The term service factory, coined by Richard B. Chase and Warren J. Erikson, represents the idea that the factory can be a source of customer service in addition to a place where products are manufactured. Since those who make products (factory workers) are often more knowledgeable about them than those in field service, it stands to reason that they can contribute to sales and marketing efforts. In addition, factory workers can be a resource for installation, maintenance and troubleshooting issues involving the products they had a hand in producing.

Richard B. Chase and David A. Garvin identify four (although there can be more) roles that the service factory can play in strengthening a firm's marketing efforts. These roles are (1) laboratory, (2) consultant, (3) showroom, and (4) dispatcher.

Laboratory.

The service factory can easily serve as a laboratory for testing new products and processes thereby enhancing potential quality and manufacturability...