DWARAKA DOSS GOVERDHAN DOSS VAISHNAVA COLLEGE

No:833, e.v.r periyar salai, Aumbakkam , Chennai-600 106

Subject- Human resources& Service sector

Professor – Mrs. Thilaga

Presenter- K. Dharmendar Suthar

Differences Between Manufacturing And Service Sector

Manufacturing sector :

The manufacturing sector is part of the goods-producing industries. The Manufacturing

sector comprises establishments engaged in the mechanical, physical, or chemical
transformation of materials, substances, or components into new products. This is known to
be an uncoordinated and highly competitive collection of industries. Manufacturing is the
production of merchandise for use or sale using labour and machines, tools, chemical and
biological processing, or formulation. The term may refer to a range of human activity,
from handicraft to high tech. but is most commonly applied to industrial production, in
which raw materials are transformed into finished goods on a large scale. Such finished
goods may be used for manufacturing other, more complex products, such
as aircraft, household appliances or automobiles, or sold to wholesalers, who in turn sell them
to retailers, who then sell them to end users and consumers.
Manufacturing takes turns under all types of economic systems. In a free market economy,
manufacturing is usually directed toward the mass production of products for sale
to consumers at a profit. In a collectivist economy, manufacturing is more frequently directed
by the state to supply a centrally planned economy. In mixed market economies,
manufacturing occurs under some degree of government regulation.These industries are
normally set up in rural areas means outskirts of the city. Due to Government rules and
notifications so that it does not block the city space.

Types Of Manufacturing Industry-

HEAVY INDUSTRIES:-
Basically heavy Industries are known as large scale industries. Normally the size of
plant is big in volume and they install the heavy plant and machinery, other boilers, cold
storages, These industries also need a huge investment and large amount of capital to
incorporate or to run the business. They make large products which are often bought by the
other industries. For example- steel, oil refining, chemicals, engineering, ship building
companies

SECONDARY INDUSTRIES:-
These are also known as light (consumer) industries. They produce small products
which are used by the individuals or normal consumers. It is small-scale suitable for factory
units in industrial estates. Usually investment for these kind of industry is not much needed.
Only a limited amount of capital is needed. For example- Electrical goods, Clothing, Food
processing and toys.

List of Indian Manufacturing companies-

Ashok Leyland , Bajaj Auto, TVS Motors, Hero Moto corp, Apollo Tyres, Asian Paints,
Videocon Group, Larsen & Toubro, Jindal Steel, Godrej Group, Bombay Dyeing, Raymond
Group, Amul, Dabur India Limited.

SERVICE SECTOR:
The service sector consists of the "soft" parts of the economy, i.e. activities where people
offer their knowledge and time to improve productivity, performance, potential, and
sustainability, which is termed as affective labour. The basic characteristic of this sector is the
production of services instead of end products Services (also known as "intangible goods")
include attention, advice, access, experience, and discussion.. It contributes to around 55
percent of India's GDP during 2006-07. This sector plays a leading role in the economy of
India, and contributes to around 68.6 percent of the overall average growth in GDP between
2002-03 and 2006-07. There has been a 9.4 percent growth in the Indian economy during
2006-07 as against a rise of 9 percent in the same during 2006-06. During this growth in
Indian economy, the service sector witnessed a rise of 11 percent in the year 2006-07 against
the 9.8 percent growth in 2005-06. The service sectors of Indian economy that have grown
faster than the economy are as follows:
 Information Technology (the most leading service sectors in Indian economy)
 IT-enabled services (ITES)
 Telecommunications
 Financial Services
 Community Services
 Hotels and Restaurants

Top Indian Service sector Companies-

 Tata Consultancy Services (TCS)

 Reliance Industries Limites(RIL)

 HDFC Bank

 ITC

 Infosys

Diffrences Between Manufacturing and Service sector

The differences is based on namely five basis namely-
 Goods
The key difference between service firms and manufacturers is the tangibility of their output.
The output of a service firm, such as consultancy, training or maintenance, for example, is
intangible. Manufacturers produce physical goods that customers can see and touch.

 Inventory
Service firms, unlike manufacturers, do not hold inventory; they create a service when a
client requires it. Manufacturers produce goods for stock, with inventory levels aligned to
forecasts of market demand. Some manufacturers maintain minimum stock levels, relying on
the accuracy of demand forecasts and their production capacity to meet demand on a just-in-
time basis. Inventory also represents a cost for a manufacturing organization.

 Customers
Service firms do not produce a service unless a customer requires it, although they design and
develop the scope and content of services in advance of any orders. Service firms generally
produce a service tailored to customers' needs, such as 12 hours of consultancy, plus 14 hours
of design and 10 hours of installation. Manufacturers can produce goods without a customer
order or forecast of customer demand. However, producing goods that do not meet market
needs is a poor strategy.

 Labour
A service firm recruits people with specific knowledge and skills in the service disciplines
that it offers. Service delivery is labour intensive and cannot be easily automated, although
knowledge management systems enable a degree of knowledge capture and sharing.
Manufacturers can automate many of their production processes to reduce their labour
requirements, although some manufacturing organizations are labour intensive, particularly in
countries where labour costs are low.

 Location
Service firms do not require a physical production site. The people creating and delivering
the service can be located anywhere. For example, global firms such as consultants Deloitte
use communication networks to access the most appropriate service skills and knowledge
from offices around the world. Manufacturers must have a physical location for their
production and stock holding operations. Production does not necessarily take place on the
manufacturer's own site; it can take place at any point in the supply chain.