SERVICE-BASED MANUFACTURING: THE SERVICE FACTORY

Evidence suggests that factory-based service will become the next form of competition among manufacturers. If this is true, then manufacturing executives will have to obtain a clear understanding of the service capabilities of their plants and adjust their strategies accordingly. We define a set of factory-based services, information, problem solving, sales, and support, and suggest that they be considered in developing manufacturing strategy. Several propositions provide a framework for future research by linking service performance variables to conventionally accepted manufacturing performance variables.