INTRODUCTION

TO 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.
Operations management
controls the implementation
THE 4MS OF OPERATIONS
1. The Methods
2. The Manpower
3. The Machines
4. The Materials
METHODS
It describes how an entrepreneur
will win run the business from all
facets of the business such as the
manufacturing of goods, service
delivery, process, distribution of
goods and services, logistics for
delivery of goods and inventory
management.
 The entrepreneur must also set
standard operating procedures
(SOPS) both in manufacturing
goods and rendering of services.
These SOPS must be monitored to
validate compliance.
Consider the effects of these
processes to the environment and
 MANUFACTURING OF GOODS
( SCHAPER AND VOLERY, 2004)

The entrepreneur who will

engage in producing his or her
own products will hate to
consider the basic guidelines
and principles in
Manufacturing is the process
of translating raw materials
into finished goods that are
acceptable to the customer’s
standards.
3 ELEMENTS
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.
The entrepreneur must also
consider the most efficient
manufacturing site in
which the manufacturing
process will take place.
HOMEBASED
Commercial space for
rent
Commercial space
purchase
The location most
 MANPOWER
- One of the highest cost of
operating a business but is also
the most instrumental to its
success
 JOB DESCRIPTION
ENUMERATES THE DUTIES AND
RESPONSIBILITIES OF THE POTENTIAL
EMPLOYEE, INCLUDING ITS SCOPE,
LIMITATIONS, AND TERMS AND
CONDITIONS OF EMPLOYMENT.
 JOB TITLE
-SUMMARY OF WHAT THE EMPLOYEE
WILL DO
- HEADING OF A JOB DESCRIPTION
 COMPENSATION AND
BENEFIT RANGE
- Details the potential salary
and benefits the employee
will get
 DUTIES
-Describes the job that
the employee will
assume with allowance
for flexibility
 RESPONSIBILITIES
AND
ACCOUNTABILITIES
-must be communicated
well so that the employee
knows what to expect with
 WORK
SCHEDULES
- Specific Days and hours
the employee is required
to work.
 EMPLOYEE
QUALIFICATI
ON
• Educational background
• Work experience
• Specific skill or
knowledge
• Work attitude
 PREPARATORY
SELECTION OF JOB
APPLICANTS
Human resource department
– handles selection and
recruitment of candidates
 MANPOWER
AGENCIES
-recruits temporary employees under
a short contract
• Through advertisements
• Recommendations and referrals
• Digital media
JOB OFFER
 1) Rank or position of the candidate
2) A list of responsibilities
5) Resignation procedure and its scope and limitations

Terms
And
3) The salary and benefi
4) The duration Conditions including vacation
of contract of the and sick leaves
Candidates

5) Probationary period if any

and qualifications
to become a regular employee
4) Work schedule
EMPLOYEE
DEVELOPMENT
 Training People – one of the biggest investments of
an entrepreneur or a businessman

On-The-Job-Training Employee Orientation

(OJT)
Key Performance Key results
Indicatores(KPI) Areas (KRA)

Other practical options that the Buddy system

entrepreneur can use as training tools

Mentor-mentee
program
WHEN THE EMPLOYEE IS ALREADY FAMILIAR WITH
WHAT HE OR SHE ON A DAILY BASIS AND THE
SUPERVISOR ALREADY NOTICED A SUBSTANTIAL
IMPROVEMENT IN THE EMPLOYEE’S PERFORMANCE,
THE ENTREPRENEUR OR THE MANAGEMENT SHOULD
• Extensive leadership
NOW TAKE THE EMPLOYEE TO THE NEXT LEVEL…
training Online learning
• Part-time programs Or
• Full-time bachelor’s
•
Webinars
Master degree program  Practical learning
• Short-term  Flexible
technical/specialized  Expands his/her horizons
courses  Be rotated in different
Internal training areas of the business
programs
-led by competent matter
experts to discuss the
intricacies of each
department to the newly
hired employes
EMPLOYEE TRAINING AND DEVELOPMENT IS A
MAJOR THRUST OF EVERY ENTREPRENEUR

Employees are the best assets of a business enterprise

Helps the business reduce cost
Productivity also increases
The full potential of employees is optimized especially
when their skills and talent are recognized
Employees will also feel important and needed
Indirectly
Another upside of training is that employees build
camaraderie when put together in one training session

CHALLENGE FOR ALL
ENTREPRENEURS
Constantly motivating and keeping high
performing employees. Because of their
track record and achievements, they can
easily transfer to other competitors, which
means all training investments to high
performing employees will be gone, higher
cost for training new employees, potential
decrease in productivity and customer’s
 THE SEVERAL STRATEGIES FOR
TALENT MANAGEMENT PROGRAM TO
GAIN THE EMPLOYEE’S LOYALTY
Providing employees with very
competitive package
Nonmonetary benefits (such as
medical coverage and different
types of leaves
Additional Benefits(optional)
ENTREPRENEURS MUST ABLE TO BE OBJECTIVE WHEN
EVALUATING THE PERFORMANCE OF EMPLOYEES

If the employees are able to meet the

objectives:
Must do all the possible strategies to
save high- performing employees
Nonperforming employees must be
motivated by the entrepreneur to make
them more productive, unless replacing
them is necessary or when these
employees find better career options.
MACHINES
what is a machine?
 WORD ORIGIN OF MACHINE

Machine

Mekhane (G) Mekhos (G) Maghana(G)

device contrivance which enables
 According to Collins
Gem English
DEFINITION OF
Dictionary, it is an
MACHINES
apparatus that uses
mechanical power to
perform a particular
task.
Itis described as
the “bestriend” of
manpower in
producing goods and
TRIVIA

Where will people

go? :(
Employee training
is one of the
biggest
investments of
the company.
EQUIPMENT AND OTHER FACILITIES

EFFICIENCY
Consumption
Safety

Training Maintenance Specialists

Telecommunications
and Information
Technology (IT)
Landline
Phones
Mobile
Phones
Laptop and
Desktop
POS Machines
Accounting and Inventory
Software
Website
s
Where to buy?
Please take care of
them :)
Materials
 When an entrepreneur will
offer products or services, he
or she has to pinpoint the
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 demands
of the entrepreneur
Entrepreneur should decide
on what route to choose
when it comes to material
requisitioning. Options
include the following
Manufacturing own products

In manufacturing of an
entrepreneur‘s own products or
offer services, huge chunk of
capital must be prepared because
all the expenses in manpower,
machines, and materials will be
done by the entrepreneur.
O_ t _ _ _r _ _ n_
 Outsourcing
Outsourcing is the process of
appointing a third party
manufacturer to do the
manufacturing operations of the
business. These third party
company already have an
expertise in handling and
 Outsourcing provides the
entrepreneur a chance to
provide the operation details
to the third party. It saves
the entrepreneur from buying
expensive machines, renting
locations , or hiring
manpower, as the operational
An entrepreneur must protect its
product through a trademark or
a patent, a non competing
agreement or non disclosure
agreement.
•PATENT – the right to protect the
entrepreneur regarding the
product or service
Purchasing products/ services

In this setup, the entrepreneur

cannot own the brand name of
the product or the service
L GISTICS.
 Logistics is the general
management of how resources are
acquired, stored and transported to
their final destination.
 Warehousing is sorting the finished goods
manufactured in a facility until distributed to end users.
is the general management of how resources are
acquired, stored and transported to their final
destination.
 Distribution Hub is where the
entrepreneur/manufacturer combines the
goods before delivery to retailers or end
customers.
 Transportation is the process of
efficiently transferring the products to
retailers or customers.
Inventory should also be
tracked by the
entrepreneur/manufacturer.