Operations management in manufacturing and service businesses

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6 Characteristics of a Manufacturing Business

- Produce goods that are tangible
- Goods can be stored for later use
- Little customer involvement
- Production and consumption occur at different times
- Goods tend to be homogenous
- Capital intensive production

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6 Characteristics of a Service Business

- Produce services that are intangible
- Servicers can not be stored
- Customer involved in the production
- Production and consumption occur at the same time
- Services are tailored to individual customers
- Labour intensive production

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