4M’s of Business

Operation/ Production
What is 4M’s of Operation?

The traditional framework for

viewing the resources available to a
business , which can be useful when
designing a business plan.
3 Elements of Production or
Manufacturing
 INPUTS – the materials or ingredients to be use
in creating the product
 PROCESS – the transformation phase where
inputs are processed by manpower and
machines to come up with the final product
 OUTPUT – the final product of the process
stage, which is intended to be sold to target
customers.
MAN
 The worker in the factory/ plant,
consists of the personnel assigned,
skilled individuals to perform different
tasks.
 MACHINE
 Plays the most fundamental role in production
 It considers the quantity and the quality of
production output, and time consumed are all
important data to improve the operation.
MATERIAL

 It includes the raw materials and the

finished products.
 It also considered the quantity and quality
needed in production
 Suppliers are also considered during
production
METHOD
 The process to be followed in effectively
manufacturing or delivering a product o
service.
 Isprobably the critical contribution in how we
can improve production.
 Itdefines the process of converting Materials
by the Man using the Machine into the finished
product.
Take note:

 We do not simply make a simple product from

one simple material using one machine
involving one man.
 We are likely to use multiple stages of
manufacturing/production.
 All products are assembled in sequential line
called a (Shop Floor) with a team workers.
Basic Steps in Manufacturing Process

 Creating the design of the product

 Sourcing the raw materials

 Processing the raw materials