AOS3 - KK3 - Characteristics of Operations Management within Manufacturing and Service Businesses

Question 1

What is a manufacturing business

Answer 1

A manufacturing business will transform inputs into a tangible outputs

Question 2

Characteristics of a manufacturing business

Answer 2

• Manufactured goods can be handled and stored (tangible)
• Little customer involvement during production
• Manufactured goods are usually all the same

Question 3

What is a service business

Answer 3

A service business transforms inputs into services that are intangible.

Question 4

Characteristics of a service business

Answer 4

• Services can’t be handled and stored (intangible)
• Customer involvement during production – the customer must usually be present during the delivery of the service.
• Services can be tailored to suit the customer’s needs and wants.
• Often more labour intensive (e.g. haircut, education, transport, etc)