The 4M’s of

Operation
TLE_ICTAN11/12EM-Ia-2
 OBJECTIVES:
At the end of this lesson, the students will be able to:

• define the 4Ms of operations (Manpower, Method, Machine,

Materials); and

• describe the 4Ms of operations (Manpower, Method, Machine,

Materials) its relation to the business opportunity.
In our previous lesson, we tackled how the brand
name was developed. For us to connect it in today’s
lesson, let us review what we had learned by
answering the
following:
1.What is a brand?
2.What do you consider developing an
effective brand name?
3. Why an effective branding is important
in every business venture?
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HEADING TEXT HEADING TEXT

 MANPOWER
• This is the worker. When setting up a
business, finding honest and capable
people is always a challenge. People
can be honest but may not be capable
or competent and some are capable
but not honest. It is rare find to find
someone with all the ideal qualities.

• So for 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.

• Educational qualifications and

experience, status of employment,
numbers of workers required, skills and
expertise required for the job are some
of the manpower criteria that must be
highly considered by the entrepreneur.
Types of Workers
Direct Workers- are those whose
primary jobs and functions are
directly related to the production and
operation of the business.
Production Workers Carpenters
Indirect Workers- are those whose
primary jobs and functions are not
directly related to the production and
operation of the business.
Janitors Security
Guards
 MATERIALS
• Talks about raw materials
necessary in the production
of a product. Materials
mainly form part of the
finished product. Just in
case the resources are
below standard, the finished
product will be of
unsatisfactory as well.

• The entrepreneur may

consider cost, quality,
availability, credibility of
suppliers and waste that the
raw material may produce.
Types of Materials
Direct Materials- are those directly
related to the production of your product
or to the performance of the service you
are offering.
Examples of direct materials include
leather for a shoe company, wood for
a furniture company, fabric for
clothes making company etc.

Indirect Materials-on the other hand,

are those that are not directly related to
the production of your product or to the
performance of the service you are
offering.

Examples of indirect materials are

paper, ink and notebook you use for
recording sales.
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.

• These are the basic tools to produce goods or to

generate services.

• Selection of an appropriate machine not only enhances

efficiency but also saves time and increases revenue.

• In the process of selecting the type of equipment to

purchase, the entrepreneur may consider types of products
to be produced, production system to be adopted, cost of
the equipment, capacity of the equipment, availability of
spare parts in the local market, efficiency of the equipment
and the skills required in running the equipment.
 METHODS
• It 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 set of procedures and instructions.
• Plans, Policies, Procedures, and Data.
• The Manager will determine the most efficient way for each portion
of the process to be done to eliminate damage to the product and to
eliminate areas where time and manpower are wasted.
• Controlling waste is the key to efficient and profitable production.
THANK
YOU