Wednesday, February 19, 2014

What are the major differences between goods production operations and service operation?

What are the major differences between goods production operations and service operation?
One of the most basic ideas in economics is goods andservices. More than anything else, money is spent on goodsand services. It helps to know the difference between two. Agood is something that you can use or consume, like food orCDs or books or a car or clothes. You buy a good with the idea thatyou will use it, either just once or over and over again. Aservice is something that someone does for you, like giveyou a haircut or fix you dinner or even teach you social studies.You don't really get something solid, like a book or a CD, but youdo get something that you need. The basic difference is thata good is something you can hold in your hand (unless it'ssomething big, like a car or a house). Now, a service canalso contain a good. Someone who fixes you dinner gives you food,which was bought. In this example, the food is the good andthe person's fixing it for you is the service. In the sameway, your teacher gives you a service by teaching you socialstudies. He or she also gives you a good by giving you atextbook. Your teacher teaching you social studies is a goodexample of a service that you personally don't pay for.(Your family might pay for it, but you don't.) And not allservices are economic, either. A service can be as simple asreading a book to someone. This kind of activity doesn't costanything, but it is something that one person did foranother. A good doesn't have to cost anything, either. Ifyou give your friend a book or a CD, then you given that friend agood, since we have already defined books and CDs asgoods. Your friend didn't give you any money for thegood. But you didn't really do something for your friend,either; you just gave your friend something he or she could hold ortouch. Remember, the one thing that sets goods andservices apart is the ability to touch them. You can touch agood, but you can't touch a service. You can touchthe result of a service but not the service itself.ankush raina This answer outlines the difference between a good anda service but the question was not that. The question is around thedifferences in goods production operations and in serviceoperations. The correct answer would include the followingdifferences; services are more intangible, more customized and lessstorable. Quality control is handled much differently, serviceoperations require different skills and there is a greater customerservice link with services.

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