CONTENTS INTRODUCTION What is a Product Industry? What is a Service Industry? Differences in Product and Services offerings Similarities in Product and Services Industry
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Filling and packaging Advantages and Disadvantages
Process Strategy and Design
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1.2.1. Introduction Process Focus Repetitive Focus Product Focus Mass Customisation Focus PepisiCo.Inc Thekwini Fet College
Conclusion Capacity How to increase capacity How to decrease capacity
Supply chain management
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Hence What is a Product Industry?
Ritzman, Krajewski and Malhotra (2009) define a product as a thing produced by labour or effort or the result of an act or a process. What is a Service Industry?
An industry made up of companies that primarily earn revenue through providing intangible products and services. Service industry companies are involved in retail, transport, distribution, food services, as well as other service-dominated businesses according to Ritzman, Krajewski and Malhotra (2009). Differences in Product and Services offerings
Bool (2006) states that product and services differ in the following: Intangibility versus tangibility – services are not physical, cannot be "possessed," can't be seen, felt, etc. the ability to reduce consumer uncertainty through tangible signals is diminished, were as a product is a tangible physical entity. Inseparability– Inseparability is the production of the services can't be separated from its consumption. For example, the production and consumption of a medical exam happen together. This means that the consumer often expects the service to be provided in a specific way or by a specific individual.
Viaksha Hurinanthan Operations Management
Perishability -- Services cannot be stored for future use. When a client misses an appointment with his attorney, that time can never be recaptured. In production industry products are be manufactured and stored ahead of time.
Variability -- sometimes called "heterogeneity," services quality and consistency is subject to great variability because they are delivered by people and human behaviour is difficult to control.
Ownership- Services can’t not be owned, in retrospect products can. A product is manufactured by a manufacturing process. A service is accessible by the utility element of corporations.
Similarities in Product and Services Industry
Tsiakkiros & Pashiardis (2002) states that in terms of similarities, the manufacturing industry and the service industry is to make a profit, how this is done may differ by at the end both seek to achieve something. Another parallel between these industries is that they encounter demanding customers and who have needs that require fulfilling, as it is these customers who will determine the future of these industries. The product and services industry are comparable, in their strive to offer the best from within their organisations and staying ahead of their competitors. This Assignment will look at four of the ten critical decisions of Operations management from a product industry, as well as, from a service industry point of view, in terms of the following: The process of Transformation of inputs to outputs. Process and capacity design. Supply chain management. Scheduling.
The following organisations will form the basis of this assignment. Service Industry - Thekwini Fet College
Product Industry - PepsiCo Incorporated