Difference between manufacturing and services sector essay

Manufacturers produce physical goods that customers can see and touch. Even in service operations where you receive a tangible product, the service you receive from workers may not always be the same. Speculation As globalization continues, manufacturing jobs will continue to relocate from the United States to other nations.

Manufacturing jobs include machinist and craftsman work, laboratory production in chemicals and pharmaceuticals, food processing and electronics and engineering jobs, to name a few.

References 2 Pearson InformIT: For example, global firms such as consultants Deloitte use communication networks to access the most appropriate service skills and knowledge from offices around the world. Physical Location Service firms do not require a physical production site. Physical Goods The key difference between service firms and manufacturers is the tangibility of their output.

Service Industry Vs. Manufacturing Industry

For example, both create mission statements and a vision for how the organization will be run and perceived by customers. Manufacturing operations must find suppliers of raw materials at the lowest cost -- and highest quality -- possible.

Customer Demands Service firms do not produce a service unless a customer requires it, although they design and develop the scope and content of services in advance of any orders. Manufacturers can produce goods without a customer order or forecast of customer demand. Manufacturers can automate many of their production processes to reduce their labor requirements, although some manufacturing organizations are labor intensive, particularly in countries where labor costs are low.

While during the s more than 29 percent of the U. Some manufacturers maintain minimum stock levels, relying on the accuracy of demand forecasts and their production capacity to meet demand on a just-in-time basis.

The people creating and delivering the service can be located anywhere. Each provider or manufacturer wants to lead the market in its specific industry. While the manufacturing industry contracts during a recession, the U.

Manufacturers must have a physical location for their production and stock holding operations.

Service Operations vs. Manufacturing Operations

Production Environment Manufacturing and service operations both plan the environment in which work takes place, but they focus on different elements.

The output of a service firm, such as consultancy, training or maintenance, for example, is intangible. However, producing goods that do not meet market needs is a poor strategy.

However, in practice, service and manufacturing organizations share many characteristics. Many manufacturers offer their own service operations and both require skilled people to create a profitable business.

Manufacturers produce goods for stock, with inventory levels aligned to forecasts of market demand. To avoid becoming a country of low-paid workers, America will need to develop more service jobs that are higher paid and higher skilled, such as in health care, where demand from the aging baby boomer generation will naturally increase the need for services.

They must coach and train employees to provide optimal services to customers. Department of Labor as including workers as varied as health care employees, educators, restaurant employees, hairstylists and even performers like musicians and actors.Although service industry jobs have existed for centuries, the prominence of the service industry sector is more recent.

Beginning in the mids, service jobs such as medical, educational, food services and hospitality, pulled even with manufacturing in the total number of jobs by category in the United States.

The basic difference between manufacturing and service sector is that, in the manufacturing sector the vehicles that are produced can be felt, touch by the customers physically, but in service sector like banking their operations cannot be felt physically i.e., intangible.

Manufacturing organizations entails the production of goods that have value in the market. Service organizations provide services. “The significant difference between the various types of industries is observed when we analyze the manufacturing or service environment in which they operate.

Difference between manufacturing and service organization’s operations To compare the operations between the manufacturing organization and service organization, I have taken the example of Mahindra automobile sector as a manufacturing organization and State bank of India banking sector as service organization.

Five Differences Between Service and Manufacturing Organizations

To be specific, there are mainly 6 differences between manufacturing operations and service operations.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. Industrial and manufacturing engineering Name Institution Course Professor Date The difference between industrial and manufacturing engineering changes according to the sector of as industry and the country of origin.

An American owned company based in another country uses American terms that are familiar with the management team.

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Difference between manufacturing and services sector essay
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