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Makerere University Business School: Economic Production Management Kibuuka Olivia

The key differences between manufacturing and service operations are: 1. Manufacturing produces physical, tangible goods that customers can see and touch, while services are intangible outputs like consultancy or training. 2. Manufacturers produce goods with inventory levels based on forecast demand, while services are created on demand when a customer requires it. 3. Manufacturers can produce goods without a specific customer order based on forecasts, while services must have a customer request to be provided. 4. Services rely on recruiting people with specific skills, making them more labor intensive, while manufacturers aim to reduce labor needs through automation where possible.

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Ceacer Julio Ssekatawa
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43 views2 pages

Makerere University Business School: Economic Production Management Kibuuka Olivia

The key differences between manufacturing and service operations are: 1. Manufacturing produces physical, tangible goods that customers can see and touch, while services are intangible outputs like consultancy or training. 2. Manufacturers produce goods with inventory levels based on forecast demand, while services are created on demand when a customer requires it. 3. Manufacturers can produce goods without a specific customer order based on forecasts, while services must have a customer request to be provided. 4. Services rely on recruiting people with specific skills, making them more labor intensive, while manufacturers aim to reduce labor needs through automation where possible.

Uploaded by

Ceacer Julio Ssekatawa
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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MAKERERE UNIVERSITY BUSINESS SCHOOL

ECONOMIC PRODUCTION MANAGEMENT

KIBUUKA OLIVIA

BESBM 11
Question:

Discuss in details the difference between manufacturing and service operation clearly bringing
out the differences between goods and services illustrate your answers using real local examples

According to goods the difference between operation service firms and manufacturers is that
tangibility of their out. The output of service firms such as consultancy training or maintenance
is intangible while manufacturers produce physical that customer can see and touch. For example
Uganda clays limited manufacture clay materials that customers can see and touch.

Operation service do not hold inventory, they create a service when a client requires it for
example network services like MTN, Airtel while manufactures like Picfare industries produce
goods with inventory levels aligned to forecast market demand and their production capacity to
meet demand just kin time.

Manufactures produce goods without customer order or customer demand forecast while
operation firms cannot do service unless a customer requires it although their design and develop
the scope and content in advance in case of any orders i.e they generally produce a service
tailored to customer needs such 12: 00 hours of consultancy, 14 hours of design and ten hours of
installation.

Operation services recruit people with specific knowledge and skills in the service discipline. Its
labour intensive and cannot be easily be automated although knowledge management system
enable a degree of knowledge capture and sharing while manufacturers employee many laborers
to reduce labour requirements although some organization are labour intensive.

Service Operation can be located anywhere so they do not require physical production sites
because they use network, to access the most appropriate services and skills while manufacturers
must have physical location of their production and stock holding.

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