Topic: Manufacturing and Services Operations

 
Learning Objective: 

The objective of this discussion is to make the students able to read and analyze the information
on the concept of manufacturing and services operations along with their similarities and
differences.

Scenario:
Manufacturing of products and services do have similarities and differences. Both are similar in
terms of what is done but different in terms of how it is done. For example, It is important for
both to do design and operating decisions. The manufacturer’s needs to decide of the size of
factory that is desired for production. The services like schools must decide what size of the
building is being required. Both are involved in making decisions on location, schedule and
allocation of resources. The differences exist mainly in both manufacturing of products and
services because manufacturing is goods oriented whereas services are act oriented.

Discussion Question:
Keeping in mind the above information and knowledge gained from this course, how will you
differentiate the manufacturing and services organizations in terms of following aspects?
• Customer Contact
•  Uniformity of input
Customer Contact

1. Dealing with customers

a. Manufacturing Organizations: - In these organizations very few
producers directly deal with customers. Mostly customer contact
occurs through different wholesalers and vendors.
b. Service Organizations: - In these organizations’ most of the time
producers directly deal with customers. Hospitals and barber shops
are examples.
2. Presence of Consumers during Production
a. Manufacturing Organizations: - In these organizations’ customers
are rarely involved and present during production process thus having
rare contact between producer and user.
b. Service Organizations:- Most of the time consumers are closely
involved with production process in these type of organizations.

Uniformity of Input

1. Requirements of labor and automation process

a. Manufacturing Organizations: - Producers can automate many of
their production methods which will cut their labor requirements,
although some manufactures avoid automation especially in countries
where labor cost is low.
b. Service Organizations: - A service firm recruits people with
precise knowledge and skills in the service fields which it offers.
Service Organization is labor concentrated and cannot be easily
automated.
2. Physical Manufacturing Location
a. Manufacturing Organizations: - Producers essentially required a
physical location for manufacturing and holding of stocks.
b. Service Organizations: - Service organizations do not require
physical place for their operations. They can be located and operate
from anywhere.