DIFFERENCES BETWEEN MANUFACTURING AND SERVICE ORGANIZATIONS
Organizations can be divided into two broad categories: manufacturing organizations and service organizations, each posing unique challenges for the operations function. There are two primary distinctions between these categories. First, manufacturing organizations produce physical, tangible goods that can be stored in inventory before they are needed. By contrast, service organizations produce intangible products that cannot be produced ahead of time. Second, in manufacturing organizations most customers have no direct contact with the operation. Customer contact occurs through distributors and retailers. For example, a customer buying a car at a car dealership never comes into contact with the automobile factory. However, in service organizations the customers are typically present during the creation of the service. Hospitals, colleges, theaters, and barber shops are examples of service organizations in which the customer is present during the creation of the service.
Organizations that primarily produce a tangible product and typically have low customer contact.
Organizations that primarily produce an intangible product, such as ideas, assistance, or information, and ...
a. uniformity of input The Correct Answer for the given question
is Option b. forecasting demand a. high customer contactS.No.
Manufacturing Operations
Service Operations
1.
Manufacturing operations produces tangible output (ie; which can be physically seen) from the the conversion process.
Service Operations produces intangible output( ie; which cannot be physically seen) from the conversion process.
2.
The output from the manufacturing operations can be consumed over a longer period of time.
The output from the service operations is consumed immediately.
3.
Manufacturing Operations are generally based on capital intensive technique as they use more capital(ie; more use of machines and equipments) and less labour.
Service Operations are generally based on people intensive technique as they use more machines and equipment than machines and equipments.
4.
In manufacturing Operations, there is no need to contact customer frequently and no need of customer’s participation.
In service operations, there is need to contact customers frequently and need of customer’s participation as without customer contact no service can be generated.
5.
In order to measure the performance of the manufacturing operations, sophisticated methods are used.
In order to measure the performance of the service operations, simple methods(fast and easier) are used.
6.
Manufacturing operations covers large area as they produce goods for local level, national level or international level.
Service Operations covers small area as they generally provide services for local people.
7.
Manufacturing operations which includes production of goods and services are generally technology based.
Service operations are mainly knowledge and skill based but sometime technology is also required to produce services.
Manufacturing and Service Operations FAQs
Which is not an area of significant difference between manufacturing and service operations?
b. forecasting demand
c. customer contact
d. labor content of jobs
e. measurement of productivityWhich of the following is not a characteristic of service operations?
b. high labor content
c. intangible output
d. easy measurement of productivity
e. low uniformity of input
The Correct Answer for the given question is d. easy measurement of productivity
According to PCN analysis, service operations exist only within the area(s) of:
a. independent processing.
b. independent processing and surrogate interaction.
c. independent processing and direct interaction.
d. surrogate interaction and direct interaction.
e. independent processing, surrogate
interaction, and direct interaction.
The Correct Answer for the given question is d. surrogate interaction and direct interaction.
Which of these four conflicting goals do service operations balance
Ans:The four conflicting goals balanced by Service ooperations include:
- Internal IT vs. external business view
- Stability vs. responsiveness
- Quality of service vs. cost of service
- Reactive and proactive activities
Which of the following is generally related to service operations
a. Tangible product
b. Need for flexible capacity
c. Separation of production from consumption
d. Large amount of inventory
The Correct Answer for the given question is b. Need for flexible capacity
a) inseparability
b) inconsistency
c) perishability
d) variability
e) intangibility