5 impt differences and similarities between goods production and services operation?

Answer 1

differences

1) uniformity of input

2)labor content of jobs

3)uniformity of output

4)customer contact

5) measurement of productivity

6) quality assurance

7)amount of inventory

8)production and delivery

Similarities

1)designing the product/service

2)deciding where to locate facilities

3)deciding on what process to use

4)capacity planning

5)managing inventories

6)assuring quality

7)motivating employees

8)supply chain managment

Answer 2

Goods production and services operation have several key differences and similarities. Differences include the tangibility of goods versus the intangibility of services, the production process for goods being more standardized while services are often customized, goods can be stored as inventory whereas services are typically consumed immediately, goods can be returned or exchanged while services are generally not refundable, and the quality of goods can be inspected prior to purchase while the quality of services is often evaluated after consumption. Similarities include both requiring efficient resource allocation, effective management of supply chains, a focus on customer satisfaction, the need for quality control measures, and the importance of effective marketing strategies.

Answer 3

Identify the similarities and differences between production and service operations.

. There are many similarities between the two.

Production of goods results in a tangible output, such as an automobile, eyeglasses, a Golf ball, a refrigerator—anything that we can see or touch. It may take place in a factory, but it can occur elsewhere. For example, farming and restaurants produce non manufactured goods. Delivery of service, on the other hand, generally implies an act. The majority of service jobs fall into these categories:

• Professional services (e.g., financial, health care, legal)

• Mass services (e.g., utilities, internet, communications)

• Service shops (e.g., tailoring, appliance repair, car wash, auto repair/maintenance)

• Personal care (e.g., beauty salon, spa, barbershop)

• Government (e.g., Medicare, mail, social services, police, fire)

• Education (e.g., schools, universities)

• Food service (e.g., catering)

• Services within organizations (e.g., payroll, accounting, maintenance, IT, HR, janitorial)

• Retailing and wholesaling

Manufacturing and service are often different in terms of what is done but quite similar in terms of how it is done.

Degree of customer contact: Many services involve a high degree of customer contact, although services such as Internet providers, utilities, and mail service do not. When there is a high degree of contact, the interaction between server and customer becomes a “moment of truth” that will be judged by the customer every time the service occurs.

Uniformity of inputs: Service operations are often subject to a higher degree of variability of inputs. Each client, patient, customer, repair job, and so on presents a some what unique situation that requires assessment and flexibility. Conversely, manufacturing operations often have a greater ability to control the variability of inputs, which leads to more-uniform job requirements.

Measurement of productivity: Measurement of productivity can be more difficult for service jobs due largely to the high variations of inputs. Thus, one doctor might have a higher level of routine cases to deal with, while another might have more difficult cases. Unless a careful analysis is conducted, it may appear that the doctor with the difficult cases has a much lower productivity than the one with the routine cases.

Quality assurance: Quality assurance is usually more challenging for services due to the higher variation in input, and because delivery and consumption occur at the same time. Unlike manufacturing, which typically occurs away from the customer and allows mistakes that are identified to be corrected, services have less opportunity to avoid exposing the customer to mistakes.

Inventory: Many services tend to involve less use of inventory than manufacturing operations, so the costs of having inventory on hand are lower than they are for manufacturing. However, unlike manufactured goods, services cannot be stored. Instead, they must be provided “on demand.”

Wages: Manufacturing jobs are often well paid, and have less wage variation than service jobs, which can range from highly paid professional services to minimum-wage workers.

Ability to patent: Product designs are often easier to patent than service designs, and some services cannot be patented, making them easier for competitors to copy.

Answer 4

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Answer 5

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