OPERATION MANAGEMENT

Compares and Contrasts the Operations Manufacturing & Service Company

Compares and Contrasts the Operations Manufacturing & Service Company

Introduction

A manufacturer is a person, an enterprise, or an entity that manufactures something. Therefore, a manufacture operation is a company or a factory where products and merchandise are made. Raw materials are used to manufacture these products and are then turned into finished goods ready to be sold. Anywhere from textiles to machinery, a manufacture operation should aim to make high quality finished goods. A manufacturer is a very important element in the selling process because without them, the products we need, use and enjoy would not exist. A service operation is a business or company that provides intangible, perishable goods or services to the public. According to statistics, eighty percent of jobs in business are in services. Services play a major role in manufacture operations and vice versa. According to out text book, services related to products now represent ten to thirty times the annual dollar volume of the underlying product sales.

Service operations are different from manufacturing operations in terms of

tangible and intangible output

customer consumption

use of labor and equipment

customer contact

customer participation in conversion process

measuring activities and resources

Manufacturing is characterized by tangible output, outputs that consumer consumes over time, jobs that use less labor and more equipment, little consumer contact, no consumer participation in conversion process (in production), and sophisticated methods for measuring activities and resource consumption as products are made.

Service on the other hand is characterized by intangible outputs, outputs that customer consumes immediately, jobs that uses more labor less equipment, direct customer contact, frequent customer participation in conversion process and elementary methods for measuring conversion activities and resource consumption.

Productivity is more easily measured in manufacturing operations than services.

Quality standards are more difficult to establish and product quality is more difficult to evaluate in service operations.

Manufacturing operations can increase and decrease finished goods inventory levels in response to change in customer demand patterns.

In services, the most expensive resource is people, while in manufacturing the most expensive resource is machinery.

Operation Management: Manufacturing Company

This is a case of a sugar manufacture, KSL Group. KSL Group transformed their materials which are the sugar canes in order to meet their customers' needs and satisfaction, by use of their machinery, facilities, staff and equipment. For transformation process, they manufacture products, sell and deliver to the customers. The output of the operation is customers who received the product and services.

Products

KSL Group is a sugar manufacturer; their product is a mass product which they mostly supply to other business that requires sugar as their material. We analyse operational process by using A Typology of operation. The volume of the product is very high which is shown above in the figure as well by the line drawn on the higher side of the volume. They have very low variety of products because they produce only sugar, they have limited range of product which may not suit for ...