PM 102 Industry Overview

Questions and Answers

Which of the following best describes a primary industry?

Involves the extraction and production of raw materials (correct)

Provides services rather than goods

Focuses on manufacturing finished products

Engages in research and information technology

What characterizes a large-scale industry?

Limited capital and labor-intensive operations

Operates primarily within national borders

Is mainly owned by cooperatives

Significant capital investment and advanced technology (correct)

In the context of industry classification, what is a distinguishing feature of light industries?

Involvement in the extraction of raw materials

High capital requirements and large-scale production

Focus on research and development activities

Lower capital requirements and labor intensity (correct)

Which type of industry is primarily responsible for the manufacturing of consumer goods?

Secondary Industry Signup and view all the answers

What distinguishes durable goods from non-durable goods?

Durable goods have a longer lifespan Signup and view all the answers

What key technological advancements characterize Industry 4.0?

Cyber-physical systems and big data integration Signup and view all the answers

What was a significant impact of Industry 2.0 on operations management?

Standardization of products and economies of scale Signup and view all the answers

How is the concept of a system defined in the context of organizational operations?

An organized collection of parts integrated to achieve a goal Signup and view all the answers

What production characteristic distinguishes construction from manufacturing?

Focus on intermediate goods and services for other sectors Signup and view all the answers

Which of the following best describes the impact of automation in Industry 3.0?

Increased efficiency, productivity, and precision Signup and view all the answers

Study Notes

Industry Overview

Industry encompasses all economic activities related to producing goods and services in specific fields.
It includes various sectors like agriculture, automotive, aviation, construction, energy, food and beverage, manufacturing, mining, telecommunications, aerospace, textile and apparel, and education.

Types of Industry

Primary Industry: Extracts and produces raw materials.
Secondary Industry: Manufacturing and construction focus.
Tertiary Industry: Offers services instead of goods.
Quaternary Industry: Centers on information technology and research.

Economic Classification

Raw-Material Based: Industries classified by the type of raw materials used, including agro-based, mineral-based, marine-based, and forest-based.
Size: Classifies into small-scale (labor-intensive) and large-scale (capital-intensive).
Ownership Structure: Private (individually owned), public (government-owned), joint sector (public and private), and cooperative (managed by suppliers or workers).
Heavy vs. Light: Heavy industries involve significant capital and large-scale production; light industries are labor-intensive.
Domestic vs. Foreign: Domestic industries operate within national borders; foreign industries originate outside the country.
Durable vs. Non-Durable: Durable goods have a longer lifespan; non-durable goods are consumed quickly.
Manufacturing vs. Construction: Manufacturing produces final goods, while construction focuses on intermediate goods and components.

Evolution of Industry

Industry 1.0 – Mechanization: Introduced steam engines and centralized production; transformed manufacturing processes, beginning with textiles.
Industry 2.0 – Mass Production: Brought electricity and assembly lines; Henry Ford revolutionized production techniques.
Industry 3.0 – Automation: Focused on electronics, IT, and robotics; enhanced efficiency and embraced lean manufacturing.
Industry 4.0 – Digital Transformation: Integrated cyber-physical systems, IoT, AI, and big data; emphasized real-time decision-making and customization.

Operating System Defined

An operating system in an organization produces physical goods and services.
Systems are collections of integrated parts aimed at achieving a specific goal.

Key Elements of a System

Components: Individual parts making up the system.
Processes: Interactions among parts to achieve goals.
Inputs: Resources necessary to initiate the system.
Outputs: Results or products generated by the system.
Goals: Objectives the system aims to accomplish.

Concepts of Operation

Manufacturing Operations: Involve tangible outputs.
Service Operations: Provide intangible outputs.

Components of an Operating System

Inputs: Expertise, funding, equipment, customer feedback, and strategic priorities.
Processes: Include planning, designing, production, and quality control.
Outputs: High-quality products or services.
Outcomes: Customer satisfaction which influences the system.

Types of Operation Systems

Classification by Product Flow:
- Flow Shop: Resources arranged in accordance with production sequence.
- Job Shop: Products follow variable paths based on job specifications.
- Project Production: Resources are brought to the production site; the product remains stationary.
Classification by Output: Outputs may be tangible (products) or intangible (services).
Specification of Output:
- Standardized products are uniform and produced at scale.
- Custom products are tailored to specific customer needs.

Description

This quiz covers the fundamentals of various sectors within the industry, including agriculture, automotive, aviation, construction, and more. Explore the types of industries and their economic classifications to enhance your understanding of economic activities. Test your knowledge of the essentials involved in production and services across different fields.