There are five main differences between service (Meezan) and manufacturing (Honda)

organizations the tangibility of their output; production on demand or for inventory;

customer-specific production; labor-intensive or automated operations; and the need for a
physical production location. However, in practice, service (Meezan) and manufacturing
(Honda) organizations share many characteristics. Many manufacturers offer their own
service operations and both require skilled people to create a profitable business.

Goods
The key difference between Meezan Bank and Honda Motors is the tangibility of their
output. The output of the Meezan , such as consultancy, accounts , training or maintenance,
for example, is intangible. Honda Motors produce physical goods like as cars that customers
can see and touch.

Inventory
Meezan Bank, unlike Honda Motors, do not hold inventory; they create a service when a
client requires it. But Honda produce goods (Cars) for stock, with inventory levels aligned to
forecasts of market demand. Honda 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
Meezan Bank 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. Meezan Bank 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. Honda can produce cars without a
customer order or forecast of customer demand. However, producing goods that do not meet
market needs is a poor strategy.

Labor
Meezan Bank recruits people with specific knowledge and skills in the service disciplines
that it offers. Service delivery is labor intensive and cannot be easily automated, although

Bahauddin Zakariya University Sub Campus Sahiwal.

knowledge management systems enable a degree of knowledge capture and sharing. But
Honda can automate many of their production processes to reduce their labor requirements,
although Honda Motors are labor intensive, particularly in countries where labor costs are
low.

Location
Mostly the location of Meezan bank is at rushy places and/or at main bazar/market while on
the other hand honda choos the backward area for production, due to low cost of land and
easily availability of labor. Honda 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.

Bahauddin Zakariya University Sub Campus Sahiwal.