Aviva Directory » Business & Industry » Manufacturing & Production

Manufacturing means producing goods or wares with the help of manual labor, tools, equipment, or machinery, although it may also refer to chemical or biological processing or formulation.

Some companies refer to what they do as fabrication. While both would be appropriate in this part of our guide, manufacturing involves creating a complete product ready for use by a consumer using either prefabricated parts or raw materials, while fabrication is the creation of component parts that can then be assembled to produce a final item.

Manufacturing involves the making of goods, by hand or by the use of a machine, that when completed, the manufacturer sells to a customer, often by way of a retailer. The process may be accomplished through human labor, through the use of machinery and other tools, and may also be a biological or chemical process.

Although the term is more often used to refer to large-scale production, small-scale production businesses may be considered manufacturing, as well unless it more closely fits into the definition of a craft. Manufacturing projects can be both large or small, ranging from producing the small components of an automobile to assembling the automobile itself.

During the process of manufacturing, raw materials are modified to deliver the finished product. While some manufacturers will complete the entire process in-house, most will purchase small components or parts from other manufacturers, which will then be assembled into a finished product. For example, automobile manufacturers don't produce all of the components that are used to build a finished automobile. For example, Autoliv produces the airbags that are used in many Fords, while Warn Industries supplies axle assemblies and Flex-N-Gate Seeburn provides the door hinges and arms.

Manufacturing is the creation and assembly of both components and finished products for sale, usually on a large scale.

Production involves the conversion of resources from nature into finished goods for the purpose of satisfying human needs or wants. This transformation of inputs into outputs is known as production. For example, we convert cotton into cloth, and cloth into the clothing that people wear. This may occur manually or with the help of machines. Production does not refer to the creation of a matter; rather, it refers to the creation of a utility out of available resources.

Clearly, there is a symbiotic relationship between manufacturing and production. Production companies typically have access or ownership of their resources, while manufacturing companies purchase their materials from other sources. As an example, a furniture manufacturer may create its own line of chairs, tables, and desks, but it probably buys its lumber from an outside seller. A clothing manufacturer may grow its own cotton, but it probably doesn't. It's more common for a production company to create its own resources, while manufacturers assemble components purchased elsewhere.

After companies complete their output, they sell or use their products to make a profit. Manufacturing companies generally sell their products to a retailer, who sells the goods to customers. A production company can sell its products or use its goods to create other products, such as using thread to create clothing. The end result of both production and manufacturing includes selling the goods, but manufacturers usually sell their products immediately, while production companies are more likely to store their goods for a later date.

Depending on the product being manufactured and the resources available, the manufacturing process might involve the use of labor, tools, machinery, or even chemical and biological processing. While the term can be applied to activities that largely involve human activities, it is most often used to refer to industrial production or the large-scale transformation of raw materials into finished products that are sold to wholesalers, who may sell them to retailers who, in turn, sell them to consumers at a profit. They may also be sold to other manufacturers who use them to produce more complex products.

For example, a paper bag manufacturing company might produce grocery bags on machines that are manufactured by other companies using parts manufactured by any number of companies, using paper that was produced in a paper mill. All of these companies are manufacturers, and the process that transforms raw materials or separate components into a final product is known as the manufacturing process.

If you find this to be confusing, don't worry. Both manufacturing and production topics are appropriate resources for this category. Large-scale manufacturers and producers may be listed here, as well as in the Local & Global category that corresponds to its headquarters, while smaller companies should be listed in the Local & Global category that represents the company's geographical location.


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