 In developing a Business Plan,
we also must consider the
essential of the 4Ms of
Operation in all business
opportunities & strengths.
OPERATIONS PLAN
•an important part of the
business plan because it
simply states the details in
operating the business
OPERATIONS MANAGEMENT
•controls the implementation of
the business plan. A strong
operations plan should have
the four operational aspects
called the 4Ms of Operations.
THE 4MS OF
PRODUCTION
METHOD
MANPOWER
MACHINE
MATERIALS
OUTPUT
METHODS
•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
a. 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.
3 ELEMENTS OF
MANUFACTURING
1. INPUTS
2. PROCESS
3. OUTPUTS
3 ELEMENTS OF
MANUFACTURING
1. Inputs- the materials or
ingredients to be used in
creating the product.
3 ELEMENTS OF
MANUFACTURING
•2. Process- the transformation
phase where inputs are processed
by manpower and machines to
come up with the final product.
3 ELEMENTS OF
MANUFACTURING
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.
MANUFACTURING SITE
1. Home- based
2. Commercial space for
rent
3. Commercial space
MANUFACTURING SITE
1. Home-based- this option is the
cheapest and highly flexible. Most
start-ups do not have the capacity
to establish a manufacturing site.
MANUFACTURING SITE
2. 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.
MANUFACTURING SITE
3. 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
•affects efficiency of business
operations. Each space
should be maximized to save
on manufacturing cost.
INTERNAL LAYOUT/FLOOR
PLAN
1. PRODUCT- BASED LAYOUT
2. PROCESS-BASED LAYOUT
INTERNAL LAYOUT/FLOOR
PLAN
•Product-based layout- facilities are
prearranged according to the flow
of the manufacturing operations.
•Process-based layout- facilities are
grouped according to their
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.
MANUFACTURING PROCESS
FLOW
•ULTIMATE OBJECTIVE: To ensure
that maximum efficiency are met-
from the requisition of materials to
processing them into finished
goods up to the distribution to the
B. SERVICE DELIVERY PROCESS
•The entrepreneur who will engage in a
service business must be more meticulous
when it comes to the service delivery process
because services are intangible, and the only
way the customer can appreciate the service
is by remembering how pleasant his or her
experience was. It is cost efficient.
B. SERVICE DELIVERY PROCESS
•Service blueprint- detailed flowchart of the
service business. Every process in the
blueprint should be relevant to the service
business to minimize wastage.
•Bottleneck- part of the process where there
is an apparent inefficiency and where the
customers wait longer
C. DISTRIBUTION OF GOODS AND
SERVICES
•Distribution- it is the process of bringing
products or services to customers. In selling
physical goods, the entrepreneur should plan
the location, the processes, and the
distribution of the products to the customers.
It is not a straight process from the
entrepreneur to customers.
C. DISTRIBUTION OF GOODS AND
SERVICES
•Supply Chain/ Distribution Channel- the
manufacturer will deliver the products to
the distributors, to the wholesalers, to
the retailers, and then finally to the
customers.
•
C. DISTRIBUTION OF GOODS AND
SERVICES
•Manufacturer- handles the invention,
development and production of the
product or service. Take charge of
acquiring materials, production and
delivery schedules, product quality, and
inventory or safety management.
C. DISTRIBUTION OF GOODS AND
SERVICES
•Distributors- are entrepreneurs
who often buy products or services
from the manufacturers and sell
them at a markup price to either
wholesalers or retailers
C. DISTRIBUTION OF GOODS AND
SERVICES
•Agents- don’t own the products or services
because they do not buy these from the
manufacturer. Instead, they negotiate with
buyers as to how much or how many are to be
sold, so the manufacturer will be able to deliver
the goods directly to the buyer. They will get
commission for every product sold.
THE DISTRIBUTOR OR AGENT CAN HELP THE
MANUFACTURER IN ANY OF THE FF.
Sharing industry knowledge, behavior
and activities of the primary target
market.
Pertinent rules and regulations imposed
by the government.
Best practices in operating the business
THE DISTRIBUTOR OR AGENT CAN HELP THE
MANUFACTURER IN ANY OF THE FF.
Best practices in operating the
business
Their respective sticky relationship
with business associates such as
suppliers, financial institutions or
retailers.
D. PAYMENT PROCESS
•the entrepreneur must also establish a
seamless payment process. There are
instances when the customers do not want
to pay in cash and are usually attracted by
flexible and customer-friendly payment
terms such as credit cards, installment plans,
or simple accounts payable or pautang.

WEEK 10- 4MS OF OPERATION- METHOD.pptx

  • 2.
     In developinga Business Plan, we also must consider the essential of the 4Ms of Operation in all business opportunities & strengths.
  • 3.
    OPERATIONS PLAN •an importantpart of the business plan because it simply states the details in operating the business
  • 4.
    OPERATIONS MANAGEMENT •controls theimplementation of the business plan. A strong operations plan should have the four operational aspects called the 4Ms of Operations.
  • 5.
  • 6.
    METHODS •the process tobe 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
  • 7.
    a. Manufacturing ofGoods •Manufacturing- the process of translating raw materials into finished goods that are acceptable to the customer’s standards 3 Elements of Manufacturing.
  • 8.
    3 ELEMENTS OF MANUFACTURING 1.INPUTS 2. PROCESS 3. OUTPUTS
  • 9.
    3 ELEMENTS OF MANUFACTURING 1.Inputs- the materials or ingredients to be used in creating the product.
  • 10.
    3 ELEMENTS OF MANUFACTURING •2.Process- the transformation phase where inputs are processed by manpower and machines to come up with the final product.
  • 11.
    3 ELEMENTS OF MANUFACTURING 3.Output- the final product of the process stage, which is intended to be sold to target customers
  • 13.
  • 14.
    MANUFACTURING SITE 1. Home-based 2. Commercial space for rent 3. Commercial space
  • 15.
    MANUFACTURING SITE 1. Home-based-this option is the cheapest and highly flexible. Most start-ups do not have the capacity to establish a manufacturing site.
  • 16.
    MANUFACTURING SITE 2. Commercialspace 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.
  • 17.
    MANUFACTURING SITE 3. Commercialspace 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.
  • 18.
    LOCATION •for delivery ofraw 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.
  • 19.
    INTERNAL LAYOUT/FLOOR PLAN •affects efficiencyof business operations. Each space should be maximized to save on manufacturing cost.
  • 20.
    INTERNAL LAYOUT/FLOOR PLAN 1. PRODUCT-BASED LAYOUT 2. PROCESS-BASED LAYOUT
  • 21.
    INTERNAL LAYOUT/FLOOR PLAN •Product-based layout-facilities are prearranged according to the flow of the manufacturing operations. •Process-based layout- facilities are grouped according to their
  • 22.
    MANUFACTURING PROCESS FLOW •a stepby 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.
  • 23.
    MANUFACTURING PROCESS FLOW •ULTIMATE OBJECTIVE:To ensure that maximum efficiency are met- from the requisition of materials to processing them into finished goods up to the distribution to the
  • 24.
    B. SERVICE DELIVERYPROCESS •The entrepreneur who will engage in a service business must be more meticulous when it comes to the service delivery process because services are intangible, and the only way the customer can appreciate the service is by remembering how pleasant his or her experience was. It is cost efficient.
  • 25.
    B. SERVICE DELIVERYPROCESS •Service blueprint- detailed flowchart of the service business. Every process in the blueprint should be relevant to the service business to minimize wastage. •Bottleneck- part of the process where there is an apparent inefficiency and where the customers wait longer
  • 26.
    C. DISTRIBUTION OFGOODS AND SERVICES •Distribution- it is the process of bringing products or services to customers. In selling physical goods, the entrepreneur should plan the location, the processes, and the distribution of the products to the customers. It is not a straight process from the entrepreneur to customers.
  • 27.
    C. DISTRIBUTION OFGOODS AND SERVICES •Supply Chain/ Distribution Channel- the manufacturer will deliver the products to the distributors, to the wholesalers, to the retailers, and then finally to the customers. •
  • 28.
    C. DISTRIBUTION OFGOODS AND SERVICES •Manufacturer- handles the invention, development and production of the product or service. Take charge of acquiring materials, production and delivery schedules, product quality, and inventory or safety management.
  • 29.
    C. DISTRIBUTION OFGOODS AND SERVICES •Distributors- are entrepreneurs who often buy products or services from the manufacturers and sell them at a markup price to either wholesalers or retailers
  • 30.
    C. DISTRIBUTION OFGOODS AND SERVICES •Agents- don’t own the products or services because they do not buy these from the manufacturer. Instead, they negotiate with buyers as to how much or how many are to be sold, so the manufacturer will be able to deliver the goods directly to the buyer. They will get commission for every product sold.
  • 31.
    THE DISTRIBUTOR ORAGENT CAN HELP THE MANUFACTURER IN ANY OF THE FF. Sharing industry knowledge, behavior and activities of the primary target market. Pertinent rules and regulations imposed by the government. Best practices in operating the business
  • 32.
    THE DISTRIBUTOR ORAGENT CAN HELP THE MANUFACTURER IN ANY OF THE FF. Best practices in operating the business Their respective sticky relationship with business associates such as suppliers, financial institutions or retailers.
  • 33.
    D. PAYMENT PROCESS •theentrepreneur must also establish a seamless payment process. There are instances when the customers do not want to pay in cash and are usually attracted by flexible and customer-friendly payment terms such as credit cards, installment plans, or simple accounts payable or pautang.