4 M’s of Production Management

By Robert and Chad Counts

If Sales is the engine that powers Auto Salvage yards then Production is the drive train that gets us where we
are going. Production is both reactive and proactive almost simultaneously. It reacts to what is sold today and must
meet the expectations set by the sales team; also it must anticipate what most likely will be needed in the near
future. The key for production is to have procedures and processes that can accomplish both. Once our procedures
are set up to maximize efficiency, it is time to train the production staff on their individual responsibilities centered
on the 4 Ms of Production. The online webinar will provide answers to the questions below as well as more in-depth
discussions to each of these components.

Production Driven by Sales

The buyer buys vehicles based on statistics of what has sold and what has been searched. By the same token,
Production Managers should decide how many and what parts to take off a vehicle based on statistics of what has
sold and been searched for on the vehicle. Why put labor into parts that make up less than 20% of sales? Why spend
dollars chasing nickels? With today’s inventory management system, the Production Manager has an
unprecedented amount of information at their fingertips and they need to learn how to use it.

4 Ms of Production

Using the Inventory Management System to establish what is needed and at what inventory stock levels
impacts the first M Method. Based on what is known, the Manager can determine the volume of cars that need to
be processed and who will be responsible for each step of the process. The Manager will determine the most
efficient way for each portion of the process to be done to eliminate damage to the product and to eliminate areas
where time and manpower are be wasted. Controlling waste is the key to efficient and profitable production.

The second M is Manpower. When examining the Methods you now have in place, what is the ideal number
of people it will take to perform these methods and what positions should they be in? How will the personnel be
trained and measured for performance? What is the “cycle time” of each part of the Method?

Machine is the third M in the sequence. When examining your facilities, vehicles and tools, do you have
everything you need to ensure the safety of the employees while maximizing the efficiency and productivity of the
department? Do all employees have access to the same tools and equipment if needed? Do the tools enable them
to perform tasks independently? Are they trained on how to maintain the machinery and tools?

Materials are the last portions of the Ms of Production. Do you have the materials needed to perform all
parts of production and are they conveniently located to minimize waste? Example: All material needed to clean
and package are always available and are placed to minimize effort. Does the layout of the production department
minimize wasted movement? Example: Does the part flow go in one direction or does it zig and zag throughout your
facility.

Measuring Production

Lastly, once you have had the chance to formalize new processes and train your employees on how to
perform them, you can begin to measure for expected performance and begin enforcing minimums. Upcoming
webinars, will discuss industry production standards and how to implement them. Standards such as, what is the
standard number of parts pulled a day or cars dismantled a week? Once these standards are known, the manager
has the responsibility of figuring out how to motivate (money/recognition) and train the employees to reach these
new standards.
Objective:

Describe the 4Ms (Manpower, Method, Machine, Materials) of operations in relation to the business opportunity:

4 M’s of Production Management

The Manager will determine the most efcient way or each portion o the process to be done to eliminate damage
to the product and to eliminate areas where time and manpower are be wasted. Controlling waste is the key to
efcient and profitable production.

2. Manpower =

When examining the Methods you now have in place what is the ideal number o people it will take to perorm
these methods and what positions should they be in! #ow will the personnel be trained and measured or
perormance! What is the $cycle time% o each part o the Me

3. Machine =

When examining your acilities vehicles and tools do you have everything you need to ensure the saety o the
employees while maximi&ing the efciency and productivity o the department! 'o all employees have access to the
same tools and e(uipment i needed! 'o the tools enable them to perorm tasks independently! )re they trained on
how to maintain th

4. Materials =

'o you have the materials needed to perorm all parts o production and are they conveniently located to minimi&e
waste! *xample+ )ll material needed to clean and package are always available and are placed to minimi&e e,ort.
'oes the layout o the production department minimi&e wasted movement! *xample+ 'oes

*xample+ 'oes the part -ow go in one direction or does it &ig and &ag throughout your
)CT/T0'escribe the 1Ms 2Manpower Method Machine Materials3 o operations inpower Method Machine
Materials3 o operations in relation to the business opportunity+ e at least 5 positive e,ects o applying 1 M6s o
production using the sh structure below