Manufacturing vs Production
Production and manufacturing are concepts that we think are quite clear in our mind. We make no attempt to question why there are some manufacturing units while there are also production units. Why is it called milk production and manufacturing of automobile parts and why is it not milk manufacturing and production of automobile parts? Is there any difference between the two words or are the differences cosmetic and related with usage only? Let us take a closer look.
Manufacturing is a process of using machines and manual labor to make goods that are sold to end consumers. Manufacturing is a generic word as it is used for very small scale companies making bakery goods though it is also used for a manufacturing unit making Boeing aircrafts. Paints are always manufactured and units making chemicals are also called manufacturing units. Any company involved in making handicrafts is always referred to as a manufacturing unit. It may sound a bit surprising, but there are car manufacturing units though the statistics released by companies always talk in terms of production of cars.
Making use of raw materials to transform it onto a finished product is termed as production. When something tangible is taken as raw material and transformed to turn it into a finished good, the process is termed as production. However, production is also used for meat and poultry products and we see reports talking in terms of increased beef production and egg production. All natural resources like minerals etc are always extracted, but oil is deemed to be produced and we always talk about oil production. Steel is produced and not manufactured which is because of the fact that steel production involves making use of iron as a raw material and then transforming it into the finished good called steel.
What is the difference between Manufacturing and Production?
• Manufacturing is a process of using machines and manual labor to make goods that are sold to end consumers, and making use of raw materials to transform it onto a finished product is termed as production.
• A coal mine is said to produce coal as there is no manufacturing involved and so there is coal production
• Iron, when it is used as a raw material and converted into a new product called steel, the process is termed as production and not manufacture
• Oil is not manufactured. Even though it is a natural resource, it is talked in terms of oil production.
• In an automobile factory, cars are manufactured, but the total output is always mentioned as production of cars.