3C

• what is manufacturing business definition?

  a type of business that uses resources and raw materials to produce a finished physical good.
• Characteristics of manufacturing business

  • highly automated processes that are capital intensive meaning the business uses a high degree of machinery and equipment during its production process
  • At manufacturing businesses, production and consumption of the product occur at separate times.
  • low degree of customer contact during production, as the production stage is separated from consumption.
  • The outputs produced, are tangible.
  • The outputs can be stored as inventory.
  • output produced are standardised
• What is the definition of service business

  businesses that utilise their operations systems to produce intangible products
• Characteristics of service business

  • intangible products
  • production and consumption occur simultaneously
  • difficult to store
  • often customised
  • high degree of customer contact
  • mainly labour intensive production
• similarities between manufacturing and service business

  • uses technology deal with customers
  • deal with supplier
  • aim to produce high-quality output
  • aim to reduce the costs of production
  • aim to reduce waste
• Types of businesses


  • Manufacturing
  • Service
• Manufacturing business

  • Capital intensive
  • Production and consumption occurs separately
  • Low degree of customer contact
  • Tangible output
  • Output is storable
  • Standardised production
• Service business

  • Labour intensive
  • Production and consumption occurs simultaneously
  • High degree of customer contact
  • Intangible output
  • Can't be stored
  • Tailored production
• Service business case study 


  Qantas is an Australian airline that provides flights to domestic and international destinations.

  • Processes performed to provide flights are labour intensive, with a high degree of labour resources used during the production process.
  • production and consumption of flights occur simultaneously. (high customer contact)
  • The flight service provided is intangible, can't be stored as inventory.
  • The flight service provided is tailored specifically to individual customer needs