Manufacturing organizations are more inclined towards the production of finished products from raw materials while service delivery organizations tend to focus more on the delivering excellent services for customer satisfaction.
Manufacturing vs. Service Delivery Organizations DB (Business Models)
Business models are vital components of any organization since they provide the required framework with which a business creates value. Key differences are present in the business models for both manufacturing and service delivery organizations. Manufacturing organizations tend to focus more on the manufacturer business model which involves the conversion of raw materials to finished products for sale ( Jablonski, 2017). Other components of the manufacturing business model include retailing, distributors and franchise models which primarily focuses on the products being sold.
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Contrarily, business models for service delivery organizations are more inclined towards delivering excellent services as the main concept. To begin with, such organizations tend to focus on service culture models which builds on elements such as work habits, leadership principles, mission, vision, and values ( Jablonski, 2017). Additionally, service delivery organizations focus on employee engagement such as purpose-driven leadership and employee attitude for much-desired outputs and productivity. Other models include service quality models which focus on overall service management and customer experience focusing on the collaboration between the organization and the end-users or customers.
Manufacturing vs. Service Delivery Organizations DB (Key Functions)
The key functions of a manufacturing organization include manufacturing management which involves internal processes of the organization such as planning, organizing, and controlling of manufacturing activities ( Kühl, 2013). This function also makes sure that the organization has enough resources and skills necessary to provide quality products in time. Manufacturing engineering function ensures manufacturing methods, plant layout, tool design, and process flow are developed appropriately. Manufacturing operations, on the other hand, involves the conversion of raw materials to finished products which are afterward shipped to end-users.
On the other hand, the key functions of a service delivery organization include incident management which focuses on events leading to disruption or loss of lives and property ( Kühl, 2013). Problem management is also a key function of a service delivery organization and it involves the management of problems that may occur in an IT service. Change management involves guidelines on how to prepare and provide support to individuals to enable them to adopt change successfully for organizational growth.
Manufacturing vs. Service Delivery Organizations DB (Core Processes)
Both manufacturing and service delivery organizations have a common aim of getting profits at the end of the day but their core processes differ. The core processes of manufacturing organizations include research and development where customer inputs are required for the organization to understand how the market operates and what the actual problems are. The production process involves the manufacture of the product that is to be sold to the customers. Quality control is also a core process of the manufacturing organization where the feasibility of the products is usually tested in this process. Shipping and marketing processes are also vital and they are put in place to ensure the products reach the end-users in time.
The core processes involved in service delivery organizations include line operation, job shop operations and intermittent operations ( Pearson, 2018). Line operations involve the linear flow of operations via several processes from the beginning of the business to the final transaction. The service delivery is not flexible and it is judged as a whole even when there is a drawback in a weak area of the process. Job shop operations, on the other hand, ensure customer satisfaction by providing tailored services specific to the client’s needs. Intermittent operations refer to services that are large scale, unique and can rarely be repeated such as construction projects.
Conclusion
Manufacturing organizations mainly focus on the manufacture, supply, and delivery of products transformed from raw materials. Contrarily, service delivery organizations mainly focus on the satisfaction of customers through the delivery of excellent services.
References
Jablonski, A. (2017). Business Models : Strategies, Impacts and Challenges. Hauppauge, New York: Nova Science Publishers, Inc. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&db=nlebk&AN=1453423&site=eds-live
Kühl, S. (2013). Organizations: A Systems Approach. Farnham, Surrey: Routledge. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&db=nlebk&AN=656761&site=eds-live
Pearson, S. (2018). The Service Process: Definition and Types - Tallyfy. Retrieved 20 August 2019, from https://tallyfy.com/service-process/
