Service Based mostly And Production Based Procedures Management Marketing Essay

Although there a wide range of similarities in make base procedure management and the service bottom operation management we can easily see some difference between these two as well. but before we start talking about about the dissimilarities the author likes to give consideration briefly about a few of the similarities these two has.

Entail client satisfaction as a key way of measuring of effectiveness

Require design of both product and the service

Involve purchase of materials items and service

Forecasting and capacity planning to match supply and demand.

Process management.

Managing modifications.

Monitoring and controlling costs and output.

Supply chain management.

Location planning, inventory management, quality control, and arranging.

: Jay Heizer & Barry Render ( Procedure Management), Global model, 10th model 2009

Those are some of the similarities that we can see among service and the developing operation management. however when we do procedure in day to day life, almost we can easily see most of the differences between both of these.

Manufacturing procedure management involves producing a product after doing developing and field trial. However in service operation management is all supportive functions completed to support processing. We can point out some differences between these two as below,

In service operation management we can see these characteristics

Create intangible product as services (perishable product).

service are unique, at that time only specific with exceptional ability could deliver it.

the service outcome is difficult to be inventories or store.

services are produce and ingest at the same time.

customer interaction is crucial for success of the service deliveries.

services can not be make into standard or at certain specs (at times inconsistent).

services are often knowledge-based, only well teach or educated are able to perform the service (e. g. doctor, legal professional and teacher).

labor or human being centric, largely depend on individual result.

difficult to measure the quality of services

seldom incur high capital investment and facilities.

Operation management in manufacturing sector give attention to different perspectives, there are as follow:


goods can be resold and inventoried.

it outcome in a kind of physical, durable product.

quality can be assessed and managed easily.

selling and creation is another activities.

goods can be transported.

location and facilities impact on cost framework.

revenue are generated base on tangible and product sold.

intensive investment on capital.

Actually we can show these variations in a graph as below,







Customer Contact






Labor content



Uniformity of output



Store of output



Measurement of production



We can understand these dissimilarities in details whenever we evaluate those variations with samples.

First of all when e consider about the productivity of the service procedure management they produce intangible products as end result. Those products are hard to see. For example we can categories some majority of service output jobs as below,

Professional services (e. g. , financial, healthcare, legal).

Mass services (e. g. , resources, Internet, marketing communications).

Service outlets (e. g. , tailoring, machine repair, car rinse, vehicle repair/maintenance).

Personal treatment (e. g. , beauty salon, spa, barbershop).

Government (e. g. , Medicare, mail, social services, authorities, open fire).

Education (e. g. , schools, colleges).

Food service (e. g. , restaurants, junk food, catering, bakeries).

Services within organizations (e. g. , payroll, accounting, maintenance, IT, HR, janitorial)

Shipping and delivery (e. g. , pick up truck, railroad, motorboat, air).

Residential services (e. g. , lawn care, painting, standard repair, remodeling, home design).

Transportation (e. g. , mass transit, taxi cab, airlines, ambulance).

Travel and hospitality (e. g. , travel bureaus, hotels, resorts).

But in processing procedure management we can simply identify the end result as tangible goods. For illustrations we can categories those as below,

Next we talk about the client contact. In service operational management do not produce service unless customer need it. Despite the fact that they develop and design the framework of the service beforehand in virtually any order. Manufacturers can produce goods with out a customer order or forecast of customer request. However, producing goods that do not meet market needs is a poor management. Many services require a high degree of customer contact, although services such as Internet providers, resources, and mail service do not. When there's a high degree of contact, the discussion between server and customer becomes a "moment of fact" that will be judged by the client whenever the service occurs. 1

Introduction to operation management /section one, web page 8

The performance of something typically occurs at the idea of utilization. Before that it is very difficult to measure the performance of the service. Creation allows a separation between development and consumption. so long as they fallow the methods it could be produce the merchandise as the customer requirements. For an example if we take into account the car manufacturing industry in japan, they can produce autos even without getting together with the finish customers. so long as they fallow the methods they can sell the vehicles to a customer in America.

Next we must discuss the uniformity of these two industries. Service operations tend to be subject to a higher degree of variability of inputs. Each customer, patient, customer, repair job, and so forth presents a slightly unique situation that will require assessment and adjustability. but in manufacturing operations frequently have a greater capacity to control the variability of inputs, which contributes to more-uniform job requirements. Actually in developing operation management the uniformity in end result can be measured by conditions like standardization, low variability, easy, useful, etc. for a good example if we have a car we can measure the performance like efficiency, comfort capability, engine unit capacity, rpm, etc.

And there may be another differentiation in these service operational management and the manufacturing functional management called labor content. Compared to manufacture base operation management, service platform procedure management requires more labor content. Each time service is going along with the labor power. For a good example if we take service shop like tailoring, car washing and also occupations like doctors, law firms, teachers, and all these services goes with the person who's offering it and each and every time it is involving with the labor vitality. Not merely can't that in this service management the service be segregated from the provider. But in developing industry it can be separated. Yet, in manufacturing management the investment in capital is higher than the service operation management. Since it needs more machines. technical support, than the service. For a good example if we take car creation industry and the car cleansing service, we can see we are in need of more capital in making cars than cleaning the autos.

The next difference we can see in both of these procedure management is saving of output. in service industry the product is difficult to store and inventories whereas in manufacturing industry the output can be stored and inventories as well. Most of the time service should be consumed at exactly the same time it is produced. If the client couldn't ingest it at that time it cannot be produce as it is again. Sampson (2000) even called this essentially a JIT system. Combined with difficulty to store, it is then not surprising to see a flexible capacity is crucial to the success of a service supply chain. For a good example if we produce some garment in a textile processing company we can store it until we get the demand on the market and sell it. But also for services like doctoring, attorney at law, teachers we can not store it to use in the foreseeable future.

Sampson, S. E, "Customer-Supplier Duality and Bidirectional Supply Chains in Service

Organizations, " International Journal of Service Industry, Vol. 11(4), 2000, 348 - 359.

Next difference we can see in both of these operation management is measurement of the production. In manufacturing, way of measuring is more direct but in service operation, measurement is more difficult due to variations in demand forces. And also because the manufacturing goods are simpler to measure the earnings can be made base on the unit sold. But in service it's very hard to measure the service because it capabilities will vary from another. for an example whenever we sell the autos we can assess and identified the amount we sell and we can assess it as a lot of money. So we can gauge the income and the revenue on it. however in service for example one doctor may have a higher degree of routine cases to cope with, while other might have more difficult instances. Unless a careful evaluation is conducted, it may appear that the doctor with the difficult conditions has a lower productivity than the main one with the daily habit cases. But we can not assess it because their capabilities are different from each individual.

And another different we can identify in these service operation management and the making procedure management is Quality assurance. Quality confidence is usually more challenging for services due to higher variation in source, and because delivery and use occur at the same time. In creation, this occurs away from the client and allows errors that are identified to be corrected. the client has less opportunity to identify errors and expose it in services. For an example when we take hair chopping service we got less chance to rectify the issues at exactly the same time because the service and the creation is done at exactly the same time. But in manufacturing industry before we do the final product the manufacturer gets the chance to rectify the problem that occurs and finish the merchandise as a good quality product. Not just that we can go for some quality specifications like ISO, as well.

So these are the major distinctions that we can easily see in service bottom part procedure management and the produce base operation management are having.

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