Dp 3 - Characteristics

Question 1

Manufacturing business

Answer 1

use resources and raw materials to produce a finished physical good – tangible goods

Question 2

MB: Production process

Answer 2

Capital intensive

Question 3

Service business

Answer 3

Provide intangible products, usually with the use of specialised expertise – intangible

Question 4

SB: Production process

Answer 4

labour intensive

Question 5

MB: Occurrence of Production and Consumption

Answer 5

Occurs separately

Question 6

SB: Occurrence of Production and Consumption

Answer 6

Occurs simultaneously

Question 7

MB: Degree of Customer Contact During Production

Answer 7

Low degree of customer contact during production

Question 8

SB: Degree of Customer Contact During Production

Answer 8

High degree of customer contact during production

Question 9

MB: Tangibility of Output

Answer 9

Tangible output

Question 10

SB: Tangibility of Output

Answer 10

Intangible output

Question 11

MB: Storability of Output

Answer 11

Yes

Question 12

SB: Storability of Output

Answer 12

No

Question 13

MB: Standardised or Tailored Production

Answer 13

Standardised

Question 14

SB: Standardised or Tailored Production

Answer 14

Tailored

Question 15

Similarities Service v Manufacturing

Answer 15

*Both service and manufacturing businesses aim to optimise their operations to produce high-quality outputs at a low cost of production
*Both have to deal with suppliers during the process of managing operations
*Both can utilise forms of technology in their operations systems
*Both aim to optimise efficiency and effectiveness in their operations