PAF – Karachi Institute of Economics and Technology – City Campus

Course: Production & Operation Management

Faculty: Abdullah Athar Max Duration 2 Hours
Class ID: 106459 Total 25
Marks:
Examination: Mid Term (Spring 2021) Date:
Student Name: Hafiz huzaifa Anwar Student ID: 61723

Section A-MCQ (15 marks)

Please see separate file

Section B-Questions (10 marks)

Attempt both questions. Each question carries 5 marks.

Q.1: How goods production is different than service production? Which one is more
challenging? Justify your answer.

Q.2 The generator produced by Fatima Eng in last 7 years were 80,80,81,91,106,143& 123
respectively. Forecast next year production.

Good Luck
Q.1: How goods production is different than service production? Which one is more
challenging? Justify your answer.

Organizations may rely on goods production, service production or both at the same time. While,
on the other hand both productions are different from each other. Goods production is based on a
long procedure in which there must be space to produce and store the goods, raw needed to be
confused. Whereas, in service production is must be higher contact with consumers, satisfaction
is necessary and most importantly the service is consumed as it is produced by the organization.
Following are some differences between goods production and service production.

Goods Production Service production

 Goods can be stored in inventory.
 Quality assurance in goods is objective
and is measurable.
 Most manufactured goods can be
patented
 Goods are tangible
 Goods are produced before they are
consumed
 Services cannot be stored in inventory for
later use.
 Quality assurance for services is very
subjective.
 Most services cannot be patented and hence
can be easily copied
 Services are intangible
 Service production and consumption
happen at the same time

Generally, companies keep a stock of goods with itself to fulfill an urgent requirement of
goods. It also keeps track of the quantity of goods at the beginning and the end. In
contrast to services are delivered as per the request of the customer itself. In short, the
production of services depends on the customer’s demand. Both are subject to tax like
Value Added Tax (VAT) is levied on goods while service tax on services provided.

Sometimes products offered by the companies in such a way that it’s hard to segregate
goods and services like in the case of a restaurant, you pay for the food you eat as well as
for the add-on services of the waiters, chef, watchman and so on.
Q2) The generator produced by Fatima Eng in last 7 years were 80,80,81,91,106,143& 123
respectively. Forecast next year production.