Characteristics of Operations in Service and Manufacturing

Question 1

Tangible Vs Intangible

Answer 1

Manufacturing businesses usually produce a good that is tangible and can be physically touched and moved. Service businesses usually produce a service which is intangible and can’t be touched or moved

Question 2

Production and Consumption

Answer 2

Manufacturing businesses usually have different times and places of production and consumption. Service Businesses usually have a simultaneous production and consumption time and location

Question 3

Storage

Answer 3

Manufacturing businesses can store their products to be consumed at a later date. Service businesses cannot store a service to be consumed at a later date

Question 4

Customised Vs Standardised

Answer 4

Manufacturing businesses usually standardise the products that they produce and give each customer a similar product. Service businesses usually have to customise their service to the individual’s needs.