The document discusses the 4Ms of production - Manpower, Method, Machine, and Materials. It describes each of the 4Ms and provides examples. Manpower refers to the human labor involved in manufacturing. Method is the production process that transforms raw materials. Machine describes the manufacturing equipment used. Materials are the raw resources used to create the product. The document outlines factors that affect choosing a production method and considerations for selecting equipment and sourcing materials.

1. Good
Morning!

2. 4Ms of Production

3. 4Ms of Production
 Refers to 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.

4. 4Ms of Production
 It is the process, testing, and commercializing a product
or service with the ultimate objective of solving the
problem of the primary target market.

5. Operations Management
• Controls the implementation of the business plan.
Once our procedures are set up to maximize
efficiency, it is time to train the production staff on
their individual responsibilities centered on the 4Ms
of Production.

6. MANPOWER
 Talks about human labor force involved in the manufacture
of products.
 Can also be called as HUMAN RESOURCE/S.
 It is measured as the most serious and main factor of
production.

7. MANPOWER
 The entrepreneur must determine, attain and match the most competent
and skilled employees with the jobs at the most appropriate time period.
 It does not only include labor but also creativity, intellect, and other
abilities of individuals that can contribute to the production.

8. MANPOWER
 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.
 It is one of the highest cost of operating the business, but also the most
instrumental to its success.

9. EXAMPLE:
 In the production of pandesal, manpower resources include the
baker, and his assisstants who will implement the recipe using
the available equipment, and technology. The manager, sales
clerks, and janitors are also part of the manpower of the
bakery.

10. METHOD
 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 said raw materials go through several phases bafore a product is
completed and becomes ready for delivery to the target customers.

11. Factors Affecting the Selection of the Method of
Production
Product to Produce- The physical output of the manufacturing process
is called product. Every product should be valuable and beneficial to the
consumers and must satisfy their wants and basic needs.
 Product can be Homogeneous and Heterogeneous.

12. Factors Affecting the Selection of the Method of
Production
I. Mode of Production- This refers to how the product will be manufactured.
a. Intermittent Production System- This is used when there is short
production process and there is frequent change in the machines. The
following methods may be used under this system.

13. Intermittent Production System
i. Project Method- The product is very large in size and there is time
constraint in the completion of the product.
ii. Job Order Method- The production process is accomplished by one
employee or a batch of employees.
iii. Batch Production- The production goes through several stages and the
product is moved from a worker to another.

14. Mode of Production
B. Continuous Production System- This system is adopted when the demand for
the product is continuous .
The following are the features of the Continuous Production System :
i. The production system is nonstop
ii. The production is based on the projected demand on the market.
iii. The production is believed to be standardized.
iv. Usually, the products are homogeneous.
v. The production of products is in the mass scale.

15. Mode of Production
C. In the just-in-time production system - Products are produced
when the market calls for the need for them. It is designed to
eradicate wastage of capitals to increase production.

16. Factors Affecting the Selection of the Method of
Production
2. Manufacturing Equipment to Use- This refers to the equipment
available for use in making the product.
3. Require Skills to Do the Work- This refers to the skills of the
workforce that will manufacture the products. The ones who are more
skilled and more experienced will most probably work faster than those
who are new to the job.

17. MACHINE
 Discusses about manufacturing equipment used in the production of
goods or delivery of services.
 Described as the “Best Friend” of manpower in producing goods and
offering services.

18. MACHINE
 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.
 Without machines, business operations will be too unmanageable, costly, and
with low quality.

19. MATERIAL
 To be used in creating a product or performing a service, which includes
supply chain management.
 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.

20. Materials Requisitioning Options
• Manufacturing Own Products or Offer Services -entreprenuers need to
prepare huge capital for the materials machines and manpower. The
advantage is that the entreprenuer can closely monitor the quality of the
product or services.

21. Materials Requisitioning Options
• Outsourcing- this is the process where a company appoint a third party
manufacturer to do the manufacturing operations of the business.
• There are RISK in doing outsourcing such as: Profit shared with the third
party, they run out of supply, when the outsource party closes its business
and if they produced sub-standards products.

22. Ways to protect your product when using
Outsourcing
1. Patent- The right to protect the entreprenuer regarding the product or
service.
2. Trademark- a sign or symbol that helps to distunguish the product
from the others.
3. Nondisclosure Agreement- states that the third party will be given
full access to any confidential information provided that it should be
disclosed to anyone else.

23. Materials Requisitioning Options
• Purchasing own products or services from present suppliers- This is where
entrepreneurs purchased finished products from manufacturers or offering
the services of another company.
• Disadvantages are that the entreprenuer cannot own the brand name of
the product or services and the manufacturer is not restricted to sell to the
entreprenuer’s competitors.