What is the Difference Between Manufacturing and Production?

Manufacturing and production are two separate concepts that many people today confuse, or rather, think they are the same. Although the characteristics of these two concepts are similar to a certain point they are both completely different. In today’s article, you will learn how different the concepts of manufacturing and production are actually from each other and you will be enlightened.

What is the Manufacturing and Production System?

In the manufacturing system, machines transform raw materials into finished products by going through many stages. This is how long-standing production companies have been converting raw materials into products. Raw materials are converted into different shapes and sizes, resulting in products that people can benefit from. 

The production system is a broader concept that includes both raw materials and finished products turning into products that are finished and ready for distribution, and what a company does financially.

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Turbine manufacturing factory interior, nobody

To fully understand the difference between manufacturing and production, it is important to look at what product they are converting. To explain in more detail, the products converted by manufacturing are “concrete” items such as raw materials. What production converts is everything you can count as “input,” which includes instances concepts.

The reason for the existence of both processes is that companies can make a profit by selling finished products. There’s only one difference. That difference is that production covers both concrete and intangible terms.

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What are the Three Types of Manufacturing Used by Businesses?

The manufacturing processes that companies know and use most are made to stock (MTS), make to order (MTO), and make to assemble (MTA). Of course, these processes have advantages and disadvantages. The cost allocated for labour, the control of inventories, the company’s overs expense, the problems of how quickly production is made are issues that should not be ignored.

The MTS strategy is a traditional production strategy and based on estimates of product demands. Examples of pine tree ornaments or Santa Claus trinkets that emerge at Christmas time.

The MTO strategy is based on the customer’s order and produces products according to the specific specifications the customer wants. We can also call it the special production of personalized products.

The MTA strategy is a strategy that comes with the blending of MTS and MTO. Manufacturers estimate customers’ requests, but don’t put together stocks based on those estimates until they receive an order.

Manager Checking Goods On Production Line

What are the Three Types of Production Used by Businesses?

There are three types of products that manufacturers prefer and are common: Job production, batch production, and flow production.

In Job production, items are made separately, and when it’s time for the next item, the previous item is already finished. Did you know that designer dresses that we all look at with envy come out of job production?

In Batch production, the substances are produced in bulk. This batch production state must be finished before the next batch production begins. 

In Flow production, the same substances are produced. We can set an example of the production of cars.

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