For SHS LEARNERS

ENTREPRENEURSHIP
Second Quarter Week 1

MELC: DEMONSTRATE UNDERSTANDING OF THE 4Ms OF

OPERATIONS (TLE_ICTAN11/12EM-Ia-2)

Objectives: At the end of the lesson the students are expected to:
1. Identify the 4Ms of operation,
2. Describe the 4Ms (Method, Manpower, Machine and Materials) of
Operations;
3. Classify the 4Ms of operation; and
4. Value the Importance of 4Ms of Operations

Written by:

MARIVIC D. REQUINA
Kabasalan National high school

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 Day 1

I. Mini Lesson
Good day! Welcome to our first day of learning in Entrepreneurship. Today, you
are going to identify the 4Ms of Operation in relation to business opportunity. Let’s
tackle first the first and second M which is the Method and the Manpower.

The 4Ms of Operation

The Operation plan is an important part of the business. It simply states the
details on operating the business. Operations management, on the other hand,
controls the implementation of the business plan. A strong operations plan should
have the four operational aspects: The Methods, Manpower, Machine and Materials.
Method
Methods refer to 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). Hence, the entrepreneur must set standard operating procedures.

A. Manufacturing of Goods (Schaper and Volery, 2004)

- the process of translating raw materials into finished goods that are acceptable
to the customer’s standard.
3 Elements of Manufacturing
1. Inputs – the materials or ingredients to be used in creating the product.
2. Process – the transformation phase where inputs are processed by
manpower and machines to come up with the final product.
3. Output – the final product of the process stage, which is intended to be sold
to target customers.
B. Manufacturing Site – the manufacturing process will take place.
➢ Home-based- this option is the cheapest and highly flexible. Most start-ups
do not have the capacity to establish a manufacturing site.
➢ 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.
➢ 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.

Once the entrepreneur has chosen manufacturing site, he or she should

consider location, where the delivery of raw materials and finished goods will be
conducted.
The internal layout or the floor plan of the manufacturing site must also be
critically done by the entrepreneur because it affects the efficiency of the business
operation

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There are two options for the floor plan:
1. The Product-based layout – where the facilities are prearranged
according to the flow of the manufacturing operations.
2. The Process-based layout – where the facilities are grouped according to
their function.

The entrepreneur’s ultimate objective for all the operational processes is to

ensure that maximum efficiency is met from the requisition of materials to processing
them into finished goods up to the distribution to the customers.

C. Service Delivery Process

The entrepreneur who will engage in a service business must be more
meticulous when it comes to the service delivery process
❖ Service entrepreneurs must prepare a detailed flowchart of the service
business which is also called a service blueprint.
❖ The service bottlenecks must be addressed immediately to avoid customer
complains. Bottleneck is a part of the process where there is an apparent
inefficiency and where the customer waits longer.

D. Distribution method

Distribution method is one of the basic processes to be considered

thoroughly. This is the process of bringing the products or services to customers. In
selling physical goods, the entrepreneur may also buy the finished goods from the
manufacturers to the customers. Distribution is not a straight process from the
entrepreneur to customers.
Each member in the supply chain will have a fair profit. The manufacturer
handles the invention, development, and production of the product or service.
Distributors are entrepreneurs who often buy products or services to the
manufacturers and sell them at a markup price to either wholesalers or retailers.
Agents on the other hand, don’t own the products or services because they do not
buy theses from the manufacturer. Instead, they negotiate with buyers as to how
much how many are to be sold, so the manufacturer will be able to deliver the goods
directly to the buyer.

E. Payment process

The entrepreneur must also establish a seamless payment process.

Generally, there are no problems if the customers pay in cash. but there are
instances when they 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 a
simple account payable or “pautang”.

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 Manpower
At the beginning of the entrepreneur’s business, he or she usually maximizes
himself or herself, his or her partner, or his or her family members to handle all the
aspects of the business, but as it grows, the entrepreneur will need the expertise of
qualified employees that can handle operational functions, so that he or she will be
free from daily activities and can thus focus on the strategic and management
functions of the business. The entrepreneur needs to plot a table of organization
based on his business objectives. The entrepreneur must be very keen in selecting
and hiring an employee. He or she must ensure that due diligence is performed to
check the background of the applicant. Manpower is one of the highest costs of
operating a business but is also the most instrumental to its success. Having the
right people encompasses a myriad of advantages.
✓ Job Description
Enumerates the duties and responsibilities of the potential employee, including
the scope, limitation and terms and conditions of employment. The heading of a
job description is the job title, which is the summary of what the employee will do.
The entrepreneur should devise a respectable and decent job title because the title
boosts the self-confidence of the employee.
✓ Employee Qualification
In hiring suitable employees for the job needed, entrepreneurs will have to look
for the following criteria:
1. Educational background – this gives the entrepreneur an idea on the
degree of the candidate’s knowledge of basic things. However, it is not the
sole factor in selecting a candidate.
2. Work experience – this will tell him or her what to expect from the applicant
and what he or she can potentially contribute to the business based on his or
her past positions and experiences. This will also establish the training needs
of the candidate.
3. Specific skill or knowledge – this one is important especially on technical
jobs that require high proficiency. It will be easy for entrepreneurs to place
highly skilled people into specialized jobs because they can help right away.
4. Work attitude – this deal with the worker’s integrity and how he or she deals
with his or her coworkers, bosses, and customers. Entrepreneurs also need
people with relationship skills because communication is important in
applying their expertise.
✓ Preparatory Selection of job Applicants
Once the job description and employee qualifications are finalized by the
entrepreneur, he or she now preselects a set of candidates for the positions
required. When the business is already sizeable, entrepreneurs usually establish a
human resource(HR) department that will handle the selection and recruitment of
candidates.
✓ Selection of Job Applicants

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 Once the potential candidates are pooled, the entrepreneur must now do the
difficult task of screening them and picking the most qualified and most suited for
the job. Preliminary screening can easily be done because the entrepreneur will
just need to refer to the required qualifications and eliminate those who did not
qualify. The entrepreneur or the HR department can now conduct a series of
interviews for the shortlisted candidates with the objective of getting the most
qualified candidate for the job.
These are the some common questions being asked in an interview.
1. What are your strengths that you can contribute to our organization?
2. What are your weaknesses that can prevent you from working effectively in
our organization?
3. What exactly did your significant milestone in your previous job/s? how will
these past experiences contribute to our organization?
4. What are your career plans for the next five years if given the chance to work
with our organization?
5. Can you describe your work ethic? How do you work with a team and with
your superior?
Depending on the business requirements, the entrepreneur or the HR
personnel will ask more specific questions related to traveling out of town or
overseas, working at night or at odd hours, working on holidays and weekends,
willingness to do other functions and so on.
✓ Job offer
Once the entrepreneur or the hiring manager has been convinced already of the
credentials and the interview answers of the candidate, the job contract is now
prepared, a job contract generally summarizes the terms and conditions of the
candidates employment with the business. It include the following details;
❖ Rank or position
❖ List of responsibilities or deliverables and its scope and limitation
❖ The salary and benefits
❖ Work schedule
❖ Probationary period if any
❖ The duration of the contract
❖ Resignation procedure
✓ Employee Development
Training people is one of the biggest investments of an entrepreneur or a
businessman. Therefore, he or she must devise strategies on how to keep
employees satisfied working in the company. Training starts with employee
orientation – it is usually a one-to-two-day session that summarizes the history of
the business.
For startup entrepreneurs whose budget are really tight, they usually conduct on-
the-job training (OJT) as the most practical tool in training the employee under a
supervision of a team leader or manager. Other practical options that the

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 entrepreneur can use as training tools are the buddy system and mentor-mentee
training programs.
❖ Buddy system – is a training program wherein an expert team member is
assigned to assist a new employee in his or her function.
❖ Mentor-mentee program – on the hand, is a training program for
supervisors, wherein they will be mentored by a senior executive or senior
officer of the business.

Day 2

I. Mini Lesson

Machine
Most business would not be able to operate without the aid of machines.
Machines can be described as the “best friend” of manpower in producing goods
and offering services. They go hand in hand. Sometimes, machines can even
replace employees. Machines have become one of the 4Ms because they are very
important aspect of goods and service production.
✓ Equipment and other Facilities
Depending on the product that the entrepreneur produces or the service that
he or she offers. The facilities must be strategically placed in the manufacturing site
or in the service delivery area.
The sizes and shape of the facilities and equipment affect the entire
operations process, so the site must adapt to how big or small the pieces of
equipment are. The site must also be conducive, well-ventilated, and well-lit, so that
the employees can manage the machines efficiently.
✓ Telecommunications and information technology
Regardless of any business the entrepreneur will venture into,
telecommunications and information technology equipment are mandatory. These
pieces of equipment include mobile phones or smartphones, tablet computers,
phablets (phone and tablet in one) landline phones, laptops or desktop computers.
Here are the advantages of having telecommunications and information technology
equipment in a business.
➢ Landline phones – for order taking, telemarketing and teleconferencing with
business partners and customers
➢ Mobile phones – smartphones, tablet computers phabets- for payments,
mobile marketing, mobile banking and internet promotions
➢ Laptop and desktop computers – order-taking, internet marketing, making
conference calls with business partners and customers, marketing research,
and online banking.
➢ POS machine – charging customers’ debit or credit card, tracking sales,
storing data, analyzing purchases
➢ Accounting and inventory software – accounting all business transactions
and profitability, monitoring sales and inventory

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 ➢ Web site – order-taking, 24/7 marketing, having online conversations with
customers, tracking customer activities online, collecting customer
information.
The responsibility of the entrepreneur is to protect these pieces of equipment
physically and against fraudsters who will be using the information to malign or steal
from the business. These machines carry confidential information. Therefore, they
should be protected with strong passwords and used only by authorized employees.
On the information technology side, the entrepreneur must appoint two or
more reliable information technology experts whom they can call whenever there
are issues encountered in the software and computers

Materials
Whether the entrepreneur will offer products or cater services, he or she has to
pinpoint a number of dependable suppliers of quality raw materials and supplies.
The supplier must have a consistent and sufficient amount of raw materials and
supplies that can accommodate the demand of the entrepreneur. In short, the
selection of supplies depends largely on how the demand of the suppliers will not
cause interruptions in the production of goods or serving the customers.
The entrepreneur should decide on what route to choose when it comes to
materials requisitioning. Options include the following ;
1. manufacturing own products or offer services – a huge chunk of capital must
be prepared because all the expenses in manpower, machines and materials
will be borne by the entrepreneur.
2. Outsourcing – is the process of appointing a third-party manufacturer to do
the manufacturing operations of the business. These third-party companies
already have an expertise in handling and manufacturing these products,
supplies or inventories and because they manufacture, they produce goods
in bulk.
It provides the entrepreneur a chance to provide the operation details to the
third party. No changes in the brand name and identify will be implemented because
the entrepreneur still holds the rights to such. Outsourcing saves the entrepreneur
from buying expensive machines, renting locations or hiring manpower as the
operational aspect of the business will be transferred to the third party.
The entrepreneur, therefore, must protect its product through a trademark or
a patent and a noncompeting agreement or nondisclosure agreement.
➢ A patent is the right to protect the entrepreneur regarding the product or
service.
➢ A trademark – on the other hand, is a sign or symbol that t helps
distinguishing the product from others.
✓ Logistic
Entrepreneurs/manufacturers can also venture into distributing their products
on their own without the aid of a distributor or agent. This is where the entrepreneur

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 must understand and implement efficient logistics management. As discussed
earlier, the entrepreneur/manufacturer is responsible for manufacturing,
warehousing, transportation, inventory management, marketing and selling the
product or service.
➢ Warehousing – is storing the finished goods manufactured in a facility until
they are distributed to end users.
➢ Transportation – will also be a major cost in logistics management. It is the
process of efficiently transferring the products to retailers or consumers.
➢ Inventory – should also be tracked religiously by the
entrepreneur/manufacturer. Each of the inventories in the warehouse,
distribution hubs, and manufacturing sites should be monitored. The law of
supply and demand must always be taken into account. There shouldn’t be
a surplus of inventory especially if the entrepreneur is selling perishable
goods.

Day 3
FACILITATING ACTIVITIES
ACTIVITY #1 MATCH ME!
DIRECTIONS: Match the following operation in Column A with their definition
In column B. Write the letter of the correct answer before each number.
A B
___1. Manpower a. It basically involves the people who
make the workforce in an organization.
___2. Material
___3. Machine b. A best friend of manpower in producing
goods and offering services.
___4. Method
c. resources used by a company to produce
its finished goods and products

d. The series of activities undertaken to create a

product or deliver a service.
e. the practice of making one's living by
engaging in commerce.
Activity #2: Classifies these Matters!

DIRECTIONS: Classify the Words in the box as either method, manpower,

machine or material. Write your answer in the table given below

Job description manufacturing goods educational background work

attitude

Logistic manufacturing site services offered

outsourcing

Distribution method landline phones equipment

computer
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 4Ms OF OPERATION
METHOD MANPOWER MACHINE MATERIAL

Independent Activities

Activity #1: Know Me! (Mind Map)

Directions: Fill in the graphic organizer below. Write the 4Ms of operation.

4Ms of
Operation

ACTIVITY #2: Put Me in Place!

Directions: Arrange in sequence the three elements in manufacturing goods.

ELEMENTS

1.

2.

3.

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Activity # 3: Describe Me!
Directions: Describe briefly the Following 4Ms Operations in your own
understanding. Write your answer on the box.

METHOD

MAN-
4Ms POWER

OF
OPERA
-TION MACHINE

MATERIAL

Day 4
Evaluation:
Directions: Read the statement carefully. Choose the letter of the best answer.
Write your answer in the blank provided before each number.

1. Which of the choices below is NOT included in the 4Ms of operation?

a. Material b. Manpower c. Money d. Method

2. Which among the 4Ms of operation is the process to be followed in effective

manufacturing or delivering a product or service?
a. Material b. Method c. Manpower d. Machine

3. Which of the following does NOT belong to the three elements of

Manufacturing?
a. Process b. Output c. Structure d. Input
4. Which refer to the manufacturing process that gives the entrepreneur a more
specialized and suited manufacturing site than manufacturing at home?
a. Commercial space purchase b. Commercial space for rent
c. Product base layout d. Home-based

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 5. Which is considered as the “best friend” of manpower in effectively producing
goods and offering services?
a. Machine b. Material c. Method d. Manpower
6. Which among the manpower operational function enumerates the duties and
responsibilities of the potential employee, including the scope, limitation and
terms and conditions of employment?
a. Job offer b. Job description
c. Employee qualification d. Selection of job applicants
7. How will the entrepreneur protect its product?
a. through its packaging b. through its symbol
c. through its trademark d. through its content
8. Which among logistic management process efficiently in transferring the
product to retailers and consumers?
a. manufacturing b. Transportation
c. Warehousing d. Inventory
9. Which of the following option below is NOT included in the criteria of selecting
a suitable employee?
a. Family background b. Special skill
c. Educational background d. Work experience
10. Which refers to the workforce, whom will help a business to produce more
products?
a. a. Material b. Machine c. Manpower d. Method

Reflection:

1. How important is 4Ms in business operations?

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Reference:

Batisan, R. Diwa Senior High School Entrepreneurship. Vol. P. 82-97, 2016.

Quality Assured/Evaluated by the Following:

Lhorelle L. Cabalida, EdD
Peter S. Bathan Jr.

Estrelita Ampo-Peña, EdD

Education Program Supervisor
Kindergarten & Senior HS Division Coordinator

Reviewed By:

Evelyn F. Importante Aurelio A. Santisas Jerry C. Bokingkito

OIC- CID Chief EPS OIC- Assistant SDS OIC- Assistant SDS

Dr. Jeanelyn A. Aleman, CESE

OIC-Schools Division Superintendent

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