What are the differences and similarities between manufacturing and servicing?
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Manufacturing and service companies share some characteristics and both require skilled people. The difference between service and manufacturers are the tangibility of their reproduction (Linton, 2016).Manufacturers produce physical goods that customers can see and touch while service goods are not developed upon customer request (Linton, 2016). Service companies create services when a customer requests it. Manufacturers produce goods to forecast demand with inventory levels (Linton, 2016). One example of a Service Company by Linton is 12 hours of consultancy, 14 hours of design and 10 hours of installation (Linton,
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Manufacturing and Service Operations FAQsTable of Contents
Which is not an area of significant difference between manufacturing and service operations?a. uniformity of input Show Answer The Correct Answer for the given question is Option b. forecasting demand Forecasting demand is not an area of significant difference between manufacturing and service operations. Both sectors rely heavily on forecasting to ensure that the necessary resources are available when needed and to plan for future needs. In both sectors, predictive modeling and simulation are widely used to make accurate forecasts. The main differences between the two types of operations involve the degree to which demand is forecast and how it is used in decision making. Manufacturing organizations typically use forecasts to control production levels and plan for future growth. Service organizations, on the other hand, use forecasts to anticipate customer needs and provide timely responses. There is considerable interest to apply the principles of Lean Manufacturing in the Service Industry – sometimes called Lean Services. The motivation comes from the fact that the Toyota Production System – also known as Lean Manufacturing – has been very successful in transforming manufacturing. The popular thought is that those same lean principles that has transformed manufacturing could do the same for services. I have applied the principles of Lean Manufacturing in both services and manufacturing and I’ve learned the subtle difference in both contexts and also how one might apply lean to one versus the other. What is unwise is the blind copying of the tools of lean manufacturing, thinking that they will work in services. The fact is that manufacturing and services are very different. Let me attempt to highlight how a service business is different from a manufacturing business. Service BusinessManufacturing Businesssimultaneous production and consumption (co-creation between producer and consumer)consumption and production at different stagesmany critical aspects are intangiblemany critical aspects are tangibleconcept of inventory may not be material, but can be virtual such as requests and, in healthcare, patients waiting for service can be considered a type of inventoryusually has inventory and buffersconsiderable variability in service deliverysome variationopen universe in variety of service casesclosed set in variety in product manufacturingsubstantive and peripheral benefitsmainly substantive product benefits Difference Between Service and ManufacturingIn the next several posts, I’ll cover each of the items in the above comparison chart and show how service is different from manufacturing, which should also highlight how the principles of Lean Manufacturing can be appropriately applied in the different contexts. What are the similarities between manufacturing and service?Similarities between Manufacturing and Service
Both types of organizations normally provide a package of goods services. Generally, service organization cannot inventory their outputs, but manufacturing firms that make customized product also cannot inventory their output.
What is the difference of manufacturing and services?In general, manufacturers have a standardized way of producing goods. Goods are produced en masse in a factory or warehouse-type environment. One finished product is generally the same as the next. Service Industries include those industries that do not produce goods and instead provide services.
What are the major differences between manufacturing and service organizations?DIFFERENCES BETWEEN MANUFACTURING AND SERVICE ORGANIZATIONS
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.
What is the relationship between services and manufacturing?Manufacturing companies rely heavily on services to coordinate their integrated production sites and move intermediate goods from one production location to another in value chain structures around the world before finalization.
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