{"id":7773,"date":"2010-12-20T06:56:02","date_gmt":"2010-12-20T13:56:02","guid":{"rendered":"https:\/\/staging.opexlearning.com\/resources\/?p=7773"},"modified":"2013-08-13T12:38:57","modified_gmt":"2013-08-13T17:38:57","slug":"lean-difference-between-manufacturing-service","status":"publish","type":"post","link":"https:\/\/staging.opexlearning.com\/resources\/lean-difference-between-manufacturing-service\/7773\/","title":{"rendered":"Difference Between Manufacturing and Service"},"content":{"rendered":"<div class=\"a296a24fa2fc69ef5487857f02f111e8\" data-index=\"9\" style=\"float: none; margin:10px 0 10px 0; text-align:center;\">\n<script async src=\"\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js\"><\/script>\r\n<!-- Single Post readerboard -->\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:inline-block;width:728px;height:90px\"\r\n     data-ad-client=\"ca-pub-8207522353004717\"\r\n     data-ad-slot=\"1144967431\"><\/ins>\r\n<script>\r\n(adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script>\n<\/div>\n<p>There is considerable interest to apply the principles of Lean Manufacturing in the Service Industry &#8211; sometimes called Lean Services. The motivation comes from the fact that the Toyota Production System &#8211; also known as Lean Manufacturing &#8211; has been very successful in transforming manufacturing. The popular thought is that those same lean principles that has transformed manufacturing could do the same for services.<\/p>\n<p>I have applied the principles of Lean Manufacturing in both services and manufacturing and I&#8217;ve learned the subtle difference in both contexts and also how one might apply lean to one versus the other.<\/p>\n<p>What is unwise is the blind copying of the tools of lean manufacturing, thinking that they will work in services. The fact is that manufacturing and services are very different.<\/p>\n<p>Let me attempt to highlight how a service business is different from a manufacturing business.<\/p>\n<div align=\"center\">\n<table style=\"width: 100%;\" border=\"1\" cellpadding=\"5\">\n<tbody>\n<tr>\n<td align=\"middle\" valign=\"top\" width=\"52%\"><strong>Service Business <\/strong><\/td>\n<td align=\"middle\" valign=\"top\" width=\"47%\"><strong>Manufacturing Business<\/strong><\/td>\n<\/tr>\n<tr>\n<td style=\"text-align: center;\" valign=\"top\"><a title=\"lean, simultaneous production and consumption\" href=\"https:\/\/staging.opexlearning.com\/resources\/lean-in-service-manufacturing-production-consumption\/8032\/\">simultaneous production and consumption (co-creation between producer and consumer)<\/a><\/td>\n<td style=\"text-align: center;\" valign=\"top\"><a title=\"lean, production and consumption at different stages\" href=\"https:\/\/staging.opexlearning.com\/resources\/lean-in-service-manufacturing-production-consumption\/8032\/\">consumption and production at different stages<\/a><\/td>\n<\/tr>\n<tr>\n<td style=\"text-align: center;\" valign=\"top\"><a title=\"service operations lean six sigma\" href=\"https:\/\/staging.opexlearning.com\/resources\/intangible-aspects-in-service-operations-management\/8171\/\">many critical aspects are intangible<\/a><\/td>\n<td style=\"text-align: center;\" valign=\"top\"><a title=\"service operations, lean service\" href=\"https:\/\/staging.opexlearning.com\/resources\/intangible-aspects-in-service-operations-management\/8171\/\">many critical aspects are tangible<\/a><\/td>\n<\/tr>\n<tr>\n<td style=\"text-align: center;\" valign=\"top\"><a title=\"inventory in service versus manufacturing\" href=\"https:\/\/staging.opexlearning.com\/resources\/inventory-management-service-manufacturing\/8172\/\">concept of inventory may not be material, but can be virtual such as requests and, in healthcare, patients waiting for service can be considered a type of inventory<\/a><\/td>\n<td style=\"text-align: center;\" valign=\"top\"><a title=\"inventory in service, inventory in manufacturing\" href=\"https:\/\/staging.opexlearning.com\/resources\/inventory-management-service-manufacturing\/8172\/\">usually has inventory and buffers<\/a><\/td>\n<\/tr>\n<tr>\n<td style=\"text-align: center;\" valign=\"top\"><a title=\"variability, variation in service\" href=\"https:\/\/staging.opexlearning.com\/resources\/service-and-manufacturing-variation-and-variability\/8389\/\">considerable variability in service delivery<\/a><\/td>\n<td style=\"text-align: center;\" valign=\"top\"><a title=\"variation, variability in manufacturing\" href=\"https:\/\/staging.opexlearning.com\/resources\/service-and-manufacturing-variation-and-variability\/8389\/\">some variation<\/a><\/td>\n<\/tr>\n<tr>\n<td style=\"text-align: center;\" valign=\"top\"><a title=\"variety in service operations\" href=\"https:\/\/staging.opexlearning.com\/resources\/service-and-manufacturing-the-concept-of-variety\/8392\/\">open universe in variety of service cases<\/a><\/td>\n<td style=\"text-align: center;\" valign=\"top\"><a title=\"variety in manufacturing operations\" href=\"https:\/\/staging.opexlearning.com\/resources\/service-and-manufacturing-the-concept-of-variety\/8392\/\">closed set in variety in product manufacturing<\/a><\/td>\n<\/tr>\n<tr>\n<td style=\"text-align: center;\" valign=\"top\"><a title=\"customer benefits from service operations\" href=\"https:\/\/staging.opexlearning.com\/resources\/substantive-peripheral-benefits-service-manufacturing\/8395\/\">substantive and peripheral benefits<\/a><\/td>\n<td style=\"text-align: center;\" valign=\"top\"><a title=\"customer benefits from manufacturing\" href=\"https:\/\/staging.opexlearning.com\/resources\/substantive-peripheral-benefits-service-manufacturing\/8395\/\">mainly substantive product benefits<\/a><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<h2>Difference Between Service and Manufacturing<\/h2>\n<p>In the next several posts, I&#8217;ll cover each of the items in the above comparison chart and show how service is different from manufacturing, which should also highlight how the principles of Lean Manufacturing can be appropriately applied in the different contexts.<\/p>\n<!--CusAds0-->\n<div style=\"font-size: 0px; height: 0px; line-height: 0px; margin: 0; padding: 0; clear: both;\"><\/div>","protected":false},"excerpt":{"rendered":"<p>There is considerable interest to apply the principles of Lean Manufacturing in the Service Industry &#8211; sometimes called Lean Services. The motivation comes from the fact that the Toyota Production System &#8211; also known as Lean Manufacturing &#8211; has been very successful in transforming manufacturing. The popular thought is that those same lean principles that [&hellip;]<\/p>\n","protected":false},"author":12327,"featured_media":9877,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[613],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v23.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Difference Between Service and Manufacturing<\/title>\n<meta name=\"description\" content=\"There are clear differences between Service and Manufacturing. 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