex information systems. Industrial and capital goods  

are used by businesses themselves during the production  

process.

In the secondary production sector, value is “added” to the  

raw material inputs e.g. foodstuffs are transformed into ready  

meals for sale in supermarkets; metals, fabrics, and plastics  

are transformed into motor vehicles.

There are many different industry sectors in secondary  

production. For example:

Electronic instruments

House-building

Car building

Tertiary Production

Also known as the service industries

Tertiary production is associated with the provision of  

services (an intangible product). As with the secondary  

sector, there are many tertiary production markets. Good  

examples include:

Hotels

Private healthcare and education

Accountants

Tourism