What is the difference between Production and Manufacturing?

Updated: Jan 15



Production and Manufacturing are both terms related to the creation of finished products, obtained from various raw materials. But some people wonder, what the difference between the two terms Manufacturing and Production actually really is.

Basically described; Manufacturing defines the process of transforming raw materials into ready products with using machinery, but instead Production defines the method or processes of the finished service or products as an output with using or not using machinery, from semi finished products or raw materials. We can say that manufacturing is production, but we can't say that production is manufacturing.


We know that this might sound a little bit confusing at the beginning, but with this article we will help you to clarify what the difference is between these two terms.



KEY DIFFERENCES BETWEEN

MANUFACTURING AND PRODUCTION:


Meaning of Manufacturing: Using resources like labor, tools, raw materials and others for producing a merchandise.

Meaning of Production: Combining various resources for creating a service or a product that will used for consumption.


Concept of Manufacturing: A process that generates output by using raw materials.

Concept of Production: A process of converting inputs into outputs.


Resources for Manufacturing: Machine.

Resources for Production: Machine and Men.


Form of input with Manufacturing: Tangible.

Form of input with Production: Tangible and Intangible.


Form of Output with Manufacturing: Goods only.

Form of Output with Production: Goods and Services.


Manufacturing is for the creation of Goods that are suitable for use.

Productions is for the creation of Utilities.


We hope this article will help you to clarify the difference between the two terms Manufacturing and Production.


In this case, we just want to use a sample that clarifies the terms even more:

We as Achiteqt Inc. are producing Prefabricated buildings and Furniture or Decoration products, which means that we don't use the term manufacturing here, because we are not only integrated in the manufacturing part of these products, we do the whole progress from design to delivery to our clients worldwide.

For more informations you can visit our online shop or you can take a look at our services section.

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