Manufacturing vs Production: Difference and Comparison

Without blindly believing the saying, one who searches the reason can succeed in life.

When we think about how much food products are from, then big industries strike our minds. What happened inside those big industries will answer the question of the difference between manufacturing and production.

Questioning yourself only gives the answers and leads you to a greater path. Like many words, we confuse the term manufacture and process though they are the same in verbs both have very unique processes in terms. 

People who are in the field of industries must know about the difference between manufacturing and production. Then only they know the actual working process and its reasons.

Key Takeaways

  1. Manufacturing involves creating finished goods from raw materials, while production encompasses all activities that generate a product or service.
  2. Manufacturing is a subset of production primarily focusing on physical goods, whereas production includes goods and services.
  3. Production covers the entire value chain, from procurement to distribution, while manufacturing is limited to the creation process.

Manufacturing vs Production

The difference between manufacturing and production is that manufacturing convert only raw materials, and production can convert all type of materials. Manufacturing is something that only transfers certain types of raw materials into valuable products. For example, the conversion of limestone into cement. But production is something that creates or provides valuable and helpful products from all types of inputs.  It is not easy to convert things like copy-paste. It needs hard work and many things on the list.

Manufacturing vs Production

Business Quiz

Test your knowledge about topics related to business

1 / 10

Shares traded through stock exchanges are called __________.

2 / 10

Planning and control are _________ functions of an office.

3 / 10

Which of the following is not an economic activity?

4 / 10

Who takes no active part in Business?

5 / 10

The Standard of living is the number of goods and services people can buy with the money they have.

6 / 10

What is revenue?

7 / 10

Which of the following speculators expect fall in the prices of securities in the near future?

8 / 10

Working capital means _________.

9 / 10

_________ deals with appointing people and placing them at the appropriate jobs.

10 / 10

Whose liability is limited to the extent of value of business assets and his private assets?

Your score is


Manufacturing machinery and manual are major things, and we call them essential ones. But production won’t depend on machinery like manufacturing. Comparing both, you get a solid truth of both things.

Manufacturing needs many prerequisites, but production is not like that.

The product from production is just a utility but products from Manufacturing are hard work of man-machine setup. 

Simple manufacturing is a process of covert work into a process into a tangible product in nature. In opposite production is something different from manufacturing which uses utility to give a valuable output with all types of tangible inputs

Comparison Table

Parameters of ComparisonManufacturingProduction
DefinitionIt is a process which Convert or create consumption only tangible raw materials
into useful or valuable goods
It is a process which Convert or transfer all type of  inputs into valuable
goods  and services
Concept of terms
It gets the raw  
material from  
somewhere and  convert it into  
The company  
have the  
ownership of raw  materials
Only goods are the output and need more industrial work need here
Both goods and  services are got us  output and need no much work
It needs massive  machinery, manual  and material
set  to produce a  
It doesn’t depend  on any machinery
and only depend on utility.
InclusionsNot every  production is  coming under  
But every  manufacturing  comes
under the  production

What is Manufacturing?

Manufacturing means the goods are manufactured only from tangible products. It is a multi-level process to get the final result. The materials undergo various levels and tests. 

The small industries are a good example here. The resources from somewhere are changed into goods by a large margin. It is simply called large-scale production of goods.

The wholesale buyer buys this large amount of goods from factories and sells them to customers in small quantities.  It is a process of production of goods using massive machinery manuals and various tools.

Here biological,  chemical and physical reactions are done to produce the products. Simply, the process begins with how the product is designed and the usage of materials and selection are done accordingly.

Since it depends mainly on man and machine power, coordination is the main thing to give the output. Without that, manufacturing is difficult to do. 

The process here is quite large and makes more time to get the output. It needs a lot of manual work and machinery work to show the output. Some big manufacturers are Hindustan, nestle, etc. 

Manufacturing needs many prerequisites to satisfy before starting the process. Or else the output won’t be effective. 

Goods from manufacturing are sold instantly, maybe later on time. Large-scale industries come under this category.

In the future, the method of Manufacturing will change with various new technologies, which might lead to less manual and more machinery-dependent work all manufacturing needs more work to get a crisp output.

What is Production?

Production means for consumption of goods and services by all types of inputs. The primary function of production is addressing efficiency and using the resources accordingly for products as in need.

It is a process of combining various inputs to give or create a valuable output. A simple production is an act of creating the output of goods and services by combining things.

The tangible services are nothing but the services of doctors, employers and lawyers. So, the production gives all types of outputs. Production doesn’t create matter itself, but it is made by the available resources from nature.

Both engineering industries and industrial industries come under manufacturing. 

Economists make four different classifications by means of production.

They are: 

  1. Land
  2. Labour 
  3. Capital 
  4. Entrepreneurship 

Simple production is actively converting the input of all types into goods as humans want or need. The function behind it is simple, that is, giving goods by combining things. Even though many factories and industries are available, we go with instant output, so production gives an instant output as how humans want. Future technologies can make more innovation in this process to lead to more efficiency in production.


Main Differences Between Manufacturing and  Production

The main difference between manufacturing and production is manufacturing depends on machinery while production does not depend on machinery instead, it is a process of utility.

  1. In Manufacturing, the output is tangible, but in production, the output may be in both tangible and intangible products.  
  2. Manufacturing transfers raw materials into goods Production converts input into output. 
  3. Manufacturing machinery and manual is essential. Production may or may not depend on machinery.
  4. The products from manufacturing are a must in ready-to-use formats and need to be sold as soon as possible. But production is the process of using the utility. 
  5. In manufacturing, the raw materials are collected from outside and need time, but in its production, there is no need or procurement of raw materials as I already said that the company owns. 
  6. Based on the technical view, production has a broad spectrum of scope, while manufacturing has a limited scope. 
  7. The goods from manufacturing are suitable to use, but the production is the utility of things. 
  8. Men-machine is essential in manufacturing, but men are enough in production.
Difference Between Manufacturing and Production

Last Updated : 26 July, 2023

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