pl help me
dharmistha (ca final) (34 Points)
24 March 2010
what is the difference between production & manufacturing?
11 Replies
g@ur@V
(SENIOR ARTICLE ASSISTANT)
(81 Points)
Replied 24 March 2010
The difference is in the raw material. In production, the raw material is not procured from outside, the company owns it and after processing and make the final product. But in Manufacturing, the company procures the raw material from outside, and then makes the final product. manufacturing is a process of converting raw material in to finished product by using various processes,machines and energy.it is a narrow term. production is a process of converting inputs in to outputs.it is a broder term. every type of manufacturing is production but every production is not a manufacturing. exa- making of a turbine by various processes is manufacturing assemble the various parts to make a engine is production not manufacturing. Manufacturing isn't just when producing the product, it includes other stages such as design, sales, management and marketing
Tharun Raj
(CMA)
(1016 Points)
Replied 24 March 2010
@ Gaurav, What u said is correct.
Production is a broader term and Manufacture is a subset of production.
CA Dhiraj Ramchandani
(CA, M. com)
(10823 Points)
Replied 24 March 2010
Gaurav bhai... wiki is always correct...
CA Dhiraj Ramchandani
(CA, M. com)
(10823 Points)
Replied 24 March 2010
As per my view, in simple terms.. following is the basic difference
- Production is a complete cycle as it involves procurement of raw material storing that raw material as inventory conversion of raw into semi finished or finished goods dispatching sales forecasting etc.
- But manufacturing is a part of production which just involves in the value addition of raw materials (conversion of raw into semi finished or finished goods).
SIDHARTH DHIR
(senior articled assistant)
(623 Points)
Replied 24 March 2010
agree with dhiraj sir....
sivaram
(Asst Mgr-Taxation)
(6918 Points)
Replied 25 March 2010
Manufacturing is connected with conversion of raw material to Finished Goods but production is a broader term and includes Production of services too
saranraj
(CA FINAL)
(419 Points)
Replied 25 March 2010
Mr. Sivaram, services cannot be produced. They can only be rendered...
Prasanth Nair V
(ACA,ACS,CWA Final,Mcom)
(557 Points)
Replied 25 March 2010
Manufacture- includes the use of Raw Materials and some processing activity...
Production- includes some human effort and some kind of energy so as to bring the material to the produced state...
Ex- Tobacco is produced, but Cigarrattes are manufactured...
sivaram
(Asst Mgr-Taxation)
(6918 Points)
Replied 26 March 2010
I am Furnishing the correct Answer
Production can be defined as the conversion of raw materials into finished products and services that are sold to other business or to ultimate consumers." Production is the process by which goods and services are created" The terms "production ' and" Manufacturing' are often used interchangeable.However there is a fine distinction between the two..The Word " Production" has a broader connotation and includes all those activities which create something of value.In this sense,we may talk of producing services,such as those provided by hospitals,offices,universities,insurance companies and others.on the other hand the term " manufacturing" refers to the production of tangible goods such as watches,cars,television sets,food production and thousands of other items used by business units or individual consumers
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