Differences Between Services And Manufacturing Industry

The main differences between services and manufacturing organizations are the tangibility of their output; The purpose of a firm's service, such as consulting, training or maintenance, is intangible. while the manufacturers create physical goods that customers can see and touch. Services organization firms, do not hold inventory like manufacturing industry; they do the job when the client requires it. Manufacturing industry produce goods for stock, with inventory levels varying in advance of market demand. Some manufacturers maintain minimum stock levels, relying on the accuracy of demand forecasting and their production capacity to meet demand in a timely manner. Inventory also determines the cost of manufacturing orders.

Services industry do not provide a service unless the customer requires it, even if they explain the scope and content of the plans and duties of any of the parties in advance. The services industry recruits people with specific knowledge and skills to deliver the specific types of services and intensive training, which cannot be easily automated, although knowledge management systems enable a level of knowledge capture and communication. while Manufacturing industry can automate many of their production processes to reduce labor requirements, although some manufacturing organizations are labor intensive, especially in countries where labor is cheaper. The services industry operation does not require a physical manufacturing site. For example, global firms such as Deloitte consultants use communication networks to access skills and knowledge from servicess around the world. manufacturing industry must have a place for their production operations and holding the stocks.

Objective Of Services And Manufacturing Organizations

Service and manufacturing industry organizations both require a strategy to meet customer demand. Both service and manufacturing industries business operations are for the satisfying to customers, and their requirements. the principle or strategy of the services and manufacturing organizations are the same, that is put the right products at the right time to meet the customer's needs. Design-making in the services and manufacturing organizations are typically more complex because of physical movement and material processing. Both service and manufacturing companies have the goal of satisfying the customer's needs. The ability to maintain adequate demand is one of the great challenges of operations management. Demand planning depends on a certain forecast; In some industries, customers will partner with the company to help create a forecast. In most cases, forecasting is generated through historical analytical inquiry, marketing and sales forecasts based on current and expected future conditions. The purpose of forecasting is to prepare to meet the right demand of the customer. Over-predicting results in waste and under-predicting orders and customer dissatisfaction.

Manufacturing industry organizations operations plan to have materials, personnel, resources, and equipment all ready at the right time to complete marketable goods. Many manufacturing companies use a version of Manufacturing Resource Planning (MRP-II), using a resource schedule to schedule all the resources required at the right time. Service in organization operations will also require some equipment and supplies, its key considerations are planning process at right times. The primary input to process services is mainly labor.