A company’s production department (sometimes called manufacturing) is charged with building physical products. They’re concerned with planning production and managing manufacturing staff. They build or procure needed machinery, maintain component inventories, and plan out production processes. They’re also focused on quality control, although sometimes that function is split off into a separate department.
Service companies don’t produce physical objects, but that doesn’t mean they don’t engage in production. As an example, an advertising company might have a production department charged with creating video and print advertisements for their clients. So a more general definition of production would be the staff that produces an organization’s output, whatever that it.
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