What is the Difference Between Manufacturing and Production?
🆚 Go to Comparative Table 🆚The main difference between manufacturing and production lies in their scope and the types of outputs they involve. Here are the key differences between the two:
- Scope: Manufacturing involves a smaller scope compared to production. Manufacturing focuses on converting raw materials, components, or parts into tangible products. Production, on the other hand, encompasses a broader range of activities, including the conversion of raw materials, partially finished products, and other inputs into finished products. Production also involves the creation of utility and can include tangible or intangible services that satisfy human needs.
- Outputs: Manufacturing results in the production of physical goods only. Production, however, can result in both physical products and services. For example, a farm may produce wheat by planting and harvesting the crop, which involves both a tangible product (the wheat) and a service (the process of planting and harvesting).
- Resources: Manufacturing companies typically buy their materials from other sources, while production companies have access or ownership of their resources.
- Creation Process: In manufacturing, the use of machinery is mandatory, whereas in production, machinery is not essential.
- Purpose: Manufacturing produces tangible goods or merchandise using resources such as materials, labor, equipment, and technology. Production creates goods and services, encompassing both tangible and intangible deliverables by using materials and other resources.
In summary, manufacturing is the process of converting raw materials into tangible products, while production is the broader process of converting various inputs, including raw materials, partially finished products, and other resources, into finished products and services.
Comparative Table: Manufacturing vs Production
Here is a table highlighting the differences between manufacturing and production:
| Basis | Manufacturing | Production |
|---|---|---|
| Definition | Manufacturing is the process of producing final goods with the help of men, machinery, raw materials, chemicals, and tools. | Production is the process of making an output that is meant for consumption with the help of various resources. |
| Concept of the terms | Raw materials are procured and processed to get finished goods. | The company owns the raw material, which is processed to get output. |
| Output | The result is the goods themselves, which can be sold directly to consumers or used as components in other finished products. | The output can be tangible goods, intangible services, or even a combination of both. |
| Process requirement | Manufacturing helps in the transformation of raw materials into finished goods. | Production is that process where inputs are converted into outputs. |
| Machine involvement | Manufacturing typically involves the use of machines to create finished goods. | Production can involve the use of machinery, labor, or both, and it can also include the creation of intangible outputs like services. |
In summary, manufacturing is a subset of production, and it involves the transformation of raw materials into finished goods using machines and labor. Production, on the other hand, is a broader term that encompasses the creation of both tangible and intangible outputs using various resources.
- Manufacturing vs Service
- Fabrication vs Manufacturing
- Factory vs Industry
- Production vs Operation Management
- Mass Production vs Mass Customization
- Mill vs Factory
- Goods vs Products
- Product vs Service
- Efficiency vs Productivity
- Producer vs Consumer
- Made vs Make
- Plant vs Machinery
- Commodity vs Product
- Executive Producer vs Producer
- Manufacturers Guarantee vs Warranty
- Do vs Make
- Industrial vs Commercial
- Entrepreneurship vs Management
- Consumer Goods vs Capital Goods