Breaking Down the Difference between Production and Manufacturing

What is Production?

The process of utilizing different inputs, including labour, capital, and land, to create outputs in the form of goods or services is known as production. While every firm is different and has a unique manufacturing approach, all companies want to optimise their earnings by combining their inputs in the most profitable way possible.

Several considerations need to be made by businesses when determining how much production is profitable. 

Type of Production:

  • Primary Production

Primary production is the phase of the manufacturing process where raw materials are created for the industries. Therefore, they become the building blocks for other organizations. 

  • Secondary Production:

The process of transforming raw materials into completed commodities is known as secondary production. 

  • Tertiary Production:

The process via which the participating industries sell the final commodities made by secondary industries is known as tertiary production.

What is Manufacturing:

Manufacturing is the process of converting raw materials or parts into completed things by utilizing machines, chemicals, manpower, and tools. Businesses can sell completed goods for more money when they manufacture them and sell them as raw materials. Mass production of products utilizing assembly line techniques and cutting-edge technologies is made possible by large-scale manufacturing. Manufacturers can benefit from economies of scale by using efficient production techniques to produce more units at a reduced cost.

Type Of Manufacturing:

  • Additive Manufacturing:

3D printing is the term used to describe this kind of production. It involves the use of layers that are stacked on top of one another with specialized machinery, like a 3D printer, to produce patterns and shapes in three dimensions.

  • Advanced Manufacturing:

Through the utilization of new technologies, this approach enhances the production process. Modern technologies also speed up the release of new goods while boosting production. 

  • Contract Manufacturing:

The manufacturing sector frequently experiences this. Companies will form alliances and commercial agreements with other companies to outsource specific production processes. For instance, a car manufacturer might employ a third party to provide parts for its assembly lines.


Production may or may not require a large infrastructure setup or machinery. Converting a variety of inputs into a useful output is its main goal. All industrial processes ultimately aim to fulfil human needs, whether they are met right once or take a while to manifest. However, the process of obtaining raw materials and turning them into completed goods that are prepared for sale is known as manufacturing. As a result, effective coordination between the labour force and machinery is essential in manufacturing. Furthermore, the goal of all manufacturing endeavours is to turn a profit. 

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