Differences Between Manufacturing and Service Organizations

Front

What is the primary difference between manufacturing and service operations?

Back

Manufacturing operations produce tangible goods, while service operations provide intangible services.

Front

How do manufacturing organizations typically interact with customers?

Back

Manufacturing organizations have low visibility and interactions with customers, often through distributors and retailers.

Front

What is a characteristic of service industries regarding consumption?

Back

In service industries, consumption of the service often occurs while it is being generated.

Front

What are some examples of service industries?

Back

Banking, insurance, hospitality, advertising, logistics, and consultancy.

Front

What is a key distinction in production between manufacturing and service organizations?

Back

Manufacturing organizations produce goods that can be stored in inventory, while service organizations produce intangible products that cannot be produced ahead of time.

Front

How does customer contact differ between manufacturing and service organizations?

Back

In manufacturing, customers typically do not have direct contact with the operation, while in service organizations, customers are usually present during the creation of the service.

Front

What is customer-specific production in service firms?

Back

Service firms do not produce a service unless a customer requires it, tailoring services to meet specific customer needs.

Front

How do labor requirements differ between service firms and manufacturers?

Back

Service firms require specific knowledge and skills and are labor-intensive, while manufacturers can automate many production processes.

Front

Do service firms need a physical production site?

Back

No, service firms do not require a physical production site; they can operate from anywhere.

Front

What is the role of technology in operations processes?

Back

Both manufacturing and service operations use technology to enhance quality, productivity, and response to customer needs.