MANUFACTURING OPERATIONS VERSUS SERVICE OPERATIONS

Distinction between manufacturing and service operations is based on the following features:

  • The nature and consumption of output.
  • Nature of work (jobs).
  • Degree of consumer contact.
  • Uniformity of output.
  • Quality assurance.
  • Measurement of performance.

Table 1 provides an overview of the different manufacturing and service operations.

TABLE 1

Differences between manufacturing and service operations

Characteristic

Manufacturing

Service

Output

Tangible

Intangible

Consumer contact

Low

High

Nature of work

Capital intensive

Labor intensive

Uniformity of output

High

Low

Difficulty of quality assurance

Low

High

Measurement of performance

Easy

Difficult

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