NOMWPERA
DTOEHM
HEACMIN
LATARIMSE
4Ms of PRODUCTION
The most critical factors in the whole
production system are the inputs and
the transformation process. Their
quality determines the quality of the
output. It is also known as “garbage
in, garbage out” or GIGO in the
parlance of computer technology.
The factors involved in the input
and the production process are
usually referred to as the four Ms
of production, namely
manpower, method, machine,
and materials.
MANPOWER
The term manpower simply refers to the
human workforce involved in the
manufacture of products. It is considered
as the most critical and important factor
of production. The entrepreneur must
determine, acquire, and match the most
qualified employees with the jobs at the
most appropriate time period.
Some of the manpower criteria that must
be highly considered by the entrepreneur
are as follows:
1. Educational qualifications and
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 salary or wages and
other mandatory benefits.
8. Availability of potential workers in
the community.
METHOD
Method or production method refers
to the process or technique of
converting raw materials to finished
products. The raw material undergoes
several stages before it is completed
and becomes ready for delivery to the
target consumers.
The selection of the method of
production is dependent on some
factors, namely,
1. Product to produce.
2. Mode of production
3. Manufacturing equipment to use
4. Required skills to do the work.
Product to Produce
The product is the physical output of the
whole production process. It should be
valuable and beneficial to the consumers and
should satisfy their basic needs and wants. A
product can be heterogeneous or
homogeneous. A heterogeneous product has
dissimilar characteristics, parts, and physical
appearance. It can be easily identified from
other products include makers of furniture,
bags and home decors.
On the other hand, homogeneous product
has a physical appearance, taste, or chemical
content that can hardly be distinguished
from that of the other products. Businesses
that produce homogeneous products include
makers of soft drinks and medicines. It is
hard to distinguish the difference between a
soft drink in a 12-ounce bottle and in an
8-ounce can.
Mode of Production
The mode of production refers to how
the product will be produced. The
following production system may be
used in manufacturing the desired
product:
1. Intermittent production system
2. Continuous production system
3. Just-in-time production system
The intermittent production
system is adopted when the
production process is basically
short and the machines are
frequently changed. Under this
system the entrepreneur may use
the following methods:
1. In a project method, the
product is usually substantial in
size and is bound by a specific
time to complete it. Cargo vessels,
jumbo aircraft, and buildings are
constructed using this method.
2. In a job order method, the
production is completed by a
single employee or a batch of
employees.
3. In a batch method, the
production undergoes several
stages and the product is
transferred from one worker to
another.
The intermittent production system includes the
following features:
1. There is a variety of products to be
manufactured.
2. The production flow is not continuous.
3. The production is dependent on the orders of
customers.
4. The volume of production is not material.
5. The machines are for general purposes.
6. The sequence of operations is based on product
design.
Examples of entrepreneurs who use the
intermittent production system are tailors,
goldsmiths, furniture makers, and
manufacturers of farm equipment.
The continuous production system is
adopted when the demand for the product
is considered constant. The production is
not based on the order of customers but
for the stocking of inventories.
The features of the continuous production
system are as follows:
1. The production process is continuous.
2. The production is not based on the
customer’s order but on the anticipated
demand.
3. The production is considered standardized.
4. The products are usually homogeneous.
5. The products are produced in large
quantities.
In the just-in-time production system, goods
are produced just in time when the market
needs or demands for them. The raw materials
will be produced just in time for the actual
production to start and the delivery equipment
will be required in the production plant just in
time when the products are about to be
completed. This system is designed to
eliminate wastage of resources and to increase
productivity.
MACHINE
Machine refers to 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 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.
MATERIALS
The term material simply refers to the raw
materials needed in the production of a
product. Materials basically form part of
the finished product. For example, wood or
lumber is a raw material used to produce a
table or chair. In case the raw materials are
poor quality, the finished product will be of
poor quality as well.
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