Entrepreneurship

1. Demonstrate understanding of the 4 Ms of
operations
Describe the 4Ms (Manpower, Method,
Machine, Materials) of operations in relation
to the business opportunity:
MOST ESSENTIAL LEARNING
COMPETENCIES

13. How does manpower affect your
business:
1. The more staff you have to work, the faster the task can be done.
The lack of productivity reduces profits and affects your reputation,
which may result in the failure of a business.
2. Companies can establish and maintain good rapport with their customers
if they can ensure good manpower to keep the production and delivery
promises they make. This in turn will generate more sales and more revenue
for the company.
3. With more employees in the company, they will be able to band together to
lobby for better treatment if they are treated unjustly. Therefore, manpower is
important for keeping companies accountable.

14. TYPES OF WORKERS
Direct workers – are those whose
primary jobs and functions are directly
related to the production of the
business

15. TYPES OF WORKERS
Indirect workers – are those whose
primary jobs and functions are not
directly related to the production of the
business

18. Factors to consider in selecting
raw materials (Aduana, 2016):
1. Cost
2. Quality
3. Availability
4. Suppliers’ Credibility
5. Waste that may be produced
by the material

19. Value Chain
vs. Supply
Chain

20. What Makes up a Supply Chain?
A supply chain is a network of suppliers,
manufacturers, distributors and retailers
who are involved in sourcing raw
materials, creating a product and selling it
to the consumer.

21. Generally, supply chain involves multiple stages, like:
•Procurement: Sourcing raw materials or components from
producers/suppliers.
•Manufacturing: Converting raw materials into finished
goods.
•Distribution: Delivering the finished goods to retailers.
•Customer service: Aiding a customer’s experience for
convenient buying.

22. Supply Chain Functions (Tarver, 2020):
• Product development
• Marketing
• Operations
• Distribution
• Finance
• Customer service
The cost of resources and product distribution are the
primary concerns of supply chain management.
Reduced consumer cost and increased profits can be
attained with proper supply chain management.

23. The term “value chain” was coined by Michael Porter, a
Harvard Business School professor, in his 1985 book
“Competitive Advantage: Creating and Sustaining Superior
Performance.”
He defined value chain as the lens through which
companies figure out how to produce products that offer
customers greater value than the intrinsic job they do.
What Makes up a Value Chain?

24. The value chain is defined as a series of activities by a business
to offer valuable products or services to its customers.
Value chains aim at boosting value across the buyer journey
while reducing overheads. Where the supply chain focuses on the
operational side – the flow of materials and products, a value chain
prioritizes value-addition in products while creating and delivering
products or services.
What Makes up a Value Chain?

25. The value chain typically Involves the following stages:
•R&D: Developing new strategies, better products and/or enhancing existing ones.
•Design: Optimizing product designs suitable to customer desires.
•Production: Strategizing ways to produce goods and services in a better and
sustainable manner, i.e. good for the business, consumer and the environment.
•Sales & marketing: Effectively delivering the key messaging and values of the
product/services to prospects for better sales.
•Customer service: Support and assist customers with efficient buying.
•After-sales Support: Aims at offering value through the customer journey and
increases customer lifetime value by increasing customer retention.

26. Five Steps in the Value Chain Process (Tarver, 2020)
1. Inbound Logistics: This involves receiving of
materials, storing them, and controlling of inventory.
2. Operations: This involves activities wherein the
entrepreneur adds value to product through
manufacturing and assembly of merchandise that
transforms raw materials into finished product.

27. 3. Outbound Logistics: This involves activities required
in reaching end users. Examples are warehousing,
recording of inventories, order fulfillment, and delivery.
4. Marketing and Sales: This involves activities
associated with convincing customers to procure the
offered product.
5. Service: This involves activities that maintain and
improve the value of product, like customer assistance
and warranty provision.

28. MACHINE

29. Machine. This refers to the equipment used
in the manufacturing of goods or delivery of
services.

30. Important elements to consider in choosing the type of
equipment to procure(Aduana, 2016):
1. Type of products to be produced;
2. Method of production to be adopted;
3. Price of equipment;
4. Equipment Capacity;
5. Spare parts’ availability in the local market;
6. Equipment Efficiency; and
7. The required skills in running the equipment

31. Method

32. Method. The manner or the system of
transforming raw materials into finished
product is called method (Aduana,
2016). The said raw materials go
through several phases before a product
is completed and becomes ready for
delivery to the target customers.

33. Factors affecting the
selection of the method of
production (Aduana, 2016):

34. 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.

35. Product can be homogeneous
or heterogeneous.
A homogeneous product can hardly be
distinguished than that of other products as it
may have the same physical appearance, taste
or chemical. Examples are makers of sodas and
medicines. Distinguishing 5mg from 10mg tablet
of a painkiller is difficult.

37. A heterogeneous product, on the other
hand, has different characteristics,
parts, and physical attributes. It can be
easily distinguished from other products.
Business ventures that produce
heterogeneous products include makers
of bags, home decors, and furniture.