How do service operations differ from manufacturing operations?

service operations are different from manufacturing operations in terms of

* tangible and intangible output * customer consumption * use of labor and equipment * customer contact * customer participation in conversion process * measuring activities and resources manufacturing is characterized by tangible output, outputs that consumer consumes over time, jobs that use less labor and more equipment, little consumer contact, no consumer participation in conversion process (in production), and sophisticated methods for measuring activities and resource consumption as products are made.

Service on the other hand is characterized by intangible outputs, outputs that customer consumes immediately, jobs that uses more labor less equipment, direct customer contact, frequent customer participation in conversion process and elementary methods for measuring conversion activities and resource consumption. * productivity is more easily measured in manufacturing operations than services. * quality standards are more difficult to establish and product quality is more difficult to evaluate in service operations. * manufacturing operations can increase and decrease finished goods inventory levels in response to change in customer demand patterns. * In services, the most expensive resource is people, while in manufacturing the most expensive resource is machinery.