Adsense is the revenue generating source from your websites.but adwords is advertising source to get much traffic to your site.
Adsense and adwords both are the products of google. In adsense you are publisher and you earn money. In Adwords you advertise your products or website, for which you have to pay to google.
You can make money with Adsense if you place Google ads on your website. And with Adwords you can advertise your website on Google and/or on other websites.
As per my knowledge, google adwords helps you to create your own advertisement and placed it on Google search results, which are relevant. Adsense is a program for publishers and with it they can get all those ads on their personal site.