3C Characteristics of manufacturing and service businesses Flashcards
(14 cards)
Manufacturing businesses
use resources and raw
materials to produce a
finished physical good.
manufacturing business: Operations characteristic - Production process
Manufacturing businesses tend to have highly automated
processes that are capital intensive.
manufacturing business: Operations characteristic - Occurrence of production and
consumption
At manufacturing businesses, production and consumption
of the product occur at separate times.
manufacturing business: operations characteristic - Customer contact
Manufacturing businesses often have a low degree of customer
contact during production, as the production stage is separated
from consumption.
manufacturing business: operations characteristics - Tangibility
The outputs produced by a manufacturing business are tangible.
manufacturing business: operations characteristics - Storability
The outputs produced by a manufacturing business can
be stored as inventory.
manufacturing business: operations characteristics - Consistency
Manufacturing businesses produce standardised goods
through mass production.
Characteristics of a service business
provide intangible products,
usually with the use of
specialised expertise.
service business: operations characteristics - Production process
Service businesses tend to have production processes that are
labour intensive.
service business: operations characteristics - Occurrence of production and consumption
At service businesses, production and consumption of the service
occur simultaneously.
service business: operations characteristics - Customer contact
Service businesses tend to have a high degree of customer contact
during production as it occurs simultaneously with consumption.
service business: operations characteristics - Tangibility
The outputs produced by a service business are intangible.
service business: operations characteristics - Storability
The outputs produced by a service business cannot be stored
as inventory.
service business: operations characteristics - Consistency
Services are usually not standardised and instead tailored
specifically to fulfil individual customers’ needs.
