Karla Antonette R. Delgado3A1Operations ManagementMANUFACTURING vs. SERVICEA manufacturing business is a type of business organization that converts or transforms inputs (such as raw materials, labor and equipment) to its desired outputs (finished goods). These certain outputs will be sold afterwards to its customers in order to satisfy their needs. Examples of manufacturing businesses are pottery, furniture making business, chemical and oil production and a lot more. On the other hand, a service business is a type of business organization that dominantly uses labor to create services for the benefit of its customers. It is because human resource is often the most vital resource used in production of services. This type of business basically earns a profit by charging a fee. Auditing, security, janitorial and transportation services are some examples of this. How a service business operates is quite different compared the operations of a manufacturing business in many ways:1. Goods Produced The primary difference between a service and a manufacturing business is the tangibility of their output. In a traditional service business, goods provided may be consultancy, training or maintenance which is commonly unseen or intangible. Outputs in a manufacturing business are physical goods which the customers can see or touch.

2. Customer Involvement Customers of a service business are more involved in obtaining what they prefer rather than in a manufacturing business. In a service business, their customers are capable of monitoring the service that is being rendered to them and may be able to supervise the process. These things cannot be done in a manufacturing business.

3. Customer Consumption Services that are provided are being consumed immediately by the customers in a service business. They cannot store the services for future use. For the goods being sold by a manufacturing business, customers have the prerogative to store it for use at a later date or use it immediately.

4. Markets Changing Needs When it comes to the markets changing needs, a service business has an advantage to respond more quickly than a manufacturing business. Even though a manufacturing business can also adapt to the abrupt change of markets needs, a service business will need fewer resources or processes to adapt making them quicker to respond.Despite their differences, there are similarities when it comes to these two types of business organization. Both manufacturing and service businesses are concerned in meeting the needs of their customers. They are doing research and development for the sake of their customers satisfaction.

Which is better, manufacturing or service?Even though a service business is different from a manufacturing business, both of them undergo the same activities in order to be successful. They both need to plan, design, evaluate, improve and redesign their output to match customers preferences. In my opinion, I think engaging in a service business is better than a manufacturing business. Unlike manufacturing, the amount of capital inputs needed in a service business is usually lesser. This is because human labor is more needed in providing service rather than capital inputs. In addition, you dont have to track a lot of inventories when you engage in this type of business. You dont have to manufacture so there is no need for a production facility and you dont have to wait for products to be done for inspection in order for them to be sold. Due to these reasons, you can focus more on sales rather than the inventory or manufacturing. In manufacturing certain products, others might be able to produce the same goods making them to have more close competitors since physical outputs can be easily imitated. When it comes to services, even though competitors may also arise, there will be difficulties for others to have the exact service that one provides. In this case, there is a chance for a greater competitive advantage especially if you are an expert in the service industry that you entered.

ReferencesCollier, P. M. (2009). Accounting for Managers Third Ed: Managing Operations. England:John Wiley & Sons, Ltd, PublicationHughes, R.J., Kapoor, J.R., Pride, W.M. (2014). Business Twelfth Edition: What is Production?. Melbourne,Australia: South-West Cengage Learning Publisher