What does "Production" term implies in an organization.
Production function is that part of an organization, which is concerned with the transformation of a range of inputs into the required outputs having the requisite quality level.
Production is defined as " the step by step conversion of one from of material into another from through chemical or mechanical process to create or enhance the utility of the product to the user" . Thus production is a value addition process. At each stage of processing there will be value addition.
Edwood Buffa defines production as a process by which goods and services are created. Some examples of production are manufacturing custom made products like boilers with a specific capacity, constructing flats, some structural fabrication works for selected customers, etc and manufacturing standardized products like car, bus, motor cycle, radio, television, etc.
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