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4 M’s of Operations in Relation to the Business production where the materials are transformed into the
Opportunity final product with the aid of manpower and machine.

- Materials
- Machines The output represents the final product from the
- Manpower production process and distributed to the customers.
- Methods
4 M’s of Production
The three important elements in the production system
The most serious issues in the whole production system
are the inputs and the transformation process. Their
quality determines the quality of the output. The factors
involved in the input and the production process are usually
referred to as the Four M’s of production, namely
Manpower, Method, Machine, and Materials.
INPUT-PRODUCTION PROCESS-OUTPUT
The Input includes the following:

1. Manpower
2. Materials
3. Machine
4. Design
5. Instructions
The Production process, also referred to as the

transformation or conversion process, is the stage of  Manpower
- Educational qualifications and experience, status selecting the type of equipment to purchase, the
of employment, number of workers required, entrepreneur may consider types of products to be
skills and expertise required for the job are produced, production system to be adopted, cost of
some of the manpower criteria that must be the equipment, capacity of the equipment,
highly considered by the entrepreneur. availability of spare parts in the local market,
efficiency of the equipment and the skills required
- Educational qualifications and experience, status in running the equipment.
of employment, number of workers required,
skills and expertise required for the job are  Methods
some of the manpower criteria that must be - Method or production method is the process or way
highly considered by the entrepreneur. of transforming raw materials to finished products.
 Materials The resources undergo some stages before it is

- It simply refers to the raw materials necessary in finalized and become set for delivery to the target
the production of a product. buyers.
- It forms part of the finished product. Just in case The selection of the method of production is
the resources are below standard, the finished dependent on product to produce, mode of
product will unsatisfactory as well. production, manufacturing equipment to use and
required skills to do the work.
- The entrepreneur may consider cost,
quality,availability, credibility of suppliers and waste
that the raw materials may produce.
 Machine
- The manufacturing equipment used in the production
of goods or delivery of services. In the process of
Pretesting of the product or service is similar to a sample
of the product or service given to the consumer free of
cost in order that he/she may try the product before
committing to a purchase. Ex: Free taste at malls
SUPPLIERS AND SUPPLY CHAIN

In a manufacturing venture, the supplier plays a vital role.
They are your business partners, without them your
business will not live. You need them as much as you need
your customers to be satisfied.
PRODUCT PROTOTYPE
Prototype is created before the massive production of Choose a potential supplier who has
such product; an entrepreneur must consider prototyping. 1. loyalty and values your partnership:
2. a supplier who would lead you to the fulfillment of your
One of the important early steps in the inventing process business objectives, mission and vision.
is making a prototype.
Supply chain management systems automate the flow of
A prototype is a duplication of a product as it will be information among members of the supply chain so that
produced, which may contain such details as color, they can use it to make better decisions about when and
graphics, packaging and directions. how much to purchase, produce, or ship.
It is a structure of organizations, people, activities, data,
It is better to test your product prototype to meet
and resources involved in moving a product or service from
customers’ needs and expectations; and to know if product
supplier to customer.
is saleable.
Objectives of supply chain is management of components activities operating within a firm – activities that work
and procedures such as together to provide value to customers.
1. storing of raw materials
2. handling the inventory When value chain management is implemented effectively,
3. warehousing the flow of products and materials is improved through
4. movement of finished product/ logistic the accurate forecasting of sales and demand as well as
improved inventory management. Delays are also minimized
SUPPLIERS AND SUPPLY CHAIN and products are visible and traceable throughout the
Supply chain management decreases purchasing cost. supply chain.
Retailors depend on supply chains to quickly distribute
costly products to avoid sitting on expensive inventories. Value chains help increase a business's efficiency so the
Any delay in production can cost a company tens of business can deliver the most value for the least possible
thousands of pesos. This factor makes supply chain cost.
management ever more important.
The end goal of a value chain is to create a competitive
VALUE CHAIN advantage for a company by increasing productivity while
Value chain is a method or activities by which a company keeping costs reasonable.
adds value to an item, with production, marketing, and the
provision of after-sales service.
The Value Chain concept was developed and popularized

in 1985 by Michael Porter, in “Competitive Advantage.”
Porter defined value as the amount buyers are willing
to pay for what a firm provides, and he conceived the
“value chain” as the combination of generic value added

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4 M’s of Operations in Relation to the Business production where the materials are transformed into the

Opportunity final product with the aid of manpower and machine.

The Input includes the following:

The Production process, also referred to as the

 Materials The resources undergo some stages before it is

SUPPLIERS AND SUPPLY CHAIN

The Value Chain concept was developed and popularized

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