Difference Between Manufacturing vs Production
Both are often used interchangeably in the world of production. They are commonly known as one and the same thing, but when it comes to deep-dive analysis, the management segregates them into two buckets and draws their analysis on it. There is some critical difference between Manufacturing vs productions which are not known to a common man. In this Manufacturing vs productions article, we will try and understand the key differences between both and their nature of working and characteristics.
Head To Head Comparison Between Manufacturing vs Production (Infographics)
Below is the top 6 difference between Manufacturing vs Production:
Key Differences Between Manufacturing vs Production
Both Manufacturings vs Production are popular choices in the market; let us discuss some of the major Difference Between Manufacturing vs Production.
- Manufacturing refers to the process to convert raw material into work in progress and work in progress into the final product, which is ready to be sold, and it is tangible in nature. This finished product can be directly sold in the customer in the open market. Whereas, on the other hand, Production can be explained as a process to convert any type of inputs into outputs tangible or intangible in nature. Mainly production is a creation of utility which includes both goods and services.
- When the raw material is converted into finished goods with the help of the machinery, then that process can be called as manufacturing as some medium is being used to the converted finished product. Whereas, on the contrary production is a process that can be done without the use of a fixed asset or a piece of machinery. All kinds of manufacturing activities are used in production, but it is not necessary that production may be known as manufacturing.
- In manufacturing, the output that is generated with the help of machinery is tangible in nature that is goods only. Still, in the case of manufacturing, it can be linked to intangible as well as tangible goods, i.e. goods and services.
- In economics, the production of goods and services is done to satisfy human wants. They are four factors of production that is used in the creation of an activity they are land, labour, capital, and entrepreneur. The participation of all these production and coordination of these factors can lead to successful production.
- Man-machine setup should be there for the manufacturing of goods, which is not in the case of production, the only man is sufficient for producing output.
- Production is a larger term with a bigger perspective and larger outcomes. On the other hand, manufacturing refers to a smaller spectrum of operations and has limited scope in nature which analyzed in detail. It only refers to the production of goods that are tangible and have some economic benefits and value.
- Production results in the creation of wealth and economic value which involves various stages of production and finished goods whereas, on the other hand, manufacturing is just one of the various steps involved in the production.
Manufacturing vs Production Comparison Table
Below is the topmost comparison between Manufacturing vs Production
|Manufacturing refers to the production of goods that are tangible in nature like labour, machines, raw material, etc.||Production refers to the process of making something used for consumption by a combination of various resources.|
|Manufacturing is one of the various steps of production.||Production is a larger term than manufacturing which broader scope and operation.|
|Tangible in nature||Both tangible and intangible in nature|
|Manufacturing is the creation of goods that are suitable for use.||Production creates utility|
|No formula for manufacturing||Production formula :- Output/Input|
|Compulsory use of men and machinery is required for manufacturing.||Mayor may not use men or machinery in the process of production.|
Both Manufacturings vs Production has their own set of challenges nature and scope. Production is a multi-step process which is complex in nature, and every company has their own production processes and control in place to make sure that the production results in quality and efficient output which can be sold in the market. Manufacturing also is an equally complex process in nature and in character which involves requires to keep the right amount of machinery and men to keep an adequate inventory in the company which makes it an equally important process. Both Manufacturings vs Production go hand in hand and makes them vital and an integral part of the company revenue and cost management.
This has been a guide to the top difference between Manufacturing vs Production. Here we also discuss the Manufacturing vs Production key differences with infographics and a comparison table. You may also have a look at the following articles to learn more.