3c Characteristics of manufacturing and service business Flashcards
Characteristics of a manufacturing business - production process
Manufacturing business tend to have a highly automated processes that are capital intensive.
Characteristics of a manufacturing business - Occurrence of production and consumption
At manufacturing businesses production and consumption of the good occur at separate times.
Characteristics of a manufacturing business - Customer contact
At manufacturing businesses often have to have a low degree of customer contact during production, as the production stage is separate from consumption.
Characteristics of a manufacturing business - Tangibility
The outputs produced by manufacturing business are tangible.
Characteristics of a manufacturing business - storability.
The outputs produced by a manufacturing business can be stored as inventory
Characteristics of a manufacturing business - consistency
Manufacturing businesses produce goods that can be standardised through mass production.
Characteristics of a service business - Production process
Service business tend to have production processes that are labour intensive
Characteristics of a service business - Occurrence of production and consumption
All service business, production and consumption of the service occur intensive.
Characteristics of a service business - Customer contact
Service businesses tend to have a high degree of customer contact during production, as production and consumption occur simultaneously.
Characteristics of a service business - Tangibility
The outputs produced by a service business are intangibility
Characteristics of a service business - Storability
The outputs produced by a service business are not able to be stored as inventory.
Characteristics of a service business - Consistency
Services usually are not standardised, and instead tailored specifically to individual customer needs.
