Ok, enlighten us

I don't know if I use the word "production" correctly, I associate it with tweaking a song until it's a final product, *engineering* it if you want. I *know* this because a friend plays in a pop rock band, and he refers to production as to what the sound engineers (I think) do with their recordings in the studio: a vast and amazing amount of things BTW. I guess the producer is the one who orchestrates that.

What would be the correct terminology?