Identify the two major differences between service and manufacturing organizations. Find an example of a service and manufacturing company and compare them.
Service Operations Planning vs. Manufacturing Planning Both service operations and manufacturing operations are in the business of satisfying customers,and that requires organization and planning. While the mechanisms and inputs for creating customer value are very different, the essence of planning is the same: Put the right things together at the right time to meet customer demand. Planning for manufacturing organizations is typically more complexdue to the physical movement and processing of material. Customer Demand Both service and manufacturing companies have goals of satisfying customer demand. Maintaining sufficientcapacity to meet demand is one of the great challenges of operations management. Demand planning depends onsome type of forecast; in some industries, customers will partner with a company to help create a forecast. Inmost cases, forecasts are generated by analyzing historical demand, plus marketing and sales forecasts based oncurrent and expected future conditions. The goal of a forecast is to prepare to meet the right amount of customer demand. Over-forecasting results in waste, and under-forecasting creates back orders and customer dissatisfaction. Resource Planning Everything a customer pays for is the result of a process. Whether you’re building cars for sale or cleaninghomes for a fee, there is a process required to go from start to finish
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