There are the main differences between Manufacturing and Production which can be easily understood by following points from each.
MANUFACTURING
- Manufacturing is a process of converting raw materials into finished products or goods with the help of men and machines both.
- It is Tangible in nature because raw materials and finished goods both are Tangible.
- Men and Machines both are compulsory.
- It is limited to finished goods only.
- It is a narrow term comes under the production.
- Every type of manufacturing is production but production may or may not be manufacturing.
- In manufacturing, companies or industries procure or take the raw materials from outside or other sources and make the final products.
PRODUCTION
- Production is a process of converting inputs i.e. raw materials, men and capital into outputs i.e. finished products or goods, sales and services with or without the help of machinery.
- It is Tangible and Intangible in nature because raw materials, labours and goods are Tangible whereas sales and services are Intangible.
- Men is compulsory but machines may or may not be used.
- It is not limited to finished products only, as it involves sales and services also.
- It is a broader term.
- In production, companies or industries do not procure the raw materials from outside or other sources. They itself make the raw materials for producing goods or making products.
