Difference Between Manufacturing and Production

Manufacturing and Production, are the two terms related to conversion of raw materials into finished products. But, Have you ever wondered, what makes them different. Manufacturing is the process of transforming raw materials into ready goods, with the help of machinery. On the other hand, production alludes to the processes or methods, that converts inputs like raw material or semi finished goods, to make finished product or services, which may or may not use machinery.

Manufacturing is a process that involves making something that uses raw material as input, whereas Production may or may not include raw material as input. We can also say that manufacturing is production, but production is not merely manufacturing. Take a read of this handout and clear all your doubts, with respect to the difference between manufacturing and production.

Content: Manufacturing Vs Production

1. Comparison Chart
2. Definition
3. Key Differences
4. Conclusion

Comparison Chart

Basis for Comparison	Manufacturing	Production
Meaning	The process of producing merchandise by using resources like labor, machines, tools, raw materials, chemicals and others is known as a Manufacturing.	Production is a process of making something used for consumption by combining various resources.
Concept	A process in which raw material is used to generate output.	A process of converting inputs into outputs.
Compulsory resources	Men and Machine	Men
Form of input	Tangible	Tangible and Intangible
Form of Output	Goods only	Goods and Services
Creation of	Goods that are suitable for use	Utility

Definition of Manufacturing

Manufacturing is a process of producing something useful through raw materials with the help of machinery or by hands in factories. The term manufacturing is used in the industrial sector where the input is transformed into the output on a large scale. The input can be in the form of raw material, components, and parts.

The most important feature of manufacturing is the man-machine setup. The product manufactured can either be directly sold to the final consumers or other manufacturing entities to produce other items like equipment, appliances, aircraft, household, etc.

Definition of Production

The activity of transforming both material and non-material inputs into the output that create utility is known as Production. The transformation includes conversion of raw materials into work in progress and works in progress into finished goods ready for sale. Here, the material input includes raw material, components, partly finished goods, etc. and non-material goods include ideas, information, skill, art, talent, etc.

The production of goods and services employs manpower and sometimes machines. The output generated should be used for consumption, or it must possess a value so that it can be sold to the consumer.

In economics, the production of goods and services is done to satisfy human wants. There are five factors of production that are used in the activity; they are land, labor, capital and entrepreneur. The participation and coordination of all these factors can lead to a successful production.

Conclusion

Nowadays the creation of the product is very difficult. Input has to pass from many levels and hands to become the output. Moreover, the coordination of men, money, material and machine is also necessary. In manufacturing, the involvement of machines and raw material should be there. On the other hand, production is just a creation of utility, i.e. anything produced or transformed that adds utility to the consumer is known as production. In this way, it has no relation to raw material and machines.