4M'S of Productio N

4M’S OF
PRODUCTIO
N
An entrepreneurial venture may either
be a sole proprietorship, a
partnership, or a corporation,
engaged in merchandising,
manufacturing, or service.
Nevertheless, whatever type and
nature of business ventures is opened
to exploit different business
opportunities, innovation or creativity
defines the distinction between an
entrepreneur and an ordinary
business person.
An entrepreneur finds way to introduce
innovation from the production process
to the marketing stage, while an
ordinary businessperson simply imitates
business practices and procedures.
The Input includes the following:
1. Manpower-supply of people
2. Materials- substances people find useful such
that it is produced for economic reasons.
3. Machine- a mechanically, electrically, or
electronically operated device for performing a task
4. Design- a drawing or set of drawings showing
how a building or product is to be made and how it
will work and look
5. Instructions
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.
The output represents the final product

from the production process and distributed
to the customers.
4 M’S OF
PRODUCTION
The most serious issues in the whole production
system are the inputs and the transformation process.
Their quality determines the quality of the output. The
factors involved in the input and the production
process are usually referred to as the Four M’s of
production, namely Manpower, Method, Machine,
and Materials.
MANPOWER
Manpower talks about human labor force involved
in the manufacture of products. It is measured as
the most serious and main factor of production.
The entrepreneur must determine, attain and
match the most competent and skilled employees
with the jobs at the most appropriate time period.
MATERIALS
It simply refers to the raw materials necessary in
the production of a product. Materials mainly form
part of the finished product. Just in case the
resources are below standard, the finished
product will unsatisfactory as well. The
entrepreneur may consider cost, quality,
availability, credibility of suppliers and waste that
the raw materials may produce.
MACHINE
Machine is about 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 types
of products to be produced, production system to
be adopted, cost of the equipment, capacity of
the equipment, availability of spare parts in the
local market, efficiency of the equipment and the
skills required in running the equipment.
METHOD
Method or production method is the process or
way of transforming raw materials to finished
products. The resources undergo some stages
before it is finalized and become set for delivery
to the target buyers.
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. A
product can be heterogeneous or
homogeneous.
Heterogeneous product has dissimilar
characteristics, parts, and physical
appearance. It can be easily Improve Process
Equipment Attribute identified from other
products.
A heterogeneous mixture contains two or
more ingredients or phases.
Ex. Cereal in milk is a great example of a

heterogeneous mixture. It consists of a solid cereal
in liquid milk.
Homogeneous product has a physical
appearance, taste, or chemical content that
can hardly be distinguished from that of the
other products.
products that are identical in their quality and

use and are indistinguishable between
different brands.
Ex. Bottled water

Product description, promotes and
explains what a product is and why it’s
worth buying. The purpose of a product
description is to provide customers with
details around the features and benefits
of the product so they’re obliged to buy.
A prototype is a duplication of a product as
it will be produced, which may contain such
details as color, graphics, packaging and
directions. Benefits are the reasons why
customers will decide to buy the products
such as affordability, efficiency or ease of
use. The features of the product or service
merely provide a descriptive fact about the
product or service.
In a manufacturing venture, the supplier
plays a vital role. They are your business
partners, without them your business will
not live. You need them as much as you
need your customers to be satisfied. But as
an entrepreneur you have to choose a
potential supplier who has loyalty and
values your partnership: a supplier who
would lead you to the fulfillment of your
business objectives, mission and vision.
In a manufacturing venture, the supplier
plays a vital role. They are your business
partners, without them your business will
not live. You need them as much as you
need your customers to be satisfied. But as
an entrepreneur you have to choose a
potential supplier who has loyalty and
values your partnership: a supplier who
would lead you to the fulfillment of your
business objectives, mission and vision.
Value chain is a method or activities by
which a company adds value to an item,
with production, marketing, and the
provision of after-sales service. The main
goal and benefit of a value chain, and
therefore value chain analysis, is to make or
support a competitive benefit.
Value chains help increase a business's
efficiency so the business can deliver the
most value for the least possible cost. The
end goal of a value chain is to create a
competitive advantage for a company by
increasing productivity while keeping costs
reasonable.
A supply chain is a structure of
organizations, people, activities, data, and
resources involved in moving a product or
service from supplier to customer.
It represents all the steps required to get

the product to the customer.
Supply chain management decreases
purchasing cost. Retailors depend on supply
chains to quickly distribute costly products
to avoid sitting on expensive inventories.
Any delay in production can cost a company
tens of thousands of pesos. This factor
makes supply chain management ever more
important.
Business model describes the factors of how
an organization creates, delivers, and
captures value in economic, social, cultural
or other contexts. The development of
business model construction and variation is
also called business model innovation and
forms part of a business plan.
Business model describes the factors of how
an organization creates, delivers, and
captures value in economic, social, cultural
or other contexts. The development of
business model construction and variation is
also called business model innovation and
forms part of a business plan.
What Is a Business Plan?
A business plan is a document that outlines a
company's goals and the strategies to achieve
them. It's valuable for both startups and
established companies. For startups, a well-
crafted business plan is crucial for attracting
potential lenders and investors. Established
businesses use business plans to stay on track
and aligned with their growth objectives. This
article will explain the key components of an
effective business plan and guidance on how to
write one.

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4M’S OF

The output represents the final product

Ex. Cereal in milk is a great example of a

products that are identical in their quality and

Ex. Bottled water

It represents all the steps required to get

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