CO QAH + MELC LW

Course Outline & Quality Assured HANDOUT No. 1

Handouts paired with MELC- ENTREPRENEURSHIP
Based Learner’s Worksheet

MELC: 1. Demonstrate understanding of the 4M’s of Operations TLE_ICTAN11/12EM-la-2

2. Describe the 4M’s (Manpower, Method, Machine, Materials) of operations in relation to the business
Semester: Second Week No. 1 Day: 1-4
LESSON:
a. Develop a product description
b. Create a prototype of the product
c. Test the product prototype
d. Validate the service description of the product with potential customers to determine its market
acceptability
e. Select/pinpoint potential suppliers of raw materials and other inputs necessary for the production
of the product or service.

A strong operations plan should have the four operational aspects-called the 4Ms of operations:
• the methods, or the processes to be followed in effectively manufacturing or delivering a product
or service.
• the manpower, or the right human resources who will handle certain business operations.
• the machines, or the technology used in efficiently operating the business.
• the materials, to be used in creating a product or performing a service, which includes supply
chain management.
TOPIC 1: Develop a Product Description

Here are some things to consider when creating the product descriptions. Remember that quality
information forms a good part of these descriptions.
1. Know your Target Audience. The first step in writing a product description is to define your target
audience. You want to be able to define which features Developing a Product Description. Writing
effective Product Descriptions would be most interesting to your potential buyers. This begins with
understanding your buyer persona, a breakdown of the characteristics of your potential customers. Your
buyer persona will help you understand which features will be most valuable to your customers.
As you are writing your product description, keep these questions in mind:
• How did this person arrive to your page?
• What are his or her interests, generally?
• Why would this person be interested in your Shopify store, specifically?
• How would this person describe the product to a friend?
• What features or benefits would interest this person the most?
By keeping these questions in mind as you write your product copy, you will be better able to write a
product description that sells.
2. Focus on the Product benefits. Tells how the product can improve the buyer’s life.
3. Tell the Full story. A good product description should give all relevant details, convince the buyer of
its benefits, and pack an emotional punch.
4. Use Natural Language and Tone. Bringing this natural tone–one that you would use in a real
conversation–will help your customer connect with your brand.
5. Use Power Words that Sell. By being mindful of these words and phrases, you can more easily
convince your customers to take the leap and make the purchase.
6. Make it easy to scan. Make your product descriptions easy to scan by including bullet points, short
paragraph made up of just a few sentences each, lots of white space, and different size font.

TOPIC 2: Create a Prototype of the Product

A Prototype is a preliminary model or sample of a new product or service that is created to test a
product concept or services process.
So what exactly should a prototype should look like?
First, it depends on your idea.
Second, it depends on your budget and your goals. If possible, it's great to start with a handmade
prototype, no matter how rudimentary.
The following are steps in getting your first prototype to turn your idea into a patented, profitable product.
1. Create a Concept Sketch. Draw your idea to help you visualize your prototype in greater detail.
2. Develop a Virtual Prototype. A standard digital design tool used by engineers and other
professionals is AutoCAD, which enables them to make both 2-D and 3-D renderings. A 3-D
rendering lets you rotate and animate your virtual sketch, so you can visualize it from all angles.
3. Build a Physical Prototype. If you have the skill, you can build one yourself. If you need help,
there are several types of resources you can tap to get this step done. One way is going to a
professional prototype designer. Once your first prototype is built, you may find flaws that need to
be corrected.
4. Locate a Manufacturer. To help you test your prototype and determine how to produce it at a
cost-efficient price, go to multiple suppliers and manufacturers to get estimates, so you can
determine the most cost-efficient materials and methods for putting your prototype into
production.

TOPIC 3: Testing the Product Prototype

The following testing methods are applied by the entrepreneur.
1. Focus Group Discussion – The objective of the FGD is to identify errors, deficiencies and
issues that may impede the success of the products.
2. Legality and ethical test – The entrepreneur must ensure that the product or service complies
with all relevant laws and regulations and has a necessary license or permit to operate a
particular business.
3. Safety First – The product should not in any ways harm the customer or put in a peculiar
situation.
4. Product Costing Test – This is the time when the entrepreneur can match the expected cost
versus his budget.
5. Component Test – Each component of the product or service must be tested independently to
identify component failures for goods or service failures for services.
6. Competitors Product / Service Test – The entrepreneur must test a similar line of products or
the competitor’s product or service itself to compare and get the best practices to be applied to
the new product and service.
Testing the product prototype is mandatory to ensure that the product or service will not fail the
customers and will deliver its definitive purpose. This will elicit customer satisfaction and, eventually,
customer loyalty and retention.

TOPIC 4: Validate the service description of the product with potential customers to determine its
market acceptability
You can validate your service description of the product with potential customers to determine its market
acceptability using a number of means.
1. Surveys. Gather responses about how they like to have some products delivered, about their needs
and their pains so you will know exactly how to serve them.
2. Beta Test. Other ways to validate your product include creating a test version of something and
running it past a small group or audience to get their feedback. A test version of the product can either be
paid, or free, and is a great way to get testimonials and feedback while you create.
3. Early Bird Offer. Another way you can validate your product is to offer to your subscriber list, survey
attendees, or people who have expressed some interest in your product, access for an early bird price to
Validating the service description of the product with potential customers to determine its market
acceptability.
4. Be Yourself. It is so tempting to follow models and ideas of what other small businesses have created
– and that can be a great starting point to help brainstorm some ideas – but we all bring a different set of
skills, experiences, and benefits to our work. So, make sure that you are really working in your own
unique zone of genius which will sustain you for the long term.
5. Stay Passionate. Once you begin to check what people need, what their pain points are, and how you
can serve them, you can stay inspired by making sure you are using your own unique combination of
skills and the passion that makes this product unique to you.

TOPIC 5: Select/pinpoint potential suppliers of raw materials and other inputs necessary for the
production of the product or service.
Choosing the right supplier involves much more than scanning a series of price lists. Your choice will
depend on a wide range of factors such as value for money, quality, reliability, and service.
This guide will help you make the right choices. It will help you decide what you need in a
supplier, identify potential suppliers, and choose your supplier.
1. Thinking strategically when selecting suppliers. The most effective suppliers are those who offer
products or services that match - or exceed - the needs of your business. So, when you are looking for
suppliers, it's best to be sure of your business needs and what you want to achieve by buying, rather
than simply paying for what suppliers want to sell you.
2. What you should look for in a supplier.
• Reliability. Remember - if they let you down, you may let your customer down.
• Quality. The quality of your supplies needs to be consistent - your customers associate poor
quality with you, not your suppliers.
• Value for money. The lowest price is not always the best value for money. If you want reliability
and quality from your suppliers, you'll have to decide how much you're willing to pay for your supplies
and the balance you want to strike between cost, reliability, quality and service.
• Strong service and clear communication. You need your suppliers to deliver on time, or to be
honest and give you plenty of warning if they can't. The best suppliers will want to talk with you regularly
to find out what needs you have and how they can serve you better.
• Financial Security. It's always worth making sure your supplier has sufficiently strong cash flow
to deliver what you want, when you need it. A credit check will help reassure you that they won't go out of
business when you need them most.
• A partnership approaches. A strong relationship will benefit both sides. You want your suppliers
to acknowledge how important your business is to them, so they make every effort to provide the best
service possible. And you're more likely to create this response by showing your supplier how important
they are to your business
3. Identifying potential suppliers.
• Recommendations. Ask friends and business acquaintances. You're more likely to get an
honest assessment of a business' strengths and weaknesses from someone who has used its services.
• Directories. If you're looking for a supplier in your local area, it's worth trying directories such as
Yellow Pages or Google Search Engine.
• Trade Associations. If your needs are specific to a particular trade or industry, there will
probably be a trade association that can match you with suitable suppliers.
• Business Advisors. Local business-support organizations, such as chambers of commerce, can
often point you in the direction of potential suppliers.
• Exhibitions. Exhibitions offer a great opportunity to talk with a number of potential suppliers in
the same place at the same time. Before you go to an exhibition, it's a good idea to check that the
exhibitors are relevant and suitable for your business.
• Trade Press. Trade magazines feature advertisements from potential suppliers. You can contact
our Strategic Information Centre for a list of specialist trade magazines.
4. Drawing up a shortlist of suppliers.
You can build a shortlist of sources that meet your needs. When considering the firms on your shortlist,
ask yourself the following questions:
• Can these suppliers deliver what you want, when you want it?
• Are they financially secure?
• How long have they been established?
• Do you know anyone who has used and can recommend them?
• Are they on any approved supplier lists from trade association or government?
5. Choosing a supplier.
• Get a quotation. It's worth asking potential suppliers to give you a firm price in writing for, say,
three months. You can also ask about discounts for long-term or high-volume contracts.
• Compare potential suppliers. When you've got the quotation, compare the potential suppliers in
terms of what matters most to you. For example, the quality of their product or service may be most
important, while their location may not matter. Price is important, but it shouldn't be the only reason you
choose a supplier. Lower prices may reflect poorer quality goods and services which, in the long run,
may not be the most cost-effective option.
• Check that the supplier you employ is the one that will be doing the work. Understanding
how your supplier works will give you a better sense of how it can benefit your business. And remember
that your business' reputation may be judged on the labor practices of your suppliers. It makes good
business sense to consider the ethical dimensions of your supply chain.
• Negotiate terms and conditions. Once you've settled on the suppliers you'd like to work with,
you can move on to negotiating terms and conditions and drawing up a contract. See our guide on how
to negotiate the right deal with suppliers.
6. Getting the right supplier for your business.
• Know your needs. Understand the difference to your business between a strategic supplier, who
provides goods or services that are essential to your business - such as high-value raw materials - and
non-strategic suppliers who provide low-value supplies such as office stationery.
• Spend time on research. Choosing the right suppliers is essential for your business.
 Ask around. People or other businesses with first-hand experience of suppliers can give you
useful advice.
• Credit check potential suppliers. It's always worth making sure your supplier has sufficiently
strong cash flow to deliver what you want, when you need it.
• Price isn't everything. Other factors are equally important when choosing a supplier - reliability
and speed.
• Agree on service levels before you start. It's a good idea to agree on service levels before you
start trading, so you know what to expect from your supplier - and they know what to expect from you.
See our guide on how to manage your suppliers.
• Don't buy from too many suppliers. It will be easier for you to manage - and probably more
cost-effective - if you limit the number of sources you buy from. This is particularly the case with low
value-added suppliers.
• But don't have just a single supplier. It's always worth having an alternative supply source
ready to help in difficult times. This is particularly important with regard to suppliers strategic to your
business' success.

REFERENCES
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https://www.depedtambayanph.org/2020/05/most-essential-learning competencies.html
Batalla, V. (2011). Entrepreneurship and Philippine Development. Retrieved from:
https//www.academia.edu/26552052/Entrepreneurship_and Philippine_ Development
Entrepreneurship. Diwa Senior High School Series
Hayes, A. (2020). Entrepreneur Retrieved from:
https://www.investopedia.com/terms/e/entrepreneur.asp
Careers in Entrepreneurship, Entrepreneurship Careers. (n.d.). Retrieved July 21, 2020, from
http://www.excite.com/education/business/entrepreneurship/careers
https://www.infoentrepreneurs.org/en/guides/review-your-business-performance/
https://www.infoentrepreneurs.org/en/guides/supplier-selection-process/
https://www.entrepreneur.com/article/80678