Difference Between Manufacturing and Services Sector

Topics: Automobile, Manufacturing, Automotive industry Pages: 6 (1993 words) Published: October 10, 2012
(GITAM School of International business)|
SUBMITTED BY: G.V.V.S.Chandra Sekhar
REG NO: 1226212108


Difference between manufacturing and service organization’s operations To compare the operations between the manufacturing organization and service organization, I have taken the example of Mahindra automobile sector as a manufacturing organization and State bank of India banking sector as service organization. The Mahindra Company imports its raw materials from Japan, where after getting its parts it first initially makes a body structure of the car with the obtained parts. The second stage is axle assembly, where it fixes the wheels to the vehicle. The third stage is the transmission assembly where they fix the gear box for speed and torque of the vehicle. Coming to fourth stage they fix the suitable engine for the vehicle, and the fifth stage is followed by fixing the chassis which is chassis assembly Stage. The manufacturing of body is completed upto this stage and finally the vehicle goes into body shop where it gets paint in desired colours. Finally the output is ready to go into to the market. From there it goes it to the distributor where it is distributed to different wholesalers and from there it goes to retailers in different parts of the city or state. Where the end customer will go and buy the vehicle at the nearest retail shop to him. Later the company consults the customers who brought their vehicles and get the feedback from them, where the implement the customer changing tastes and views into the R&D department for further improvisation of their vehicles. In the service sector like State Bank of India the main motto of this sector is to provide customer service’s like ATM services, Safety deposit locker, foreign inward remittances, E-pay. Where their focus is to give customer the utmost satisfaction with their service, for example for a customer to open an account in the bank the stages are, first the customer need to get a form from the counter available in the bank, fill it and attest the necessary required documents along with an introducer who already has an account there. So, with these inputs from the customer the bank process the application form creates an account in the name of customer for which he was initially provided with a passbook and ATM card. Further with the choice of customer the bank provides an internet banking account, mobile banking and other services. In Banking Sector value of operations depend upon the product-quality (Some examples: Electronic vendor finance, Electronic dealer finance, Direct debit) as well as the service quality model (Some examples: Utility bill payment, Direct & indirect tax payment). Also collaboration with foreign firm made SBI the most High Tech Bank in India following a very secured as well as a better performance matrix model than other banks. The basic difference between manufacturing and service sector is that, in the manufacturing sector the vehicles that are produced can be felt, touch by the customers physically, but in service sector like banking their operations cannot be felt physically i.e., intangible. Service firms do not produce a service unless a customer requires it, although they design and develop the scope and content of services in advance of any orders. Service firm like banking generally produce a service tailored to customers' needs, such as internet banking and mobile banking are given to customers who needed that service, in manufacturing firm they can produce vehicles without a customer order or forecast of customer demand. They manufacture the vehicles keep them in warehousing and send to the outlets where the demand is to be met. Service firms do not require a physical production site. The people creating and delivering the service can be located anywhere. For example different SBI branches...
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