Presentation 5

The Four M’s of
Production, Supply
Chain, and Value Chain
Introduction
The Four Ms of production,
supply chain, and value chain are
all important frameworks for
businesses to understand and
manage effectively. By managing
these resources effectively,
businesses can improve their
efficiency, productivity, and
competitiveness.
The Four M’s of
Production
The Four Ms of production are
manpower, machine, material, and
method. These are the four key
resources that businesses need in
order to produce goods and
services. Manpower, Machine,
Material, And Method.
Manpower
This refers to the human resources
that are involved in the production
process. This includes both direct
labor, such as workers who assemble
products, and indirect labor, such as
managers and supervisors.
Talks about human labor force involved in the
manufacture of products.
 Itis measured as the most serious and main
factor of production. The entrepreneur
must determine, attain and match the most
competent and skilled employees with the
jobs at the most appropriate time period.
 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.
Machine
This refers to the equipment and
machinery that are used in the
production process. This includes
both general-purpose equipment,
such as tools and machines, and
specialized equipment, such as
assembly lines and robots.
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.
Material
This refers to the raw materials and
components that are used to
produce goods and services. This
includes both direct materials, such
as the materials that are used to
make a product, and indirect
materials, such as lubricants and
packaging materials.
Discusses about manufacturing equipment
used in the production of goods or delivery of
services.
 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.
Method
This refers to the processes and
procedures that are used to produce
goods and services. This includes
both the overall production process,
such as the steps involved in
manufacturing a product, and
specific tasks, such as how to
assemble a component.
Production method discusses the process
or way of transforming raw materials to
finished products. The resources
undergoes some stages before it is
finalized and becomes set for delivery
to the target buyers.
The selection of the method of
production is dependent on product to
produce, mode of production,
manufacturing equipment to use and
required skills to do the work.
Product
Description
Is the promotion that explains what a product is and why it’s
worth buying? The purpose of a product description is to provide
customers with details around the features and benefits of the
product so they’re obliged to buy.
 Know who your target market is, focus on the product
benefits, tell the full story, use natural language and tone, use
power words that sell, and use good Images. These are
guidelines for you to have a good product description; since
some customers are very particular with it since they consider
the welfare of their family, if it is safe to use.
3 Rules to
Visualize a
Product
Descriptions
That Sell
1. Know who your target audience
is you might want to highlight the
things that might interest your
potential buyers. You can actually
do this by knowing what specific
demographics you are going to
cater. Is it for teens? Young
professionals or seniors. By knowing
such you will have a specified goal
to achieve once you roll your
product.
2. Focus on the Product Benefits – know
the difference between product
features and benefits. A product feature
is a factual statement about the product
that provides technical information. A
product benefit, on the other hand, tells
how the product can improve the
buyer’s life. If you are the customer I
know you will choose the latter.
However, you can always convert the
features into benefits.
3. Use good product images – aside from
the description, a quality image will do
the trick. Why? Because 63% of
customers think that a product image is
more important than the description or
even the reviews. So an important
aspect of your product description is
actually in the photo itself. Quality
photos will show the customer all of the
key features about your product. They
will also allow the customer to imagine
having this product in her life.
Prototyping
A duplication of a product as it will be produced,
which may contain such details as color, graphics,
packaging and directions. One of the important
early steps in the inventing process is making a
prototype. Benefits are the reasons why customers
will decide to buy the products such as affordability,
efficiency or ease of use. The features of the
product or service merely provide a descriptive fact
about the product or service.
Advantages of
Prototypes
Advantages of Prototypes
1.Creating prototype gives you the
opportunity to test and refine the
functionality of your design.
2. It makes it possible to test the
performance and quality of the materials.
3. It will help you describe your products
more effectively with potential buyers.
4. It will encourage others to treat you more
seriously.
Supplier
An entity that offers goods and services
to another business. This entity is among
of supply chain of a business, which may
offer the main part of the value
contained within its products. Certain
suppliers may even involve in drop
shipping. Where they ship goods directly
to the customers of the buyer.
Suppliers are your business partners,
without them your business will not live.
You need them as much as you need
your customers to be satisfied. But as an
entrepreneur you have to choose a
potential supplier that has loyalty and
value your partnership: a supplier that
would lead you to the fulfillment of your
business. Objectives, mission and vision.
Supply Chain
The supply chain is the network of
suppliers, manufacturers,
distributors, and retailers that are
involved in the production and
delivery of goods and services to
consumers. The supply chain
includes all of the activities
involved in bringing a product or
service from the raw materials
stage to the finished product
stage.
A supply chain is a structure of
organizations, people, activities, data, and
resources involved in moving a product or
service from supplier to customer.
The main objective of supply chain

management includes management of a
varied range of components and
procedures, for instance, storing of raw
materials. Handling the inventory,
warehousing, and movement of finished
product from the point of processing to the
Value Chain
The value chain is a
framework for analyzing the
activities that a business
performs and the value that it
adds to its products or
services.
Value chain is a method or activities
by which a company adds value to
an item, with production,
marketing, and the provision of
after-sales service. The main goal
and benefit of a value chain, and
therefore value chain analysis, is to
make or support a competitive
benefit.
Conclusion
The Four Ms of production, supply
chain, and value chain are all
important for businesses to
understand and manage effectively.
By managing these resources
effectively, businesses can improve
their efficiency, productivity, and
competitiveness.

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