Definition: Production is the process of changing raw material into finished goods and services with the aim to fulfil a particular need of customers.
When activities of people, equipment, and other resources are directed towards converting the input into output, it is referred as production. When we hear the word production, within our minds, conjures up images of large rooms filled with machines, materials in hues and people involved in different tasks.
One of the shortest definitions of production is ” the process of transforming inputs into valuable outputs “.
The production process involves three elements viz inputs, transformation process and outputs. Each element has been briefly explained below:
Input includes 6 Ms such as manpower, material, money, methods, machines, and management.
Transformation process adds value to input and turns it into something that is useful or which is saleable to customers.
Output can be a good or services that are finally delivered to target customers at some cost.