3.5 differences between service and manufacturing businesses Flashcards
(1 cards)
explain the key differences (at least 4) of operations management for both a service and manufacturing business
A service business can include a barbershop, whereas a manufacturing business can include Nike.
A manufacturing business produces goods that are tangible (can be touched) whereas a service business produces services that cannot be touched (intangible).
In a manufacturing business production and consumption occur separately, whereas production and consumption occur simultaneously in service businesses.
Manufactured goods tend to be homogenous/standardized, whereas in a service business services tend to be differentiated or tailored to individual customers.
In a manufacturing business production is typically capital intensive requiring machinery such as robots or automated production lines, whereas in a service business production is mainly labor intensive.
