In: Operations Management
I) What are the types of resources used in a production process?
What are the types of resources that play passive role in a
production process?
II) Agro-chemicals (material) and mechanized cultivation methods
(machinery) were introduced for agricultural production in Sri
Lanka around 1960’s and critically discuss how these changes
affected the use of material, labour, environment, energy, capital
resources
1) Production process involves a sequence of operations. Various materials are sourced as resources for input and the final product is obtained as output after performing a series of operations. When a production process is considered, the important resources are land, labor, capital, power and entrepreneurship. For a production process to be complete, there has to be both active and passive resources. The resources that are active in the production process are active resources and those that do not actively contribute to the production process are referred to as passive resources. Land or space utilized for the production process can be taken as an example for passive resources for production process.
2) All the manufacturing and production units adapt changes according to the emergence of new technologies. Agriculture also witnessed the same. The changes that occurred in the resources for agriculture with the introduction of machinery and chemicals are as discussed below:
Material: With the introduction of new chemicals or materials in the farming methods, the farmers had to depend on the suppliers for material. The traditional methods of using fertilizers from organic waste and cow dung slowly disappeared. Specific crops required specific materials and that too at various stages of growth. The farmers were also forced to buy tools and equipment to handle the chemicals safely.
Labor: The change in the cultivation method where machines are used for making the farm beds, sowing and harvesting reduced the involvement of labor. The productivity also increased as the machines did the job in a faster rate. The farm owners could save the labor cost as the machines for cultivation can be obtained for rent.
Environment: The traditional agriculture methods were in harmony with the environment. The introduction of chemicals made the environment lose its balance. Insects and birds seldom visit the farms because of the chemicals used. Making the species endangered. In due course of time, the soil also loses its fertility and the farmers will have to use more chemicals to increase the productivity.
Energy: The energy consumed by the machines would be high as they perform almost all the job in the farm. While considering the labor cost, the cost incurred due to energy consumption would be relatively low.
Capital resources: When there is a transition from the traditional method to the modern technology, the initial capital investment would be high. The chemical and the machines should be bought. The labors handling the machines and the supplies should be given training. If the labor operating the machine is not skilled, the results will not be as expected. However, with the increase demand for labor and labor cost, machines can save a lot of time and money. This will increase the productivity and profitability of the farmers.