1.

4M's in the Production of Goods:

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.
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
METHOD - 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. If it is difficult to
implement at another site, find what needs to be improved.
MACHINE - 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.
MATERIALS - sourcing raw materials are critical in any business endeavor as the businessman would
want to have the cheapest possible at the highest quality. Entrepreneur should also consider the
availability of materials and the credibility of suppliers.

2. The three important elements in the production system are:

INPUT – is a process of taking something in. Input are resources needed for processes involve with
production such as raw materials, equipment and facilities. It includes manpower, materials,
machine design and instruction.
PRODUCTION PROCESS - the production process, also referred to as the transformation or conversion
process, is the stage of production where the materials are transformed into the final product with the
aid of manpower and machine.
OUTPUT - the output represents the final products from the production process and distributed to the
customers.