Certified Production & Operations Manager (POM) Practice Exam

Which of the following attributes is most typical of a service?

1. Standardization of output

2. Production occurs before consumption

3. Production and consumption occur simultaneously

4. Intangibility of product

The correct answer is: Production and consumption occur simultaneously

The attribute that most typifies a service is that production and consumption occur simultaneously. This characteristic distinguishes services from physical goods, where production typically occurs separately from consumption. For services, the interaction between the service provider and the customer generally happens in real-time, which means that the service is produced and consumed at the same moment. For example, consider a restaurant experience where the service (food preparation and delivery, dining experience) is provided and consumed concurrently. This immediacy not only impacts how the service is perceived but also emphasizes the role of customer involvement in the service delivery process. Service attributes like intangibility refer to the non-physical nature of services, which is also significant but does not encompass the element of timing inherent to service consumption. While some services can be standard or pre-packaged, such as airline flights, the defining aspect remains the simultaneous nature of production and consumption that reinforces the customer service interaction.