ENTREPRENEURSHIP

nd
2 Quarter

The 4M’S of Operations

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Senior High School

The 4M’S of Operations

Week 1

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 The 4M’s of Operations

Learning Outcomes:

1. Describe the 4M’s ( Manpower, Method, Machine and Materials)

of operations in relation to the business opportunity
2. Develop a product description
3. Create a prototype business product
4. Forecast the revenues of the business
5. Compute for profits

Learning Outcome No. 1

Describe the 4M’s of Operation in Relation to the Business Opportunity

Learning Objectives:

1. Identify the 4M’s of operations in relation to business opportunity

2. Distinguish the 4M’s of operations
3. Develop entrepreneurial spirit in business opportunity

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 What I Know: Read the questions carefully. Choose the letter of
the correct answer.

1. The following below are examples of an equipment except?

A. Welding machine C. Meat grinder

B. Wine opener D. Hair steamer

2. Which of the following is an example of a packaging material?

A. Welding rod C. aluminum can
B. Baking sheet D. Hair trimmer

3. Home baking and is what type of manufacturing site?

A. Commercial rent C. input
B. Commercial purchase D. home based
4. Which of the following refers to the process and ways to be followed in
effectively in delivering a product or service?
A. Method C. Manpower
B. Machine D. Materials

5. Which of the following refers to the type of resources needed to produce or

manufacture a product including the packaging?
A. method C. materials
B. machine D. manpower

6. It can be made of paper, plastic, aluminum or other materials for protection

of the product against temperature, crushing, moisture.

A. equipment C. staffing level

B. packaging D. production planning

7. Which content of production is concerned with the materials?

A. machine C. equipment
B. manpower D. shelf life

8. Which of the following is the process of translating raw materials into

finished goods or product that is acceptable to customer standard?
A. manufacturing C. marketing
B. merchandising D. purchasing

9. The transformation phase of manufacturing where inputs are processed.

A. input C. machine
B. output D. process

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10. Which of the following refers to the final product of the process stage
which is intended to be sold to target customers?

A. input C. output
B. process D. equipment

11. What termrefers to the ideal number of people, trained personnel and
staff to perform the methods?
A. method C. machine
B. manpower D. materials

12. Which of the following statement below is true about developing a product
description?
A. The cost of raw materials should be affordable and satisfactory.
B. Machine used should be bought outside the local market.
C. The location of the business should be near.
D. The staff should be trained well in abroad.

13. The following are the staffing level or the types of workers required to a
type of business proposed except?
A. welding machines C. beautician
B. welder D. auto-mechanics

14. Which of the following refers to facilities, vehicles, tools and equipment
needed in place to maximize efficiency and productivity of the business?
A. Method C. materials
B. Machine D. manpower

15. This is the cheapest and highly flexible type of manufacturing site?
A. Commercial rent C. input
B. Commercial purchase D. home based

Introduction

If sales is the engine that powers Auto Salvage yards then Production is
the drive train that gets us where we are going. Production is both reactive
and proactive almost simultaneously. It reacts to what is sold today and must
meet the expectations set by the sales team. The key production is to have
procedures and processes that can accomplish both. Once the procedures
are set up to maximize efficiency, it is time to train production staff on their
individual responsibilities centered in the 4 M’s of production.

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 What you should know?

4M’s of Operation Explanations / Descriptions

Method Refers to the process and ways to be followed
in effectively in delivering a product or service and in
manufacturing concern.
Manufacturing- the process of translating raw materials
into finished goodsthat are acceptable to the customer’s
standards

3 Elements of Manufacturing

1.Inputs- the materials or ingredients to be used in

creating the product ( bread, cookies) or services
( welding, auto repairs, wellness)
2. Process- the transformation phase where inputs
are processed by manpower and machines to come up
with the final product.
3. Output- the final product of the process stage,
1. Method which is intended to be sold to target customers

3 Types of Manufacturing Sites

1. Home-based- this option is the cheapest and highly

flexible. Home baking , home services ( wellness, auto
repair shop, welding shops etc.)

2. Commercial space for rent-this advisable if the

business really requires a commercial space for the
processing of goods and services.

3. Commercial space purchase- this option requires

the biggest amount of capital expenditure, but it also
provides the entrepreneur substantial freedom and
flexibility to design and run the commercial space.

Manpower refers to the ideal number of people, trained

2 Manpower personnel and staff to perform the methods. This
include also different job positions and functions of the
personnel or workers.

Machine refers to facilities, vehicles, tools and

3. Machine equipment needed in place to maximize efficiency and

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 productivity of the business without jeopardizing the
safety of staffs, workers or employees. It is also an
effective tool to perform the tasks of every employees
and training them how to maintain the machinery.

Materials refers to the type of resources needed to

4. Materials produce or manufacture a product including the
packaging. It includes raw material level , inventory,
quality, size, surplus or wastage and shelf life.

Developing a Product Description

To develop a product description, it is necessary to asses whether

production or producing a certain product or services is technically feasible.
The series of guide questions below is helpful in deciding a requirements
of the business.

1. Are enough raw materials of the correct quality available when

needed for production?
2. Is the cost of raw materials affordable or satisfactory?
3. Are the correct size and type of equipment available for the expected
production level and is at reasonable cost?
4. Can it be made locally? Are maintenance and repair costs affordable?
5. Are sufficient information and expertise are available?
6. Are packaging materials available and affordable?

7. Is the distribution procedure to customer established?

8. Is the location of business suitable and available ?
9. Are services available and affordable?
10. Are trained workers available and their salaries affordable?

Contents of Production Explanations / Description

1. Production Planning This plan should indicate how the different stages in a
process are linked together. This includes the
procedures and the equipment used.

2. Raw Materials/ This includes the amount of materials needed to

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 Ingredient produce including the number required, the weight , etc.

3. Equipment Includes the type of machinery or equipment to be used

in producing a product or services including its cost,
availability and maintenance.

4. Packaging This involves the packaging materials in producing a

product. It can be made of paper, plastic, aluminum or
other materials for protection of the product against
temperature, crushing, moisture.

5. Staffing Level This involves the types of workers required to a type of

business proposed. ( ex. Welding shop - needs welders,
Autorepair shop -needs automechanics, Bakery- needs
baker, Beauty Salon - needs beautician)

7 Steps in Establishing a Business Model

1. Size the value of the target segment - Estimate cost including the pricing of
the product

2. Confirm that the product or service solves the problem or helpful

3. Test the business prototype and support a strategy

4. Talk to industry experts and investors

5. Plan and execute local roll out ( Local Business Opening )

6. Focus on collecting customer references - Marketing

7. Target national trade shows and industry association groups.

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 Examples of Developing a Product Description

Guide Examples

Glazed Donut

Our sole product is gluten free

donut for individuals who has
gluten allergies.

The price is affordable at 10.00

pesos each and we offer a free
Examples delivery.

This is good for snacks, siestas

and meriendas paired with hot
Nail Art Services Welding & Gate
tea or coffee Fabrication
or cool drinks.
Services

Our nail art services offers a

variety of art designs using safe
nail colors. An affordable price at Our service caters gate design
______ pesos. We offer home fabrication and welding using
service or you can visit at the Salon affordable metals. Welders are
at______________( Address) TESDA national certificate holders.
Trained personnel and staff with Our services cater home service or9
NC level are available. visit the site location. Price is set
 Activity 1. Answer the table below. Write the answer in your
activity notebook.

Elements of Types of Contents of Steps in

4M’s of Operation producing manufacturing Production establishing a
/manufacturing sites business model

Activity 2. Create or develop a product description of your choice

or based on your specialization.

Product : ___________________________________________

Description: __________________________________________
__________________________________________
__________________________________________
__________________________________________
__________________________________________
__________________________________________
__________________________________________
__________________________________________

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 Assess what you have learned:
Instruction: Read each item below and answer the following
questions. Write your answer in activity notebook.

____________1. Refers to facilities, vehicles, tools and equipment needed in

place to maximize efficiency and productivity of the
business without jeopardizing the safety of staffs, workers
or employees.
____________2. Refers to the process and ways to be followed in effectively
in delivering a product or service and in manufacturing
concern.
____________3. Refers to the ideal number of people, trained personnel and
staff to perform the methods.
____________4. Refers to the type of resources needed to produce or
manufacture a product including the packaging.
____________5. Refers to the final product of the process stage, which is
intended to be sold to target customers.
____________6. The process of translating raw materials into finished
goodsthat are acceptable to the customer’s standards
____________7. This plan should indicate how the different stages in a
process are linked together which includes the procedures
and the equipment used.
____________8. The cheapest and highly flexible type of manufacturing site.
____________9. The transformation phase where inputs are processed by
manpower and machines to come up with the final product.
___________10. This type of manufacturing site requires the biggest amount
of capital expenditure and provideentrepreneur substantial
freedom and flexibility to run the commercial space.

REFERENCES :

Book: “ ENTREPRENEURSHIP” ( For Senior High School, Applied Subject,

ABM Strand) by: Angeles A. De Guzman, DBA , CPA

Web and Photos:

https://www.entrepreneur.com/article/239410#:~:text=The%20product%20
description%20section%20is,listing%20of%20product%20features%2C%20ho
wever.
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 Quarter 2 - Week 1

Answer Key

Pre-Test Assessment

1. B 1. Machine

2. C 2. Method

3. D 3. Manpower

4. A 4. Materials

5. C 5. Output

6. B 6. Manufacturing

7. D 7. Production Plan

8. A 8. Home-based

9. D 9. Process

10. C 10. Commercial -space purchased

11. B

12. A

13. A

14. B

15. D

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