MODULE 6

MODULE
6

4 M’s of Production

BUSINESS MODEL
 6 4 M’s of Production
BUSINESS MOD
What I Need to In developing a business plan we also have to
Know consider the importance of the 4M’s of operations
in all business opportunities. Because it helps you
to identify the problems of the business in the
future and in actual situation especially in the
production process and marketing. In application
of your 4M’s of production, it is best to consider
the customer’s point of view in terms of their
influences as to why they will buy a particular
product, does your product aim to answer each
consumer’s wants or needs and meet up with their
expectations over the product, and how do
suppliers, value chain and supply chain affects the
business and production.
 6 4 M’s of Production
BUSINESS MOD

What I Know Before we start with this lesson, answer the

following questions.

Directions: Write True if the statement is correct,

otherwise write False if the statement is incorrect
on a ¼ sheet of paper.
6
 This module will guide you to demonstrate
understanding of the 4M’s of operations and
for you to be able to:

Describe the
Develop a Create a Test the
4M’s of prototype product
operations in product
relation to theD description of the prototype
business product
opportunity
 In your previous lesson, you learned about the 7P’s of
What’s Marketing Mix; Product, Place, Price, Promotion, People,
Packaging and Positioning in relation to business
In opportunity, wherein marketing is about creating and
accumulating customers. Marketing plans are intended to
capture a market portion and to setback competitors.
Brand name was also introduced, where it is a name,
symbol, or other feature that distinguishes a seller’s goods or
services in the marketplace. Your brand is one of the greatest
assets because your brand is your customers’ over-all
experience of your business. Experts believed that a good
brand can result in better loyalty for its customers, a better
corporate image and a more relevant identity.
 GUESS THE PICTURE
Direction: Given with the following pictures, fill in the following
blanks below to form a meaningful word. Two ((2)) points for
each correct word.

WHAT’S
NEW

M_ _P_ W_R
 GUESS THE PICTURE
Direction: Given with the following pictures, fill in the following
blanks below to form a meaningful word. Two (2) points for
each correct word.

WHAT’S
NEW

M_ _H_ N_S
 GUESS THE PICTURE
Direction: Given with the following pictures, fill in the following
blanks below to form a meaningful word. Two ((2)) points for
each correct word.

WHAT’S
NEW

M_ T_ _ I_ _S
 GUESS THE PICTURE
Direction: Given with the following pictures, fill in the following
blanks below to form a meaningful word. Two (2) points for
each correct word.

WHAT’S
NEW

M_ _H_ _S
 The three important elements in the production system
are the input, the transformation of production process
and the output.

are

Product
Input Process Output
Output is the final product that is ready to
distribute to our customer.
 METHOD MATERIALS OUTPUT

MANPOWER

MACHINE
 - Talks about human labor force involved in the
manufacture of products.
- - It is measured as the most serious and main
factor of production. The entrepreneur must
determine, attain and match the most
competent and skilled employees with the jobs
MANPOWER at the most appropriate time period.
- - 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.
 - - Talks about raw materials necessary in the
production of a product. Materials mainly form
part of the finished product. Just in case the
MATERIALS 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.
 - - Discusses about manufacturing equipment
used in the production of goods or delivery of
services.
- - 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,
MACHINE availability of spare parts in the local market,
efficiency of the equipment and the skills
required in running the equipment.
 - 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
METHOD
delivery to the target buyers.
- The selection of the method of production is
dependent on product to produce, mode of
production, manufacturing equipment to use
and required skills to do the work
1
 PRODUCTION DESCRIPTION
- Is the promotion that explains what a
product is and why it’s worth buying? The
purpose of a product description is to provide 1
customers with details around the features
2 and benefits of the product so they’re obliged
to buy.
- - Know who your target market is, focus on
the product benefits, tell the full story, use
natural language and tone, use power words
that sell, and use good images. These are
guidelines for you to have a good product
description; since some customers are very
particular with it since they consider the
welfare of their family, if it is safe to use.
 PROTOTYPING
A duplication of a product as it will be produced,
which may contain such details as color, graphics,
1 packaging and directions.

It is better to test your product prototype to meet 2

customers’ needs and expectations; and for your
product to be known and saleable. Pretesting of the
product or service is similar to a sample of the product
or service given to the consumer free of cost in order
that he/she may try the product before committing to
a purchase.
 SUPPLIERS
• An entity that offers goods and
services to another business. This
entity is among of supply chain of
a business, which may offer the
main part of the value contained
within its products. Certain
suppliers may even involve in drop
shipping, where they ship goods
directly to the customers of the
buyer.
 SUPPLIERS
• They are your business partners. without
them your business will not live. You need
them as much as you need your customers
to be satisfied. But as an entrepreneur you
have to choose a potential supplier that has
loyalty and value your partnership; a
supplier that would lead you to the
fulfillment of your business objectives,
mission and vision.
 VALUE CHAIN
• is a method or activities by which a
company adds value to an item, with
production, marketing, and the
provision of after-sales service. The
main goal and benefit of a value chain,
and therefore value chain analysis, is to
make or support a competitive benefit.
SUPPLY CHAIN
• A supply chain is a structure of
organizations, people, activities, data, and
resources involved in moving a product or
service from supplier to customer.
• The main objective of supply chain management
includes management of a varied range of
components and procedures, for instance, storing
of raw materials, handling the inventory,
warehousing, and movement of finished product
from the point of processing to the point of
consumption
 Business model describes the reasons of how an organization creates,
delivers, and captures value in economic, social, cultural or other
contexts. The development of business model construction and
variation is also called business model innovation and forms a part of
business plan.
 It is a company's plan for how it will make revenues and
make a profit. It describes what products or services the
business plans to manufacture and market, and how it plans to
do so, as well as what expenses it will incur.

There are important phases in developing your business

model, namely; Identifying the specific audience; establishing
business process; recording a business resources; developing
strong value proposition; determining key business partners;
and creating a demand for today’s generation strategy and be
open for innovations.
• After developing a business model, we will proceed in developing a
business plan. To be able to successfully complete this module, you
need to prepare a business plan and operate your plan and finally
keep records of your business transactions.

• Business plan is an important tool for you to have an idea about the
future of your business. Your business plan will be your guide in the
moment you will be implementing and operating your business
proposal.

• You can also make use of the business plan in securing investment
capital from financial institutions or lenders. It can also be used to
influence people to work for your enterprise, to secure credit from
suppliers, and to fascinate potential customers.
 Read the stories of Jessie, Mercy and Monna below to fully understand
the importance of having a business plan:
“Jessie is the eldest of five children of Mr. & Mrs. Natividad. The
family is having difficulty to support for their everyday needs. Because
of this, Jessie tried to enter selling banana cue and with his dream to
make his business grow, he put up many stalls in the community
without considering the advises of his friends to make a business plan
before implementing his decision. After a few months his stalls
shutdown.”
“Mercy is the youngest in the family. She found out that she loves to cut hair and apply make up to her
friends. Until such time that her friends introduced her to their friends too for haircut and make up
when there are occasions. Few months after, Mercy was told by her friends to put up a beauty parlor in
their place. So she asks her mother who is also a businesswoman to teach her how to make a business
plan and eventually ended with a successful business.”

“Monna is a diligent student. Because of her knowledge gained from school about business plan she was
able to enhance her skills in business and finally found herself into his laundry shop business.”
Each scenario taught us that business is not just about how much
income or profit you can get but it’s about the life of your business.
And in having a business, you also have to consider technological
forces, Social forces, Political forces, Cultural forces, Economic forces
and Legal forces
 The following are the components found in a Business Plan.

ON

ON

AL
 The following are the components found in a Business Plan.

INTRODUCTION

ON

ON
• this part discusses what is
N
the business plan all about.

L
 The following are the components found in a Business Plan.

EXECUTIVE SUMMARY

ON • is part of the business plan

ON which is the first to be
N presented but the last to be
made.

L
 The following are the components found in a Business Plan.

MANAGEMENT SECTION • shows how you will manage

ON your business and the people
N you need to help you in your
operations

L
 The following are the components found in a Business Plan.

ON • shows the design of your

MARKETING SECTION product/service; pricing,
N where you will sell and how
you will introduce your
product/service to your
market.
L
 The following are the components found in a Business Plan.

ON • shows the money needed for

ON the business, how much you
FINANCIAL SECTION will take in and how much you
will pay out.

L
 The following are the components found in a Business Plan.

ON • shows the area, equipment and

ON materials needed for the
N business.
PRODUCTION
SECTION

AL
 The following are the components found in a Business Plan.

ON • is the strategy where you

ON identify major competitors and
N research their products, sales
and marketing strategies.
COMPETATIVE
ANALYSIS

L
 The following are the components found in a Business Plan.

ON • The persons who will buy the

ON product or services
N

MARKET

L
 The following are the components found in a Business Plan.

ON • is the diagram showing

ON graphically the relation of one
N official to another, or others of
a company.

ORGANIZARIONAL
CHART
Each scenario taught us that business is not just about how much
income or profit you can get but it’s about the life of your business.
And in having a business, you also have to consider technological
forces, Social forces, Political forces, Cultural forces, Economic forces
and Legal forces

Thank you