SHS

Entrepreneurship
Quarter 2: Module 1
Entrepreneurship
Grade 11/12: Quarter 2: Module 1
First Edition, 2020

Copyright © 2020
La Union Schools Division
Region I

All rights reserved. No part of this module may be reproduced in any form without
written permission from the copyright owners.

Development Team of the Module

Author: Marites Camiguing Martinez, T-II

Editor: SDO La Union, Learning Resource Quality Assurance Team

Illustrator: Ernesto F. Ramos Jr., P II

Management Team:

Atty. Donato D. Balderas, Jr.

Schools Division Superintendent

Vivian Luz S. Pagatpatan, Ph.D

Assistant Schools Division Superintendent

German E. Flora, Ph.D, CID Chief

Virgilio C. Boado, Ph.D, EPS in Charge of LRMS

Lorna O. Gaspar, EPS in Charge of ABM

Michael Jason D. Morales, PDO II
Claire P. Toluyen, Librarian II

Entrepreneurship
Quarter 2: Module 1

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 Target

Opera ons Management is about delivering products and services

to customers to meet or surpass the expecta ons. It is designing, developing, and execu ng
the Enterprise Delivery System, from sourcing of the necessary input to the transforma on
of these input into the final output, which come in the form of goods or services or both,
must carry all the features and a ributes that customers are looking for. All opera ons
managers must therefore, begin with the customer’s wants and desires in mind.These wants
and desires can be classified into customer outcome expecta ons that are crucial to the
opera ons func on. model combine of 4M and IPO in a specific environment or situa on:

file:///C:/Users/ASUS/Documents/Introduc on%20about%204Ms.html

In your previous lesson, in the first quarter, you are already done with recognizing the
poten al market and recognizing the importance of marke ng mix in the development of
marke ng strategy.
This learner material will provide you with informa on and ac vi es that will help you more
understand about opera ng a business.
A er going through this learner material, you are expected to:
1. demonstrate understanding of the 4M’s of opera on in the environment and market in
one’s locality/town, and
2. describe the 4M’s (Manpower, Method, Machine, Materials) of opera ons in rela on to
the business opportunity. (TLE_ICTAN11/12EM-Ia-2)

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Jumpstart

Ac vity 1

Direc on: Choose your answer from the given choices. Write your answer in a separate sheet of
paper. Write the le er only.

1. What do you call reference points to help make final purchase decision?
a. Delivery expecta ons b.Price expecta ons c. Quality expecta ons
2. What do you call the the cost or the amount at which something is valued?
a. Quality b. Delivery c. Price
3. Which is called the carrying of goods to a des na on, especially to carry and distribute
goods or products to several places?
a. Delivery expecta ons b.Price expecta ons c.Quality expecta ons
4. What do you call the statement about the quality expected from the project product. ?
a. Delivery expecta ons b.Price expecta ons c. Quality expecta ons
5. Which is called the resources mobilized in the enterprise delivery system?
a. Output b. Input c. Throughput
Ac vity 2. Word Hunt.
Direc on. Find and circle the correct word hidden in the grid that best describe what youhave read
above. The words run through horizontal, ver cal or diagonal direc ons. Copy the grid and answer
in your Entrep notebook.

T S F I R P T Y R Q R

U R M N N E RO S U R

P T I A E ER Y T A S

T S O C V S U C O L D

U R A I E K U T C I F

O L L G Z D E T K T I

P E O M O T I O N Y N

D W P R I C EX H N P

L N P O S I T I I M U

WD FL MKL P D S T

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 Discover

4M’s of Opera ons mainly represent factors that influence on results of any
concern process. This was used to make product design and quality defect preven on to iden fy
poten al factors on cause and overall effect. In manufacturing industries this method was used to
apply on produc on control, improvement, overall efficiency measurement, processes, and design.
Let us now describe the 4 major domains of 4M’s of Opera ons in rela on to business opportunity.
The 4Ms of opera on in rela ons to business opportunity means that the four cri cal
domains, usually a ributed to manufacturing, those are: man, machine, material and method work
together. These four cri cal domains are also applicable to business opportuni es since business
is in essence ed to manufacturing as well. When pu ng up a business, manpower is cri cal as
well as the other elements. The businessman must take all of those into account. Let us look at
each one in detail.

A Method is a detailed procedure for accomplishing something. It is a systema c way of doing

a par cular job. Method was used in business when developing or innova ng a new products
or services, expanding your business enterprise, searching for skilled workers to include in
the workforce, and for improving the efficiency of its process. All of this ac vity was
documented as reference for every development of the business including nota ons that
iden fies product or service and customer preferences. This will result to a standard
opera ng procedure in all ac vi es that the business will implement.

In analyzing this method, an entrepreneur must do these steps:

1. Iden fy the opera on to analyzed.
2. Gather all relevant informa on about the opera on, including tools, materials, and
procedures.

3. Talk to employees who use the opera on or have used similar opera ons. They may
have sugges on for improving it.

4. Chart the opera on, whether you are analyzing an exis ng opera on or a new
opera on.

5. Evaluate each step in the exis ng opera on or proposed new opera on.
Does the step add value? Does it only add cost?
6. Revise the exis ng or new opera on as needed.

ADDITIONAL INFORMATION:

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Method - refers to the system and step by step process in the business. Without a scalable
process, it would be difficult to expand the business. This means that the methods used in
the main branch must be documented and must be replicated as well in other branches. If it
is difficult to implement at another site, find what needs to be improved.

A wise selec on of Manpower to join in your workforce provides strategic solu ons
in promo ng a sustainable compe ve advantage that quickly adapts changing demands in
business and its opera ons. These are employees that processes and give insights on how to
reduce cost, increase produc vity to achieve a be er business result. Finding an honest and
capable people is always a challenge in business. To have them work happily and sa sfied, an
employer should always take good care and treasure them by providing the right salaries and
benefits as they are integral to the growth of the business.
To look for the right employee for the business opera on, the following are the kind of staff
one should have:

1. Skilled
2. Well qualified and well verse in business
3. Responsible
4. Dedicated and commi ed to work
5. Honest and with integrity
6. Able to a ain targets and set goals
7. Not indulge in wasteful expenditure
8. Loyal
9. Team player

How to maximize the staff contribu on to work?

• Mo vate the staff. It helps to improve their morale.
• Make sure they are comfortable in their workplace. They must be provided with the required
ameni es so that their work does not appear burdensome.
• Staff should be provided with necessary benefits. They must feel that their work is worth
performing. Not only the entrepreneur should gain, but also the employee should benefit.
• Self-respect is very essen al. The employee should be treated well. He must not be treated
as a slave.
• The staff should also share in the profits if possible. Yearly bonus apart from his or her salary
is added income for him or her.
• Apprecia on. Hard work and dedicated effort should be appreciated.

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 • Leisure me should be provided for extra-curricular ac vi es. He or she should also be given
me to take off from work so that he or she can go on a holiday. A change of scene refreshes
the mind.
• One must listen to the woes of the employees. Understanding their difficul es n performing
the task is essen al.

ADDITIONAL INFORMATION:

Manpower - this is the worker. When se ng up a business, finding honest and capable people is
always a challenge. In my experience, people can be honest but may not be capable or competent
and some are capable but not honest. It is a rare find to find someone with all the ideal quali es. So
for a businessman, they must be able to treasure their employees who are both capable and honest
as they are integral to the growth of the business

Machine plays a vital part in opera ng a business. Aside from manpower the use of
machinery is important nowadays to make the process of produc on more effec ve and efficient. A
machine is a mechanical structure that uses power to apply forces and control movement to perform
an intended ac on. It is controlled by people or a machine itself to produce the necessary or required
number of produc ons needed. You may be able to use the manpower to do a par cular job but it is
usually more efficient if machines are able to automate the work. The right machine equipment can
improve your processes, produc vity, and capacity to innovate. Not only will you save me and
resources, but you’ll also avoid costly quick fixes.
The following are the right equipment to purchase in star ng a business:

1. Assess your business reality. It is important to understand your objec ves why you need to
purchase machinery. Are you looking for increasing your produc vity? Will this equipment
make you more successful in the marketplace? Will it help you stay ahead of your
compe tors? Can you upgrade instead of buying new equipment and s ll get be er
performance? These are ques ons you need to ask to assess your business if you really need
machinery instead of your manpower.

2. Get an external point of view. Depending on the scale of your investment,

it may be worth working with an external consultant who can ensure you make the most of
your purchase by helping you assess your needs. To do this, you need to make a cost-benefit
analysis, which helps you jus fy your purchase and determine its advantages and
disadvantages.
3. Invest in digital technologies. According to a survey conduct in 2017 by 960 Canadian
manufacturers, they found out that companies who adopted digital technologies reaped
impressive rewards, including improved produc vity, lower opera onal costs, and be er
product quality. This technological advantage may monitor a real- me produc on and quality
control to reduce waste and rework. It predicted maintenance to prevent costly repairs,
higher automa on to save labor costs and improve throughput.

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 4. Create a technology roadmap. Rather than making an isolated purchase, look at the overall
needs of your business and plan for the long term. A technology roadmap is a planning tool
that aligns your business objec ves to long- and short-term technology solu ons. It helps you
understand your current technological systems, set technology development priori es and
provide meline for the implementa on of a new system. The first part of building your
roadmap is to get a clear picture of what you are already doing and mapping out your
processes

5. Shop around for suppliers. You may browse the internet to access different website that
offers specialized machinery equipment. Check out newsle ers and a end trade shows
where you can get some hands-on me equipment. Don’t let price alone guide you in your
supplier decision, consider aspects such as post- sales service and supplier’s reputa on and
ge ng references.

6. Keep training in mind. All to often, entrepreneurs don’t’ consider the time, money
and resources required to train employees on new equipment. You want to avoid the
productivity drop that occurs when employees take too much time to adapt to new
technology or processes. If the equipment is new or has new features, ensure that
employees who uses the machine will have time to be trained.
7. Think safety first. A healthy and safe work environment means your employees and
your company can be more productive, and this rule applies to your equipment and
technology purchases as well. Suppliers are responsible for selling the equipment that
can be used safely, but you are responsible for ensuring that your employees follow
safety rules.

8. Keep it green. When purchasing equipment, be sure that it’s energy efficient. Not only
to save money, but also by contributing to the health of the planet. Research the
environmental impact of your new equipment and find out how to dispose of your existing
equipment in a way that minimizes its impact on the environment.
ADDITIONAL INFORMATION:
Machines - machinery is also important. Without the proper equipment, you will not be able
to perform the needed tasks efficiently. You may be able to use the manpower to do it but it
is usually more efficient if machines are
able to automate the work.
In manufacturing industry, companies are involved in turning raw materials into physical
products, which are then sold to consumers. One of the things that a manufacturing company can do
to achieve efficiency is to source quality raw materials from credible suppliers. For perishable and

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edible products, the business should inves gate how raw materials are stored, processed, and
shipped to consumers. Do you have the materials needed to perform all parts of your produc on?
Are they conveniently located to minimize waste?

Once the produc on process is in place, an entrepreneur shi s to the daily ac vi es of

materials management, which encompass the following ac vi es: Purchasing, Inventory
control, and work scheduling.

Purchasing and Supplier Selec on

The process of acquiring the materials and services to be used in produc on is
called purchasing (or procurement). For many products, the costs of materials make up
about 50 percent of total manufacturing costs. Not surprisingly, then, materials acquisi on
gets a good deal of the entrepreneur’s me and a en on.
As a rule, there’s no shortage of vendors willing to supply parts and other materials,
but the trick is finding the best suppliers. In selec ng a supplier, an entrepreneur must
consider such ques ons as the following:
• Can the vendor supply the needed quan ty of materials at a reasonable price?

• Is the quality good?

• Is the vendor reliable (will materials be delivered on me)?

• Does the vendor have a favorable reputa on?

•Is the company easy to work with?

Ge ng the answers to these ques ons and making the right choices— a process
known as supplier selec on—is a key responsibility of opera ons management.
E-Purchasing
Technology is changing the way businesses buy things. Through epurchasing (or e-
procurement), companies use the Internet to interact with suppliers. The process is similar
to the one you’d use to find a consumer good—say, a forty-two-inch LCD high-defini on TV—
over the Internet. You might start by browsing the Web sites of TV manufacturers, such as
Sony, Samsung, TCL, or Skyworth. To gather compara ve prices, you might go to a
comparison-shopping Web site, such as Lazada or Shopee. Once you’ve decided where to
buy your TV, you’d complete your transac on online, even paying for it electronically.

Inventory Control
If a manufacturer runs out of the materials it needs for produc on, then produc on
stops. In the past, many companies guarded against this possibility by keeping large
inventories of materials on hand. It seemed like the thing to do at the me, but it o en
introduced a new problem—was ng money. Companies were paying for parts and other
materials that they wouldn’t use for weeks or even months, and in the mean me, they were
running up substan al storage and insurance costs.

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Most manufacturers have since learned that to remain compe ve, they need to manage
inventories more efficiently. This task requires that they strike a balance between two threats
to produc vity: losing produc on me because they’ve run out of materials and was ng
money because they’re carrying too much inventory. The process of striking this balance is
called inventory control, and companies now regularly rely on a variety of inventory-control
methods.

Just-in-Time Produc on
One method is called just-in- me (JIT) produc on: the manufacturer arranges for
materials to arrive at produc on facili es just in me to enter the manufacturing process.
Parts and materials don’t sit unused for long periods, and the costs of “holding” inventory
are significantly cut. JIT, however, requires considerable communica on and coopera on
between the manufacturer and the supplier. The manufacturer has to know what it needs,
and when. The supplier has to commit to supplying the right materials, of the right quality,
at exactly the right me.

Material Requirements Planning

Another method, called material requirements planning (MRP), relies on a
computerized program both to calculate the quan ty of materials needed for produc on and
to determine when they should be ordered or made. Let’s say, for example, that you and
several classmates are planning a fund-raising dinner for the local animal shelter. First, you
es mate how many people will a end—say, fi y. Next, you plan the menu—lasagna, garlic
bread, salad, and cookies. Then, you determine what ingredients you’ll need to make the
food. Next, you have to decide when you’ll need your ingredients. You don’t want to make
everything on the a ernoon of the dinner; some things—like the lasagna and cookies—can
be made ahead of me. Nor do you want to buy all your ingredients at the same me; in
par cular, the salad ingredients would go bad if purchased too far in advance. Once you’ve
made all these calcula ons and decisions, you work out a schedule for the produc on of your
dinner that indicates the order and ming of every ac vity involved. With your schedule in
hand, you can determine when to buy each ingredient. Finally, you do your shopping.
Though the produc on process at most manufacturing companies is a lot more
complex than planning a dinner (even for fi y), an MRP system is designed to handle similar
problems. The program generates a produc on schedule based on es mated output (your
food-prepara on metable for fi y guests), prepares a list of needed materials (your
shopping list), and orders the materials (goes shopping).
The basic MRP focuses on material planning, but there’s a more sophis cated
system— called manufacturing resource planning (MRP II)— that goes beyond material
planning to help monitor resources in all areas of the company. Such a program can, for
instance, coordinate the produc on schedule with HR managers’ forecasts for needed labor.

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Work Scheduling
As we’ve seen, manufacturers make profits by transforming inputs (materials and
other resources) into outputs (finished goods). We know, too, that produc on ac vi es, like
all business ac vi es, have to be controlled: they have to be monitored to ensure that actual
performance sa sfies planned performance. In produc on, the control process starts when
opera ons managers decide not only which goods and how many will be produced, but
when. This detailed informa on goes into a master produc on schedule (MPS). To draw up
an MPS, managers need to know where materials are located and headed at every step in
the produc on process. For this purpose, they determine the rou ng of all materials—that
is, the workflow of each item based on the sequence of opera ons in which it will be use

ADDITIONAL INFORMATION:
Materials - sourcing raw materials is cri cal in any business endeavor as the businessman
would want to have the cheapest possible at the highest quality.
IMPORTANT:
Running a business is a complex process and all of these elements interplay. It is not just one
machine for example but many. Manpower issues could also arise, which would challenge
the method that has been set up. It is up to the businessman to iden fy and solve these
issues.

Explore

ENHANCEMENT ACTIVITY 1: FILL ME UP!

Direc on: Fill up the table A by filling the missing words in the table B based on your
understanding on what you have read above. Write answers on a separate sheet of paper.

A B

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.1. It is a detailed procedure for accomplishing -
something.
2. These are employees that processes and -
give insights on how to reduce cost, increase
produc vity to achieve a be er business result.
3. the manufacturer arranges for materials to
arrive at produc on facili es just in me to enter -
the manufacturing process.
4. The process of acquiring the materials
and services to be used in produc on.
5. Plays a vital part in opera ng a business -
6. It is important nowadays to make the
process of produc on more effec ve and
efficient.
7.Another method that relies on a computerized -
program both to calculate the quan ty of
materials needed for produc on and to
determine when they should be ordered or made. -

Assessment 1

Direc on: Answer the following ques on. Write all answers on a separate sheet of paper.
Choose the le er of the correct answer.

Enhancement Ac vity 2

Direc on: Answer the following what is being asked. Write all answers in a separate sheet of
paper.

1. Based on what you have read about the 4M’s of opera ons.List down on your
separate sheet of paper the Steps in analyzing the METHOD.(in order). Then choose one and
explain.

2. What are the ways to look for the right employee for the business opera on, Write
the following kind of staff one should have. Then choose two ways and explain. Assessment
2

Direc on: Write the answers in a separate sheet of paper. Choose the correct word/s from
the choices inside the parenthesis to complete the sentence in each given item.

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1. In manufacturing industry, companies are involved in turning raw __________(products.
materials) into physical products, which are then sold to consumers.
2. When purchasing equipment, be sure that it’s
energy___________(effec ve, efficient.)
3. (Machine,Materials) plays a vital part in opera ng a business.
4. A __________and ______work environment means your employees and your company
can be more produc ve.
5. _________________ is a key responsibility of opera ons management.

Enhancement Ac vity 3
Direc ons: Match Column A to Column B. Write the le er of the correct answer in a seoarate
sheet of paper,

Column A Column B
1. It is changing the way businesses buy things A. purchasing
2. The process of acquiring the materials and services B. technology
3. It is a systema c way of doing a par cular job. C.manpower
4. These are employees that processes and give insights D. method

5. It is a mechanical structure that uses power E.

Machine

Deepen

Ac vity 1:
Direc on: Form a group of 4 and conceptualize for a play or a skit. Show how a company use the
4M’s in their business opera on. The rubric will be used in assessing your performance.

Rubrics for Scoring the Performance

CATEGORY 4 3 2 1
The role-play is The role-play is
Your role-play is on- somewhat off- completely off-
Great job! You topic, but it is topic. Pay more
missing topic, as if your
Content offered crea ve new a en on to the
some crea vity and group did not even
insights on the topic! direc ons next me! read the direc ons.
insight.

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 For the most part,
your group stayed in Your group
Everyone in your
Excellent work! character. Next failed to stay in
group stayed in
Every member of me, spend more character, and it
character, but some
your group stayed me preparing for looked like you had
members didn't how the
Roles in seem to not
character, and it characters prepared for how
really be "into"
was clear you took might think or act. the
what they were
your roles seriously. characters
doing.
might think or act.

Your group obviously Your group needs to

spent some me spend more me
Your group did an preparing for preparing for
excellent job It seems that your
the role-play, but some the role-play.
preparing and rehearsal might have group used the
rehearsing your role- Reading lines from a prepara on me
Prepara on helped
play, and it shows - script is a sure sign for
things run more
everything went very you're not prepared. something else.
smoothly.
smoothly.

Keep working!
Don't forget that,
Good! Your
though
Excellent! Your presenta on, Argh! I expect much
the process is
Overall presenta on was while it was fun be er
entertaining, you're
Impression entertaining and to watch, could have also work from you next
informa ve! been more supposed to me.
informa ve. learn something from it.

NOTE: Because of New Normal Educa on: CONCEPTUALIZE a business/company using the
M’s of opera on and form a group work using social media access with your classmate and
,you choose your leader and send all your part or task to the leader for compila on in one
file. Make sure that the four member will have a different task or choose one M using the
MACHINE, METHOD, MANPOWER, MATERIALS. You take a video of yourself using the M given
to you..How are these M’ performed in the business industries. The leader will compile it in
one file and send to the teacher.
Ac vity 2

Direc on: Find the Words which are listed below.

MACHINE PRICE PROCESS

MATERIALS QUALITY INPUT
METHOD DELIVERY OUTPUT
MANPOWER OPERATION PURCHASE

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 Gauge

I. Enumera on
Direc on: Enumerate the following in your answer sheet.
16-24= Give the kind of staff to look for the right employee for the business opera on
25-27= Classifica on of outcome expecta on. 28-30= What
comprises the EDS?

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 References:

Printed Materials

Morato, Eduardo A Jr. (2016). Entrepreneurship (pp 137-138). Manila, Philippines: Rex Bookstore, Inc.

Venzon, W. (2020). Entrepreneurship. Lesson 4. Demonstrate understanding of the 4M’s of Opera on

(pp. 79-87).

Website:

Bao, L. (2019, Augist 8). Introduc on about 4MS. Retrieved from

file:///C:/Users/ASUS/Documents/Introduc on%20about%204Ms

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