1. What managerial challenges do services present that manufacturing does not?

The managerial challenges that service present for clients are to be successful in product and services design, Organization must be continually aware of that customers want, what the competition is doing, what government regulation are, and what new technologies are available. Moreover, some other challenges that services has to administer is to continually maintain motivation, having improving ideas, and up holding organizational capabilities and forecasting. Variability is a big concern in most aspect of business operations and it is particularly so in the design of service systems. Requirements tend to be diverse, both in terms of differences in what customers want or need, and in terms of the timing of customer request, for example focusing on the operation from the customers perspective, considering how client expectations and perceptions are managed during and after the service. Furthermore, jobs in service environment are often less structured than in manufacturing environments, customer contact is usually much higher in service, worker skill level are low compared to those of manufacturing workers, this is a fact in many services. Services are adding many new workers in low skill, entry level positions and service performance can be adversely affected by workers emotions, distractions, customers attitudes, and other factors, many of which are beyond managers control. Because of these factors, quality and costs are more difficult to control, productivity tends to be lower, the risk of customer dissatisfaction is greater, and employee motivation is