Monday, May 30, 2022

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 Process

  • 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 Process
  • 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.



 

 

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