Objectives:

1. Identify the 6 M’s of operations;

and

2. Describe the 6 M’s of operations in

relation to business opportunities being
identified through a matrix.
 Six M’s of
Operation
These are transformed into the right output through a highly productive system,
meaning one with high efficiency, economy, and effectiveness. This process is
called the 11. Throughout System
MONEY
Management is done to meet day
to day business requirements and
the funds involved in meeting
those requirements are known as
working capital
MANPOWER
Enables the entire transformation process to operate by
manning the machines or rendering the services required.
6. Man in management is referred to:
Human resource
The recruitment selection, training, promotion and
grievances handling of personnel
Payment of compensation gratuity, termination of
service are few issues that have to be dealt effectively
to retain the talent within an organization
MACHINES
7. Are basic tools to produce goods or to generate
services.
 Selection of an appropriate machine not only enhances efficiency
but also saves times and increases revenue.
 Tailoring the requirement of the organization, selections of the
right technical machine and equipment, availability of spare
parts, evaluation of after sales services, substitutes and
technology and the organization budget are the crucial criteria
while purchasing a machine
MATERIAL
Are the input that must be converted to the final output.
8. Are basic ingredient in
management be it a service
industry or product
industry
METHODS
9. This means, an art of doing.
A set of procedures and instructions.
Visible company methods include; Plans,
Policies, Procedures, and Data
Less visible ones include: company’s
norms and culture of the society.
Methods determine how people work and their work and
their work priorities.
These also link people to each other and link people to
materials.
Scientific Method is a method for solving complex
problems.
12. GAAP is a method for evaluating financial performance.
Has to do with improving profits.
10. ISO 9000 is a method for evaluating Quality assurance
standards. Has to do with improving quality.
ANAGEMEN
Management by objectives – involves setting objectives and targets
for different aspects of the organization.
 Managers job makes sure that the objectives are achieved given allocated
amount or resources
Forms of Management
1. Autocratic Approach – 14. managers set targets and objectives for others and
supervise the performance of their work. The problem is that they can be
intimidating and often fail to encourage employees.
2. Consultative Managers 13. – consult with others to find out their views and
ideas before making decisions.
3. Democratic Managers 15.– encourage others to make decisions for themselves.
 Table 1. EDS Design Framework
Enterprise Delivery System & the Customer, Market & Financial Outcomes

Final Delivery to
Input Throughput Output Outcomes
Customers

Customer Expectations:
­ Quality
Resources Marketing and ­ Delivery
Mobilized: Customer
Transportation
Products Servicing Market Expectations:
process
­ Money ­ Revenues / Sales
­ Manpower ­ Goods Made Marketing ­ Market Share
Conversion of
­ Machines ­ Services Program - Market Reach
Input into
­ Materials Rendered
Output
­ Methods Service Level Finance Expectations
­ Management Experience - Profits
- Return on Investment
 ACTIVITY
Answer in 1/2 CW
Describe the 6Ms (Money, Manpower, Method,
Machines, Materials, Management) of
operations in relation to the business
opportunity that your group have identified.