Developing a Business Plan

UNIT 2: Lesson 4 – 4Ms of Production

Marketing Strategies
LEARNING OUTCOMES

 Describe the 4Ms (Manpower, Method, Machine, Materials) of

operations in relation to the business opportunity:
 Develop a business model
 Forecast the revenue of the business
 Forecast the cost incurred
 Compute for profits
 Create the company’s five-year projected financial statement
The 4Ms of Productions
INTRODUCTION
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. It must also anticipate
what most likely will e needed in near future. The key for production is to have
procedures and processes that can accomplish both. Once the procedures are set up to
maximize efficiency, it is time to train the production staff on their individual
responsibilities centered on the 4Ms of Production.
1. Methods
2. Manpower
3. Machine
4. Materials
 The 4Ms of Operations
1. Methods
 Inventory Management System

 Determine the production process and who is

responsible for each part of the process to

eliminate damage to the product and eliminate
areas where time and manpower are wasted.
The 4Ms of Operations
2. Manpower
 What is the ideal number of people of people it

will take to perform the established methods?

 What is the “cycle time” of each part of the

method?
 How personnel will be trained and their

performance measured?
 The 4Ms of Operations
3. Machine
 Examine the facilities, vehicle and tools. Is everything needed

in place to ensure safety, efficiency and productivity?

 Do all employees have access to the same tools and equipment,

if needed.
 Do the tools and equipment enable them to perform

independently?
 Are they trained to use and how to maintain the machinery and

tools?
The 4Ms of Operations
4. Material
 Are the materials needed is in place

to perform all the parts of production

and conveniently located to minimize
waste?
Production or Technical Feasibility
The series of questions below is helpful in deciding the technical requirements of the business
1. Are enough raw materials of the correct quality available when needed for year-round production?
2. Is the cost of raw materials satisfactory?
3. Are the correct size and type of equipment available for the expected production level and is it at a
reasonable cost?
4. Can it be made by local workshop? Are maintenance and repair costs affordable?
5. Are sufficient information and expertise available to ensure that the finished products are consistently made
at the required quantity and quality?
6. Are suitable packaging materials available and affordable?
7. Are distribution procedures to retailers or other sellers established?
8. Is a suitable building available ? What modification/renovations are needed?
9. Are services (fuel, water, electricity, etc)m available and affordable?
10. Are trained workers available and are their salaries affordable?
Content of Production/Technical Feasibility
1. Production Planning
2. Raw Materials and Ingredients
3. Equipment Required
4. Packaging
5. Staffing Level
SOLI DEO GLORIA

UNIT II