The document discusses the 4Ms of operations - method, manpower, machine, and materials. It describes the key aspects of each, including manufacturing processes, service delivery, distribution channels, and payment processes. An effective operations plan should lay out the step-by-step processes for transforming inputs into finished goods or services through production and distribution to customers. It also needs to address facilities, locations, staffing, equipment, and payment handling.

1. THE 4M’S OF
OPERATIONS

2. OPERATIONS PLAN
•an important part of the
business plan because it
simply states the details in
operating the business

3. OPERATIONS MANAGEMENT
•controls the implementation of
the business plan. A strong
operations plan should have
the four operational aspects
called the 4Ms of Operations.

4. THE 4MS OF OPERATION
1. Method
2. Manpower
3. Machine
4. Materials

5. 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
(ex. ISO Certification). The entrepreneur must
set SOP’s.

6. 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.

7. 3 ELEMENTS OF
MANUFACTURING
1. INPUTS
2. PROCESS
3. OUTPUTS

8. 3 ELEMENTS OF
MANUFACTURING
1. Inputs- the materials or
ingredients to be used in
creating the product.

9. 3 ELEMENTS OF
MANUFACTURING
•2. Process- the transformation
phase where inputs are processed
by manpower and machines to
come up with the final product.

10. 3 ELEMENTS OF
MANUFACTURING
3. Output- the final product
of the process stage, which
is intended to be sold to
target customers

12. MANUFACTURING SITE
•the manufacturing
process will take
place.

13. MANUFACTURING SITE
1. Home- based
2. Commercial space for
rent
3. Commercial space

14. 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.

15. 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.

16. 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.

17. 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.

18. INTERNAL LAYOUT/FLOOR
PLAN
•affects efficiency of business
operations. Each space
should be maximized to save
on manufacturing cost.

19. INTERNAL LAYOUT/FLOOR
PLAN
1. PRODUCT- BASED LAYOUT
2. PROCESS-BASED LAYOUT

20. 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

21. 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.

22. 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

23. 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.

24. 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

25. 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.

26. 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.
•

27. 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.

28. 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

29. 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.

30. 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

31. 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.

32. 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.