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Introduction
Operations Management in Service
and Manufacturing Industry
Service and manufacturing operations
have differences, but also similarities.
Both create mission statements and a
vision for how the organization will be run
and perceived by customers.
Each provider or manufacturer wants to
lead the market in its specific industry.
However, manufacturing and service
operations answer different questions
and formulate different strategies when
it comes to planning and managing the
way in which an organization is run.
Operations Processes
Processes are the essence of
operations management.
...............................
Examples of Operations
Operations
Production Goods &
Services........
Storage/Tra Warehouses, trains,
nsportation Containers.......
Exchange Loans, trade ,
retailing.......
Entertainm TV, Concerts,
ent radio......
Operations is linked with.....
a n c
Fi n
e
Marketing
Operati
ons
Operations Management in Service
and Manufacturing Industry
Manufactu Consumer
Durables,
ring Transportation,
Operations Clothing, Home
appliances.......
Medical, Education,
Service Retail, Financial
Operations Sector,
Entertainment.......
Manufacturing vs. Service
Operations
Characteristics Manufactu Service
ring
Output Tangible Intangible
Customer Contact Low High
Uniformity of Output High Low
Man-Power Content Low High
Uniformity of Input High Low
Measurement of Easy Difficult
Productivity
Opportunity of Easier Difficult
correcting errors
Responsibilities of Operations
Manager
Plannin Controlli
g ng
Organizi
Staffing
ng
Operations Strategy/ Operations
Decisions
A plan specifying how an organization will
allocate resources in order to support
infrastructure and production.
Decision
maintenance of equipment etc. Control
s
About planning production to meet demand.
Are necessary to satisfy the ongoing
Decision
production of goods and services needed to
satisfy demand.
ng
Required to generate profits s
Operati
About product , processes and facilities.
Decision
Are of strategic importance.
Long term significance for the organization
c
Strategi
Decisions
Types of Operations Strategy/
Strategic Decisions (some
examples)
Deciding whether to launch a new-product
development project.