Difference between manufacturing and services sector essay

Globalization, or the increase of trade between nations, has weakened the U.

Service Operations vs. Manufacturing Operations

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. Basically, service industry jobs can involve working with things like fixing appliances, for example or working with people.

History The manufacturing industry came to prominence in the United States during the 19th century. 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 output of a service firm, such as consultancy, training or maintenance, for example, is intangible. Service industry jobs, by contrast, have a much broader function.

Each provider or manufacturer wants to lead the market in its specific industry. While during the s more than 29 percent of the U.

Bureau of Labor Statistics has found that some service industries, such as health care and education, are "countercyclical," or may actually increase in number of jobs during a recession, due to increased demand for these services. Manufacturing Industry by Jason Reeher - Updated September 26, The manufacturing and service industries continue to evolve.

Labor Requirements A service firm recruits people with specific knowledge and skills in the service disciplines that it offers. 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.

While process manufacturers produce goods that typically use a formula and ingredients, such as soda pop or pharmaceutical drugs, discrete manufacturers produce goods from parts, such as electronics, appliances and automobiles. Manufacturing was the dominant industry sector for much of the 20th century.

Service operations, by contrast, have more opportunities to customize the services they provide. The service industry is defined by the U. References 2 Pearson InformIT: Inventory also represents a cost for a manufacturing organization. Manufacturers produce physical goods that customers can see and touch.

Five Differences Between Service and Manufacturing Organizations

Manufacturing can be broken down into two branches: Manufacturing may occur in factories; mass production, one of the drivers of the boom in industrial manufacturing, often incorporates assembly lines with specialized tasks to produce items at the highest possible rate of speed.

Service delivery is labor intensive and cannot be easily automated, although knowledge management systems enable a degree of knowledge capture and sharing.

However, in practice, service and manufacturing organizations share many characteristics. Goods are produced en masse in a factory or warehouse-type environment.

Similar Issues Service and manufacturing organizations face many similar issues that affect the end result of the operation.Jun 28,  · The key difference between service firms and manufacturers is the tangibility of their output. The output of a service firm, such as consultancy, training or maintenance, for example, is intangible.

Manufacturers produce physical goods that customers can see and touch. 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.

Service Industry Vs. Manufacturing Industry

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.

Perceptions of the differences between manufacturing and service organisations varied from no discernible differences (Lawrence, ) to rigid dichotomies based upon types of organisational behaviour and characteristic outputs (McDonald.

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.

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.

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Difference between manufacturing and services sector essay
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