Sectors of the economy - manufacturing and service operation, Operation Management

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Sectors of the Economy - Manufacturing and Service Operations

Any operations system, if examined in sufficient detail, will be found to be unique. However, there are distinct differences between production systems and service systems even at the general level. 

1. Frequently the customer receiving a service will participate in the transformation process e.g. a customer of a hairdresser. The customer is then likely to make a judgement not only on the service outcome, but also on the process by which it was delivered.

2. Unlike products, which are tangible, services cannot generally be produced in advance of demand and held in inventory until required. Again, due to their intangibility, it is often difficult to set and monitor the standard of quality of services, and the productivity of the personnel performing the services.

 

 


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