
herstellen
to produce
To create or make a product through a work process, usually industrially or by craft.
Diese Fabrik stellt Autoteile für verschiedene Marken her.
This factory produces car parts for various brands.
to produce / establish
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to produce
To create or make a product through a work process, usually industrially or by craft.
Diese Fabrik stellt Autoteile für verschiedene Marken her.
This factory produces car parts for various brands.

to establish
To create or bring about something non-material, such as a connection, a relationship, or a certain state.
Der Techniker konnte schnell eine Verbindung zum Internet herstellen.
The technician was able to quickly establish a connection to the internet.
'Herstellen' (to produce / establish) is a separable verb. The prefix 'her' comes at the end in a main clause, stays attached to the verb in subordinate clauses, and in the infinitive with 'zu', 'zu' comes in between.
Die Firma stellt seit 20 Jahren Möbel her.
The company has been producing furniture for 20 years.
The word consists of the prefix 'her' (to here) and the verb 'stellen' (to put/place). Literally, it means to put something in a place so that it is available. From this developed the meaning 'produzieren' (to produce) or 'erschaffen' (to create).
In diesem Werk werden hochwertige Uhren hergestellt.
High-quality watches are produced in this plant.
The context reveals the meaning. If it is about a physical product like a car or a medication, 'herstellen' means 'produzieren' (to produce). If it is about something abstract like a connection or contact, it means 'schaffen' (to create) or 'aufbauen' (to build up/establish).
Dieses Unternehmen stellt umweltfreundliche Verpackungen her.
This company produces environmentally friendly packaging.
to do / make
Both words can describe making a product. „Machen“ is general and fits especially well in relaxed everyday speech, while „herstellen“ places more emphasis on the production process. „Machen“ is possible for a simple statement; „herstellen“ is a better fit for an objective description of production.

Die Bäckerei stellt jeden Morgen frisches Brot her.
The bakery produces fresh bread every morning.
Die Bäckerei macht jeden Morgen frisches Brot.
The bakery makes fresh bread every morning.