TAGUM CITY COLLEGE OF SCIENCE AND TECHNOLOGY FOUNDATION INC.
Elpidio M. Gazmen Compound, Gazmen Road, Tagum City
SEC. Reg. No. 200630691 / Tel. No. 216-6824
E-mail Address: tcit2007@[Link]
Supplementary Learning
Materials for
Senior High School
Grade Levels: Grade 11
Core Subject: Entrepreneurship
Semester: 1stSem
Week 1 (2nd Quarter)
LEARNING COMPETENCY:
(Demonstrate understanding of the 4Ms of operations)
(Describe the 4Ms (Manpower, Method, Machine, Materials) of operations in relation to
the business opportunity. – TLE_ICTAN11/12EM-1a-1)
Denessa P. Lugo, Lpt
09094290239
Jenyl E. Bagunas, Lpt
09067296360
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The 4Ms of Operations
Begin!
It has been said that “sales” is the engine that powers up the business. Production is the driver
that gets us where we are going. In the world of business, what we produce is as important as how to
produce. We sell the desired goods and services based on the production dynamics.
In this module you will learn about:
1. The definition of 4Ms of operations.
2. The description of manpower, method, machine and materials.
3. The importance of 4Ms in relation to the business opportunity.
Unlocking of Difficulties
1. Manpower- it refers to the labor force involved in the manufacture of products.
2. Material- it refers to the raw materials necessary in the production of a product.
3. Machine- it refers to the manufacturing equipment used in the production of goods or
delivery of services.
4. Method- it refers to the process or way of transforming raw materials to finished products.
Your Targets
At the end of the module, you should be able to:
1. Identity the 4Ms of operations.
2. Describe the 4Ms of operations in relation to business opportunity.
3. Appreciate the importance of 4Ms in business.
Try This!
Task 1
Direction: Write the letter of the correct answer.
_______ 1. The most important factor in the production.
a. People b. Product c. Place d. Position
_______ 2. Process is an example of_____. a. Method b. Machine c. Manpower d. Material
_______ 3. Equipment is an example of_____. a. Method b. Machine c. manpower d. material
_______ 4. It is used to make new products. a. Method b. Machine c. manpower d. Material
_______ 5.
_______ 6. Most consumer products are adapted in same way to suit the needs of people.
_______ 7. As an entrepreneur, you must know the demands and feedbacks of customers.
_______ 8. It is easy to focus on building innovative solutions that do not connect directly to market
problems.
_______ 9. Existing customers are people who have not yet purchased the product but are considering it.
_______ 10. Prospects are people who have already purchased the products.
Do This!
Task 2
Title: Identifying products with some problems.
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Mechanics
1. Think of three products with problems that you use or those that are already available in the
Philippine market.
2. Draw the product image and describe the problem with each product in to 2 to 4 sentences.
3. Identify if the problem is urgent or in need of immediate action.
4. Put the output in a short bond paper.
Task 3
Read me!
Direction: read the situation/case of a certain community and answer the questions after reading it.
There are several Barangays in our country that are not yet reached by the electrification projects
of our government. This is a common problem in the rural areas. The kerosene price is getting higher and
the people need to walk 5 km. in order to buy kerosene usable for two nights.
One of the solutions made is a lamp fuelled by salty water. Since water is readily available and
rock salt is cheaper than the kerosene, this can be sound option especially now when even people in the
urban areas are experiencing massive brownouts especially during summer. Since the product doesn’t
need electricity, it will be cheaper and affordable.
Explore!
Guided Questions:
1. What is the identified market problem of their community?
_____________________________________________________________________________
_____________________________________________________________________________
_______________________
2. Cite the solution of the said market problem.
_____________________________________________________________________________
_____________________________________________________________________________
_______________________
3. As a student, in what ways can you show your contribution to your community in terms of market
problems?
_____________________________________________________________________________
_____________________________________________________________________________
_______________________
Keep this in Mind
Market problems refer to your target market’s stated or silent problems which refer to existing
inefficiencies, awkward workflows or non-optimal solutions.
What do you mean by market? We have three considerations to define market.
Existing customers – people who have already purchased your product.
Prospects – people who have not yet purchased your product but are considering it.
Target market users- people in your target market who are not currently looking for a
solution.
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Traps to avoid when listening to your market
Ensure that you listen to all of the people that comprise your market to avoid falling into the
following traps. Each trap is not entirely bad, but can become problematic when it becomes your only
focus. The key is to balance your focus to ensure that you are really listening to your entire market at
the same time.
1. Focusing only on innovation and the competition
As an entrepreneur, it is easy to focus on building innovative solutions that do not connect directly
to market problems; just because you can innovate doesn’t always mean that you should.
It’s also easy to pay too much attention to what competitors are doing and expend resources on trying
to beat them to market. In many cases, the customer does not care about extra features.
Instead, ask the following questions to ensure that you are solving a problem for your target market:
What problem does this solution solve?
Is this a problem experienced by my target market?
What would my target market do if I didn’t solve this problem?
While it’s always a good idea to keep abreast of what your competitors are doing, ensure that the market
wants the problem solved.
2. Focusing only on customers
Henry Ford said, “If I had asked people what they wanted, they would have said faster horses.”
Customers understand problems, but they cannot help you to move your product forward. They know
what you provide, and tend to stay inside that mindset.
Customers are a source of input, but not the only source of input. This is why talking to
prospects and target market users (who have not purchased your products) is key to rounding out the
picture. They often see things beyond your current product.
3. Focusing only on revenue
By listening only to prospects, and delivering only what the next customer wants, you will gain
revenue but miss out on market opportunities. It is critical to find a balance between prospects and
customers to ensure that your future revenue is protected, while still keeping existing customers happy.
Stated versus silent market needs
Stated needs are explicit statements from your market that declare, “I want a product to do X.”
While stated needs are important, they are not as powerful as silent needs, which are problems with as
yet undefined solutions.
When interviewing potential users, your goal is to understand your target market’s everyday
problems, whether or not you believe that you can initially solve those problems.
An example problem of a simple market problem:
While doing market research, a major TV manufacturer uncovered the problem that people
regularly misplace their TV remote control.
Customers did not identify this as a problem that needed solving, but it was a common issue.
According to Grey Satell, there are three ways to identify market problems and solutions.
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1. How do we evaluate a market problem?
2. Is the market problem urgent? If yes, then the problem needs an immediate solution. The
customers are concerned if the problem is not solved. The customers rely on the
manufacturers/companies way of solving the problem.
3. Is the market problem pervasive? In case, the market problem is applicable to a significant
percentage of your target market then methods of data collection including surveys, census’
information and other primary market research.
How do we evaluate a market problem?
Is the market problem urgent? The problem needs immediate solution; customers should
care if the problem is not solved.
Is the market problem pervasive? The identified market problem applies to a significant
percentage of your target market.
Will your buyers pay to have this problem solved? If the problem is significantly urgent
and pervasive, chances are good that customers would agree to pay for a solution.
The problem of small businesses and of the entrepreneurs, who are starting, is that they don’t
have much data to determine who the ideal buyer for their product is. It is vital to pre-define your ideal
buyer and your market segment. By doing this, you will have a much clearer idea of the potential of your
new business. Once you know what your ideal clients are looking for, you can explain better your product
and you will have more sales and more advantages.
Apply what you have learned
Task 4 - Assuming that you are engaged in a business venture which is running for a couple of months
now. Identify the market problems and suggest solutions for each perceived market problem.
1. Existing customers
Problem: _________________________________________________________
Solution: _________________________________________________________
2. Prospects
Problem: _________________________________________________________
Solution: _________________________________________________________
3. Target users
Problem: _________________________________________________________
Solution: ____________________________________________________
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Criteria: Problem Products
Description Excellent Good Fair Poor
5 4 3 2
Composition All required
40% components
are present.
Structure Information are
30% logically
presented.
Accuracy Information are
20% relevant and
truthful.
Creativity Additional
10% materials and
effort was
visibly applied.
Sample Computation
(Total Score/Perfect Score x 30) + 70 =
(4.3/5 x 30) +70 = 95.8
Reflect
Share your learning by completing the following:
1. I learned that
_____________________________________________________________________________
_____________________________________________________________________________
_________________
2. I will use my learning to
_____________________________________________________________________________
_____________________________________________________________________________
_________________
3. This module is useful because
_____________________________________________________________________________
_____________________________________________________________________________
_________________
Assess what you have learned
Task 4
Direction: Write the letter of the correct answer.
. 1. Products that you can see and touch are called .
a. Services b. Goods c. Intangible d. All of the above
. 2. Work done for people or the non-physical, intangible parts of our economy.
a. Goods b. Material c. Services d. Capital
. 3. Which of the following is the correct definition of a product?
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a. A physical, tangible offering, capable of being delivered to a customer.
b. A good offered to the market for exchange
c. A good, services or idea offered to the market for exchange
d. An intangible offering to the market
. 4. Based on the target end user, a computer is product.
a. a consumer b. a business c. a consumer or business d. None
. 5. Which of the following would be classified as a convenience?
a. Hairbrush b. a Rolex watch c. life insurance d. a pair of jeans
. 6. A consumer is deciding to purchase between two heterogeneous shopping products will most
likely buy the one with .
a. The lowest price
b. The most availability
c. Both a low price and favorable brand image
d. The best customer service
. 7. Which of the following is not an example of a service?
a. Lawn care b. car wash c. bicycle d. cable TV installation
. 8. When an entrepreneur doesn’t know the products and services .
a. Poor customer service; lose their value
b. Wrong information; are worthless
c. Good service; meet the customers interest
d. Value; are sold
. 9. Which of the following is the BEST explanation why knowing your products and services create
value?
a. It helps the customers to see why the product or service stands out and how it is beneficial to
them.
b. It helps manipulate the customer into thinking the product or service is of good value.
c. It identifies all the characteristics about the product or service so customers can fully evaluate
it.
d. It shows passion, which means that it must be a good product or service.
. 10. Most of the new products are a commercial failures?
a. True b. False
Glossary
The following terms used in this module are defined as follows:
Terms Definitions as used in the lesson
Convenience Goods Are the items consumers buy often and easily without
putting much thought into them. These include
newspapers, magazines, most grocery items and
petrol.
Goods It refers to products that have a physical form or you
can touch them.
Services These are non-physical, intangible parts of our
economy.
Staple product Something people always like to have and purchase
regularly
Product A good, services or idea offered to the market for
exchange.
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Reference
[Link] Nov.20,2018
Stull,C.,Myers,P.&Scott D.M,Tuned In: Uncover the Extraordinary Opportunities THAT Lead to Business
Breakthroughs.
Hoboken, New Jersey: John Wiley and Sons.
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