Planning: starts with product design: production types and processes. Mass production vs. customization and mass customization. Conversion process process manufacturing vs. assembly. Timing continuous vs. intermittent process: choice of location and facility layout. Link between type of production, process used, and layout: resource planning and supply chain management. Controlling: routing value stream mapping, and scheduling. Both transform raw material into finished good but in service . Raw material is person with unsatisfied need or possession that requires care. Focus on process as well as outcome: judged on quality of work and service. Characteristics are different: intangible experience key, customized, can"t be stored. Customer is part of process: extent of contact affects operations. Integration of marketing and operations: demand/capacity tradeoff. Manufacturing: set capacity slightly ahead of demand. In short term turn away customers or outsource at lower margins: seasonality: shift demand and capacity requires by pricing. Service: low contact set capacity to average demand, high contact set capacity at peak demand.