Many organizations offer a combination of goods and services to their customers. As you learned in this chapter, there are some key differences between production of goods and delivery of services. What are the implications of these differences relative to managing operations?

What will be an ideal response?

There are many implications due to the differences between service and manufacturing operations. For example, in a service firm, because the degree of customer contact is high, we have to make sure that employees are better trained in customer service than employees in a manufacturing industry are. In a pure-service industry firm, we will build a lot of slack in scheduling because of the uncertainty of input.