What is Production? Definition
As per Carl Heyel (16 February 1908 - sixteen May 2000),
"Production is the procedure of transforming raw materials or purchased components into finished products for sale."
Image Credits © Luna Rodriguez.
Meaning of Production
Production is a procedure of transforming (converting) inputs (raw-materials) into outputs (finished goods). So, production agency the creation of goods together with services. It is done to satisfy human wants. Thus, production is a procedure of transformation.
Process of Transformation
Image Credits © Luna Rodriguez.
The procedure of transformation is done inwards the next ways:
- Disintegration : Here, 1 input (raw material) is used to range many types of output. For e.g. Steel (Input) is used to range many types of outputs similar spoons, knives, plates, etc.
- Integration or Assembly : Here, many inputs are used to range entirely 1 output. For e.g. many unlike inputs are used to range a car.
- Service : Here, the value of the production is increased past times providing services, for e.g. afterward sale service for a TV set.
