3.3.3 characteristics of manufacturing and service businesses

Question 1

define manufacturing businesses

Answer 1

use resources and raw materials to produce a finished physical good.

Question 2

define service businesses

Answer 2

provide intangible products, usually with the use of specialised expertise.

Question 3

describe the characteristic of a manufacturing business that is tangibility

Answer 3

the outputs produced by a manufacturing business are tangible

Question 4

describe the characteristic of a manufacturing business that is storability

Answer 4

the outputs produced by a manufacturing business can be stored as inventory

Question 5

describe the characteristic of a service business that is consistency

Answer 5

services are usually not standardised and instead tailored specifically to fulfil individual customer’s needs.

Question 6

describe the characteristic of a service business that is storability

Answer 6

the output produced by a service business cannot be stored as inventory

Question 7

whats 2 differences between manufacturing businesses and services businesses

Answer 7

manufacturing businesses are capital intensive whilst service businesses are labour intensive.

manufacturing is tangible whilst service businesses are intangible output.

Question 8

whats two similarities of manufacturing busiensses and service businesses

Answer 8

both aim to optimise their operation to produce high quality outputs at a low cost of production.
both utilise forms of technology in operations