4Ms OF

PRODUCTION
OBJECTIVES
• Describe the 4M’s (Manpower, Method, Machine,
Materials) of operations in relation to the business
opportunity;
• Apply the concept of 4M’s of production in a small
manufacturing business.
4 M’s of Operations
in Relation to the
Business
Opportunity
GUESS THE PICTURE.
GUESS THE PICTURE.
 The three important elements in the
production system

The Input includes the

following:
1. Manpower
2. Materials
3. Machine
4. Design
5. Instructions
The three important elements in the
production system

The Production process, also referred

to as the transformation or conversion
process, is the stage of production
where the materials are transformed
into the final product with the aid of
manpower and machine.
The three important elements in the
production system

The output represents

the final product from
the production
process and
distributed to the
customers.
 4 M’s of Production
The most serious issues in the
whole production system are the
inputs and the transformation
process. Their quality determines
the quality of the output. The
factors involved in the input and the
production process are usually
referred to as the Four M’s of
production, namely Manpower,
Method, Machine, and Materials.
Manpower

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.
Manpower

Educational qualifications and experience, status of

employment, number of workers required, skills and
expertise required for the job are some of the manpower
criteria that must be highly considered by the
entrepreneur.
Materials
It simply refers to the raw materials necessary in the
production of a product.

It forms part of the finished product. Just in case the

resources are below standard, the finished product will
unsatisfactory as well.

The entrepreneur may consider cost,

quality,availability, credibility of suppliers and waste that
the raw materials may produce.
Machine
The 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 the local market, efficiency of the
equipment and the skills required in running the
equipment.
Method
Method or production method is the process or way of
transforming raw materials to finished products.

The resources undergo some stages before it is

finalized and become 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 PROTOTYPE

Prototype is created before the massive

production of such product; an entrepreneur
must consider prototyping.

One of the important early steps in the

inventing process is making a prototype.
PRODUCT PROTOTYPE

A prototype is a duplication of a product as

it will be produced, which may contain such
details as color, graphics, packaging and
directions.
PRODUCT PROTOTYPE
It is better to test your product prototype to meet
customers’ needs and expectations; and to know if
product is 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. Ex: Free taste at malls
SUPPLIERS AND SUPPLY CHAIN

In a manufacturing venture, the supplier

plays a vital role. They are your business
partners, without them your business will not
live. You need them as much as you need
your customers to be satisfied.
SUPPLIERS AND SUPPLY CHAIN

Choose a potential supplier who has

1. loyalty and values your partnership:
2. a supplier who would lead you to the
fulfillment of your business objectives,
mission and vision.
SUPPLIERS AND SUPPLY CHAIN

Supply chain management systems automate

the flow of information among members of the
supply chain so that they can use it to make better
decisions about when and how much to purchase,
produce, or ship.
It is a structure of organizations, people,
activities, data, and resources involved in moving a
product or service from supplier to customer.
SUPPLIERS AND SUPPLY CHAIN

Objectives of supply chain is management

of components and procedures such as
1. storing of raw materials
2. handling the inventory
3. warehousing
4. movement of finished product/ logistic
 SUPPLIERS AND SUPPLY CHAIN

Supply chain management decreases

purchasing cost. Retailors depend on supply
chains to quickly distribute costly products to
avoid sitting on expensive inventories. Any delay
in production can cost a company tens of
thousands of pesos. This factor makes supply
chain management ever more important.
 VALUE CHAIN

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.
 VALUE CHAIN

The Value Chain concept was developed and

popularized in 1985 by Michael Porter, in “Competitive
Advantage.” Porter defined value as the amount
buyers are willing to pay for what a firm provides, and
he conceived the “value chain” as the combination of
generic value added activities operating within a firm –
activities that work together to provide value to
customers.
 VALUE CHAIN

When value chain management is

implemented effectively, the flow of products and
materials is improved through the accurate
forecasting of sales and demand as well as
improved inventory management. Delays are
also minimized and products are visible and
traceable throughout the supply chain.
 VALUE CHAIN

Value chains help increase a business's

efficiency so the business can deliver the most
value for the least possible cost.

The end goal of a value chain is to create a

competitive advantage for a company by
increasing productivity while keeping costs
reasonable.
SUPPLY CHAIN OR
VALUE CHAIN?
Activity:
“In your home, when you want to eat egg sandwich
before going to school, your mother would surely
prepare it for you. Your egg sandwich would not be
produced without a process.”
1. Who would be your manpower?
2. What would be your materials?
3. What machines or tools would you use?
4. What methods are needed to produce the egg
sandwich? (Cooking procedure enumerate them).
THANK YOU