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Summary: Manufacturing and production are often used interchangeably because both involve the manufacturing of finished goods from raw materials. But there is a significant difference between the equipment and the process used. This article will critically examine the difference between manufacturing and production and help you better understand the two terms.
Manufacturing is the process of producing a finished product for sale through a combination of manpower, machines, and biological & chemical processes.
The following points provide a detailed description of manufacturing:
<<<Also Read: 9 modules of the MES software that efficiently manage production operations>>>
Economics defines production as the conversion of natural resources into goods that can be used for satisfying human needs.
The following points provide a detailed description of production:
The difference between manufacturing and production is that the former is concerned with the production of finished products that have maximum selling potential and the latter deals with the production of products that fulfill human needs. The following infographic explains the other differences.
Production may or may not involve machines and a big infrastructural setup. It’s concerned with transforming a combination of inputs into a utilitarian output. The end result of all production activities is to satisfy human desires immediately or after a long gap. On the other hand, manufacturing is the process of acquiring raw materials and converting them into finished products that are ready to be sold. Therefore, proper coordination between the workforce and machines is necessary in manufacturing. Moreover, the end result of all manufacturing activities is to make profits. This blog helped you understand the difference between manufacturing and production.