Service and manufacturing environment

Service and manufacturing environment

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A manufacturing business requires raw materials to start its manufacturing processes

(Pinedo, 2005). The suppliers supplies the raw materials to the manufacturers. In this case there is sugars and water supply for the process of making Coca-Cola products. The manufacturers then starts the manufacturing procedure for the various soft drinks in different segmentation. The assemblers assemble the products from respective segmentation and sort’s them as different products. These products are divided into two thus, carbonated and non-carbonated drinks. The final chain happens when the product reaches the retailers who find markets in different places and makes sales to the consumers to give them satisfaction (Young, 2008).

Manufacturing process map

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A business firm requires accounting services to ensure that the company is on the right track. Without this services a company may end up failing or expensing and even going into debts (Bhatt, 2010). Public Accountants firms has bookkeepers that offer service to the company’s clients. The services they provide include payroll, billing, monthly and quarterly taxes, trial balances, ledger entries, bank reconciliations as well as accounts payable and receivable. The book keepers provide financial statements that are later presented to the customer. Accounting firms provide certified public accountants to run a firm and ensure perfect financial statements, client’s budgets and federal, local and state tax returns are properly made. The accounting firm offers business valuation and auditing services, determines client’s cash flow and monitors depreciations of company’s assets. In addition, it may offer forensic accounting to companies that has fraud issues as well as auditing information systems. Moreover, accounting firms provides advice to clients on financial strategies. Thus, they offer consultation of how to update a business plan and methods of offloading a client’s tax burden. The accounting firms may specialize in risk management as well as focus on financial investments management. The firm also ensures all the clients are aware of any regulatory changes. The accounting firm openly invoices publicly traded companies and their auditors to fund its operations.

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Differences

The main difference between manufacturers and service firms is the intangibility of the output. In accounting business the output of a service for instance consulting, bookkeeping is intangible while the Coca-Cola company output products are tangible. Service firms such as accounting firms do not hold inventory instead, they create a service whenever a client need it. Unlike manufacturers, inventory levels are essential to forecasts of market demand. Inventory is a cost for Coca-Cola manufacturing organization (Sherman & Zhu, 2006). The accounting firms does not produce any service until the customer needs it, however the firm designs and creates the content and scope of the service in advance in case of any order. The company offers 12hours of consultancy, 10hours of installation and 14hours of design. On the other hand, Manufacturers produces goods without having any customer order. An accounting firm only recruits Certified Public accountants. The Service offered is labor intensive and cannot be automated, However, Coca-Cola Manufacturers can automate their production processes to reduce labor requirements. For accounting firms there is no need for a physical production site. The accountants can deliver their services from any location. On the other hand The Coca-Cola Company must have a physical location for their production and stock holding operations (Heesen, 2012).

Similarity

Both The service and manufacturing companies create mission and vision statements for how the organization shall run and perceived by customers. Despite the fact that the service provider and manufacturer desires to lead the market in its specific industry, they both answer different questions and articulate different strategies when planning and managing on how an organization shall run (Pinedo, 2005). Accounting firms and Coca-Cola firms face many similar issues which affects the end result of the operation. For instance they both face cost control issues. Thus the Manufacturing operations must find the suppliers of raw materials at the lowest cost with the highest quality .Likewise, the service operations’ must keep low the indirect cost of providing services so as to provide competitive prices to the clients and still make a profit. Both service and manufacturing firms must forecast on demand for services and products as well as stay competitive in the marketplace.

Variability

Most Service firms struggle with a reality that is foreign to manufacturing firms: Thus the Customers tend “disrupt” with their operations. For a firm to deliver constant quality at sustainable cost, then it must learn how to manage that involvement (Emrouznejad & Cabanda, 2014). Available variability affects service providing firms since customers avail themselves at different times. When a customer arrives (available variability), he makes a request(request variability), Engages in the process demanding some level of capability( Capability variability) and effort,( Effort& subject variability) as well as assessing the experience in accord to personal preferences. It may be easier for service firm dealing with a narrow band of variety however may be insufficient for a wide band variability.

References

Bhatt, R. (2010). Services marketing. New Delhi: Commonwealth.

Emrouznejad, A., & Cabanda, E. (2014). Managing service productivity: Using frontier

Efficiency methodologies and multi-criteria decision making for improving service performance. Heidelberg: Springer.

Heesen, B. (2012). Effective strategy execution: Improving performance with business

Intelligence. Berlin: Springer Berlin.

Pinedo, M. (2005). Planning and scheduling in manufacturing and services. New York, NY:

Springer.

Sherman, H. D., & Zhu, J. (2006). Service productivity management: Improving service

Performance using data envelopment analysis (DEA). New York: Springer.

Young, T. (2008). Knowledge management for services, operations and manufacturing. Oxford:

Chandos Pub.