Production refers to a process in which all activities of people, equipment, machinery, and other resources are directed towards the conversion of input into an output. Whenever someone utters the word production, our minds naturally tend to think of large rooms filled with machines, materials in heaps, and people busy doing a number of different tasks.

One of the shortest and easy definitions of production term ever put forward is – Transformation process of inputs into valuable outputs.
Production is the process of changing raw material into finished goods and services with the aim to fulfill a particular need of customers.

The production process involves three important elements viz inputs, transformation process, and outputs. All of them are explained below with a few good examples.


The input element of production includes 6 Ms viz manpower, money, material, methods, machines, and their management. Money is required to buy the required quantities of material, machines, and pay people for jobs. Manpower ensures activities that need to be done, machines to be run, and their supervision. Materials are transformed into a valuable product or service with the help of machinery and management assures efficient direction and control of all other elements.

Transformation process

The transformation process involves the use of manpower, machines, and methods in order to add value to materials and turn them into something useful ( outputs) or which is saleable and consumable by customers. Their involvement is very important otherwise there would be no outputs attained.


The third most important element of the production is output which is the result of inputs and transformation process. The output could either be a product or a service that is eventually delivered to target customers for consumption or use at some cost.

That is all production involves and we hope our explanation was an easy read for you.

Susan Ranford

My name is Susan Ranford. I am an expert on job market trends, hiring, and business management. I often write about issues related to employment and business.