26 December 2016

Difference between Manufacturing and Production

Manufacturing and production are often used as the same terms but there is a big difference between them. Let us have a deep insight into the comparison and difference between both of them.

What is manufacturing?

Manufacturing is the process of converting raw material into a tangible, ready-to-sell finished product with the use of many processes. The manufactured product can be directly sold to the end customer. Almost all the processes add value to the material but also consume some material for adding value. Mostly men, machine and material are required as a resource and a lot of planning goes into this. 

What is production?

Production is a process to convert any type of inputs to output, tangible or intangible. Mainly Production is the creation of utility includes both goods and services. 


Difference : 

  • Manufacturing is used in the industries with production, whereas manufacturing refers to anything produced within or outside the industries.
  • All sorts of manufacturing are related to production but not all production is manufacturing.
  • When the raw material is used as input to produce goods using machinery whereas the process of transforming resources into finished products is known as production.
  • Men-machine setup should be there for the manufacturing of goods, which is not in the case of production, the only man is sufficient for producing output.
  • Manufacturing produces products suitable for use and production produces products such as artworks, paintings etc.
  • Tangible products can be produced or manufactured but intangible products can just be produced.
  • Manufacturing can be entirely by machines while production has done by individual employee too without the use of machines.
  • In manufacturing, the company makes the final product after processed on the raw material from outside wherein this is not necessary for production in which the company processes the raw material to make a final product.  
  • Men and machine both are required in manufacturing where the only man can produce output.
  • The use of machinery is a must in manufacturing, whereas production can be done with or without machinery.