SHS

Entrepreneurship
Quarter 2: Module 1
Entrepreneurship
Grade 11/12: Quarter 2: Module 1
First Edition, 2020

Copyright © 2020
La Union Schools Division
Region I

All rights reserved. No part of this module may be reproduced in any form without
written permission from the copyright owners.

Development Team of the Module

Author: Marites Camiguing Martinez, T-II

Editor: SDO La Union, Learning Resource Quality Assurance Team

Illustrator: Ernesto F. Ramos Jr., P II

Management Team:

Atty. Donato D. Balderas, Jr.

Schools Division Superintendent

Vivian Luz S. Pagatpatan, Ph.D

Assistant Schools Division Superintendent

German E. Flora, Ph.D, CID Chief

Virgilio C. Boado, Ph.D, EPS in Charge of

LRMS Lorna O. Gaspar, EPS in Charge of ABM

Michael Jason D. Morales, PDO II

Claire P. Toluyen, Librarian II

1
Entrepreneurship
Quarter 2: Module 1
 Target

Operations Management is about delivering products and services to

customers to meet or surpass the expectations. It is designing, developing, and
executing the Enterprise Delivery System, from sourcing of the necessary
input to the transformation of these input into the final output, which come in
the form of goods or services or both, must carry all the features and attributes
that customers are looking for. All operations managers must therefore, begin
with the customer’s wants and desires in mind.These wants and desires can be
classified into customer outcome expectations that are crucial to the
operations function.

model combine of 4M and IPO in a specific environment or situation:

file:///C:/Users/ASUS/Documents/Introduction%20about%204Ms.html

In your previous lesson, in the first quarter, you are already done with
recognizing the potential market and recognizing the importance of
marketing mix in the development of marketing strategy.
This learner material will provide you with information and activities that
will help you more understand about operating a business.
After going through this learner material, you are expected to:
1. demonstrate understanding of the 4M’s of operation in the environment
and market in one’s locality/town, and
2. describe the 4M’s (Manpower, Method, Machine, Materials) of operations in
relation to the business opportunity. (TLE_ICTAN11/12EM-Ia-2)
 Jumpstart

Activity 1

Direction: Choose your answer from the given choices. Write your answer in a
separate sheet of paper. Write the letter only.

1. What do you call reference points to help make final purchase

decision?
a. Delivery expectations b.Price expectations c. Quality expectations
2. What do you call the the cost or the amount at which something is
valued?
a. Quality b. Delivery c. Price
3. Which is called the carrying of goods to a destination, especially to
carry and distribute goods or products to several places?
a. Delivery expectations b.Price expectations c.Quality expectations
4. What do you call the statement about the quality expected from the
project product.?
a. Delivery expectations b.Price expectations c. Quality expectations
5. Which is called the resources mobilized in the enterprise delivery system?
a. Output b. Input c. Throughput
Activity 2. Word Hunt.
Direction. Find and circle the correct word hidden in the grid that best describe
what youhave read above. The words run through horizontal, vertical or diagonal
directions. Copy the grid and answer in your Entrep notebook.

T S F I R P T Y R Q R

U R M N N E R O S U R

P T I A E E R Y T A S

T S O C V S U C O L D

U R A I E K U T C I F

O L L G Z D E T K T I

P E O M O T I O N Y N

D W P R I C E X H N P
L N P O S I T I I M U

W D F L M K L P D S T

2
 Discover

4M’s of Operations mainly represent factors that influence on results of any

concern process. This was used to make product design and quality defect
prevention to identify potential factors on cause and overall effect. In manufacturing
industries this method was used to apply on production control, improvement, overall
efficiency measurement, processes, and design. Let us now describe the 4 major
domains of 4M’s of Operations in relation to business opportunity.
The 4Ms of operation in relations to business opportunity means that the
four critical domains, usually attributed to manufacturing, those are: man,
machine, material and method work together. These four critical domains are also
applicable to business opportunities since business is in essence tied to
manufacturing as well. When putting up a business, manpower is critical as well
as the other elements. The businessman must take all of those into account. Let
us look at each one in detail.

A Method is a detailed procedure for accomplishing something. It is a

systematic way of doing a particular job. Method was used in business when
developing or innovating a new products or services, expanding your
business enterprise, searching for skilled workers to include in the
workforce, and for improving the efficiency of its process. All of this activity
was documented as reference for every development of the business
including notations that identifies product or service and customer
preferences. This will result to a standard operating procedure in all
activities that the business will implement.

In analyzing this method, an entrepreneur must do these steps:

1. Identify the operation to analyzed.
2. Gather all relevant information about the operation, including tools,
materials, and procedures.
3. Talk to employees who use the operation or have used similar
operations. They may have suggestion for improving it.
4. Chart the operation, whether you are analyzing an existing operation or
a new operation.
5. Evaluate each step in the existing operation or proposed new operation.
 Does the step add value? Does it only add cost?
6. Revise the existing or new operation as needed.

ADDITIONAL INFORMATION:

Method - refers to the system and step by step process in the business.
Without a scalable process, it would be difficult to expand the business. This
means that the methods used in the main branch must be documented and
must be replicated as well in other branches. If it is difficult to implement at
another site, find what needs to be improved.

A wise selection of Manpower to join in your workforce provides strategic

solutions in promoting a sustainable competitive advantage that quickly adapts
changing demands in business and its operations. These are employees that
processes and give insights on how to reduce cost, increase productivity to
achieve a better business result. Finding an honest and capable people is
always a challenge in business. To have them work happily and satisfied, an
employer should always take good care and treasure them by providing the
right salaries and benefits as they are integral to the growth of the business.
To look for the right employee for the business operation, the following
are the kind of staff one should have:

1. Skilled
2. Well qualified and well verse in business
3. Responsible
4. Dedicated and committed to work
5. Honest and with integrity
6. Able to attain targets and set goals
7. Not indulge in wasteful expenditure
8. Loyal
9. Team player

How to maximize the staff contribution to work?

 Motivate the staff. It helps to improve their morale.
 Make sure they are comfortable in their workplace. They must be provided with
the required amenities so that their work does not appear burdensome.
 Staff should be provided with necessary benefits. They must feel that their
work is worth performing. Not only the entrepreneur should gain, but also
the employee should benefit.
  Self-respect is very essential. The employee should be treated well. He must
not be treated as a slave.
 The staff should also share in the profits if possible. Yearly bonus apart from
his or her salary is added income for him or her.
 Appreciation. Hard work and dedicated effort should be appreciated.
 Leisure time should be provided for extra-curricular activities. He or she
should also be given time to take off from work so that he or she can go on a
holiday. A change of scene refreshes the mind.
 One must listen to the woes of the employees. Understanding their
difficulties n performing the task is essential.

ADDITIONAL INFORMATION:

Manpower - this is the worker. When setting up a business, finding honest and
capable people is always a challenge. In my experience, people can be honest but
may not be capable or competent and some are capable but not honest. It is a rare
find to find someone with all the ideal qualities. So for a businessman, they must
be able to treasure their employees who are both capable and honest as they are
integral to the growth of the business

Machine plays a vital part in operating a business. Aside from manpower the
use of machinery is important nowadays to make the process of production more
effective and efficient. A machine is a mechanical structure that uses power to
apply forces and control movement to perform an intended action. It is controlled by
people or a machine itself to produce the necessary or required number of
productions needed. You may be able to use the manpower to do a particular job
but it is usually more efficient if machines are able to automate the work. The right
machine equipment can improve your processes, productivity, and capacity to
innovate. Not only will you save time and resources, but you’ll also avoid costly
quick fixes.

The following are the right equipment to purchase in starting a business:

1. Assess your business reality. It is important to understand your objectives why
you need to purchase machinery. Are you looking for increasing your
productivity? Will this equipment make you more successful in the
marketplace? Will it help you stay ahead of your competitors? Can you
upgrade instead of buying new equipment and still get better performance?
These are questions you need to ask to assess your business if you really need
machinery instead of your manpower.
2. Get an external point of view. Depending on the scale of your investment,
 it may be worth working with an external consultant who can ensure you
make the most of your purchase by helping you assess your needs. To do this,
you need to make a cost-benefit analysis, which helps you justify your
purchase and determine its advantages and disadvantages.
3. Invest in digital technologies. According to a survey conduct in 2017 by 960
Canadian manufacturers, they found out that companies who adopted
digital technologies reaped impressive rewards, including improved
productivity, lower operational costs, and better product quality. This
technological advantage may monitor a real-time production and quality
control to reduce waste and rework. It predicted maintenance to prevent
costly repairs, higher automation to save labor costs and improve
throughput.
4. Create a technology roadmap. Rather than making an isolated purchase, look
at the overall needs of your business and plan for the long term. A technology
roadmap is a planning tool that aligns your business objectives to long- and
short-term technology solutions. It helps you understand your current
technological systems, set technology development priorities and provide
timeline for the implementation of a new system. The first part of building your
roadmap is to get a clear picture of what you are already doing and mapping out
your processes
5. Shop around for suppliers. You may browse the internet to access different
website that offers specialized machinery equipment. Check out newsletters
and attend trade shows where you can get some hands-on time equipment.
Don’t let price alone guide you in your supplier decision, consider aspects such
as post- sales service and supplier’s reputation and getting references.
6. Keep training in mind. All to often, entrepreneurs don’t’ consider the time, money
and resources required to train employees on new equipment. You want to avoid the
productivity drop that occurs when employees take too much time to adapt to new
technology or processes. If the equipment is new or has new features, ensure that
employees who uses the machine will have time to be trained.
7. Think safety first. A healthy and safe work environment means your employees and
your company can be more productive, and this rule applies to your equipment and
technology purchases as well. Suppliers are responsible for selling the equipment that
can be used safely, but you are responsible for ensuring that your employees follow
safety rules.

8. Keep it green. When purchasing equipment, be sure that it’s energy efficient. Not only
to save money, but also by contributing to the health of the planet. Research the
environmental impact of your new equipment and find out how to dispose of your existing
 equipment in a way that minimizes its impact on the environment .
ADDITIONAL INFORMATION:
Machines - machinery is also important. Without the proper equipment, you
will not be able to perform the needed tasks efficiently. You may be able to
use the manpower to do it but it is usually more efficient if machines are
able to automate the work.
In manufacturing industry, companies are involved in turning raw materials
into physical products, which are then sold to consumers. One of the things that a
manufacturing company can do to achieve efficiency is to source quality raw
materials from credible suppliers. For perishable and edible products, the business
should investigate how raw materials are stored, processed, and shipped to
consumers. Do you have the materials needed to perform all parts of your
production? Are they conveniently located to minimize waste?

Once the production process is in place, an entrepreneur shifts to the daily

activities of materials management, which encompass the following activities:
Purchasing, Inventory control, and work scheduling.

Purchasing and Supplier Selection

The process of acquiring the materials and services to be used in
production is called purchasing (or procurement). For many products, the
costs of materials make up about 50 percent of total manufacturing costs.
Not surprisingly, then, materials acquisition gets a good deal of the
entrepreneur’s time and attention.
As a rule, there’s no shortage of vendors willing to supply
parts and other materials, but the trick is finding the best suppliers.
In selecting a supplier, an entrepreneur must consider such questions
as the following:
 Can the vendor supply the needed quantity of materials at a
reasonable price?

 Is the quality good?

 Is the vendor reliable (will materials be delivered on time)?

 Does the vendor have a favorable reputation?

 Is the company easy to work with?

Getting the answers to these questions and making the right choices—
a process known as supplier selection—is a key responsibility of operations
management.
E-Purchasing
Technology is changing the way businesses buy things. Through e-
purchasing (or e- procurement), companies use the Internet to interact
with suppliers. The process is similar to the one you’d use to find a consumer
good—say, a forty-two-inch LCD high-definition TV— over the Internet. You
might start by browsing the Web sites of TV manufacturers, such as Sony,
Samsung, TCL, or Skyworth. To gather comparative prices, you might go to a
comparison-shopping Web site, such as Lazada or Shopee. Once you’ve
decided where to buy your TV, you’d complete your transaction online, even
paying for it electronically.

Inventory Control
If a manufacturer runs out of the materials it needs for production,
then production stops. In the past, many companies guarded against this
possibility by keeping large inventories of materials on hand. It seemed like
the thing to do at the time, but it often introduced a new problem—wasting
money. Companies were paying for parts and other materials that they wouldn’t
use for weeks or even months, and in the meantime, they were running up
substantial storage and insurance costs.
Most manufacturers have since learned that to remain competitive, they need
to manage inventories more efficiently. This task requires that they strike a
balance between two threats to productivity: losing production time because
they’ve run out of materials and wasting money because they’re carrying too
much inventory. The process of striking this balance is called inventory control,
and companies now regularly rely on a variety of inventory-control methods.

Just-in-Time Production
One method is called just-in-time (JIT) production: the manufacturer
arranges for materials to arrive at production facilities just in time to enter
the manufacturing process. Parts and materials don’t sit unused for long
periods, and the costs of “holding” inventory are significantly cut. JIT,
however, requires considerable communication and cooperation between the
manufacturer and the supplier. The manufacturer has to know what it needs,
and when. The supplier has to commit to supplying the right materials, of the
right quality, at exactly the right time.

Material Requirements Planning

Another method, called material requirements planning (MRP), relies
on a computerized program both to calculate the quantity of materials
needed for production and to determine when they should be ordered or made.
Let’s say, for example, that you and several classmates are planning a
fund-raising dinner for the local animal shelter. First, you estimate how many
people will attend—say, fifty. Next, you plan the menu—lasagna, garlic bread,
salad, and cookies. Then, you determine what ingredients you’ll need to
make the food. Next, you have to decide when you’ll need your ingredients.
You don’t want to make everything on the afternoon of the dinner; some
things—like the lasagna and cookies—can be made ahead of time. Nor do
you want to buy all your ingredients at the same time; in particular, the salad
ingredients would go bad if purchased too far in advance. Once you’ve
made all these calculations and decisions, you work out a schedule for the
production of your dinner that indicates the order and timing of every
activity involved. With your schedule in hand, you can determine when to
buy each ingredient. Finally, you do your shopping.
Though the production process at most manufacturing companies is a lot
more complex than planning a dinner (even for fifty), an MRP system is designed
to handle similar problems. The program generates a production schedule based
on estimated output (your food-preparation timetable for fifty guests), prepares
a list of needed materials (your shopping list), and orders the materials (goes
shopping).
The basic MRP focuses on material planning, but there’s a more
sophisticated system— called manufacturing resource planning (MRP II)—
that goes beyond material planning to help monitor resources in all areas of
the company. Such a program can, for instance, coordinate the production
schedule with HR managers’ forecasts for needed labor.

Work Scheduling
As we’ve seen, manufacturers make profits by transforming inputs
(materials and other resources) into outputs (finished goods). We know, too,
that production activities, like all business activities, have to be controlled:
they have to be monitored to ensure that actual performance satisfies
planned performance. In production, the control process starts when
operations managers decide not only which goods and how many will be
produced, but when. This detailed information goes into a master
production schedule (MPS). To draw up an MPS, managers need to know
where materials are located and headed at every step in the production
process. For this purpose, they determine the routing of all materials—
that is, the workflow of each item based on the sequence of operations in
which it will be use

ADDITIONAL INFORMATION:
Materials - sourcing raw materials is critical in any business endeavor as the
businessman would want to have the cheapest possible at the highest quality.
IMPORTANT:
Running a business is a complex process and all of these elements interplay.
It is not just one machine for example but many. Manpower issues could also
arise, which would challenge the method that has been set up. It is up to the
businessman to identify and solve these issues.

Explore

ENHANCEMENT ACTIVITY 1: FILL ME UP!

Direction: Fill up the table A by filling the missing words in the table B
based on your understanding on what you have read above. Write answers
on a separate sheet of paper.

A B
.1. It is a detailed procedure for -
accomplishing something.
2. These are employees that processes -
and give insights on how to reduce cost,
increase productivity to achieve a better
business result.
3. the manufacturer arranges for -
materials to arrive at production
facilities just in time to enter
the manufacturing process.
4. The process of acquiring the -
materials and services to be used in
production.
5. Plays a vital part in operating a
business -
6. It is important nowadays to make the
process of production more effective and
efficient. -
7. Another method that relies on a
computerized program both to calculate
the quantity of materials needed for
production and to determine when they
should be ordered or made.
Assessment 1

Direction: Answer the following question. Write all answers on a separate

sheet of paper. Choose the letter of the correct answer.

1. It is extremely important in any organization to make appropriate

assignments of responsibility for the implementation of the marketing
plan. In some cases, the availability of a certain expertise may be
uncontrollable. In any event, the entrepreneur must build an effective
management team and assign the responsibilities to implement the
marketing plan.
a. Manpower
b. Method
c. Materials
d. Machine
2) A mechanical structure that uses power to apply forces and control
movement to perform an intended action.
a. Manpower
b. Method
c. Materials
d. cdMachine
3.Used to make new products
a.Manpower
b.Method
c.Materials
d.Machine
4. It is a detailed procedure for accomplishing a particular job used when
developing or innovating new product or service and expanding a business
enterprise.
a. Manpower
b. Method
c. Machine
d. Materials
5.A selection of people to join in a workforce that provides strategic solutions
in promoting a sustainable competitive advantage that quickly adapts
changing demand in business operations.
a.Manpower
 b.Method
c.Machine
d. Material

Enhancement Activity 2

Direction: Answer the following what is being asked. Write all answers in a
separate sheet of paper.

1. Based on what you have read about the 4M’s of operations.List down on
your separate sheet of paper the Steps in analyzing the METHOD.(in
order). Then choose one and explain.

2. What are the ways to look for the right employee for the business
operation, Write the following kind of staff one should have. Then choose two
ways and explain.
Assessment 2

Direction: Write the answers in a separate sheet of paper. Choose the

correct word/s from the choices inside the parenthesis to complete the
sentence in each given item.

1. In manufacturing industry, companies are involved in turning raw

(products. materials) into physical products, which are then sold to
consumers.
2. When purchasing equipment, be sure that it’s
energy (effective, efficient.)
3. (Machine,Materials) plays a vital part in operating a business.
4. A and work environment means your employees and
your company can be more productive.
5. is a key responsibility of operations management.

Enhancement Activity 3
Directions: Match Column A to Column B. Write the letter of the correct
answer in a seoarate sheet of paper,
Column A Column B
1. It is changing the way businesses buy things A. purchasing
2. The process of acquiring the materials and services B. technology
3. It is a systematic way of doing a particular job. C.manpower
4. These are employees that processes and give insights D. method
5. It is a mechanical structure that uses power E. Machine
 Deepen

Activity 1:
Direction: Form a group of 4 and conceptualize for a play or a skit. Show how a
company use the 4M’s in their business operation. The rubric will be used in
assessing your performance.

Rubrics for Scoring the Performance

CATEGORY 4 3 2 1
The role-play is The role-play is
Great job! You Your role-play is somewhat off- completely off-
on-topic, but it
offered creative topic. Pay more topic, as if your
Content is missing
new insights on attention to the group did not
some creativity
the topic! directions next even read the
and insight.
time! directions.
For the most part,
Your group
Excellent work! your
Everyone in your failed to stay in
group stayed in
Every member group stayed in character, and
character. Next
of your group character, but it looked like
time, spend more
stayed in some members you had not
Roles time
character, and it didn't seem to prepared for
preparing for how
was clear you really be "into" the how the
took your roles what they were characters characters
seriously. doing. might think or might think or
act.
act.
Your group Your group needs
Your group did obviously spent to spend more
an excellent job some time time It seems that
preparing and preparing for preparing for your group
rehearsing the role-play, but the role-play. used the
Preparation
your role-play, some Reading lines preparation
and it shows - rehearsal might from a script is a time for
everything went have helped sure sign you're something else.
very smoothly. things run more not prepared.
smoothly.
Keep working!
Don't forget that,
Good! Your
though
Excellent! Your presentation, Argh! I expect
the process is
Overall presentation was while it was fun much better
entertaining,
Impression entertaining and to watch, could work from you
you're also
informative! have been more next time.
supposed to
informative.
learn
something from
it.

NOTE: Because of New Normal Education: CONCEPTUALIZE a

business/company using the M’s of operation and form a group work using
social media access with your classmate and ,you choose your leader and
send all your part or task to the leader for compilation in one file. Make sure
that the four member will have a different task or choose one M using the
MACHINE, METHOD, MANPOWER, MATERIALS. You take a video of yourself
using the M given to you..How are these M’ performed in the business
industries. The leader will compile it in one file and send to the teacher.
Activity 2

Direction: Find the Words which are listed below.

MACHINE PRICE PROCESS

MATERIALS
QUALITY INPUT
METHOD DELIVERY OUTPUT
MANPOWER OPERATION PURCHASE
 Gauge

Multiple Choice
Direction: Read carefully each item. Use separate sheet for your answers.
Write only the letter of the best answer for each item.

1. Itis critical in any business endeavor as the businessman would

want to have the cheapest possible at the highest quality.
a. Materials b. Machine c. Manpower
2. It is a systematic way of doing a particular job
a. Methods b. Machine c. Manpower
3. It is about delivering products and services to customers to meet or
surpass the expectations
a. Operation Management b. Quality expectations c. Delivery
expectations
4. They are called the worker.
a. Materials b. Machine c. Manpower
5. It is the cost or the amount at which something is valued and also
defined as to put a cost on something, or find out a cost.
a. Price b. Delivery c. Quality
6. It is the transformation process where input is converted into output
a. Input b.Process c. Output
7. It refers to the system and step by step process in the business
a. Machine b. Manpower c. Method
8. It is controlled by people or a machine itself to produce the necessary
or required number of productions needed.
a. Materials b. Machine c. Manpower
9. It is a key responsibility of operations management.
a. Services Required b. Supplier Selection c. Products
Selection
10. The expectations are captured in the discussions with the customer
and then refined for inclusion in the project product description.

a. Quality Expectation b. Price Expectation c. Delivery

expectation
I. True or False
Direction: On your answer sheet, write T if the statement is true, and
F if otherwise.
11. All operations managers must therefore, begin with the customer’s
wants and desires in mind
12. Manpower was used in business when developing or innovating a
new products or services, expanding your business enterprise,
searching for skilled workers to include in the workforce, and for
improving the efficiency of its process.
13. Manpower is controlled by people or a machine itself to produce
the necessary or required number of productions needed
14 Material Requirements Planning is the manufacturer arranges for
materials to arrive at production facilities just in time to enter the
manufacturing process.
15. The methods used in the main branch must be documented and
must be replicated as well in other branches. If it is difficult to
implement at another site, find what needs to be improved.

II. Enumeration
Direction: Enumerate the following in your answer sheet.
16-24= Give the kind of staff to look for the right employee for the
business operation
25-27= Classification of outcome expectation.
28-30= What comprises the EDS?
References:

Printed Materials

Morato, Eduardo A Jr. (2016). Entrepreneurship (pp 137-138). Manila,

Philippines: Rex Bookstore, Inc.

Venzon, W. (2020). Entrepreneurship. Lesson 4. Demonstrate understanding of

the 4M’s of Operation (pp. 79-87).

Website:

Bao, L. (2019, Augist 8). Introduction about 4MS. Retrieved from

file:///C:/Users/ASUS/Documents/Introduction%20about%204Ms

20