This module is designed and written with you in mind.

It is based on the Most Essential

Learning Competencies (MELCs). It is here to help you master this applied subject on
Entrepreneurship.
It contains information about operations management. It includes activities that will
help you in creating a product or service delivery process, manpower planning and identify
potential suppliers for machines and materials.
This should be accomplished within a week. All activities that require online submission
should be coordinated with your teacher. Save the date for your online class and be updated
with teachers announcements in the google classroom or FB messenger.

Content Standard: The learner demonstrates understanding of environment and market in

one’s locality/town.
Performance Standard: The learner independently creates a business vicinity map reflective of
potential markets in one’s locality/town.
Objectives:
1. Describe the 4Ms (Manpower, Method, Machine, Materials) of operations in relation to
the business opportunity;
2. Create a product or service delivery process, manpower planning and identify potential
suppliers for machines and materials.
3. State the importance of planning the operations.

True or False: Write the word TRUE if the statement is correct, and FALSE if it is wrong. Use
your notebook for your answer.
_______1. Business operations are the day-to-day activities that entail running the company in
order to make a profit and meet other business-related goals.
_______2. Costs drive entrepreneurs to produce more.
_______3. Manufacturing is the process of translating raw materials into finished goods that
are acceptable to the customer’s standards.
_______4. Employee refers to the human resource in operations management.
_______5. Materials are the basic tools or devices to produce goods or services.
_______6. Distribution channel is the process of bringing products or services to customers.
_______7. Logistics is storing the finished goods manufactured in a facility until they are
distributed to end users.

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 _______8. Employees/machine operators should undergo rigorous training before they operate
equipments.
_______9. POS machines are used for charging debit/credit card, tracking sales, storing data,
analyzing purchases etc.
_______10. The supplier of the raw materials should have a consistent and sufficient amount of
raw materials and supplies that can accommodate the demand of the entrepreneur.

Another important part of any business undertaking is managing operations. The term
operations management encompasses planning, implementing, and supervising the production
of goods or services. Operations managers have responsibilities in both strategy and day-to-day
production, in either manufacturing or services. Sometimes called production management, the
field is cross-functional, tying in with other departments such as sales, marketing, and finance.
It’s involved in product or service creation, development, production, and distribution. In effect,
it connects dots along the value chain.

Generating Sales is a daily motivation to all entrepreneurs. To achieve sales, the

production of goods and services should always meet the expectations of customers. Thus, the
following are considered and combined to efficiently produce and operate the business.
1. Method refers 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). The entrepreneur must set
SOP’s (standard operating procedures).
A. Manufacturing of Goods
Manufacturing is the process of translating raw materials into finished goods that are
acceptable to the customer’s standards. Its elements are Inputs (materials or ingredients to
be used), Process (the transformation phase), and Outputs (the final product).
Manufacturing sites can be Home-based (the cheapest and highly flexible), Commercial
space for rent (if home is viable anymore), and Commercial space purchase (requires the
biggest amount of capital expenditure). The location for delivery of raw materials and
finished goods, the transportation routes from manufacturing sites should be efficient. It
should be accessible to major types of transportation vehicles. It must operate in an
environmentally friendly manner.
Manufacturing Process Flow - a step by step guide of the employees and the manufacturing
equipment. The objective of The Process flow is to ensure that the right inputs are properly
used in production, that the process is performed according to the set standards, and that
the acceptable outputs are produced.
B. Service Delivery Process
The entrepreneur who will engage in a service business must be more meticulous
when it comes to the service delivery process because services are intangible, and the only

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SECOND QUARTER- MODULE 1 Page 2
 way the customer can appreciate the service is by remembering how pleasant his or her
experience was. It is cost efficient.
Service blueprint is a detailed flowchart of the service business. Every process in the
blueprint should be relevant to the service business to minimize wastage.
Bottleneck is part of the process where there is an apparent inefficiency and where the
customers wait longer
C. Distribution of Goods and Services
Distribution is the process of bringing products or services to customers. In selling
physical goods, the entrepreneur should plan the location, the processes, and the distribution
of the products to the customers. It is not a straight process from the entrepreneur to
customers.
Supply Chain/ Distribution Channel- the manufacturer will deliver the products to the
distributors, to the wholesalers, to the retailers, and then finally to the customers.
1. Manufacturer- handles the invention, development and production of the product or service.
Take charge of acquiring materials, production and delivery schedules, product quality, and
inventory or safety management. Manufacturers handle product delivery, marketing and selling
activities.
2. Distributors- are entrepreneurs who often buy products or services from the manufacturers
and sell them at a markup price to either wholesalers or retailers; He/She is the new owner of
the product. Usually buys the product in bulk for a discounted price. Distributors become
wholesalers when they sell the product to another distributor.
3. Agents- don’t own the products or services because they do not buy these from the
manufacturer. Instead, they negotiate with buyers as to how much or how many are to be sold,
so the manufacturer will be able to deliver the goods directly to the buyer. They will get
commission for every product sold.
4. Consignment- agents get the product in advance to demonstrate them live to the customers.
If unsold, agents just return the merchandise to the manufacturers.
D. Payment Process - the entrepreneur must also establish a seamless payment process. There
are instances when the customers 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 simple
accounts payable or pautang.
2. Manpower - man in management is referred to as a human resource. It is the
recruitment, selection, training, promotion grievances handling of personnel. As the
business grows, the entrepreneurs should hire qualified employees that can handle
operational functions, so that he or she will be free from daily activities and thus can focus
on the strategic and management functions of the business. -one of the highest cost of
operating the business but is also the most instrumental to its success.
Manpower requirements
A. Job Description- enumerates the duties and responsibilities of the potential
employee, including the scope, limitations, and terms and conditions of employment.
B. Employee Qualifications - educational background, work experience, specific skill or
knowledge, and work attitude.
C. Selection of Job Applicants - screening of resumes, conduct of interviews, qualifying
exams or psychology tests.

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 D. Job offer is a job contract offer where the terms and conditions (position,
responsibilities, salary and benefits, work schedule, regularization etc.) of
employment are discussed.
E. Employee Development - training of people
3. Machines are basic tools to produce goods or to generate services. Selection of an
appropriate machine not only enhances efficiency but also saves time and increases
revenue.
A. Equipment and Other Facilities
● Must be strategically placed in the manufacturing site or in the service delivery
area.
● Must prepare a facility plan that details the most economical way to manufacture
product.
● Place the facility where they can be efficiently used.
● Site must be adapt to how big or small the pieces of equipment are
● Site must be conducive, well-ventilated and well-lit
● There should be fire exits and safety reminders
● Employees/machine operators should undergo rigorous training before they
operate equipment.

B. Telecommunications and Information Technology

● Landline Phones- for order-taking, telemarketing, and teleconferencing
● Mobile phones- mobile apps for order taking, for payments, marketing, marketing
research, mobile banking, internet promotions.
● Laptop and desktop computers- order taking, internet marketing, reports etc.
● POS Machines- charging debit/credit card, tracking sales, storing data, analyzing
purchases etc.
● Accounting & Inventory Software- accounting business transactions, profitability,
sales, inventory etc.
● Website- order taking, 24/7 marketing, online conversations, collecting customer
information etc.
4. Materials - these are items to be used in creating a product or performing a service,
which includes supply chain management. The supplier of the raw materials should have a
consistent and sufficient amount of raw materials and supplies that can accommodate the
demand of the entrepreneur. Selection of suppliers depends on how the suppliers will not
cause interruptions in the production of goods and serving the customers
Materials requisitioning options
● Manufacturing - own products or services
● Outsourcing - process of appointing third party manufacturers to do the
production process which saves the entrepreneur in buying expensive
machineries.
● Purchasing own products or services to a present supplier.
LOGISTICS
● Entrepreneurs can also venture distributing their own products on their own without
the aid of distributor or agent.
● The entrepreneur will be the one in charge in manufacturing, warehousing,
transportation, inventory management, marketing, and selling the product or service.

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 A. WAREHOUSING- storing the finished goods manufactured in a facility until they
are distributed to end users. Cost is usually substantial. Entrepreneurs should
choose whether to buy a warehouse or rent an inexpensive space.
B. TRANSPORTATION- process of efficiently transferring the products to retailers or
consumers Purchase energy-efficient vehicles Use the presence of distribution
hubs- where the entrepreneur/manufacturer combines the goods before
delivery to retailers or end consumers
C. INVENTORY- should be tracked religiously. Each of the inventories in the
warehouse, distribution hubs and manufacturing sites should be monitored. The
law of supply and demand must be taken into account There shouldn’t be
surplus of inventory especially if the product is perishable

Activity 1.1. METHODS: Create a Manufacturing Process Flow or Service Blueprint for your
proposed business. Prepare for an online class in this activity. Below are the examples for your
reference. Use a word file to accomplish this activity then upload your work in the google
classroom for checking.

Source: French Fries Processing Equipment and Production Process

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SECOND QUARTER- MODULE 1 Page 5
 Source: https://id.pinterest.com/pin/463237511665609321/

Activity 1.2. MANPOWER: Think of the people you need in the operations of your business.
Accomplish the manpower planning worksheet below by copying the table. You may use your
notebook or encode in a document file. The first one is your example.

Activity 1.3. MACHINES & MATERIALS. List down all the machines and materials you will need
for the productions and operations of the business. Identify if it will be purchased, outsourced,
or with an available supplier. Use your notebook or encode your answer in a document file.

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 ● Operations Management includes planning, implementing, and supervising the
production of goods or services. It controls the implementation of the business plan.
● A strong operations plan should have the four operational aspects called the 4Ms of
Operations. These are Methods, Manpower, Machines and Materials.
● Methods refers to the different processes (manufacturing process, service delivery
process, distribution of goods and services process and payment process) that must be
followed by the management and employees.
● Manpower is the human resource that will select people who will work for the
enterprise.
● Machines are the tools that will produce goods or generate services which will save time
and cost of production.
● Materials are items to be used in creating a product or performing a service, which
includes supply chain management.

Answer the following questions in a complete sentence. Write your answers in your notebook.
1. Why do we need to carefully plan the operations of the business?
2. Which among the 4Ms is the most important? Explain your answer.
3. Give an example of a product or company that undergoes the complete supply chain of
management. Describe their activities for each.

True or False: Write the word TRUE if the statement is correct, and FALSE if it is wrong. Use
your notebook for your answer.
_______1. Business operations are the day-to-day activities that entail running the company in
order to make a profit and meet other business-related goals.
_______2. Costs drive entrepreneurs to produce more.
_______3. Manufacturing is the process of translating raw materials into finished goods that
are acceptable to the customer’s standards.
_______4. Employee refers to the human resource in operations management.
_______5. Materials are the basic tools or devices to produce goods or services.
_______6. Distribution channel is the process of bringing products or services to customers.

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SECOND QUARTER- MODULE 1 Page 7
_______7. Logistics is storing the finished goods manufactured in a facility until they are
distributed to end users.
_______8. Employees/machine operators should undergo rigorous training before they operate
equipment.
_______9. POS machines are used for charging debit/credit card, tracking sales, storing data,
analyzing purchases etc.
_______10. The supplier of the raw materials should have a consistent and sufficient amount of
raw materials and supplies that can accommodate the demand of the entrepreneur.

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SECOND QUARTER- MODULE 1 Page 8