Characteristics of operations managment within both Manufacturing and Service businesses

Question 1

manufacturing business characteristics

Answer 1

• produce goods that are tangible (can be touched)
• manufactured goods can be stored for later use
• little customer involvement in production (consumer not present)
• production process and consumption not linked
• goods tend to be homogenous or standardised

Question 2

service business characteristics

Answer 2

• produce services that are intangible (cannot be touched)
• services cannot be stored
• customer is involved in production (present during service is produced)
• production process and consumption occur at the same time
• services tend to differentiate or tailored to individual customers