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Differences Between Manufacturing and Service Organizations

Manufacturing organizations produce tangible products that can be directly measured for quality, which is often defined as conformance to preset standards, performance, reliability, features, durability, and serviceability. In contrast, service organizations produce intangible experiences that are difficult to define for quality due to their subjective nature, focusing more on responsiveness, staff courtesy, complaint resolution, atmosphere, wait times, and consistency. Defining quality is more challenging for service organizations than manufacturing due to the intangible nature of their products.

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83 views1 page

Differences Between Manufacturing and Service Organizations

Manufacturing organizations produce tangible products that can be directly measured for quality, which is often defined as conformance to preset standards, performance, reliability, features, durability, and serviceability. In contrast, service organizations produce intangible experiences that are difficult to define for quality due to their subjective nature, focusing more on responsiveness, staff courtesy, complaint resolution, atmosphere, wait times, and consistency. Defining quality is more challenging for service organizations than manufacturing due to the intangible nature of their products.

Uploaded by

maryani
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Differences between Manufacturing and Service Organizations

Defining quality in manufacturing organizations is often different than it is for service


organizations. Manufacturing organizations produce a tangible product that can be seen, touched, and
directly measured. Examples include cars, CD players, clothes, computers, and food items. Therefore,
quality definitions in manufacturing usually focus on tangible product features.

The most common quality definition in manufacturing is conformance, which is the degree to
which a product characteristic meets preset standards. Other common definitions of quality in
manufacturing include performance, such as acceleration of a vehicle; reliability, meaning that the
product will function as expected without failure; features, the extras that are included beyond the basic
characteristics; durability, the expected operational life of the product; and serviceability, how readily a
product can be repaired.

In contrast to manufacturing, service organizations produce a product that is intangible. Usually,


the complete product cannot be seen or touched. Rather, it is experienced. Examples include delivery of
healthcare, the experience of staying at a vacation resort, and learning at a university. The intangible
nature of the product makes defining quality difficult. Also, since a service is experienced, perceptions
can be highly subjective. In addition to tangible factors, quality of services is often defined by perceptual
factors. These include responsiveness to customer needs, courtesy and friendliness of staff, promptness
in resolving complaints, and atmosphere. Other definitions of quality in services include time, the
amount of time a customer has to wait for the service; and consistency, the degree to which the service
is the same each time. For these reasons, defining quality in services can be especially challenging.

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