{"id":8395,"date":"2011-04-11T06:30:51","date_gmt":"2011-04-11T13:30:51","guid":{"rendered":"https:\/\/staging.opexlearning.com\/resources\/?p=8395"},"modified":"2014-10-18T16:19:14","modified_gmt":"2014-10-18T21:19:14","slug":"substantive-peripheral-benefits-service-manufacturing","status":"publish","type":"post","link":"https:\/\/staging.opexlearning.com\/resources\/substantive-peripheral-benefits-service-manufacturing\/8395\/","title":{"rendered":"Substantive and Peripheral Benefits in Service versus 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<!--powerpress_player--><p class=\"powerpress_links powerpress_links_flv\" style=\"margin-bottom: 1px !important;\">Podcast: <a href=\"https:\/\/staging.opexlearning.com\/resources\/wp-content\/uploads\/2011\/04\/soup-nazi-seinfeld.flv\" class=\"powerpress_link_pinw\" target=\"_blank\" title=\"Play in new window\" onclick=\"return powerpress_pinw('https:\/\/staging.opexlearning.com\/resources\/?powerpress_pinw=8395-podcast');\" rel=\"nofollow\">Play in new window<\/a> | <a href=\"https:\/\/staging.opexlearning.com\/resources\/wp-content\/uploads\/2011\/04\/soup-nazi-seinfeld.flv\" class=\"powerpress_link_d\" title=\"Download\" rel=\"nofollow\" download=\"soup-nazi-seinfeld.flv\">Download<\/a><\/p><p class=\"powerpress_links powerpress_subscribe_links\">Subscribe: <a href=\"https:\/\/itunes.apple.com\/us\/podcast\/shmula.com-lean-leadership\/id930098243?mt=2&amp;ls=1#episodeGuid=https%3A%2F%2Fstaging.opexlearning.com%2Fresources%2F%3Fp%3D8395\" class=\"powerpress_link_subscribe powerpress_link_subscribe_itunes\" target=\"_blank\" title=\"Subscribe on Apple Podcasts\" rel=\"nofollow\">Apple Podcasts<\/a> | <a href=\"https:\/\/staging.opexlearning.com\/resources\/feed\/podcast\/\" class=\"powerpress_link_subscribe powerpress_link_subscribe_rss\" target=\"_blank\" title=\"Subscribe via RSS\" rel=\"nofollow\">RSS<\/a><\/p><p>In this post, we discuss another key difference between service and manufacturing. Previously, we discussed how\u00a0<a title=\"production and consumption in service and manufacturing\" href=\"https:\/\/staging.opexlearning.com\/resources\/lean-in-service-manufacturing-production-consumption\/8032\/\">production and consumption is different in service versus manufacturing<\/a>; we also covered the\u00a0<a title=\"intangible aspects in service and manufacturing\" href=\"https:\/\/staging.opexlearning.com\/resources\/intangible-aspects-in-service-operations-management\/8171\/\">intangible differences between service and manufacturing<\/a>, the topic of inventory\u009d and\u00a0<a title=\"inventory in service operations\" href=\"https:\/\/staging.opexlearning.com\/resources\/inventory-management-service-manufacturing\/8172\/\">inventory in service<\/a> versus\u00a0<a title=\"inventory in manufacturing\" href=\"https:\/\/staging.opexlearning.com\/resources\/inventory-management-service-manufacturing\/8172\/\">inventory in manufacturing<\/a>; then, we discussed the concept of\u00a0<a title=\"variation in service\" href=\"https:\/\/staging.opexlearning.com\/resources\/service-and-manufacturing-variation-and-variability\/8389\/\">variation in service<\/a> versus\u00a0<a title=\"variation in manufacturing\" href=\"https:\/\/staging.opexlearning.com\/resources\/service-and-manufacturing-variation-and-variability\/8389\/\">variation in manufacturing<\/a>. Most recently, we discussed the concept of <a title=\"variety in service operations\" href=\"https:\/\/staging.opexlearning.com\/resources\/service-and-manufacturing-the-concept-of-variety\/8392\/\">variety in service<\/a> versus <a title=\"variety in manufacturing\" href=\"https:\/\/staging.opexlearning.com\/resources\/service-and-manufacturing-the-concept-of-variety\/8392\/\">variety in manufacturing<\/a>.<\/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<p>Today, we&#8217;ll hit on the topic of benefits we gain from service operations versus manufacturing operations.<\/p>\n<h2>Substantive Benefits and Peripheral Benefits<\/h2>\n<p>Service usually consists of &#8220;substantive&#8221; and &#8220;peripheral&#8221; components. Let me explain.<\/p>\n<p>In the service business, the product being offered has both substantive and peripheral components. For example, in the restaurant, the substantive components would be the food. The peripheral components would include such things as the comfort, the ambiance, etc. when we consider the service business, we have to take into account both substantive and peripheral aspects.<\/p>\n<ul>\n<li>Did you enjoy the\u00a0ambiance\u00a0in that restaurant? Was it pleasant?<\/li>\n<li>Was the d\u00c3\u00a9cor nice? Did it suit the theme of the restaurant?<\/li>\n<li>Did the server treat you well? How so?<\/li>\n<\/ul>\n<p>Put another way, we gain benefit from the actual good &#8211; which is sometimes tangible (such as food), but we gain benefit from <strong><em>how<\/em><\/strong> that good was rendered to us (not tangible).<\/p>\n<p>One could even say that a product is a package of benefits as perceived by the consumer. In a service operation, a bundle of goods and services that are sold to the consumer have a relative importance. We have to put ourselves in the minds of the consumer and understand how the consumer perceives the importance of each &#8211; both substantive and peripheral.<\/p>\n<p>For example, the food might be the best food ever, but we might gain zero peripheral benefit because we were treated very poorly.<\/p>\n<h2>The Soup Nazi Returns<\/h2>\n<p>In the 1990&#8217;s, there was a popular television show in America called &#8220;Seinfeld&#8221;. It was a comedy about nothing &#8211; yeah, nothing. But, it was funny.<\/p>\n<p>As part of the story based in New York, there is a restaurant that serves amazing soup, leading to patrons waiting in long lines to get a bowl of the famous soup. But, even thought the soup was good, the chef of the restaurant was mean. So, he came to be called the &#8220;Soup Nazi&#8221;.<\/p>\n<p>This is an example where the food was great (substantive benefit), but the service stunk (peripheral). Despite that, patrons were willing to suffer with bad service because the soup was so good (watch soup nazi video below).<\/p>\n<div><\/div>\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>Podcast: Play in new window | DownloadSubscribe: Apple Podcasts | RSSIn this post, we discuss another key difference between service and manufacturing. Previously, we discussed how\u00a0production and consumption is different in service versus manufacturing; we also covered the\u00a0intangible differences between service and manufacturing, the topic of inventory\u009d and\u00a0inventory in service versus\u00a0inventory in manufacturing; then, we [&hellip;]<\/p>\n","protected":false},"author":12327,"featured_media":8396,"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>Customer Benefit from Service Operations and Manufacturing Operations<\/title>\n<meta name=\"description\" content=\"The customer can benefit through substantive and peripheral benefits from service and manufacturing operations. 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