ENTREPRENEURSHIP

First Quarter
SY 2020 - 2021

4 M’s of Operations - Methods

1
The 4Ms of
Operations
The operations plan is an
important part of the business
plan because it simply states
the details in operating the
business.
2
 Methods
4Ms of Operations

> A strong Manpower

operations plan
should have the
Machines
four operational
aspects – called
the 4Ms of Materials
operations

3
 1. Methods
> Represent the day-to-day operations of a
business
> It describes how an entrepreneur will run the
business from all facets of the business
> The processes must also abide with industry
standards and policies where the business
belongs
> Standard Operating Procedures (SOPs) must
also be set

4
 Manufacturing of Goods

> Manufacturing is the process of translating raw

materials into finished goods that are acceptable to
the customer’s standards.

5
 Elements of Manufacturing

• The materials or Process • The final product of

ingredients to be used the process stage,
in creating the product • The transformation phase
where inputs are processed by which is intended to
manpower and machines to be sold to target
come up with the final product
customers

Inputs Output

6
 Manufacturing Site

> The entrepreneur > Possible

must consider the manufacturing
most efficient sites:
manufacturing site - Home-based
in which the - Commercial
manufacturing space for rent
process will take - Commercial
place. space purchase

7
 Location
> Once the > Considerations:
entrepreneur has - Transportation
chosen a routes
manufacturing site, he
- Accessibility
or she should
- Environmental
consider location
where the delivery of considerations
raw materials and
finished goods will be
conducted.

8
 Floor Plan
> Should be critically done because it affects the
efficiency of the business operation
> Each space should be maximized to save on
manufacturing costs

9
 Manufacturing Process Flow
> Serves as a step-by-step guide of the
employees and the manufacturing equipment
> The objective of the process flow is to ensure
the right inputs are properly used in
production, that the process is performed
according to the set standards, and that
acceptable outputs are produced.

10
 Service Delivery Process

> The entrepreneur who will engage in a service

business must be more meticulous when it comes to
the service delivery process.
> A seamless service save the entrepreneur a huge
chunk of operational costs

11
 Distribution Method
> Distribution is the process of bringing the products or
services to the customers.

12
 Distribution Channel

Manufacturer Distributors Agents

• Handles the invention, • Entrepreneurs who • They negotiate with
development and often buy products or buyers as to how
production of the services to the much or how many are
product or service manufacturers and sell to be sold, so the
them at a markup price manufacturer will be
to either wholesalers able to deliver the
or retailers goods directly to the
buyer

13
 The distributor or agent can assist the
entrepreneur/manufacturer in the following:

1. Sharing industry knowledge, behavior, and activities

of the primary target market
2. Pertinent rules and regulations imposed by the
government
3. Best practices in marketing and selling the product
4. Best practices in operating the business
5. Their respective sticky relationship with business
associates such as suppliers, financial institutions or
retailers

14
 Payment Process

> The entrepreneur must also establish a seamless

payment process.
> The objective for all entrepreneurs is to ensure
efficient collection of accounts receivables and avoid
bad credits.

15
 Thanks!
Any questions?

16