Difference between manufacturing and service operations

1. Explain Difference between
Manufacturing and Service
Operations
Prepared by :
Prof. Uday Lakhani
Shree H. N. Shukla College
Rajkot

2. Difference
between
Manufacturing
and Service
Operations

3. Manufacturing operations convert inputs like
materials, labour etc. into tangible outputs.
Service Operations also transform inputs into outputs
but outputs are intangible.
(1)

4. Manufacturing Operation allow
Separation between Production
and Consumption.
Customer receive service as it is
performed. Thus, there is
production as well as
consumption of service at the
same time.
(2)

5. Productivity is easily measured in manufacturing
operations because manufacturing operations
produce tangible products.
Productivity is not easily measured in service
operations because the outputs of service
operations are intangible.
(3)

6. Expenses required for
material handling is more
in manufacturing
operations.
Expenses required for
material handling are less
as compared to
manufacturing operations .
(4)

7. Customers have less
contact with people
who provide
manufacturing
operations.
Customers have more
contact with persons
who provide services.
(5)

8. Quality standards are relatively simple and
easy to establish in manufacturing operations.
Quality standards are difficult to establish and
product quality is difficult to evaluate in
service operations.
(6)

9. Manufacturing operations depend on
maintenance and repair work.
Service operations do not depend on
maintenance and repair work.
(7)

10. Manufacturing operations are flexible in
manufacturing work, methods, scheduling
work.
Service operations are inflexible because
services are in direct contact with customers
and customers are part of service system.
(8)

11. Manufacturing operations can standardized and
less customized.
Service operations cannot produce outputs that
can be stored.
(9)

12. Higher amounts are required to be invested an
assts like equipment , building, etc.
High amounts are not required to invested
since most of they are labour performance.
(10)

13. Quality assurance is relatively easy and
controllable variation. In inputs can be controlled
and defects can be rectified in output before
they reach the customer.
Quality assurance in services is challenging. There
is high level of variation in input in case of
services. This affects service quality.
(12)

14. Manufacturing operations usually are larger in
size and operation.
Service operations meet direct contact with
customer and hence they are relatively smaller in
size and operation.
(13)