COMPARATIVE STUDY :

MANUFACRURING AND SERVICE OPERATION

 MANUFACTURING SERVICE

• TANGIBLE • INTANGIBLE
• CAN BE STORED • CANNOT BE STORED
• STANDARDISATION • CUSTOMISATION
• CAPITAL INTENSIVE • LABOUR INTENSIVE
• LOW CONSUMER • HIGH CONSUMER
CONTACT CONTACT
MANUFACTURING PROCESS

SOURC DELIVE
MAKE
E R
 KEY CONCEPT

CUSTOMER
ORDER
DECOUPLING
POINT

ENGINEER TO ENGINEER TO
MAKE TO ORDER MAKE TO STOCK
ORDER ORDER
 ORGANISATION OF MANUFACTURING
PROCCESSES
Process Selection refers to the strategic decision of selecting which kind
of processes to use to produce a product or provide a service. The
format by which a facility is arranged is defined by the general pattern
of workflow. There are 5 basic structure :
• Project Layout
• Work Centre
• Manufacturing cell
• Assembly line
• Continuous process
SERVICE PROCESS
 CLASSIFICATION
OF SERVICES

Types of Degree of
processes Contact

Intermittent High degree of Low degree of

Line Operation Job Operation
Operation contact contact
SERVICE-SYSTEM DESIGN MATRIX
 CUSTOMER INTRODUCED VARIABLITY
Customers are often an integral part of service delivery process. Though customers
judge the quality of their experience by how much of the variability they introduce
is accommodated, companies have to take deliberate steps to manage customer-
introduced variability.
Customer Introduced Variability
• Arrival Variability
• Request Variability
• Capability Variability
• Effort Variability
• Subject Preference Variablity
CUSTOMER INTRODUCED VARIABLITY contd.
The four basic accommodation strategy that a company follows as to
accommodate the constomer introduced variability and also limit their
costs are :
• Classic Accommodation
• Low-Cost Accommodation
• Classic Reduction
• Uncompromised Reduction
BLUEPRINT OF SERVICE