Question

What are some of the main differences between a manufacturing and a service system? Given these differences, what concerns does a service provider have that a manufacturing firm does not have in designing the service?

Answer 1

There are various differences between a manufacturing and a service system and if we look at the primary differences of the system, they are:

1. In manufacturing systems the output is generally a tangible product but in service it is intangible.

2. In solely service industries there are no cases of inventory because they do not require to store as the final product is intangible.

3. In service delivery the labor effort is more than a manufacturing delivery as the scope of automation in service industry is very less compared to that of manufacturing unit.

4. The customer demand is important because in service industry customer demand or order is primarily required and based on that the facility is designed but in manufacturing there is no need of such orders.

As conveyed that the customer demand or order is primarily important because in designing the service it is required but in manufacturing such order or demands are not required.