Difference Between Manufacturing and Service Operations
manufacturing vs service operationsOperations
Management is that branch of management that deals with the government of that section of the
organization which is concerned with the production of goods and services. However, operations
management is primarily used with service operations, whereas manufacturing operations are mainly
studied in production management, but for non-manufacturing facets operations management can be
used.
One of the biggest difference between manufacturing and service operations is that in case of the latter,
the service provider is unable to hold stock of the service for future, but with former, the stock to be
manufactured can be made ready, in anticipation of future demand of production.
Content: Manufacturing Vs Service Operations
Comparison Chart
Definition
Key Differences
Conclusion
Comparison Chart
Basis for Comparison Manufacturing Operations Service Operations
Meaning Manufacturing operations refers to the specific processes, in which a firm engages itself,
to add value to products, for selling it to the customers. Service operations implies the processes that
involve the provision of services to the clients and business users, as per their demand.
Measurement of Productivity Easily measured Cannot be measured
Form of output Tangible and standardized, but can also be customized. Intangible and customized
Input and Output Always uniform May or may not be uniform
Location Close to the supply of input. Close to the market, so that client's reach is easy.
Capital cost Capital cost is high in operations but can achieve economies of scale. Training cost is
high, but can operate with low capital costs.
Labor cost Unskilled or technically skilled manpower is employed, and so labor cost is low. Skilled
and experienced manpower is employed, so labor cost is comparatively high.
Lead time Long Comparatively shorter
Quality standards Implemented easily Difficult to implem
