What are the operational characteristics of service production? What are the differences in operational management from manufacturing?

Operational characteristics of service-based production: services are intangible outputs; provision and consumption of services are synchronized and cannot be stored; services are often labor-intensive - demand variations are met through manual flexibility; customers are involved in the provision of services; the production of services requires a high degree of customization; market coverage is small -- as many stores as possible and economies of scale; direct contact with end users.

Differences from manufacturing in terms of operational management: different material forms of products; different levels of customer involvement; different response times to customer needs; different concentrations and sizes of operating sites; different quality standards and measurements.

Relationship between manufacturing production and service-oriented operations:

In terms of whether the output product is tangible or not, production operations can be categorized into two main types: manufacturing production and service production. Service production, also known as non-manufacturing production, is the essentially intangible behavior or performance that producers provide to consumers. Its production may or may not be related to certain material goods. The basic characteristic of service production is the provision of labor without the manufacture of tangible goods. Manufacturing production is the process of transforming production line inputs into tangible outputs through physical and/or chemical actions. For example, the process of transforming tangible raw materials into tangible products through physical or chemical processes such as sawing, cutting, assembling, welding, bending, cracking, and synthesizing is manufacturing production. Through manufacturing production, we can produce things that do not exist in nature.

What is a service-oriented manufacturing enterprise:

In order to realize the value-added of each stakeholder in the manufacturing value chain, through the integration of products and services, the participation of customers in the whole process, and the mutual provision of the enterprise's productive services and service production, we can realize the high degree of synergies of integrated and dispersed manufacturing resources and core competencies, and realize the manufacturing mode of high efficiency and innovation.

Outsourcing business can be production, marketing, design, development, information, maintenance and other business processes. Academician Wang Yingluo has pointed out that service outsourcing is a concentrated manifestation of efficient economy, and service-oriented manufacturing is conducive to the coordinated development of large, medium and small enterprises.

The traditional concept that manufacturing is production and processing. In fact, production is not equal to manufacturing. Manufacturing includes production and service, that is, manufacturing = production + service. From the smile curve, the service is at the high end of the value, and production and processing at the low end. The value created by production accounts for about one-third of the overall value, while the value created by services accounts for about two-thirds. From the process point of view, the production process is one-tenth of the time, while the service process is nine-tenths of the time.