concern is making the product. Example: Exmark makes lawnmowers, but they do not contact each customer. They would not know who the end customers were, because they wholesale to companies who then resale the product to the end customers. Lead-time in the service sector is usually short. For example, McDonalds lead-time might be the time that it takes to take a customer order, til the time the customer receives the order. This is hopefully a matter of seconds. Where as manufacturing companies lead-time is usually longer. For example, Exmark may receive an order for 5000 lawnmowers. When they receive the order there are many things that first need to be done before they may be able to start on it. They will need to see if they have all the products need to make the lawnmowers, and they will determine how long it will take to make and ship the product. This may be anywhere from a couple of days to a couple of months. Finances vary as well. In the service sector the financial cost is in paying for people and their labor. Example: A telemarketing company will pay out a lot of money for the people who make the calls. Whereas in the manufacturing sector, the majority of the money is spent on expensive equipment which does the majority of the work. The last area is that of quality determination. In the service sector, telemarketing for example, the service is subjective. This means that it is intangible and difficult to measure. How do you measure rather agent 1 or agent 2 is providing the best quality. Just because agent1 has more sales than agent2, it does not mean agent 1 has better quality. You would need to be take into consideration professionalism, is correct information being given, and overall knowledge of the product. As to the manufacturing sector, quality determination is objective. It is tangible and easy to measure. Example: Exmark produces lawnmowers and they can be checked over and evaluated on looks an...
