Senior High School

Entrepreneurship
Module 7:

AIRs - LM
LU_ Entrepreneurship_Module 7
 4M’s of Operation

LU_ Entrepreneurship_Module 7
 ENTREPRENEURSHIP
Module 7: 4M’s of Operations
Second Edition, 2021

Copyright © 2021
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 C. Martinez

Editor: SDO La Union, Learning Resource Quality Assurance Team
Content Reviewer: Kay Owen L. Boado
Language Reviewer: Jimena Veronica T. Nieva
Illustrator: Ernesto F. Ramos, Jr., P II
Design and Layout: Angela Pauline C. Ganuelas & Hasmin R. Omaoeng

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 Entrepreneurship
Michael Jason D. Morales, PDO II
Claire P. Toluyen, Librarian II

Printed in the Philippines by: _________________________

Department of Education – SDO La Union

Office Address: Flores St. Catbangen, San Fernando City, La Union
Telefax: 072 – 205 – 0046
Email Address: [email protected]

LU_ Entrepreneurship_Module 7
 Senior High School

Entrepreneurship

Module 7:
4M’s of Operation

Introductory Message
This Self-Learning Module (SLM) is prepared so that you, our dear
learners, can continue your studies and learn while at home. Activities,

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 questions, directions, exercises, and discussions are carefully stated for you
to understand each lesson.

Each SLM is composed of different parts. Each part shall guide you
step-by-step as you discover and understand the lesson prepared for you.

Pre-tests are provided to measure your prior knowledge on lessons in

each SLM. This will tell you if you need to proceed on completing this module
or if you need to ask your facilitator or your teacher’s assistance for better
understanding of the lesson. At the end of each module, you need to answer
the post-test to self-check your learning. Answer keys are provided for each
activity and test. We trust that you will be honest in using these.

In addition to the material in the main text, Notes to the Teacher are
also provided to our facilitators and parents for strategies and reminders on
how they can best help you on your home-based learning.

Please use this module with care. Do not put unnecessary marks on
any part of this SLM. Use a separate sheet of paper in answering the exercises
and tests. And read the instructions carefully before performing each task.

If you have any questions in using this SLM or any difficulty in

answering the tasks in this module, do not hesitate to consult your teacher or
facilitator.

Thank you.

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 Target

4M’s of Operation

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

concern process. 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.

Models 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’s material will provide you with information and activities that will
help you more understand about operating a business.

MOST ESSENTIAL LEARNING COMPETENCY:

1. Demonstrate understanding of the 4M’s of operation in the environment and
market in one’s locality/town. (TLE_ICTAN11/12EM-Ia-2) After going through
this learner material, you are expected to:
1. Determine the 4M’s of Operations.
2. Illustrate and explain the 4M’s especially with examples.

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 Jumpstart

For you to comprehend the module well, do the accompanying

exercises. Have a great time and good luck!

3. Show or prove the value or efficiency of each M’s in a business operation.

Activity 1

Direction: Choose your answer from the given choices. Write the correct 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 D. Quantity Expectations
2. What do you call the cost or the amount at which something is valued?
A. Quality B. Delivery
C. Price D. Operation
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 D. Operations
4. What do you call the statement about the quality expected from the project
product?
A. Delivery expectations B. Price expectations
C. Quality expectations D. Quantity expectations
5. Which is called the resources mobilized in the enterprise delivery system?
A. Output B. Input
C. Throughput D. Quality
6. Which of the 4m’s is called the input?

A. Materials B. Methods
C. Manpower D. Machine
7. Which is called the final result from the model presented?
A. Output B. Input
C. Manpower D. Machine
8. Which of the choices is NOT included in the 4M’s of operations?
A. Manpower B. Money
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 C. Method C. Materials

9. Which from the 4M’s is the process part from the model presented?
A. Manpower B. Machine
C. Method D. Materials
10. What do you think from the 4M’s of operation is very functional that without this
M everything will not function?
A. Manpower B. Machine
C. Method D. Materials

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 Discover

The 4M’s of Operations mainly represent factors that influence the results
of any concern process. This was used to make product design and quality defect
prevention and 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.
The 4M’s 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.
The 4M’s of operation is an important part of the business plan because it
simply states the details in operating the business.
It can be defined as a plan prepared by a component of an organization that
clearly defines actions it will take to support the strategic objectives and plans of
upper management. However, to fully understand operational plans, we should first
look at the overall planning process within a business.

Let us now describe the 4 major domains of 4M’s of Operations in relation to

business opportunity.

1.) 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.

- 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.

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

1. Identify the operation to analyze.

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.

2.) 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.
Manpower - these are employees that processes and give insights on how to reduce
cost, increase productivity to achieve a better business result.
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
To look for the right employee for the business operation, the following are
the kind of staff one should have:
1. Skilled 6. Able to attain targets and set
2. Well qualified and well verse in goals
business 7. Not indulge in wasteful
3. Responsible expenditure
4. Dedicated and committed to 8. Loyal
work 9. Team player
5. Honest and with integrity

How to maximize the staff contribution to work?

• Motivate the staff.
• Make sure they are comfortable in their workplace.

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 • Staff should be provided with necessary benefits.
• Self-respect is very essential.
• The staff should also share in the profits if possible.
• Appreciation
• Leisure time should be provided for extra-curricular activities.
• One must listen to the woes of the employees.
3.) 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.
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
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
3. Invest in digital technologies. This technological advantage may monitor a
realtime production and quality control to reduce waste and rework.
4. Create a technology roadmap. A technology roadmap is a planning tool that
aligns your business objectives to long- and short-term technology solutions.
5. Shop around for suppliers. You may browse the internet to access different
website that offers specialized machinery equipment.
6. Keep training in mind. All too often, entrepreneurs don’t consider the time,
money and resources required to train employees on new equipment
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.
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.
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4. MATERIALS - 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.

Materials - sourcing raw materials is critical in any business endeavor as the

businessman would want to have the cheapest possible at the highest quality.

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

activities of materials management, which encompass the following activities:

A. Purchasing
B. Inventory control
C. Work scheduling

A. PURCHASING AND SUPPLIER SELECTION

➢ The process of acquiring the materials and services to be used in production is
called purchasing (or procurement).

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 the following questions:

• 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

epurchasing (or e-procurement), companies use the Internet to interact with
suppliers.

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 B. INVENTORY - 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. Most manufacturers have since learned that to
remain competitive, they need to manage inventories more efficiently.
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.

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

C. WORK SCHEDULING - manufacturers make profits by transforming inputs

(materials and other resources) into outputs (finished goods).

READ ME! IMPORTANT:

Running a business is a complex process and all of these element 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.

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 Explore

ENHANCEMENT ACTIVITY: FILL ME UP!

Direction: Fill up the table by filling the missing words in the table B based on
your understanding on what you have read in the column A. 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.
8. A mechanical structure that uses power to apply
forces and control movement to perform an
intended action.
9. Used to make new products.
10. It is a detailed procedure for accomplishing a
particular job used when developing or
innovating new product or service and
expanding a business enterprise.

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 Deepen

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 following rubric will be used
in assessing your performance.
Rubrics for Scoring the Performance

CATEGORY 4 3 2 1

Great job! You Your role-play is The role-play is

The role-play is
offered creative on-topic, but it is somewhat off- topic.
completely off-
new insights on the missing Pay more attention
some creativity and topic, as if your
topic! to the directions
insight. group did not even
next time!
read the
Content directions.

For the most part, Your group failed

Excellent work! Everyone in your
your group stayed in to stay in
Every member of group stayed in character. Next
your group stayed character, but some time, spend more character, and it
in members looked like you
time preparing for had not
character, and it didn't seem to how the prepared for how
was clear you took really be "into” characters might the characters
your roles what they were think or act. might think or
seriously. doing.
Roles act.

Your group did an Your group Your group needs to It seems that your
excellent job obviously spent spend more time group used the
preparing and some time preparing for the preparation time
rehearsing your role- preparing for the role-play. for something
play, and it shows - role-play, but some Reading lines from a else.
everything went very rehearsal might have script is a sure sign
smoothly. helped things you're not prepared.
run more
Preparation smoothly.

Excellent! Your Good! Your Argh! I expect

presentation was presentation, much better
Keep working! Don't
entertaining and while it was fun work from you
forget that, though
informative! to watch, could have next time.
the process is
been more entertaining, you're
informative. also
Overall supposed to learn
Impression 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 members will have a different task or
choose one M using the MACHINE, METHOD, MANPOWER, MATERIALS. You take a

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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.

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 For inquiries or feedback, please write or call:

Department of Education – SDO La Union

Curriculum Implementation Division
Learning Resource Management Section
Flores St. Catbangen, San Fernando City La Union 2500
Telephone: (072) 607 - 8127
Telefax: (072 ) 205 - 0046
Email Address:
[email protected]
[email protected]

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