FOUR (4) M’s of

PRODUCTION
FOUR (4) M’s OF PRODUCTION
 Manpower
 Method
 Machineries
 Materials
 MANPOWER
 simply refers to the human workforce
involved in the manufacture of products.
 it is considered as the most critical and
important factor of production.
TYPES OF WORKERS
 Direct
 Indirect
 DIRECT WORKER
 Are those whose primary jobs and
functions are directly related to the
production and operation of business.
 INDIRECT WORKER
 Are those whose primary jobs and
functions are not directly related to the
production and operation of business.
 METHOD
 refers to the process or technique of
converting raw materials to finished
products.
 PRODUCT
 is the physical output of the whole
production process. It should be valuable
and beneficial to the consumers and
should satisfy their basic needs and
wants.
TYPES OF PRODUCT
 Heterogeneous
 Homogeneous
 HETEROGENEOUS
 has dissimilar characteristics, parts, and
physical appearance. It can easily be
identified from other products.
 HOMOGENEOUS
 has a physical appearance, taste, or
chemical content that can hardly be
distinguished from that of the other
products.
 MODE OF PRODUCTION
 refers to how the product will be
produced.
 TYPES OF PRODUCTION
1. Intermittent production system
2. Continuous production system
3. Just-in-time production system
 INTERMITTENT
PRODUCTION SYSTEM
 is an umbrella term for manufacturing
processes that use irregular production
schedules to create several different
products using one production line.
TYPES OF INTERMITTENT
PRODUCTION SYSTEM
 Project method
 Job order method
 Batch method
 PROJECT METHOD
 company accepts a single, complex order
or contract. The order must be completed
within a given period of time and at an
estimated cost.
 BATCH METHOD
 is a method of manufacturing where
identical or similar items are produced
together for different sized production
runs.
 JOB ORDER METHOD
 is the process of manufacturing custom
or unique products for specific
customers.
 CONTINOUS
PRODUCTION SYSTEM
 is a type of production system in which
materials being processed are
continuously in motion.
 JUST-IN-TIME
PRODUCTION SYSTEM
 is a production model in which items are
created to meet demand, not created in
surplus or in advance of need.
 MACHINES
 refers to the manufacturing equipment
used in the production of goods or
delivery of services.
 In the process of selecting the type of
equipment to purchase, the entrepreneur
may consider the following important
elements:
1. Types of product to be produced
2. Production system to be adopted
3. Cost of the equipment
4. Capacity of the equipment
5. Availability of spare parts in the local
market
6. Efficiency of the equipment
7. The skills required in running the
equipment
 MATERIALS
 simply refers to the raw materials needed
in the production of a product.
TYPES OF MATERIALS
 Direct
 Indirect
 DIRECT MATERIALS
 Are those directly related to the
production of your product or to the
performance of service you are offering.
 INDIRECT MATERIAL
 Are those that are not directly related to
the production of your product or to the
performance of service you are offering.
 The entrepreneur may consider the
following important factors in the selection
of raw materials:
 1. Cost
2. Quality
3. Availability
4. Credibility of suppliers
5. Waste that the raw material may produce
 Performance Task No. 1
 Make the 4M’s of your business plan.
BE READY FOR
QUIZ NO. 1