Characteristics of operations management within both manufacturing and service businesses

Question 1

Characteristic: Output/Tangability, In Manufacturing and Service (give examples)

Answer 1

Manufacturing:
Tangible - goods that can be touched and seen. Productivity and quality easy to measure.
Eg – cars, clothing, food, books, furniture.
Service:
Intangible – a non-physical product that can’t be touched so productivity and quality is harder to measure.
Eg – tourism, education, health care, banking.

Question 2

Characteristic: Production, In Manufacturing and Service

Answer 2

Manufacturing:
Production and consumption is separate. Once created,
goods cannot be altered or customised to suit individual
customer needs.
Service:
Production and consumption occurs simultaneously. Services are ‘performed’ as they are ‘made/created’.

Question 3

Characteristic: Storage, Manufacturing and Service

Answer 3

Manufacturing:
Can be stored prior to distribution and sold at a later date.
Service:
Difficult to store, however records of service can be stored. Unable to be resold.

Question 4

Characteristic: Production, In Manufacturing and Service

Answer 4

Manufacturing:
Can be easily standardised and mass produced, ensuring consistent quality.
Service:
Often specifically customised to meet individual client/ customer requirements.

Question 5

Characteristic: Degree of customer contact, Manufacturing and Service

Answer 5

Manufacturing:
No/ minimal customer
contact during production.
Service:
High level of customer contact during production.

Question 6

Characteristic: Production Techniques, Manufacturing and Service

Answer 6

Manufacturing:
Capital intensive – involves a greater use of machinery and equipment than labour.
Service:
Labour intensive – requires significant interaction with clients/customers.

Question 7

Three Similar Characteristics

Answer 7

> Utilise technology
Deal with customers and suppliers
Plan and develop organisational objectives