A Manufacturing Organisation focuses on the process of transforming inputs into an output which is a tangible good to be sold to consumers.
A Service Organisation focuses on the process of transforming inputs into an output which is an intangible service which is sold to consumers.
|MANUFACTURING ORGANISATIONS||SERVICE ORGANISATIONS|
|A manufacturing organisation is one that produces a tangible good to sell to consumers.||A service organisation is one that provides an intangible service to sell to consumers.|
|This type of organisation uses mainly raw materials as inputs.||This type of organisation uses mainly human resources and information as inputs.|
|Transforms inputs into identifiable and tangible goods||Transforms inputs into intangible products or service|
|Capital intensive operations||Labour intensive operations|
|The Goods produced are generally permanent||The Services produced are usually consumed as they are produced|
|The goods produced can generally be stored and reused||The services produced cannot generally be stored|
|The Consumer does not usually have to be present when the goods are produced||The Consumer usually has to be present when they are produced.|
|Examples of tangible products include cars and clothes.||Examples of intangible services include education and health care.|
Want to suggest an edit? Have some questions? General comments? Let us know how we can make this resource more useful to you.