Explain Difference between Manufacturing and Service

Operations

Prepared by : Prof. Uday Lakhani

Shree H. N. Shukla College

Rajkot

Difference between

Manufacturing and Service Operations

Manufacturing operations convert inputs likematerials, labour etc. into tangible outputs.

Service Operations also transform inputs into outputsbut outputs are intangible.

(1)

Manufacturing Operation allowSeparation between Productionand Consumption.

Customer receive service as it isperformed. Thus, there isproduction as well asconsumption of service at thesame time.

(2)

Productivity is easily measured in manufacturingoperations because manufacturing operationsproduce tangible products.

Productivity is not easily measured in serviceoperations because the outputs of serviceoperations are intangible.

(3)

Expenses required formaterial handling is morein manufacturingoperations.

Expenses required formaterial handling are lessas compared tomanufacturing operations .

(4)

Customers have lesscontact with peoplewho providemanufacturingoperations.

Customers have morecontact with personswho provide services.

(5)

Quality standards are relatively simple andeasy to establish in manufacturing operations.

Quality standards are difficult to establish andproduct quality is difficult to evaluate inservice operations.

(6)

Manufacturing operations depend onmaintenance and repair work.

Service operations do not depend onmaintenance and repair work.

(7)

Manufacturing operations are flexible inmanufacturing work, methods, schedulingwork.

Service operations are inflexible becauseservices are in direct contact with customersand customers are part of service system.

(8)

Manufacturing operations can standardized andless customized.

Service operations cannot produce outputs thatcan be stored.

(9)

Higher amounts are required to be invested anassts like equipment , building, etc.

High amounts are not required to investedsince most of they are labour performance.

(10)

Quality assurance is relatively easy andcontrollable variation. In inputs can be controlledand defects can be rectified in output beforethey reach the customer.

Quality assurance in services is challenging. Thereis high level of variation in input in case ofservices. This affects service quality.

(12)

Manufacturing operations usually are larger insize and operation.

Service operations meet direct contact withcustomer and hence they are relatively smaller insize and operation.

(13)