21 August 2019

Definition of production

Production is the method of turning raw materials or inputs into finished goods or products means the creation of something from basic inputs. Production is the process of transformation because it is done to satisfy human wants. The process of transformation is done in the following ways. 

  1. Disintegration: One input is used to produce many types of output. 
  2. Integration or Assembly: Many inputs are used to produce only one output. 
  3. Service: Value of the product is increased by providing services.