What Is the Difference Between Manufacturing and Production?

You've likely heard "manufactured" and "produced" used almost interchangeably when talking about bringing a product to life. While they're closely related, there are important distinctions that can impact your sourcing decisions and supply chain efficiency. If you're relying on a partner for parts or finished goods, understanding these differences is key to ensuring you're speaking the same language and optimizing your processes. Let's clear up the confusion.

The Core Distinction: Inputs and Outputs

The primary difference boils down to the state of the materials used and the nature of the output.

All manufacturing is a form of production, but not all production is manufacturing.

What is manufacturing?

Manufacturing is the engine that takes raw materials – like metal billets, plastic resins, or lumber – and systematically converts them into finished, physical products. This process can range from crafting a highly precise component for an aerospace assembly to forming a simple household item.

The goal in manufacturing is often to create these goods efficiently and consistently, especially in mass production, balancing cost-effectiveness with stringent quality standards. At Spex, for example, we specialize in precision machining, a critical manufacturing process, to create complex metal and plastic components from raw stock.

Key aspects of manufacturing:

Examples of manufacturing processes:

What is production?

Production is the overarching process of creating utility or value. While it certainly includes manufacturing, it extends further. Production takes various inputs – which can be raw materials, semi-finished goods, information, labor, or even intellectual capital – and transforms them into outputs that have increased value.

Consider the assembly of a complex piece of industrial equipment. The metal frame might be manufactured through welding and machining. The custom circuit board inside it was also manufactured. However, the process of integrating these components, installing software (an intangible input), and conducting final quality assurance testing on the complete unit is all part of the production process. No new raw material was introduced when installing the software, but significant value was added.

Key aspects of production:

Examples of production (beyond manufacturing):

Manufacturing vs Production

What is the main difference in scope when comparing manufacturing to the overall scope of production?

The scope of manufacturing is typically narrower and more specific, focusing on the physical or chemical transformation of raw materials into tangible goods. Production has a much broader scope. It encompasses the entire lifecycle of creating goods or services, from initial concept and design, through manufacturing (if applicable), assembly, quality control, packaging, distribution, and even after-sales service. Manufacturing is thus a potential phase within the larger production system.

How does the concept of "production" apply to service industries where no physical goods are made?

In service industries, "production" refers to the entire process of designing, planning, executing, and delivering a service to a customer. For example, a hospital produces healthcare services, an airline produces transportation services, and a bank produces financial services. The inputs are things like specialized labor, information systems, equipment, and methodologies, and the output is the service itself, which provides value to the customer.

What is the difference between raw materials and finished goods in a supply chain?

Raw materials are the basic, unprocessed substances used at the very beginning of a transformation process (e.g., iron ore, crude oil, timber, raw cotton). Manufacturing processes then convert these raw materials into intermediate components or, eventually, finished goods. Finished goods are the final, completed products ready for sale to the end-user or for use in another larger assembly (e.g., a machined gear, a car, a t-shirt).

Spex: Your partner in precision manufacturing

At Spex, we are experts in precision manufacturing. Since 1947, our Rochester, NY facility has been dedicated to using advanced CNC machining techniques—including milling, turning, Swiss, and multi-spindle capabilities—to produce millions of high-precision parts. We transform raw materials like steel, aluminum, and specialized alloys into critical components for a diverse range of industries, including Power & Electrical, Measurement & Instrumentation, HVAC & Heat Exchange, and Precision Hardware.

Many of the intricate parts we manufacture are vital inputs for our customers' larger production processes. They rely on our components to build their finished products, trusting our commitment to exceptional quality and on-time delivery. As an ISO 9001:2015 certified organization, world-class excellence is embedded in every step of our manufacturing operations, ensuring the reliability you need to keep your production lines moving.

Whether you require rapid prototypes to validate a design or full-scale production runs numbering in the millions, Spex and our trusted partners offer virtually limitless capacity to support your needs. We understand the challenges of sourcing reliable, high-quality machined parts, and we're here to make that process easier for you.

Do you have a question or need a quote? Fill out this form to contect our team!

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.