4M’s of

Production
Manpower, Method, Machine and
Materials
 MANPOWER (physical work)/Mind Power (brain work)

1. General: Total supply of personnel available or engaged for a

specific job or task.

2. Economics: Total labor force of a nation, including both men and

women.
*If there are more people than available jobs, it is called manpower
surplus;
*if available people are fewer than jobs, it is called manpower
deficit.
 Manpower planning
It is also known as human resources planning, and it
is the process that management uses to determine
the manner in which an organization should move
from point A to point B, in terms of manpower.
This happens via planning and development, and
enables management to have the right kinds of
employees in the right number in the right place at
the right time.
 COMMON ISSUES FOR MANPOWER
People issues fall into this area. Note that many people issues are really methods,
machine, or material issues. Also note that “manpower”, being gender specific.
#1 Compliance with Laws and Regulation. #6 Compensation.
#2 Management Changes. #7 Understanding Benefits
Packages
#3 Leadership Development. #8 Recruiting Talented
Employees
#4 Workforce Training and Development. #9 Retaining Talented Employees
#5 Adapting to Innovation. #10 Workplace Diversity
 Method (process)

The process to be followed in effectively

manufacturing or delivering a product or
service. It is the day-to-day operations of a
business. Internally, the process must abide
with industry standards and policies (ex. ISO
Certification).
*The entrepreneur must set SOP’s.
Certification
 Manufacturing of Goods - Manufacturing
The process of translating raw
materials into finished goods that are
acceptable to the customer’s standards
3 Elements of Manufacturing:
1. Inputs- the materials or ingredients
to be used in creating the product
2. Process- the transformation phase
where inputs are processed by
manpower and machines to come up
with the final product.
3. Output- the final product of the
process stage, which is intended to be
sold to target customers
Manufacturing Site- the manufacturing process will take
place.
Home-based- this option is the cheapest and highly flexible. Most
start-ups do not have the capacity to establish a manufacturing site.
Commercial space for rent- this advisable if the business really
requires a commercial space for the processing of goods and if the
home option is not viable anymore. It gives the entrepreneur a more
specialized and suited manufacturing site than manufacturing at
home.
Commercial space purchase- this option requires the biggest amount
of capital expenditure, but it also provides the entrepreneur
substantial freedom and flexibility to design and run the commercial
space.
 LOCATION
For delivery of raw
materials and finished goods,
the transportation routes from
manufacturing site should be
efficient. It should be
accessible to major types of
transportation vehicles. It must
operate in an environmental-
friendly manner.
 INTERNAL LAYOUT/FLOOR PLAN
Internal layout affects the efficiency of business
operations. Each space should be maximized to
save on manufacturing cost.
*Product-based layout- facilities are prearranged
according to the flow of the manufacturing
operations.
*Process-based layout- facilities are grouped
according to their function.
 MANUFACTURING PROCESS FLOW
A step by step guide of the employees and
the manufacturing equipment. The
objective of The Process flow is to ensure
that the right inputs are properly used in
production, that the process is performed
according to the set standards, and that the
acceptable outputs are produced.
 Material (includes raw material, consumables and
information)
Raw materials are materials or substances used in the
primary production or manufacturing of goods.
Raw materials are commodities that are bought and
sold on commodities exchanges worldwide.
Traders buy and sell raw materials in what is called
the factor market because raw materials are
factors of production as are labor and capital.
 Direct and Indirect Raw Materials

Raw materials are divided into two categories:

“direct and indirect”
Direct raw materials are materials that companies directly use in the
finished product, such as wood for a chair.
Indirect raw materials are not part of the final product but
are instead consumed as part of the production process, like a
manufacturing facility's oils, cloths, and light bulbs.
Companies may also classify raw materials as indirect if the total cost
is immaterial.
Raw materials are typically considered variable costs because the
amount used depends on the quantity being produced.
 Machine (technology)
*A machine (or mechanical device) is a mechanical structure
that uses power to apply forces and control movement to
perform an intended action.
*Machines can be driven by animals and people, by natural
forces such as wind and water, and by chemical, thermal, or
electrical power, and include a system of mechanisms that
shape the actuator input to achieve a specific application of
output forces and movement.
*It can also include computers and sensors that monitor
performance and plan movement, often called
mechanical systems.
DEVELOPMENT OF 4M’S
 MOTHER NATURE
Weather and other natural, uncontrollable
events fall into this category. Environmental
systems
 MEASUREMENTS
Measurements include physical
measurement, automatic sensor
readings, and inspections. Note that
there may be overlap with machines
regarding the measuring devices.