Discuss how service operations are different from manufacturing operations and explain how service operations can benefit from implementing manufacturing approaches and system I. Introduction Operations in the service industry are different from manufacturing operations because service oriented company produce goods that are intangible compared to manufacturing companies whose products can easily be described by its specifications (Wienclaw 2008). Such instituting mechanisms and methodologies to improve service delivery can be difficult due to their intangibility, heterogeneity and inseparability (Smith 2011). Unlike in manufacturing companies where there are several points to institute control that can rectify the process or test the quality of the product so that substandard products can be rejected before it reaches the customer, instituting control to improve and control the quality of service in service oriented companies can be very difficult and costly.
Waste in the process or fail points are not obvious in service operations that efforts to reduce cost and control quality before they reach the customer can be very difficult (Wienclaw 2008). This makes the operations of many service oriented companies costly with many customers dissatisfied with the service they received. The need to align service delivery in accordance to customer expectations and the market imperative to reduce cost to remain competitive in the market, however, compels the operations of service oriented industry to adopt and implement manufacturing approaches and systems.
By implementing manufacturing approaches and systems, the cost of operations in service oriented companies are being reduced such as the case of McDonalds as stated in this paper. The implementation of quality control system such as Six Sigma also enabled Bank of America not only to increase the level of its customer’s satisfaction but also saved the company $2 billion in expenditures related to areas where Six Sigma was implemented.
II. How service operations are different from manufacturing operations. The most obvious difference between a service operations and manufacturing operations are the products they produce. Service operations sell service that has no physical presence while manufacturing operations produces concrete products that has a physical existence. Unlike manufacturing operations that produces concrete products whose quality can easily determined by its specifications, service operations differs from manufacturing operations because its output is often evaluated in terms of customer experience.
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