Question

2 or 3 principles, techniques, and/or algorithms you can apply goods-producing versus a service producing industry

Answer 1

A goods producing industry is different from  a service producing industry in terms of production process, delivery and after sales review of the product / service. These inherent features of the two industries originate from the difference in their basic principles, as listed below.

(a) Goods producing industry produces tangible products, which can be seen, felt, observed and stored for future consumption whereas the services can not be felt or sensed before they are actually availed. They can't be stored for future consumption.

(b) Goods producing industry can bring about product modifications through process improvement, use of stringent quality control measures and post purchase analysis, while the service industry can modification of service delivery through better training of the delivery personnel, using standard operating procedure and through customer feedback.

(c) Human involvement is higher in service industry which is subject to higher variations , whereas production has machines as major contributors and thus lesser variability across two lots.

(d) Service delivery is irreversible whereas product sale is reversible. For example, a product can be returned if the customer does not like it, whereas the service rendered can't be returned if customer does not like it.

(e) Customer's subjective opinions play higher role in service industry than the product industry. For example, customers availing a massage at a parlour or watching a theatre program can have more varied opinions about the service standards than a set of people who used a pair of jeans from a reputed brand and commnted about its quality.