What is the difference between manufacturing processes and service processes?

Sustainable competition is very paramount in the diversification of Engineering industry and economy for the benefit of mankind. This study examined the pathway to strengthen Nigerian Engineering firms in consulting, contracting and manufacturing for competitiveness. This paper is to aim at providing viable pathway to strengthen Nigerian Engineering firms in consulting, contracting and manufacturing for competitiveness though they are unique in various ways. Three information services namely, library services; Internet Services; and communications services were considered in this study. This was enriched with personal communication and field observations assessment of indigenous engineering firms and other engineering firms in Ado-Ekiti. It was done with a view to making appropriate strategic recommendations to enhance engineering firms 'innovativeness and competitiveness so as to increase indigenous participation in the sub-sector. The technological factors that accounted for the innovation performance included the educational qualifications, training and prior work experience of the heads of technical department, number of research and development staff and training, innovation and investments. It has been discovered that engineers need to be more innovative and dynamic in the planning and execution of projects. Also, it has been observed that there are unhealthy competition in most of firms consulted due to selfish gain and unethical behaviour. Unless preconditions for competition are locally met and standardized, international competitiveness would remain a mirage.

Generally speaking, process efficiency is the most important to manufacturing operations while production and marketing are inseparable to service operations.

Manufacturing’s tangible output can be consumed overtime, less labor and more equipment are used in production, since automation has increased capital intensity while as a result reduced customer contact. Consumers rarely take part in the manufacturing process, many manufacturing operations have emphasized efficiency while compromising flexibility, the methods for monitoring and using resources are sophisticated while producing.

On the other hand, service operations are different from those of manufacturing operations. Consumption and production of services takes place simultaneously or closely, and there are more labor and more customer participation, which means service businesses, usually are more customer-oriented. while elementary methods are frequently used for monitoring and using resources.

To be specific, there are mainly six differences between manufacturing operations and service operations.

1. Basic organize style in operation

Basically, manufacturing companies usually make production and purchase plans based on the demand of the market and their customers. Then human resources and equipment are settled to produce. So the manufacturing companies operation management is mainly product-cantered the aim is to control the process of production, keep the quality of outcomes and reduce cost. Yet the service organizations seem organized differently as they have greater amount of interaction with their customers. There are more uncertainties in the process, so specific plans cannot be made in advance, and the results are diverse if the service personals or the customers change. For that reason, the service operations are human-centred.

2. Design of products and operation systems

In manufacturing factories, the products and production systems can be designed separately because one same product can be produced by different manufacturing systems (i.e. two equipment’s with different automation degree). However in the service operations, the service provides system is part of the whole “service” itself. Different service provides system have different characteristics which make the service not the same, so those two systems must be designed together within the service operations.

3. The use of inventory in adjusts supply and demand

Since the companies cannot decide the demand of the market while their productivities are controllable, the manufacturing companies can use their inventory to deal with unexpected demand increases. So those companies should pay more attention to plan reasonable inventory strategy. To most of those service companies, their products cannot be inventoried as readily as goods. They cannot produce service in advance and store them for later customers, so what they can do is to make better use their service abilities while the demand happens.

4. Customers effect

The production systems in the manufacturing companies are usually enclosed to customers, manufacturing firms generally evaluate their products quality from internal perspective rather than external (customer’s) perspective, thus they can have few influences on the manufacturing operations. However, customers take part in the service operations; they may have positive and negative effects to the process. So the service companies need to make full use of those good effects and try to minimize the undesirable ones.

5. Boundaries of function division and human resource characteristic

In the manufacturing companies, there are clear boundaries within the operation, marketing and human resource management. The time and places are different between producing and selling the goods. Besides most products need to transport through a complex channel before the customers get them. As a result, there must have different people take response of different departments. Moreover, since the manufacturing operations are product-centered, the working process and quality are strictly controlled, which means human’s behavior will have few influences to the results. Nevertheless, to the service companies, the human factor is critical while operating. Managing people must become a critical part of line managers job in service operations. So the three parts which had been mentioned at the beginning have to be integrated while managing.

6. Measure the output

Clearly, the output of the manufacturing operations can be easily measured through count the yield and test the product quality. However, in the service operations, the quantitative indicators are unsuitable for measuring the output service. Productivity measurement it is more complex in service industries owing to the inherent characteristics of services. Besides, the qualitative indicators of service are more difficult to define than those of manufacturing operations. Furthermore, as a lot of service organizations have multiplex goal such as long-term benefits and social benefits, evaluating these organizations could be even harder.

In a word, although there are some basic features in common, different type of output of manufacturing and service operations lead to dissimilar emphasis of the two operations. As a result, while dealing with these two kinds of operations, the management methods would not be the same.

  • Mass Production Systems
  • Criteria for a Good Layout
  • Manufacturing systems and the factors influencing it's choice
  • The Toyota Production System (TPS)
  • Types of Plant Layouts
  • Preventive Maintenance
  • Supply Chain Management Processes
  • Concept of Material Handling - Definition and Functions
  • Techniques or Tools Used for the Design of Good Plant Layouts
  • Batch Production and It's Key Characteristics

How are manufacturing and service processes different?

There are two primary distinctions between these categories. First, manufacturing organizations produce physical, tangible goods that can be stored in inventory before they are needed. By contrast, service organizations produce intangible products that cannot be produced ahead of time.

How service and manufacturing processes are similar and different?

The key difference between service firms and manufacturers is the tangibility of their output. The output of a service firm, such as consultancy, training or maintenance, for example, is intangible. Manufacturers produce physical goods that customers can see and touch.

Which is not difference between manufacturing and services?

Answer and Explanation: The answer is (e) Cost per unit. Manufacturing and service operations both account for the cost for each unit. Outside of that, providing a service and providing a tangible product is largely the same.

What is the relationship between service and manufacturing?

The main difference between products and services would be tangibility. While the outputs of manufacturing are tangible, the outputs of service provision are intangible. Some industries are the mixture of both manufacturing and service provision, which provide both products and services.