Differences in the Management of Operations of Companies: PricewaterhouseCoopers and Michelin

Introduction

The operation processes of manufacturing and service providing companies differ in several ways. By examining the production processes of PricewaterhouseCoopers and Michelin tire manufacturers, this analysis will offer the differences in the management of operations of these two types of firms (Elnadi, 2009). It looks at the customer introduction variability in the two firms and evaluates how they differ. It will then present the value of understanding differences and how they will be essential in the future.

Description of the Firms

PricewaterhouseCoopers is a professional service multinational that has its headquarters in the UK. It seeks to help businesses get the best of their services and meet their objectives by offering quality professional services in tax, assurance and other advisory services (Klassen and Menor, 2006). PWC as commonly known as one of the big four professional accounting firms in the world and has received recognition as a reputable professional firm.

Currently, the firm operates in approximately 158 countries across the globe. It has multiple offices across the world and is currently composed of over 236,000 tax, accounting and general advisory professionals that have driven the firm to its current success (Parker, 2012).

Michelin Tire Manufacturers

Michelin is a French tire manufacturer that has also gone global owing to its quality motor vehicle tires and wheels (Bassett, 1992). The firm has set up production in different regions to meet the markets and the local environments of the regions of operation. Started by Michelin brothers in 1920s after operating a rubber production firm for close to 30 years (Parker, 2012). The brothers have utilized technology to improve their products and have produced different models of the tires to meet the changing needs of their clients.

Differences between Service and Manufacturing Firms

There is a customer arrival variability between these two types of customers. While in manufacturing companies customers may come in at the same time and demand the products immediately, in service firms customers rarely visit the firms at the same time and demand for the services immediately (Elnadi, 2009). Customers normally take time in demand for services from the firms. Most of the client also take time and need to make plans and some arrangements with the firm before the services are executed. In manufacturing firms, customers no matter their number can demand many goods at one time.

Customers demands for services vary greatly and thus service firms should have thorough gripes and wide knowledge of the services they offer (Klassen and Menor, 2006). In manufacturing industries, the goods produced are normally standard and thus customers rarely demand a variety of the items.

Customers also play a role in the creating and execution of the service unlike in manufacturing industries where customers simply require finished goods without playing any role in the production process (Bassett, 1992). However, in the event that the customer plays a role in the delivery of the service, the terms of the service would differ unlike in the manufacturing sector where the terms do not vary.

Effects of This Knowledge In The Future

The business environment is changing and thus affects both the manufacturing and the service firms, therefore this knowledge makes it easy to understand these variances and make adjustments to counter any negative effects in the environment (Parker, 2012). It also enables the management of organizations to make arrangements affecting the various types of firms that will solve their customer issues.

References

Bassett, G. A. (1992). Operations management for service industries: Competing in the service era. Westport, Conn: Quorum Books.

Elnadi, M. (2009). Production and Operations Management Assignment: Toyota & Swatch vs. Primark & CenterParcs. Munchen: GRIN Verlag GmbH.

Klassen, R. D., & Menor, L. J. (2006). Cases in operations management: Building customer value through world-class operations. Thousand Oaks, CA: Sage Publications.

Parker, D. W. (2012). Service operations management: The total experience. Cheltenham: Edward Elgar.