May 10, 2020

Manufacturing Operations vs Service Operations

In this post, I have explained the difference between manufacturing operations and service operations. and some main differences between manufacturing operations vs service operations.

Manufacturing Operations vs Service operations

Manufacturing operations vs Service Operations
Manufacturing operations vs Service Operations Source-Freepik

Operations can be categorized into manufacturing and service operations. manufacturing operations is the conversion process of raw material to a tangible output. for example the manufacturing of steel pipe.

Service operations are the conversion process that includes service yield intangible output. for example performance and effort of hotel services.

Difference between manufacturing operations and service operations

We can differentiate manufacturing and service operations with the help of the following points.

  1. Nature of work
  2. Consumption of Output
  3. Tangible or Intangible nature of Output
  4. Customer participation in Conversion
  5. Measurement of performance
  6. Degree of customer contact
Manufacturing is characterized by tangible outputs, output that consumers consume over time. job that uses more equipment and less number of labors.

Little customer contact and no customer participation in the production process and the sophisticated method of measuring production.

Service is characterized by Intangible outputs, outputs that customer consumes immediately. service is the type of job which uses more labors and very few equipment as compared to manufacturing. in-service operation there is direct contact with the customer.

In services, there is frequent customer participation in the conversion process. elementary methods are used to measure the activities in the service sector. some services are namely equipment based services such as railroad service, internet services, and telephone services.

Nature of Work

the main difference between manufacturing operations and service operations is the difference between the Nature of work.


Manufacturing work
Manufacturing work Source- Freepik
Manufacturing operations include the conversion of raw material into finished product. the operations perform in manufacture are drilling, boring, molding, shaping, machining and etc.

The main objective of the manufacturing operations is to produce as much output with maximum efficiency. and the quality must be under the tolerance limit.


Services- Source-Freepik
In services, the requirement of employees is very high because in service sector customer is interacting with the organization is very high, the customer communicates directly with the organization.

Consumption of Output

The manufacturing industry produces products such as cars, mobile, TV and etc. Hence we consume their product as per the life of that product. suppose you bought a phone and assumes that its life span is 3 years, so for approximately 3 years you can use that phone.

The service industry consumption is totally different from the manufacturing here we utilized the service of the company. and we pay for the particular period in which we are using that service. for example internet service you recharge your pack as per the validity and after that your pack expires.

Tangible and Intangible nature of Output

The manufacturing industry has the physical products and the output coming out of this industry is tangible. tangible means we can touch and feel that product. for example a car we can touch that and feel that.

while the service sector provides services such as maintenance and this is intangible. intangible means we can't touch that and feel that for example hotel industry- here we get service but we cannot touch that and feel that we just experience that service and give feedback as per the service experience.

Customer participation in Conversion

In the manufacturing industry there is no involvement of customers during the production of the product. customer buy that product once it finished.

In the service sector, customer involvement is very high, because we provide service to the customer for example in the hospitality sector if there is a customer then there is business. if that industry has customers then only they can provide the service and hence the customer participation in conversion is very high.


We have properly understood the difference between the manufacturing operations and service operations and we conclude that these industries are totally different from each other in terms of output, customer interaction, and the number of employees, etc. These are the points we understood in manufacturing operations vs service operations.


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