Characteristics of manufacturing business Flashcards
1
Q
Production process
A
- Manufacturing business tend to have highly automated process that are capital intensive
2
Q
Occurrence of production and consumption
A
- At manufacturing business, production and consumption of the good occur at separate times
3
Q
Customer contact
A
- Manufacturing business often have a low degree of customer contact during production, as the production stage is separated from consumption
4
Q
Tangibility
A
- The outputs produced by a manufacturing business are tangible
5
Q
Storability
A
- The outputs produced by a manufacturing business can be stored as inventory
6
Q
Consistency
A
- Manufacturing business produce goods that can be standardised through mass production
7
Q
Production service
A
- service businesses tend to have production process that are labour intensive
8
Q
Occurrence of production and consumption
A
- At service business, production and consumption of the service occur simultaneously
9
Q
Customer contact
A
- Service business tend to have a high degree of customer contact during production, as production and consumption occur simultaneously
