In: Operations Management
Discuss the differences of productivity measurement in service and manufacturing.
Productivity measurement in the service sector is very difficult because its output is intangible and cannot be measure easily. The quality service can improve efficiency by providing service to the largest number of fo clients and keeping them satisfied.
Since the output of the services is intangible that is why one cannot measure it exactly but in the form of satisfaction and service delivered in a certain period of time to clients.
On the other hand, Productivity measurement is very crucial for the manufacturing system because the main purpose of any manufacturing system is to manufacture high-quality products. Industry requires a manufacturing system that can produce high-quality products with the least amount of inputs. The industry can achieve this by maintaining manufacturing system productivity higher. therefore, productivity measure is one of the most essential tools for the manufacturing system.