Manufacturing vs Production | Main Differences with Diagram

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.

Note: Goods are the finished products which is Tangible whereas Services are actions which satisfy the customers and Intangible.

 

Tangible- Which we can touch.

Intangible- Which we can't touch.