4Ms of Operations in
Relation to the Business
Opportunity and Developing
Business Model
(Lesson 5)
Objectives
1. Describe the 4M’s (Manpower,
Method, Machine, Materials) of
operations in relation to the business
opportunity;
2. Develop a product description;
3. Create a prototype of the product;
4. Test the product prototype;
MANPOWER
MACHINES
MATERIALS
METHODS
MANPOWER
• Talks about human labor
force involved in the
manufacture of products
• The entrepreneur must
determine, attain and
match the most competent
and skilled employees
with the jobs at the most
appropriate time period.
MATERIALS
• Talks about raw materials
necessary in the production
of a product. Materials
mainly form part of the
finished product.
• The entrepreneur may
consider cost, quality,
availability, credibility of
suppliers and waste that the
raw material may produce.
MACHINES
• Discusses about manufacturing
equipment used in the production
of goods or delivery of services.
• 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.
METHODS
• Process or way of transforming
raw materials to finished
products.
• The selection of the method of
production is dependent on
product to produce, mode of
production, manufacturing
equipment to use and required
skills to do the work.
Product
Description
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.
Is the promotion that explains what a product is and why it’s
worth buying?
Prototyping
• A duplication of a product as it will be produced, which
may contain such details as color, graphics, packaging
and directions.
• One of the important early steps in the inventing
process is making a prototype.
• It is better to test your product prototype to meet
customers’ needs and expectations; and for your
product to be known and saleable.
SUPPLIER
An entity that offers goods and services to
another business.
As an entrepreneur you have to choose a
potential supplier that has loyalty and value
your partnership; a supplier that 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.
SUPPLY CHAIN
• Is a structure of organizations, people, activities,
data, and resources involved in moving a
product or service from supplier to customer.
• The main objective of supply chain management
includes management of a varied range of
components and procedures, for instance,
storing of raw materials, handling the inventory,
warehousing, and movement of finished product
from the point of processing to the point of
consumption.
BUSINESS MODEL
• describes the reasons 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 a part of
business plan.
• It is a company's plan for how it will make revenues
and make a profit. It describes what products or
services the business plans to manufacture and
market, and how it plans to do so, as well as what
expenses it will incur.
Components of Business Plan
1. Introduction
2. Executive Summary
3. Management Section
4. Marketing Section
5. Financial Section
6. Production Section
7. Competitive Analysis
8. Market
9. Organizational Chart
