Republic of the Philippines

Department of Education
Caraga Region
DIVISION OF AGUSAN DEL SUR
Patin-ay, Prosperidad Agusan del Sur

ENTREPRENEURSHIP

Quarter 4:Module 3: Lesson

Learning Competency:
Demonstrate understanding of the 4 Ms
of operations
(TLE_ICTAN11/12EM-la-2)
 WEEKLY HOME LEARNING PLAN

TIME MELC LESSON LEARNERS TASKS/RESPONSIBILITY

8:00AM -9:00PM Preparation of modules, yellow paper,
and pen
9:00AM-11:00 Demonstrate Lesson 1 Answer Pre Test- (in your notebook) ON
understanding of the 4 Page 2-3 What I Know
Ms of operations Read text on Page 4-9
Answer Problem Exercises on Page 10
Answer Activity 3.1.2 & 3.2.3 Page 11
Answer Post Test Page 12-13
Answer Activity 3.1.5 Performance Task

12:00NN-1:00PM LUCNH BREAK

1:00PM-2:00PM Forecasting the revenues Lesson 2 Answer Pre-Test- Page 3-4
of the Business Answer What’s New Page 5
Read thoroughly text on Page 6-10
Answer What’s More Page 11-12
Answer What I have Learned P12
Answer What I can Do – Page 13

2:00PM-3:00PM Forecasting the Cost to Lesson 3 Answer What’s New Page 13 – Page 14
be Incurred Read thoroughly text on Page 15-18
Answer What’s More Page 18-19
Answer What I have Learned Page-20
Answer What I Can Do – Page 20
Answer Post Test – Page 21-22
Answer Additional Activity -Page 23

Activity 3.1.5 Group Activity – Business

Plan Making – Performance Task
Fill out the template for Business
Plan page 24 (for Chapter 1-7)

Note: Output to be submitted

Module 3 Lesson 1
1. Activity 3.1.3 Learning Activity # 1
2. Activity 3.1.4 Learning Activity # 2 – Post Test

Module 3 – Lesson 2 & 3

1. What’s More Learning Activity # 1
Table 4: Projected Cost of Goods Sold Monthly
Table 5: Freight -in paid
Table 6: Projected Monthly Cost (Year 1)
2. What I can Do - Activity 3.3.2 Learning Activity # 2
3. Learning Activity # 3 – Post Test
4. Learning Activity #4 – Additional Activity
5. Activity 3.1.5 Learning Activity # 5 – Performance Task Group Activity
Entrepreneurship
Quarter 4 – Module 3
Lesson 1
4 M’s of Production
and
Business Model

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What I need to Know

In developing a business plan we also have to consider the importance of the 4M’s of operations in all business
opportunities. Because it helps you to identify the problems of the business in the future and in actual situation
especially in the production process and marketing.

In application of your 4M’s of production, it is best to consider the customer’s point of view in terms of their
influences as to why they will buy a particular product, does your product aim to answereach consumer’s
wants or needs and meet up with their expectations over the product, and how do suppliers, value chain and
supply chain affects the business and production.

This module will guide you to demonstrate understanding of the 4M’s of operations and for you to
be able to:

• Describe the 4M’s (Manpower, Method, Machine, Materials) of operations in relation to the business
opportunity;
• Develop a product description;
• Create a prototype of the product;
• Test the product prototype;

What I Know

Before we start with this module, answer the following questions below.

Directions: Write True if the statement is correct, otherwise write False if thestatement
is incorrect on the space provided below.
1. Output represents the final products from the production process and
distributed to the customers.
2. The 4M’s in the production operation are the materials, manpower,
machine and money.
3. Manpower in production operation refers to the workers involved in the
production of goods.
4. Product description is the marketing copy that explains what a product isand it’s
benefits.
5. Prototype is a replica of a product.
6. Product to produce is one of the factors to be considered in the production
method.
7. Educational qualifications and experience is one of the criteria in
considering manpower.
8. Skills and expertise is not important in considering manpower.
9. Benefits are the reasons why customers will decide to buy the products.
10. Machine refers to the manufacturing equipment.
11. Supply chain is a system of organizations, people, activities, data andproperties involved
in moving a product or service from supplier to customer.
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 13. Business model describes the rationale of how an organization makes,
transports, and captures value in economic, social, cultural or other contexts.
14. In selecting the type of equipment to purchase, the entrepreneur may
consider cost and capacity of the equipment.

15. Value chain is the process or activities by which a company adds costto an article, that
includes production, promotion, and providing of after-sales service.

Lesson 4 M’s of Operations in Relation to

1 the Business Opportunity and
Developing Business Model

In your previous lesson, you learned about the 7P’s of Marketing Mix; Product, Place, Price, Promotion,
People, Packaging and Positioning in relation to business opportunity, wherein marketing is about creating
and accumulating customers. Marketing plans are intended to capture a market portion and to setback
competitors.
Brand name was also introduced, where it is a name, symbol, or other feature that distinguishes a
seller’s goods or services in the marketplace. Your brand is one of the greatest assets because your brand is
your customers’ over-all experience of your business.
Experts believed that a good brand can result in better loyalty for its customers, a better corporate
image and a more relevant identity.

What is It

The most serious issues in the whole production system are the inputs and the transformationprocess.
Their quality determines the quality of the output.

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The factors involved in the input and the production process are usually referred to as the Four M’sof
production, namely Manpower, Method, Machine, and Materials.

Four M’s

• Manpower
• Method OUTPUT
• Machine
• Materials

Manpower
- Talks about human labor force involved in the manufacture of products.

- It is measured as the most serious and main factor of production. The entrepreneur must determine,
attain and match the most competent and skilled employees with the jobs at the most appropriate time
period.

- Educational qualifications and experience, status of employment, numbers of workers required, skills
and expertise required for the job are some of the manpower criteria that must be highly considered by
the entrepreneur.
Material

- Talks about raw materials necessary in the production of a product. Materials mainly formpart of the
finished product. Just in case the resources are below standard, the finished product will be of
unsatisfactory as well.

- The entrepreneur may consider cost, quality, availability, credibility of suppliers and wastethat the
raw material may produce.
Machine

- Discusses about manufacturing equipment used in the production of goods or delivery of

services.
- In the process of selecting the type of equipment to purchase, the entrepreneur may consider types of
products to be produced, production system to be
adopted, cost of the equipment, capacity of the equipment, availability of spare parts in thelocal
market, efficiency of the equipment and the skills required in running the equipment.

Method

- Production method discusses the process or way of transforming raw materials to finished products.
The resources undergoes some stages before it is finalized and becomes set for delivery to the target
buyers.
- The selection of the method of production is dependent on product to produce, mode of production,
manufacturing equipment to use and required skills to do the work.
Product Description

- Is the promotion that explains what a product is and why it’s worth buying? The purpose of a product
description is to provide customers with details around the features and benefits of the product so
they’re obliged to buy.

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 - Know who your target market is, focus on the product benefits, tell the full story, use natural language
and tone, use power words that sell, and use good images. These are guidelinesfor you to have a
good product description; since some customers are very particular with it since they consider the
welfare of
their family, if it is safe to use.
Prototyping
A duplication of a product as it will be produced, which may contain such details as color, graphics,
packaging and directions. One of the important early steps in the inventing process is making a prototype.
Benefits are the reasons why customers will decide to buy the products such as affordability, efficiency or ease
of use. The features of the product or service merely provide a descriptive fact about the product or service.
It is better to test your product prototype to meet customers’ needs and expectations; and for your
product to be known and saleable. Pretesting of the product or service is similar to a sample of the product or
service given to the consumer free of cost in order that he/she may try the product before committing to a
purchase.

Supplier
An entity that offers goods and services to another business. This entity is among of supply chain of a
business, which may offer the main part of the value contained within its products. Certain suppliers may even
involve in drop shipping, where they ship goods directly to the customers of the buyer.
Suppliers are your business partners, without them your business will not live. You need them as much
as you need your customers to be satisfied. But as an entrepreneur you have tochoose a potential supplier
that has loyalty and value your partnership; a supplier that would lead you to the fulfillment of your business
objectives, mission and vision.
Value chain is a method or activities by which a company adds value to an item, with production,
marketing, and the provision of after-sales service. The main goal and benefit of a value chain, and therefore
value chain analysis, is to make or support a competitive benefit.

A supply chain is a structure of organizations, people, activities, data, and resources involved in moving
a product or service from supplier to customer.
The main objective of supply chain management includes management of a varied range of
components and procedures, for instance, storing of raw materials, handling the inventory, warehousing, and
movement of finished product from the point of processing to the point of consumptio

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 Business model describes the reasons of how an organization creates, delivers, and captures
value in economic, social, cultural or other contexts. The development of business model construction and
variation is also called business model innovation and forms a part of business plan.
It is a company's plan for how it will make revenues and make a profit. It describes what products
or services the business plans to manufacture and market, and how it plans to do so, as well as what
expenses it will incur.
There are important phases in developing your business model, namely; Identifying the specific
audience; establishing business process; recording a business resources; developing strong value
proposition; determining key business partners; and creating a demand for today’s generation strategy
and be open for innovations.
After developing a business model, we will proceed in developing a business plan. To be able
to successfully complete this module, you need to prepare a business plan and operate your plan and
finally keep records of your business transactions.
Business plan is an important tool for you to have an idea about the future of your business.
Your business plan will be your guide in the moment you will be implementing and operating your
business proposal.

You can also make use of the business plan in securing investment capital from financial
institutions or lenders. It can also be used to influence people to work for your enterprise, to secure
credit from suppliers, and to fascinate potential customers.
Read the stories of Jessie, Mercy and Monna below to fully understand the importance of
having a business plan:
“Jessie is the eldest of five children of Mr. & Mrs. Natividad. The family is having difficulty to
support for their everyday needs. Because of this, Jessie tried to enter selling banana cue and with

his dream to make his business grow, he put up many stalls in the community without considering
the advises of his friends to make a business plan before implementing his decision. After a
few months his stalls shutdown.”
“Mercy is the youngest in the family. She found out that she loves to cut hair and apply make
up to her friends. Until such time that her friends introduced her to their friends too for haircut and make
up when there are occasions. Few months after, Mercy was told by her friends to put up a beauty parlor
in their place. So she asks her mother who is also a businesswoman to teach her howto make a
business plan and eventually ended with a successful business.”
“Monna is a diligent student. Because of her knowledge gained from school about business
plan she was able to enhance her skills in business and finally found herself into his laundry shop
business.”
“Mercy is the youngest in the family. She found out that she loves to cut hair and apply make up to her
friends. Until such time that her friends introduced her to their friends too for haircut and make up when
there are occasions. Few months after, Mercy was told by her friends to put up a beauty parlor in their
place. So she asks her mother who is also a businesswoman to teach her howto make a business
plan and eventually ended with a successful business.”
“Monna is a diligent student. Because of her knowledge gained from school about business
plan she was able to enhance her skills in business and finally found herself into his laundry shop
business.”

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 Each scenario taught us that business is not just about how much income or profit you can
get but it’s about the life of your business. And in having a business, you also have to consider
technological forces, Social forces, Political forces, Cultural forces, Economic forces and Legal forces.
The following are the components found in a Business Plan.
• Introduction- this part discusses what is the business plan all about.
• Executive Summary- is part of the business plan which is the first to be presented but the
last to be made.
• Management Section- shows how you will manage your business and the people you need
to help you in your operations.

• Marketing Section- shows the design of your product/service; pricing, where you will sell and
how you will introduce your product/service to your market.
• Financial Section- shows the money needed for the business, how much you will take in and
how much you will pay out.
• Production Section- shows the area, equipment and materials needed for the business.
• Competitive Analysis- is the strategy where you identify major competitors and research
their products, sales and marketing strategies.
• Market- The persons who will buy the product or services
• Organizational chart- is the diagram showing graphically the relation of one official to
another, or others of a company.

Activity 3.1.1

Complete the statements below and write your answers on the space provided.

1. talks about human labor force involved in the manufacture of products. It is

measured as the most serious and main factor of production.
2. is about raw materials necessary in the production of a product.
3. discusses the process or way of transforming raw materials to finished
products.
4. The purpose of a is to provide customers with details around the
features and benefits of the product so they’re obliged to buy.
5. A duplication of a product as it will be produced, which may contain such details as color,
graphics, packaging and directions. One of the necessary early steps in the inventing method
is creating a .
6. are your business partners, without them your business will not live.
7. describes the reasons of how an organization creates, delivers,
and captures value in economic, social, cultural or other contexts.
8. is an important tool for you to have an idea about the future of your
business.
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 9. is part of the business plan which is the first to be presented but the
last to be made.
10. shows the design of your product/service; pricing, where you will
sell and how you will introduce your product/service to your market

POST TEST

1. Which of the following refers to the marketing copy that explains what a product
is and why it is worth purchasing?
A. Prototype C. Business Model B. Product description D. Suppliers
2. It represents the final products from the production process and distributed to the customers.
A. Input B. Supplies C. Output D. Materials
3. It is a replica of a product.
A. Prototype C. Business Model
B. Product description D. Suppliers
4. Which of the following refers to the system of organizations, people, activities, information,
and resources involved in moving a product or service from
supplier to customer?
A. Supply chain B. Value chain C. Business model D. Prototype
5. Which of the following is the process or activities by which a company adds value to an
article, including production, marketing, and the provision of after-
sales service?
A. Supply chain B. Value chain C. Business model D. Prototype
6. It describes the rationale of how an organization creates, delivers, and captures value in
economic, social, cultural or other contexts.
A. Prototype C. Business Model
B. Product Description D. Suppliers

7. It is an entity that supplies goods and services to another organization.

A. Prototype B. Product description C. Business model D. Suppliers
8. Which of the following refers to the manufacturing equipment used in the production of goods
or delivery of services?
A. Machine B. Manpower C. Method D. Materials
9. It refers to the process or technique of converting raw materials to finished
products.
A. Machine B. Manpower C. Method D. Materials
10. It simply refers to the raw materials needed in the production of a product.
A. Machine B. Manpower C. Method D. Materials
11. Statement I- Skills and expertise is not important in considering manpower. Statement II-
Benefits are the reasons why customers will decide to buy the
products.

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 A. Only Statement I is true. C. Both Statements are true.
B. Only Statement II is true. D. Both Statements are false.
12. Statement I- Educational qualifications and experience is one of the criteria in considering
manpower.
Statement II- Product to produce is one of the factors to be considered in method or
production method.
A. Only Statement I is true. C. Both Statements are true.
B. Only Statement II is true. D. Both Statements are false.
13. Statement I- In selecting the type of equipment to purchase, the entrepreneur may consider
cost and capacity of the equipment.
Statement II- The purpose of a product description is to supply customers through details
around the features and benefits of the product.
A. Only Statement I is true. C. Both Statements are true.
B. Only Statement II is true. D. Both Statements are false.

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Key Answer
What I Know
1. True 6. True 11. True
2. False 7. True 12. True
3. True 8. False 13. True
4. True 9. True 14. True
5. True 10. True 15. True

Guess the Picture

1. Manpower
2. Machines
3. Materials
4. Method

Problem #1
1. My mother
2. Egg & sandwich
3. Stove, spatula & frying pan
4. Prepare all the ingredients & kitchen utensils
1. First step heat your sandwich.
2. Second step cook the egg and put the egg in between the two pieces of
sandwich and also add some salt and pepper.

Problem #2
1. Value chain
2. Supply chain
3. Supply chain

Activity 3.1.2
1. Manpower
2. Materials
3. Machine
4. Product description
5. Prototyping
6. Suppliers
7. Business model
8. Business plan
9. Executive summary
10. Marketing sections
S

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