Question

Outline the difference and similarities between manufacturers and service providers

Answer 1

Difference between manufacturers and service providers:

Manufacturer	Service provider
Manufacturers produce products	Service providers produce services
The output produced by a manufacturer is tangible in nature	The output produced by a service provider is intangible in nature
The output produced by a manufacturer can be stored for future	The output produced by a service provider cannot be stored
The manufacturers are generally operate through a production site which are mostly immovable	The service provider are generally operate at a place which is not stationary
The manufacturers may or may not have a process which is people intensive. It can have processes which can be automated with minimal labor	Service providers have process which is generally people intensive.
Manufactures can take back or take return of the products	Service providers cannot take back or take return of the services rendered

Similarities between manufacturers and service providers:

Manufacturer	Service provider
Both exist for the fulfilment of customer's demand
Both use technologies
Both can have capacity issues
Both may have quality issues
Both have suppliers to support
Both use forecast for resource and capacity planning