The term services cover a broad range of work that a company does for its customers. Depending on the market segment that a company operates in, it may offer to do work for other organizations that include: machining services, coating work, sewing, plating, sheet metal fabrication, back office operations, cleaning, accountancy, data logging, data acquisition, packaging, data entry, casting service, maintenance work, call center, catering, laundry, transport, and printing, etc. There are hundreds of different types of service industries out there and it can be a very competitive business. Because of this, you have to make sure that you do a good, through job when you are hired as you may only get one chance to impress your contractor.
Organizations that offer these types of services have trained personnel and other resources to wholly or partially meet the requirements. Usually an annual rate contract, volume based, piece based or on/off services are the norms along with other contracts like non-disclosure agreements. Companies that call on other companies for services save on additional hiring costs and other investments.
Companies that offer these types of services need to invest in the right kind of equipment, need to have a very fast turnaround time, and must know where to source raw material at the lowest cost. They must also be able to scale rapidly to meet new design changes, increased demand, and most importantly, they must control rejections since the customer usually does not pay for any rejected items.
A good example of services in the industrial world is the construction process of a new building. A lot of hard work goes into the constructing of a building other than the physical act of constructing it. A building has to be designed then there is the pre construction work, construction management and general contracting.
When architects are designing the blueprints of a building they must take into consideration things such as regional bylaws, local traffic patterns, and the access to important services such as water and power. The building’s impact on the environment may also be considered and then a budget and time line must be set. In pre construction work the land must be prepared and the work site needs to be set up with running water, power, temporary offices and washrooms, etc. The management team oversees the daily operation of the construction and makes sure everything is on schedule and that the budget is being met. Once the majority of the building is complete the general contracting takes care of the small things such as electrical hook ups, painting and carpeting, etc.