GRADE 12 – ENTREP – STEM

Lesson 4: 4 M’s of operation

Introduction

Management is the art of getting things done with and through other people. It is imperative for an entrepreneur to know about
how to keep the business running with the least effort (Edralin 2019). Production is an activity that converts materials into useful
forms. Operations Management is how organizations produce or deliver the goods and services that provide the reason for their
existence (YGOAL 2016). To understand more about operations management, you may watch this video at Youtube
https://bit.ly/3br0XeY.

The 4M’s of operations cover the input portions. These 4 M’s are composed of Manpower, Method, Machine and Materials.
These four domains are also applicable to business opportunities since it is in essence-tied to manufacturing as well. Fig. 1.

1. Manpower is the worker or human workforce involved in the manufacturing process of business.

People run factories and service establishments. Even factories with the most advanced and automated machines still require
good people to operate and maintain the machine. Hiring the right people is the first step to good operations management (Morato
2017). Some of the criteria that an entrepreneur to consider in hiring workforce:

a. Educational qualifications and experience required for the job

b. Status of employment (permanent or contractual)
c. Number of employees/ staffs needed in the job
d. Skills and expertise required
e. Availability of potential workers in the community
f. Salary requirements and other mandatory benefits (Aduana 2017).

2. Method refers to the system and step by step process in the business.

The process or technique of converting raw materials to finished products. Operations proper implements and INPUT
Materials Manpower Method Machine PROCESS Materials Manpower Method Machine OUTPUT (Final Product) runs the factory or
service shop that converts the input into output (Morato 2017). Wrong methods can jeopardize the operations because it may not be
able to attain the results. The selection of the method of production is dependent on some factors:

a. Product to produce
b. Mode of production
c. Manufacturing equipment to use, and
d. Required skills to do the work.

3. Machines are also important in the operations of the business.

It refers to the manufacturing equipment used in the production of goods or delivery of services. Without proper
equipment, business will not be able to perform the needed tasks efficiently and fast. Selecting an equipment to purchase, the
entrepreneur may consider the following important elements:

a. Types of products to be produced

b. Production system to be adopted
c. Cost of the equipment
d. Capacity of the equipment
e. Availability of spare parts in the local market
f. Efficiency and durability of the equipment
g. Skills require in operating the equipment

4. Materials simply refers to the raw materials needed in the production or manufacturing of a product.

Sourcing of raw materials is critical in any business, the entrepreneur would want to acquire the cheapest possible price
at a highest quality. The entrepreneur may consider the following factors in the selection of raw materials:

a. Cost
b. Quality
c. Availability
d. Credibility of suppliers
e. Waste that the raw materials may produce