Classification of Operations:

Classification of Operations:

It is a myth that operations is only related to Manufacturing industries but it’s also related to Service industries. It is challenging to operate and maintain the activities in a service industry.

Manufacturing Industry:

Manufacturing industry is goods-oriented involves functions such as:

1.      Purchasing

2.      Goods production

3.      Storage

4.      Transportation/Distribution

5.      Maintenance

Characteristics:

1.      Tangible Output

2.      Standard process in production

3.      Measurable performance

4.      Application of Quality tools effectively and efficiently

5.      Sustainability

Example 1

If we consider an automobile industry, they procure resources from their suppliers beforehand or by following Just-in- time process then production is made. The finished goods are stored in warehouse depending upon the demand they are transported to the outlets and finally after sales service.

 

Example 2 - Cement making

 

  

Example 3 - Cheese production

Example 4

Service Industry:

            Service industry is an act-oriented and it involves functions such as:

1.      Communication

2.      Exchange

3.      Service delivery

Characteristics:

1.      Intangible output

2.      No standardization

3.      Unmeasurable performance

4.      Involves high risk

5.      Setting the price is difficult

Example 1

If we consider a health care industry, the doctor and patient interact with each other about the disease and exchange the information i.e., patient explains the problem and doctor ask him the details and try to find out the disease then finally he treat the patient.

Example 2

Example 3 - School, Tutor 

 Example 4