{"id":8032,"date":"2011-01-03T06:40:13","date_gmt":"2011-01-03T13:40:13","guid":{"rendered":"https:\/\/staging.opexlearning.com\/resources\/?p=8032"},"modified":"2014-10-18T16:09:38","modified_gmt":"2014-10-18T21:09:38","slug":"lean-in-service-manufacturing-production-consumption","status":"publish","type":"post","link":"https:\/\/staging.opexlearning.com\/resources\/lean-in-service-manufacturing-production-consumption\/8032\/","title":{"rendered":"Simultaneous Production and Consumption in Service, Not Manufacturing"},"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>In a previous post, I argued that there are distinct <a title=\"difference between service and manufacturing\" href=\"https:\/\/staging.opexlearning.com\/resources\/lean-difference-between-manufacturing-service\/7773\/\">differences between Service and Manufacturing<\/a> &#8211; and, especially, how one goes about applying the principles of <a title=\"lean services versus lean for manufacturing\" href=\"https:\/\/staging.opexlearning.com\/resources\/lean-difference-between-manufacturing-service\/7773\/\">Lean to Service versus Manufacturing<\/a>.<\/p>\n<p>The first difference I&#8217;ll explain in this post: Simultaneous Production and Consumption, which is a state of affairs not likely in manufacturing, but is quite unique in services.<\/p>\n<h2>Series on Difference Between Service Versus Manufacturing<\/h2>\r\nGo here for details on applying <a title=\"lean for service operations articles and case studies\" href=\"https:\/\/staging.opexlearning.com\/resources\/lean-services\/\">Lean for Service Operations<\/a>. For other posts in this series, please refer to the table below:\r\n<BR><br>\r\n<div align=\"center\">\r\n<table border=\"1\" cellpadding=\"5\">\r\n<tbody>\r\n<tr>\r\n<td style=\"text-align: center;\" align=\"middle\" valign=\"top\" width=\"52%\">\r\n<h3><strong>Service Business <\/strong><\/h3>\r\n<\/td>\r\n<td style=\"text-align: center;\" align=\"middle\" valign=\"top\" width=\"47%\">\r\n<h3><strong>Manufacturing Business<\/strong><\/h3>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\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>\r\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>\r\n<\/tr>\r\n<tr>\r\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>\r\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>\r\n<\/tr>\r\n<tr>\r\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>\r\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>\r\n<\/tr>\r\n<tr>\r\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>\r\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>\r\n<\/tr>\r\n<tr>\r\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>\r\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>\r\n<\/tr>\r\n<tr>\r\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>\r\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>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n<\/div>\r\n<BR>\n<h2>Simultaneous Production and Consumption<\/h2>\n<p>Let&#8217;s learn about one of the main differences between service and manufacturing.<\/p>\n<h3>Production and Consumption in Service Operations<\/h3>\n<p>In service businesses, you typically have simultaneous production and consumption of the service. For example in a restaurant, production and consumption of the service are taking place at the same time. \u00a0Indeed, this is clearly true of most fast food operations, such as Starbucks and consequently, how <a title=\"Lean at Starbucks\" href=\"https:\/\/staging.opexlearning.com\/resources\/starbucks-why-lean-why-now\/5639\/\">Lean at Starbucks<\/a>.<\/p>\n<h3>Production and Consumption in Manufacturing Operations<\/h3>\n<p>This is very different from a manufacturing situation. In most manufacturing operations, there are inventories between each stage of production, and a finished goods inventory which can be increased or decreased as demand fluctuates.<\/p>\n<p>Take, for example, a production process that involves three stages. We start with our raw materials and begin our production process. When we get to the end of stage one we have semi-finished goods that go into an inventory.<\/p>\n<p>We would then do more production of these semi-finished goods (or sub-assemblies). At the end of this stage, they would become finished goods and would go into the finished goods inventory. They would then go to a retail inventory, onto a shelf in a retail outlet, and finally to the consumer. The semi-processed and finished goods might be in inventories for a considerable amount of time (in most operations &#8211; one aspect of Lean is to minimize Inventory). There would be a considerable lag between the time the product was produced and the time it was consumed.<\/p>\n<p>In a Service operation, there are no lags as there are in Manufacturing. Indeed, there is almost a co-creation of the product between the manufacturer and the customer.<\/p>\n<p>In this situation, one has to think of the principles of Lean a different way and, consequently, how one applies Lean for Services.<\/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>In a previous post, I argued that there are distinct differences between Service and Manufacturing &#8211; and, especially, how one goes about applying the principles of Lean to Service versus Manufacturing. The first difference I&#8217;ll explain in this post: Simultaneous Production and Consumption, which is a state of affairs not likely in manufacturing, but is [&hellip;]<\/p>\n","protected":false},"author":12327,"featured_media":9875,"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>Production and Consumption in Service, Not Manufacturing<\/title>\n<meta name=\"description\" content=\"Difference between Service and Manufacturing. 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