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ENTREPRENEURSHIP
Second Semester
Fourth Quarter
Module 1:
4Ms of Operation

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 Republic of the Philippines
Department of Education
REGION VII-CENTRAL VISAYAS
SCHOOLS DIVISION OF SIQUIJOR
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 12
ENTREPRENEURSHIP

Second Semester
Fourth Quarter
Module 1:
4Ms of Operation

3
 What I Need to know
This module was written for you to accomplish at home. It was carefully
designed so that you can work at your own pace and allow self-discovery of the
concept through activities that you will perform. Activities were also selected to
allow independent learning which also aims to develop your reading
comprehension skills through understanding written texts. It covers many
different learning situations where you can relate your personal experiences on
different practical scenarios about Entrepreneurship. After going through this
module, you are expected to:
1. Demonstrate understanding of the 4Ms of operation.
➢ Describe the 4Ms (Manpower, Method, Machine, Materials) of operations
in relation to the business opportunity:
➢ Select/pinpoint potential suppliers of raw materials and other inputs
necessary for the production of the product or service;
➢ Discuss the value/supply chain in relation to the business enterprise; and
➢ Recruit qualified people for one’s business enterprise.

What is It

4Ms of Operation
4M’s of Operations mainly represent factors that influence on results of any
concern process. A method that has been used for a long time in a root cause
analysis like using a fish-bone diagram created by Kaoru Ishikawa of Japan. It is
a causal diagram that shows potential causes of a specific event. This was used
to make product design and quality defect prevention to identify potential factors
on cause and overall effect. A cause of imperfection from a source of variation
which was grouped into 4 major domains to identify classification of each
variation.
 Methods
 are the processes to be followed in effectively manufacturing or
delivering a product or service
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  Manpower
 are the right human resources who will handle certain business
operations
 Machines
 are the technology used in efficiently operating the business.
 Materials
 Are to be used in creating a product or performing a service
In manufacturing industries this method was used to apply on production
control, improvement, overall efficiency measurement, processes, and design. Let
us now describe the 4 major domains of 4M’s of Operations in relation to business
opportunity.

1. Methods
A Method is a detailed procedure for accomplishing something. It is a
systematic way of doing a particular job. It represents the day-to-day operations
of a business. The entrepreneur has to be very detailed in formulating these
processes and must ensure that the customer experience will be pleasant and
seamless. The processes must also abide with industry standards and policies
where the business belongs. The entrepreneur must also set SOPs (standard
operating procedure) both in manufacturing goods and rendering of services.

Method was used in business when developing or innovating a new products

or services, expanding your business enterprise, searching for skilled workers to
include in the workforce, and for improving the efficiency of its process. All of this
activity was documented as reference for every development of the business
including notations that identifies product or service and customer preferences.
This will result to a standard operating procedure in all activities that the
business will implement. In analyzing this method, an entrepreneur must do
these steps:
1. Identify the operation to analyzed.
2. Gather all relevant information about the operation, including tools,
materials, and procedures.
3. Talk to employees who use the operation or have used similar operations.
They may have suggestion for improving it.
4. Chart the operation, whether you are analyzing an existing operation or
a new operation.
5. Evaluate each step in the existing operation or proposed new operation.
Does the step add value? Does it only add cost?
6. Revise the existing or new operation as needed.

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Manufacturing of Goods
Manufacturing is the process of translating raw materials into finished goods
that are acceptable to the customer’s standards. It consists of three elements:
1. Inputs – materials/ingredients used in creating the product
2. Process – transformation phase of raw materials to finished goods
3. Output – final product
Below is an example of input, process, and output.

Source: https://quizlet.com/gb/246830016/unit-10-identify-inputs-outputs-and-processing-diagram/

Source: https://www.xero.com/ph/resources/small-business-guides/business-management/guide-to-
inventory/types-of-inventory/

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Considerations in manufacturing process

1. Manufacturing Site. This is the place where manufacturing process will take
place. It can be
1.1 Home-based – Most startups manufacture goods at home. It is
the cheapest and highly flexible.

1.2 Commercial space for rent – This is done if home option is not
viable anymore. This is more expensive and requires long-term
commitment that entrepreneur will need to sign a lease agreement.

1.3 Commercial space purchase – This requires biggest amount of

capital expenditure but provides substantial freedom and flexibility
to design and run the commercial space. It is considered as an
investment than an expense.

2. Location. This is where the delivery of raw materials and finished goods will be
conducted. Things to consider in selecting the location:
✓ The transportation routes from or to the manufacturing site should be
efficient, so that delivery will be seamless.
✓ Location must be accessible to major types of transport vehicles.
✓ Lastly, location must operate in an environment-friendly manner so as not
to contribute to various types of pollution in the environment.

3. Internal layout of floor plan of the manufacturing site must also be critically done
by the entrepreneur because it affects the efficiency of the business operation.

✓ Each space should be maximized to save on manufacturing costs

✓ An efficient floor plan illustrates how raw materials and finished goods can
be efficiently be transferred, processed, and released from one processing
unit to another

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 ✓ There are two option for the floor plan:
• 3.1 the product-based layout, where the facilities are prearranged
according to the flow of the manufacturing operations,
• 3.2 the process-based layout, where the facilities are grouped
according to their function.

Source:
https://www.google.com/search?q=internal+layout&source=lnms&tbm=isch&sa=X&ved=2ahUKEwiM9dXhi
ZHwAhUOw4sBHeThBrMQ_AUoAXoECAEQAw&biw=1024&bih=432

4. Manufacturing process flow. This serves as a step-by-step guide of the

employees and the manufacturing equipment. Its objective is to ensure that the
right inputs are properly used in production, the process is performed according to
the set standards, and that acceptable outputs are produced. And the ultimate
objective is to ensure that maximum efficiency is met – from the requisition of
materials to processing them into finished goods up to the distribution to the
customers.

Service delivery process

The only way the customer can appreciate the service is by remembering how
pleasant his or her experience was. Service entrepreneurs must prepare a detailed
flowchart of the service business, called the service blueprint. Service
bottlenecks must be addressed immediately to avoid customer complaints.
Bottleneck is a part of the process where there is an apparent inefficiency and
where the customer waits longer.

Service entrepreneur must develop scripts that the service provider will follow
to serve the customers better and to establish standard processes. In terms of
floor plan, the service entrepreneur must design it according to the most efficient
way in performing the service. Below is an example of taxi service workflow.

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 Source: https://www.pinterest.ph/pin/319192692326422082/

Distribution method

Distribution is the process of bringing the products or services to customers.

It is not a straight process from entrepreneurs to customers, thus supply chain
or distribution channel applies. The manufacturer will deliver the products to
the distributors, to the wholesalers, to the retailers, then finally to customers.
Each member in the supply chain will have a fair share in profits, this is why
there is a tendency to impose higher markups on the product price.

Source: https://saylordotorg.github.io/text_exploring-business-v2.0/s13-04-placing-a-product.html

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People in the supply chain:

1. The manufacturer/producer - handles the invention, development, and

production of the product or service. The great thing about being a
manufacturer is that entrepreneurs can manage the entire supply chain.
2. The distributors – entrepreneurs who often buy products or services to the
manufacturers and sell them at a markup price to either wholesalers or
retailers. They buy products in bulk for a discounted price. Any damage,
spoilage, or other liabilities to the product will be their sole responsibility.
3. The agents – don’t own the product or services. They negotiate with buyers
as to how much or how many are to be sold, so the manufacturer will be
able to deliver the goods directly to the customers. Agents get the
commission for every product sold. Some agents do consignment, wherein
they get the products in advance to demonstrate them live to the customers.
If unsold, agents just return the merchandise to the manufacturer. They
are not held liable for any damages or losses incurred.

The distributor or agent can assist the entrepreneur/ manufacturer in the

following:

✓ sharing industry knowledge, behavior, and activities of the primary target

market
✓ pertinent rules and regulations imposed by the government
✓ best practices in marketing and selling the product
✓ best practices in operating the business
✓ respective sticky relationship with business associates such as suppliers,
financial institutions, or retailers

Typical Channels in Business-to-Consumer (B2C) Typical Channels in Business-to-Business (B2B)

Markets Markets

Source: https://saylordotorg.github.io/text_principles-of-marketing-v2.0/s11-02-typical-marketing-
channels.html

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Payment process

The entrepreneur must establish a seamless payment process. There are

no problems if the customers will pay in cash. But there are instances when
customers are attracted by flexible and customer-friendly payments such as
credit cards, installment plans, or simple accounts payable or pautang. The
entrepreneur must ensure that credit payments are seamless and customers are
aware of the terms and conditions of the credit.

Some entrepreneurs put point-of-sale (POS) machines to accommodate

those who will pay through debit or credit cards. The objective is to ensure efficient
collection of accounts receivable and avoid bad debts. He or she must conduct due
diligence first before allowing a customer to purchase via credit.

Source: https://www.mobiletransaction.org/how-to-use-a-pos-machine/

2. Manpower
The entrepreneur will need the expertise of qualified employees that can
handle operational functions. He has to plot a table of organization based on his
objectives. Each position must be relevant. To verify if a position is really
necessary, the entrepreneur must devise a detailed job description and job
qualifications of the future employee. This will be his or her basis in deciding
whether to hire an employee or not.

Job description enumerates the duties and responsibilities of the potential

employee, including the scope, limitations, and terms and conditions of
employment. It is composed of
 Job title – summary of what the employee will do. It should be
respectable and decent because it boosts self-confidence of the
employee.

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  Compensation and benefit range – details the potential salary and
benefits that the employee will get.
 Duties – clearly describe the job that the employee will assume with
allowance for flexibility
 Responsibilities and accountabilities – what to expect with the job
 Work schedules – include work hours. Specific days and working
hours must be written so that the employee will be able to align the
work schedule with his or her personal schedule.

Below is an example of job description.

Source: https://thethrivingsmallbusiness.com/job-description-template/

A wise selection of manpower to join in your workforce provides strategic

solutions in promoting a sustainable competitive advantage that quickly adapts
changing demands in business and its operations. These are employees that
processes and give insights on how to reduce cost, increase productivity to
achieve a better business result. Finding an honest and capable people is always
a challenge in business. To have them work happily and satisfied, an employer
should always take good care and treasure them by providing the right salaries
and benefits as they are integral to the growth of the business.
To look for the right employee for the business operation, the following are
the kind of staff one should have:

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 ✓ Skilled
✓ Well qualified and well verse in business
✓ Responsible
✓ Dedicated and committed to work
✓ Honest and with integrity
✓ Able to attain targets and set goals
✓ Not indulge in wasteful expenditure
✓ Loyal
✓ Team player

Employee qualification

In hiring employees, entrepreneurs look for the following criteria:

1. Educational background
2. Work experience
3. Specific skill or knowledge
4. Work attitude

Job qualifications sample:

Source: https://www.slideshare.net/salesmanagement/sales-manager-job-description-42460169

Preparatory selection of job applicants

Entrepreneurs can usually establish a human resource (HR) department that

will handle the selection and recruitment of candidates. If HR does not exist,
he/she can turn to employment agencies or manpower agencies that can do the
job.
 Headhunters – help companies find a set of people suited for their
requirements. They usually charge a finder’s fee once the
entrepreneur has decided to accept an applicant.

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  Manpower agencies – recruit temporary employees under a short
contract, usually a six-month period.
 Print advertisement – newspapers and other publications
 Recommendations and Referrals – friends, relatives, or business
partners
 Past business networks – people whom the entrepreneur worked with
in the past
 Digital media – social media accounts, e-mails, blogs, mobile apps

Source: https://www.pinterest.ph/pin/641411171905587611/

Selection of job applicants

Screening usually includes:

 Preliminary screening to qualifications
 Interview
 Qualifying examinations
 Hands on

However, it will be up to the entrepreneur or the HR personnel to ask

relevant questions to the interviewee.

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Job Offer

Once the entrepreneur has been convinced already of the credentials and
interview answers of the candidate, the job contract is now prepared. Job contract
generally summarizes the terms and conditions of the candidates' employment
with the business. It includes:
 Rank or position of the candidate
 List of responsibilities and its scope and limitations
 Salary and benefits including vacation and sick leaves
 Work schedule
 Probationary period if any and qualifications to become a regular
employee
 Duration of the contract
 Resignation procedure

Employee development

Training people is one of the biggest investments of an entrepreneur.

Training starts with employee orientation. Employee orientation is a one to two-
day session that summarizes the history of the business, its mission, vision,
policies and procedures, culture, and norms of the business.

Start-up entrepreneurs usually conduct the OJT as the most practical tool
in training the employee under the supervision of a team leader or manager. Other
option is the buddy system and mentor-mentee training programs.
▪ Buddy system is a training program wherein an expert team member is
assigned to assist a new employee in his/her function.
▪ Mentor-mentee program is a training for supervisors, wherein they will be
mentored by a senior executive or senior officer of the business.

Once the employee is already familiar with what he/she does on a daily basis
and the supervisor has already noticed a substantial improvement in the
employee’s performance, the entrepreneur can”
 Send for bachelor/master’s degree programs
 Short-term technical/specialized training
 Online learning programs
 Internal training programs

Talent management

Entrepreneurs should constantly motivate and keep high performing

employees because they can easily transfer to other competitors. The following
are strategies for talent management:
o providing employees with a very competitive salary package
o nonmonetary benefits such as medical coverage, different types of
leaves, flexible schedule, decent and notable job titles, awards and
recognitions, transparency and fairness in performance evaluation

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 o additional benefits as annual trips, scholarships, transportation and
communication allowances, free meals and drinks, sports programs,
fitness programs

Source: https://www.ozassignments.com/solution/bsbhrm505-manage-remuneration-and-employee-
benefits-editing-services

How to maximize the staff contribution to work?

1. Motivate the staff. It helps to improve their morale.

2. Make sure they are comfortable in their workplace. They must be provided
with the required amenities so that their work does not appear
burdensome.
3. Staff should be provided with necessary benefits. They must feel that their
work is worth performing. Not only the entrepreneur should gain, but also
the employee should benefit.
4. Self-respect is very essential. The employee should be treated well. He must
not be treated as a slave.
5. The staff should also share in the profits if possible. Yearly bonus apart
from his or her salary is added income for him or her.
6. Appreciation. Hard work and dedicated effort should be appreciated.
7. Leisure time should be provided for extra-curricular activities. He or she
should also be given time to take off from work so that he or she can go on
a holiday. A change of scene refreshes the mind.
8. One must listen to the woes of the employees. Understanding their
difficulties in performing the task is essential.

3. Machines
Machine plays a vital part in operating a business. Aside from manpower
the use of machinery is important nowadays to make the process of production
more effective and efficient.

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 A machine is a mechanical structure that uses power to apply forces and
control movement to perform an intended action. It is controlled by people or a
machine itself to produce the necessary or required number of productions
needed. It can be described as the “best friend” of manpower in producing goods
and offering services. They are not limited to physical equipment but can also
pertain to new technologies that help business operations become standardized
and seamless.

Without machines, business operations will be cumbersome, costly, and with

low quality. You may be able to use the manpower to do a particular job but it is
usually more efficient if machines are able to automate the work. The right
machine equipment can improve your processes, productivity, and capacity to
innovate. Not only will you save time and resources, but you’ll also avoid costly
quick fixes.

The following are the right equipment to purchase in starting a business:

1. Assess your business reality. It is important to understand your objectives

why you need to purchase machinery. Are you looking for increasing your
productivity? Will this equipment make you more successful in the marketplace?
Will it help you stay ahead of your competitors? Can you upgrade instead of
buying new equipment and still get better performance? These are questions you
need to ask to assess your business if you really need machinery instead of your
manpower.

2. Get an external point of view. Depending on the scale of your investment, it

may be worth working with an external consultant who can ensure you make the
most of your purchase by helping you assess your needs. To do this, you need to
make a cost-benefit analysis, which helps you justify your purchase and
determine its advantages and disadvantages.

3. Invest in digital technologies. According to a survey conduct in 2017 by 960

Canadian manufacturers, they found out that companies who adopted digital
technologies reaped impressive rewards, including improved productivity, lower
operational costs, and better product quality. This technological advantage may
monitor a real-time production and quality control to reduce waste and rework.
It predicted maintenance to prevent costly repairs, higher automation to save
labor costs and improve throughput.

4. Create a technology roadmap. Rather than making an isolated purchase, look

at the overall needs of your business and plan for the long term. A technology
roadmap is a planning tool that aligns your business objectives to long- and
short-term technology solutions. It helps you understand your current
technological systems, set technology development priorities and provide timeline
for the implementation of a new system. The first part of building your roadmap
is to get a clear picture of what you are already doing and mapping out your
processes.

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5. Shop around for suppliers. You may browse the internet to access different
website that offers specialized machinery equipment. Check out newsletters and
attend trade shows where you can get some hands-on time equipment. Don’t let
price alone guide you in your supplier decision, consider aspects such as post-
sales service and supplier’s reputation and getting references.

6. Keep training in mind. All too often, entrepreneurs don’t’ consider the time,
money and resources required to train employees on new equipment. You want
to avoid the productivity drop that occurs when employees take too much time to
adapt to new technology or processes. If the equipment is new or has new
features, ensure that employees who uses the machine will have time to be
trained.

7. Think safety first. A healthy and safe work environment means your
employees and your company can be more productive, and this rule applies to
your equipment and technology purchases as well. Suppliers are responsible for
selling the equipment that can be used safely, but you are responsible for
ensuring that your employees follow safety rules.

8. Keep it green. When purchasing equipment, be sure that it’s energy efficient.
Not only to save money, but also by contributing to the health of the planet.
Research the environmental impact of your new equipment and find out how to
dispose of your existing equipment in a way that minimizes its impact on the
environment.

Telecommunications and Information technology

Regardless of any business the entrepreneur will venture into

telecommunications and information technology equipment is mandatory. These
pieces of equipment include the following:

 Landline phones
 Mobile phones
 Laptop and desktop computers
 POS machines
 Accounting and inventory software
 Website

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 Source: https://medium.com/bsg-sms/what-is-the-difference-between-it-and-telecommunications-
c5d250436b3a

The entrepreneur must protect these pieces of equipment physically and

against fraudsters who will be using this information to malign or steal from the
business. They should be protected with strong passwords and used only by
authorized employees.

4. Materials

In manufacturing industry, companies are involved in turning raw

materials into physical products, which are then sold to consumers. One of the
things that a manufacturing company can do to achieve efficiency is to source
quality raw materials from credible suppliers. For perishable and edible products,
the business should investigate how raw materials are stored, processed, and
shipped to consumers. Do you have the materials needed to perform all parts of
your production? Are they conveniently located to minimize waste? Once the
production process is in place, an entrepreneur shifts to the daily activities of
materials management, which encompass the following activities: Purchasing,
Inventory control, and work scheduling.
The supplier must have a consistent and sufficient amount of raw materials
and supplies that can accommodate the demand of the entrepreneur. The
entrepreneur should decide on what route to choose when it comes to materials
requisitioning. Options include the following:

1. manufacturing own products or offer services. Entrepreneur must have

studied the business feasibility thoroughly as the risk is larger due to a
huge chunk of capital that is needed due to expenses in manpower,
machines, and materials that will be borne by the entrepreneur.

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 2. outsourcing of manufacturing or service activities to a third party.
3. Purchasing own product or service from present suppliers.

Purchasing and Supplier Selection

The process of acquiring the materials and services to be used in

production is called purchasing (or procurement). For many products, the costs
of materials make up about 50 percent of total manufacturing costs. Not
surprisingly, then, materials acquisition gets a good deal of the entrepreneur’s
time and attention.

As a rule, there’s no shortage of vendors willing to supply parts and other

materials, but the trick is finding the best suppliers. In selecting a supplier, an
entrepreneur must consider such questions as the following:

• Can the vendor supply the needed quantity of materials at a reasonable

price?
• Is the quality good?
• Is the vendor reliable (will materials be delivered on time)?
• Does the vendor have a favorable reputation?
• Is the company easy to work with?

Getting the answers to these questions and making the right choices—a
process known as supplier selection—is a key responsibility of operations
management.

E-Purchasing

Technology is changing the way businesses buy things. Through e-

purchasing (or e-procurement), companies use the Internet to interact with
suppliers. The process is similar to the one you’d use to find a consumer good—
say, a forty-two-inch LCD high-definition TV—over the Internet. You might start
by browsing the Web sites of TV manufacturers, such as Sony, Samsung, TCL, or
Skyworth. To gather comparative prices, you might go to a comparison-shopping
Web site, such as Lazada or Shopee. Once you’ve decided where to buy your TV,
you’d complete your transaction online, even paying for it electronically.

Inventory Control

If a manufacturer runs out of the materials it needs for production, then

production stops. In the past, many companies guarded against this possibility
by keeping large inventories of materials on hand. It seemed like the thing to do
at the time, but it often introduced a new problem—wasting money. Companies
were paying for parts and other materials that they wouldn’t use for weeks or

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even months, and in the meantime, they were running up substantial storage and
insurance costs.
Most manufacturers have since learned that to remain competitive, they
need to manage inventories more efficiently. This task requires that they strike a
balance between two threats to productivity: losing production time because
they’ve run out of materials and wasting money because they’re carrying too
much inventory. The process of striking this balance is called inventory control,
and companies now regularly rely on a variety of inventory-control methods.

Just-in-Time Production

One method is called just-in-time (JIT) production: the manufacturer

arranges for materials to arrive at production facilities just in time to enter the
manufacturing process. Parts and materials don’t sit unused for long periods,
and the costs of “holding” inventory are significantly cut. JIT, however, requires
considerable communication and cooperation between the manufacturer and the
supplier. The manufacturer has to know what it needs, and when. The supplier
has to commit to supplying the right materials, of the right quality, at exactly the
right time.

Material Requirements Planning

Another method, called material requirements planning (MRP), relies on a

computerized program both to calculate the quantity of materials needed for
production and to determine when they should be ordered or made. Let’s say, for
example, that you and several classmates are planning a fund-raising dinner for
the local animal shelter. First, you estimate how many people will attend—say,
fifty. Next, you plan the menu—lasagna, garlic bread, salad, and cookies. Then,
you determine what ingredients you’ll need to make the food. Next, you have to
decide when you’ll need your ingredients. You don’t want to make everything on
the afternoon of the dinner; some things—like the lasagna and cookies—can be
made ahead of time. Nor do you want to buy all your ingredients at the same time;
in particular, the salad ingredients would go bad if purchased too far in advance.
Once you’ve made all these calculations and decisions, you work out a schedule
for the production of your dinner that indicates the order and timing of every
activity involved. With your schedule in hand, you can determine when to buy
each ingredient. Finally, you do your shopping.

Though the production process at most manufacturing companies is a lot

more complex than planning a dinner (even for fifty), an MRP system is designed
to handle similar problems. The program generates a production schedule based
on estimated output (your food-preparation timetable for fifty guests), prepares a
list of needed materials (your shopping list), and orders the materials (goes
shopping).

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Work Scheduling

As we’ve seen, manufacturers make profits by transforming inputs

(materials and other resources) into outputs (finished goods). We know, too, that
production activities, like all business activities, have to be controlled: they have
to be monitored to ensure that actual performance satisfies planned performance.
In production, the control process starts when operations managers decide not
only which goods and how many will be produced, but when. This detailed
information goes into a master production schedule (MPS).
To draw up an MPS, managers need to know where materials are located
and headed at every step in the production process. For this purpose, they
determine the routing of all materials—that is, the workflow of each item based
on the sequence of operations in which it will be used.

What’s More
Directions: Answer the questions below in your notebooks. Refer to the attached
rubric for your guide in answering.

1. Based on your personal experience, cite one service type of business and one
product business that gave you an impressive experience because employees were
properly trained. What made you say that employees were really trained?

2. Do you believe that 4Ms is effective in production? Support your answer.

Rubric for Essay Type of Questions

Points 10 8 6
Topic Sentences introduce Sentences don’t Topic is unclear
the key fully introduce
element/response response
Evidence 2 or more At least one No supporting
supporting details supporting detail is detail is given
are given given
Explanation Complete Minimal No explanation
explanation explanation

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 What I have learned
I learned that:
4M’s of Operations mainly represent factors that influence on results of any
concern process. A strong operational plan should have the four
operational aspects. These are:
▪ Methods are the processes to be followed in effectively
manufacturing or delivering a product or service.
▪ Manpower are the right human resources who will handle certain
business operations.
▪ Machines are the technology used in efficiently operating the
business.
▪ Materials are to be used in creating a product or performing a
service.

The entrepreneur must be detailed with the 4Ms operational factors

because these directly affect the internal and external parties of the
business. The success of the business largely depends on how smooth and
seamless the operations will be.

What I can do
A. Directions: Supposed that you are hiring for vacant positions in your
company. Write down the appropriate qualifications of the vacant positions that
you want to hire. No. 1 is given as an example. Write your answers for numbers
2 and 3 in your notebook.

Educational
Background/ Skills or
Position knowledge Work experience

1. English teacher for *Has an Education degree Worked as an English

foreigners in English or languages teacher in a university or
worked in a call center as
* Fluent speaker and a a trainer
good listener, patient with

23
 students, adaptive to
foreign cultures

2. Advertising planner

3. Fast food crew

B. Enumeration
Directions: Answer the following questions in your notebook.

1-3. What are the three elements of manufacturing?

4-6. What are the considerations in the manufacturing process?
7-10. What are the criteria for job qualification?
11-14. Screening of applicants includes the following. What are they?
15-17. What are the strategies for talent management?
18-26 To look for the right employee for the business operation, the following are
the kind of staff one should have. What are they?

Assessment
A. Directions: Read and analyze the statements below and then write the letter
of the best answer in your notebook.

1. It is extremely important in any organization to make appropriate assignments

of responsibility for the implementation of the marketing plan. In some cases, the
availability of a certain expertise may be uncontrollable. In any event, the
entrepreneur must build an effective management team and assign the
responsibilities to implement the marketing plan. What M is referred to in this
situation?
a) Manpower
b) Method
c) Materials
d) Machine

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2. What do you call the mechanical structure that uses power to apply forces and
control movement to perform an intended action?
a) Manpower
b) Method
c) Materials
d) Machine

3. What are used to make new products?

a) Manpower
b) Method
c) Materials
d) Machine

4. It is a detailed procedure for accomplishing a particular job used when

developing or innovating new product or service and expanding a business
enterprise. What M is referred to in this description?
a) Manpower
b) Method
c) Machine
d) Materials

5. A selection of people to join in a workforce that provides strategic solutions in

promoting a sustainable competitive advantage that quickly adapts changing
demand in business operations. What M is referred to in this situation?
a) Manpower
b) Method
c) Machine
d) Materials

6. Which of the following is described as the processes to be followed in effectively

manufacturing or delivering a product or service? It represents the day-to-day
operations of a business.
a. materials
b. methods
c. manpower
d. machines

7. What do you mean by Services?

a. Physical items produced by business organizations
b. Activities that provide some combination of time, location, form, and
psychological value

8. What do you mean by Goods?

a. Physical items produced by business organizations
b. Activities that provide some combination of time, location, form, and
psychological value

9. What is the correct definition of Operations Management?

a. The management of systems or processes that create goods and or
provide services
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 b. A sequence of activities and organizations involved in producing and
delivering a good or service

10. Which of the following is described as the process of translating raw materials
into finished goods that are acceptable to the customer’s standards?
a. manufacturing
b. inputs
c. outputs
d. goods in process

11. Time based approaches of business organizations focus on reducing the time
to accomplish certain necessary activities. Time reductions can apply to which of
the following?
A. Product/service design time
B. Processing time
C. Delivery time
D. Response time to complaints
E. All of the above

12. One of the considerations in the manufacturing process is the location – where
the delivery of raw materials and finished goods will be conducted. Which of the
following statements is true?
a. The transportation routes from or to the manufacturing site should be
efficient.
b. Location must be accessible to major types of transport vehicles.
c. Location must operate in an environment-friendly manner.
d. All of the above

13. Which layout is best suited for making notebooks in large quantities?
a. product-based
b. process-based

14. The fundamental purpose for the existence of any organization is described
by which of the following?
a. Policies
b. Procedures
c. Mission
d. Strategy

15. What is called the process of bringing the products or services to customers?
a. transportation
b. distribution
c. sales
d. freight out

16. He is in the supply chain that negotiates with buyers as to how much or how
many are to be sold, so the manufacturer will be able to deliver the goods directly
to the customers. Who is this?
a. distributor
b. wholesaler
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 c. retailer
d. agent

17. Which of the following is the summary of what the employee will do? It should
be respectable and decent because it boosts self-confidence of the employee.
a. job description
b. job title
c. job specification
d. duties

18. What is the process of grouping similar types of works together?

a. job design
b. job evaluation
c. job classification
d. job description

19. What is the purpose of job evaluation?

a. time duration of a job
b. expenses incurred to make a job
c. experiences of the worker
d. worth of a job in relation to other jobs

20. What type of contract does an employee have?

a. a contract for service
b. a contract of service
c. a contract for services
d. a contract of services

21. What is this one-two day session called that summarizes the history of the
business, its mission, vision, policies and procedures, culture, and norms of the
business?
a. orientation
b. visitation
c. seminars/workshop
d. employee development

22. Once the employee is already familiar with what he/she does on a daily basis
and the supervisor has already noticed a substantial improvement in the
employee’s performance, the entrepreneur can send his/her employee to any of
the following.
a. Send for bachelor/master’s degree programs
b. Short-term technical/specialized training
c. Online learning programs
d. All of the above

23. Which of the following is NOT an advantage of using machines?

a. It reduces man’s job
b. It reduces the time taken to do a job
c. It produces quality and efficient products
d. It increased unemployment in many ways
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24. Which of the following is NOT a definition of Quality?
a. conformance of specification
b. customer delight
c. spare part maintenance
d. fitness for use

B. Directions: Identify what is referred to in each of the following descriptions

below. Write your answer in your notebooks.

_________1. The processes to be followed in effectively manufacturing or delivering a

product or service. It represents the day-to-day operations of a business.
_________2. The process of translating raw materials into finished goods that are
acceptable to the customer’s standards
_________3. A layout where the facilities are prearranged according to the flow of the
manufacturing operations.
_________4. A layout where the facilities are grouped according to their function
_________5. It serves as a step-by-step guide of the employees and the manufacturing
equipment
_________6. A detailed flowchart of the service business
_________7. A part of the process where there is an apparent inefficiency and where
the customer waits longer.
_________8. The process of bringing the products or services to customers.
_________9. They negotiate with buyers as to how much or how many are to be sold,
so the manufacturer will be able to deliver the goods directly to the customers.
________10. The right human resources who will handle certain business operations
________11. Enumerates the duties and responsibilities of the potential employee,
including the scope, limitations, and terms and conditions of employment
________12. The summary of what the employee will do. It should be respectable and
decent because it boosts self-confidence of the employee.
________13. They help companies find a set of people suited for their requirements.
They usually charge a finder’s fee once the entrepreneur has decided to accept an
applicant.
________14. It generally summarizes the terms and conditions of the candidates'
employment with the business
________15. Is a one to two-day session that summarizes the history of the business,
its mission, vision, policies and procedures, culture, and norms of the business.
________16. A training program wherein an expert team member is assigned to assist
a new employee in his/her function.
________17. Is a training for supervisors, wherein they will be mentored by a senior
executive or senior officer of the business.
________18. They are not limited to physical equipment but can also pertain to new
technologies that help business operations become standardized and seamless.
________19. It relies on a computerized program both to calculate the quantity of
materials needed for production and to determine when they should be ordered or
made.
________20. This is when the manufacturer arranges for materials to arrive at
production facilities just in time to enter the manufacturing process.

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Operations Management: An Integrated Approach, 5th Edition. (2020). Retrieved

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