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4M’s of OPERATIONS
ENTREPRENEURSHIP | Independent Activities
Activity 1 | Guess that word!
These are the tools which aid in every entrepreneurial journey to make every associate a confident
problem solver within their organization.
1. M ANPOWE R Skills, Technology, Organization and Resources
2. M ACHINE Equipment
3. M ATERIALS Information, Raw Materials, Consumables, Quality
4. M ETHOD Process, Schedule, Standardized Procedure
Activity 2 | Complete Me
Complete the crossword puzzle below.
Lesson | 4M’s of Operations
The 4M’s of operations are essential components in the development and management of
any business opportunity. It refers to the four elements that are required for any
production to take place. These elements are adjusted by a production system to provide
value for customers. The 4M principle provides the framework for identifying and
addressing the key factors that contribute to the efficiency and effectiveness of the
process or system. The first three are resources (Manpower, Machine Materials), the
fourth (Method) is the way the resources are used.
1. MANPOWER
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Do your company have the necessary skills (and the will – good working habits, punctuality,
and no unscheduled absenteeism) to do what is expected of them safely, consistently, and
effectively?
Simply refers to the human workforce involved in the manufacture of products.
It is considered as the most critical and important factor of production.
Business must determine, acquire, and match qualified employees with jobs in the most
appropriate period.
Manpower measures that must be considered by the entrepreneur are the following:
1. Educational Attainment and work experience required for the job
2. Status of employment, whether permanent or temporary
3. Number of workers required for the job
4. Skills and expertise required for the job
5. Appropriate time the worker is needed
6. Conduct of background checking and issuance of requirements
7. Amount of compensation and other mandatory benefits
8. Availability of potential workers in the community.
2. MACHINE
Are your machines capable of safe and reliable output at the desired quality and rate? No
breakdowns, defects, or unplanned stoppages?
• refers to the manufacturing equipment or technology 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 the
following important elements:
1. Types of products to be produced.
2. Production system to be adopted.
3. Cost of the equipment
4. Capacity of the equipment
5. Availability of spare parts in the local market
6. Efficiency of the equipment
7. The skills required in running the equipment.
Maintenance Management is the process of of keeping machine and equipment in good
working condition so that the efficiency is retained, and its life is increased.
Functions of Maintenance:
Inspection
Repair
Overhaul
Lubrication
Salvage
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3. MATERIALS
Do they meet specifications – are there no defects and shortages? Is excess handling and
movement reduced? Are they stored appropriately?
Simply refers to the raw materials needed in the production of a product.
Materials basically form part of the finished product.
The entrepreneur may consider the following important factors in the selection of raw materials:
1. Cost
2. Quality
3. Availability
4. Credibility of suppliers
5. Waste that the raw material may produce
Material Handling the science and the art involved in protecting, receiving, packing, storing,
controlling, and moving materials from one location to another.
The main objectives of material handling are as follows:
• It should be able to determine the appropriate distance to be covered.
• Facilitate the reduction in material damage as to improve quality.
• Reducing overall manufacturing time by designing efficient material movement
• Improve material flow control.
• Creation and encouragement of safe and hazard-free work condition
• Improve productivity and efficiency.
• Better utilization of time and equipment
4. METHOD
Do you have standard work methods in place which ensure and support consistent, safe
production?
Refers to the standardized process or technique of converting raw materials to finished
goods.
The raw material undergoes several stages before it is completed and becomes ready for
delivery to the target consumers.
The sequence of operations should be clearly defined to ensure proper execution thus
ensuring consistency of the quality of the product.
The method aspect denotes the day-to-day business activities.
The selection of the method of production is dependent on some factors:
1. The plant size and production capacity schedules are determined based on projected
demand.
2. The number and capacity of the machine and equipment are determined.
3. The plant location has a long-term effect on business operation.
4. Strategic plant layout which helps in lowering production cost.
SOP (Standard Operating Procedure) a set of detailed step-by-step instructions that describe
how to carry out any given process. SOP aims to achieve consistent results, reduce costs,
increase productivity and create a safe working environment.
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Activity 3 | Find my match!
Choose the correct term below that refers to the following statements. Some terms may be
repeated as answer in the number of questions given. Write your answer before the question.
INPUTS MANPOWER
MACHINE METHOD PRODUCT
MATERIALS PROCESS RAW MATERIALS
1. It refers to the human workforce involved in the manufacture of products or delivery
of services.
2. It refers to the manufacturing equipment used in the production of goods or delivery
of services.
3. It refers to the physical output of the whole production process.
4. It refers to the materials or ingredients to be used in creating a product.
5. It refers to the transformation phase where inputs are processed by manpower to
come up with the final product.
6. Job qualification is factor to consider when looking for ______.
7. “Randy’s Donuts” bakes donuts with a special type of flour. What does flour
represent in the production of goods?
8. The sequence of operation to ensure consistency of the quality of the product.
9. Capital, information, raw materials, labor, and machines are ________.
[Link] most important factor in production/operation.
Activity 4| Understanding Check
Direction: Read each question properly and encircle the best answer.
1. What is the 4M principle?
a. A guideline to reduce the effectiveness of a process
b. A principle to ensure consistent work and quality output
c. A method to decrease the number of tools used in the process
d. A strategy to increase the number of employees in a company
2. What is the most critical and important factor of production according to the content?
a. Manpower c. Resources
b. Machine d. Skills
3. Which of the following is NOT a measure that must be considered by the entrepreneur
regarding manpower?
a. Education Attainment c. Availability of potential worker
b. Status of Employment d. Quality of Machines
4. Which factor refers to the human workforce involved in the manufacture of products?
a. Manpower c. Skills
b. Machine d. Resources
5. What does the term 'Machine' refer to?
a. Manufacturing equipment c. Skills and expertise
b. Education attainment d. Compensation and benefits
6. What is considered as the fourth variable that a production system?
a. Skills and expertise c. Compensation and benefits
b. Educational Attainment d. Way the resources are used
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7. Which of the following is NOT a consideration related to manpower?
a. Quality of Machines
b. Amount of compensation
c. Conduct of background checking
d. Availability of potential workers in the community
8. What must a business do regarding manpower to match qualified employees with jobs?
a. Issue requirements
b. Check educational attainment
c. Determine, acquire and match
d. Conduct a background checking
9. What does the term 'Resources' primarily refer to in the production systems?
a. Skills and expertise
b. Manpower and machine
c. Educational attainment
d. Compensation and benefits
[Link] is the key to effective management of the “Manpower” aspect of 4M principle?
a. Selecting the right equipment for the job
b. Ensuring that the materials are of high quality
c. Selecting and training the right people for the job
d. Defining and documenting the procedures and processes used in the work
[Link] is one of the important elements an entrepreneur may consider when selecting
equipment to purchase?
a. Cost of equipment
b. Efficiency of the equipment
c. Skills required in running the equipment
d. Availability of spare parts in a local market
[Link] is one of the factors an entrepreneur may consider in the selection of raw materials?
a. Type of equipment
b. Credibility of supplier
c. Distance to be covered
d. Availability of spare parts
[Link] does Material Handling involve?
a. Training employees
b. Designing equipment
c. Selling finished products
d. Protecting, receiving, packing, storing, controlling, and moving materials
[Link] is one of the objectives of material handling?
a. Avoiding inspections
b. Increasing waste production
c. Reducing quality of materials
d. Determining the appropriate distance to be covered
[Link] is one of the benefits of facilitating the reduction in material damage in
manufacturing?
a. Improved quality
b. Increase safety measures
c. Reduced production time
d. Enhance material work flow control
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[Link] does the term 'method' refer to in the manufacturing processes?
a. Raw material selection
b. Plant location decisions
c. Standardized work processes
d. Machine capacity estimations
[Link] is it important to have standardized work methods in manufacturing?
a. To reduce plant size
b. To increase material costs
c. To improve machine capacity
d. To ensure consistent and safe production
[Link] does the method aspect in manufacturing primarily focus on?
a. Plant location
b. Machine capacity
c. Strategic plant layout
d. Day to day business activities
[Link] factors influence the selection of the method of production in manufacturing?
a. Plant size, machine capacity, plant location
b. Raw material type, machine efficiency, plant layout
c. Production cost, demand projection, safety measures
d. Quality control, equipment maintenance, material work flow
[Link] does defining the sequence of operations in manufacturing processes contribute to
product quality?
a. Reduces material costs
b. Increases production time
c. Enhance machine efficiency
d. Ensures proper execution and consistency
[Link] is a key consideration when determining the plant location for manufacturing
operations?
a. Proximity to suppliers
b. Availability of skilled labor
c. Market demand fluctuations
d. Long term effect on business operation
[Link] manufacturing, what does strategic plant layout primarily aim to achieve?
a. Lowering production cost
b. Enhancing product quality
c. Increasing machine capacity
d. Improving material work flow
[Link] role does better utilization of time and equipment play in manufacturing efficiency?
a. Reducing material damage
b. Enhancing material work flow
c. Creating safe work conditions
d. Improving productivity and efficiency
[Link] are the functions of maintenance management in production systems?
a. Marketing, sales and customer service
b. Inspection, repair, overhaul, and lubrication
c. Employee training, hiring, and performance evaluation
d. Quality control, material handling, and production scheduling
[Link] can effective management of the tools (machine) and systems used (method) help
improve the process?
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a. By making the tools and systems less efficient
b. By decreasing the effectiveness of the process
c. By reducing support provided by the tools and systems
d. By ensuring that the tools and systems are functioning optimally and providing
necessary support to the process.
Activity 5 | Try This!
Direction: Identify the 4M’s of Operation in the picture and write your answer on the table
provided.
An example has been provided for you.
Sewing Machine, scissors, needles, tape measure,
Machine
sewing pins
Materials Cloth, Thread
Manpower Dressmaker, Tailor, or Sewer
Method Cutting, Threading, Sewing, Seaming
1.
Machine
Materials
Manpower
Method
2.
Machine
Materials
Manpower
Method
3. Machine
Materials
Manpower
Method
Machine
4.
Materials
Manpower
Method
5.
Machine
Materials
Manpower
Method