List five important differences between goods production and service operations.IMPORTANT NOTE: PLEASE REFER TO THE GIVEN DIFFERENCES ON THE PHOTO ATTACHED. Let us consider each of these differences.1. Often, by its nature, service involves a much higher degree of customer contact thanmanufacturing. The performance of a service often occurs at the point of consumption.For example, repairing a leaky roof must take place where the roof is, and surgery re-quires the presence of the surgeon and the patient. On the other hand, manufacturing al-lows a separation between production and consumption, so that manufacturing may occuraway from the consumer. This permits a fair degree of latitude in selecting work methods,assigning jobs, scheduling work, and exercising control over operations. Service opera-tions, because of their contact with customers, can be much more limited in their range ofoptions. Moreover, customers are sometimes a part of the system (e.g., self-service oper-ations such as gas stations, shopping), so tight control is impossible. In addition, product-oriented operations can build up inventories of finished goods (e.g., cars, refrigerators),CHAPTER ONE INTRODUCTION TO OPERATIONS MANAGEMENTenabling them to absorb some of the shocks caused by varying demand. Service opera-tions, however, cannot build up inventories of time and are much more sensitive to de-mand variability-banks and supermarkets alternate between lines of customers waitingfor service and idle tellers or cashiers waiting for customers.2. Service operations are subject to greater variability of inputs than typical manufac-turing operations. Each patient, each lawn, and each auto repair presents a specific prob-lem that often must be diagnosed before it can be remedied. Manufacturing operationsoften have the ability to carefully control the amount of variability of inputs and thusachieve low variability in outputs. Consequently, job requirements for manufacturing aregenerally more uniform than those for services.3. Services often require a higher labor content whereas manufacturing, with excep-tions, can be more capital-intensive (i.e., mechanized).4. Because high mechanization generates products with low variability, manufactur-ing tends to be smooth and efficient; service activities sometimes appear to be slow andawkward, and output is more variable. Automated services are an exception to this.5. Measurement of productivity is more straightforward in manufacturing due to thehigh degree of uniformity of most manufactured items. In service operations, variationsin demand intensity and in requirements from job to job make productivity measurementconsiderably more difficult. For example, compare the productivity of two doctors. Onemay have a large number of routine cases while the other does not, so their productivityappears to differ unless a very careful analysis is made.6. In many instances customers receive the service as it is performed (e.g., haircut,dental care).7. Quality assurance is more challenging in services when production and consump-tion occur at the same time. Moreover, the higher variability of input creates additionalopportunity for the quality of output to suffer unless quality assurance is actively man-aged. Quality at the point of creation is typically more evident for services than for man-ufacturing, where errors Ca, lhe corrected before the customer receives the output.Service jobs are sometimes categorized as professional or nonprofessional. Whole-sale/retail and personal services generally fall into the nonprofessional category. Oftenthese jobs tend to be on the low end of the pay scale, whereas professional services (e.g.,surgery, consulting) tend to be on the high end of the pay scale. Manufacturing jobs, onthe other hand, don't show this bimodal tendency, and few salaries fall in either the highor low range.Table 1-5 gives an overview of the differences between production of goods and ser-vice operations.Although it is convenient to think in terms of systems devoted exclusively to goods orservices, most real systems are a blend of both. For instance, maintenance and repair ofequipment are services performed by virtually every manufacturing firm. Similarly, mostservice organizations typically sell goods that complement their services. Thus, a lawncare firm usually sells goods such as weed killers, fertilizers, and grass seed. HospitalsCharacteristicOutput..Uniformity of outputUniformity of input.Labor contentMeasurement of productivityCustomer contact.......Opportunity to correct quality problemsbefore delivery to customerEvaluationPatentableGoodsTangibleHighHighLowEasyLowHighEasierUsuallyServicesIntangibleLowLowHighDifficultHighLowMore difficultNot usuallyTABLE 1-5Typical differences betweengoods and services15

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Customer interaction is the process by which companies tend to interact with the end customers to…