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What is Production? Definition Meaning Transformation Process

square What is Production? Definition

As per Carl Heyel (16 Feb 1908 - 16 May 2000),

"Production is the process of transforming raw materials or purchased components into finished products for sale."

what is production definition meaning

Image Credits © Moon Rodriguez.

square Meaning of Production

Production is a process of transforming (converting) inputs (raw-materials) into outputs (finished goods). So, production means the creation of goods and services. It is done to satisfy human wants. Thus, production is a process of transformation.

square Process of Transformation

process of transformation

Image Credits © Moon Rodriguez.

The process of transformation is done in the following ways:

  1. Disintegration : Here, one input (raw material) is used to produce many types of output. For e.g. Steel (Input) is used to produce many types of outputs like spoons, knives, plates, etc.
  2. Integration or Assembly : Here, many inputs are used to produce only one output. For e.g. many different inputs are used to produce a car.
  3. Service : Here, the value of the product is increased by providing services, for e.g. after sale service for a TV set.


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