Senior High School

Entrepreneurship
Module 7:
4M’s of Operation

AIRs - LM
LU_ Entrepreneurship_Module 7
 ENTREPRENEURSHIP
Module 7: 4M’s of Operations
Second Edition, 2021

Copyright © 2021
La Union Schools Division
Region I

All rights reserved. No part of this module may be reproduced in any form without written
permission from the copyright owners.

Development Team of the Module

Author: Marites C. Martinez

Editor: SDO La Union, Learning Resource Quality Assurance Team
Content Reviewer: Kay Owen L. Boado
Language Reviewer: Jimena Veronica T. Nieva
Illustrator: Ernesto F. Ramos, Jr., P II
Design and Layout: Angela Pauline C. Ganuelas & Hasmin R. Omaoeng

Management Team:

Atty. Donato D. Balderas, Jr.

Schools Division Superintendent
Vivian Luz S. Pagatpatan, Ph.D
Assistant Schools Division Superintendent
German E. Flora, Ph.D, CID Chief
Virgilio C. Boado, Ph.D, EPS in Charge of LRMS
Lorna O. Gaspar, EPS in Charge of Entrepreneurship
Michael Jason D. Morales, PDO II
Claire P. Toluyen, Librarian II

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LU_ Entrepreneurship_Module 7
 Senior High School

Entrepreneurship
Module 7:
4M’s of Operation

LU_ Entrepreneurship_Module 7
 Introductory Message
This Self-Learning Module (SLM) is prepared so that you, our dear
learners, can continue your studies and learn while at ho me. Activities,
questio ns, directions, exercises, and discussions are carefully stated for you
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or if you need to ask your facilitator or your teacher’s assistance for better
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the post-test to self-check your learning. Answer keys are provided for each
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In addition to the material in the main text, Notes to the Teacher are
also provided to our facilitators and parents for strategies and reminders on
how they can best help you on your home-based learning.

Please use this mo dule with care. Do not put unnecessary marks on
any part of this SLM. Use a separate sheet of paper in answer ing the exercises
and tests. And read the instructions carefully before performing each task.

If you have any questions in using this SLM or any difficulty in

answer ing the tasks in this module, do not hesitate to consult your teacher
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Thank you.

LU_ Entrepreneurship_Module 7
 Target

4M’s of Operation

4M’s of Operations m ainly represent factors that influence on results of any

concern process. Operations Management is about delivering products and services
to custom ers to m eet or surpass the expectations. It is designing, developing, and
executing the Enterprise Delivery System, from sourcing of the necessary input to
the transform ation of these input into the final output, which com e in the form of
goods or services or both, m ust carry all the features and attributes that custom ers
are looking for. All operations m anagers m ust, therefore, begin with the customer’s
wants and desires in mind. These wants and desires can be classified into custom er
outcome expectations that are crucial to the operations function.

Models combine of 4M and IPO in a specific environment or situation:

file:///C:/Users/ASUS/Documents/Introduction%20about%204Ms.html

In your previous lesson, in the first quarter, you are already done with
recognizing the potential m arket and recognizing the im portance of m arketing m ix
in the developm ent of marketing strategy.
This learner’s m aterial will provide you with inform ation and activities that
will help you more understand about operating a business.

MOST ESSENTIAL LEARNING COMPETENCY:

1. Demonstrate understanding of the 4M’s of operation in the environm ent and
market in one’s locality/town. (TLE_ICTAN11/12EM-Ia-2)
After going through this learner material, you are expected to:
1. Determine the 4M’s of Operations.
2. Illustrate and explain the 4M’s especially with examples.
3. Show or prove the value or efficiency of each M’s in a business operation.

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Activity 1

Direction: Choose your answer from the given choices. Write the correct answer in a
separate sheet of paper. Write the letter only.

1. What do you call reference points to help make final purchase decision?
A. Delivery expectations B. Price expectations
C. Quality expectations D. Quantity Expectations
2. What do you call the cost or the amount at which something is valued?
A. Quality B. Delivery
C. Price D. Operation
3. Which is called the carrying of goods to a destination, especially to carry and
distribute goods or products to several places?
A. Delivery expectations B. Price expectations
C. Quality expectations D. Operations
4. What do you call the statement about the quality expected from the project
product?
A. Delivery expectations B. Price expectations
C. Quality expectations D. Quantity expectations
5. Which is called the resources mobilized in the enterprise delivery system?
A. Output B. Input
C. Throughput D. Quality
6. Which of the 4m’s is called the input?
A. Materials B. Methods
C. Manpower D. Machine
7. Which is called the final result from the model presented?
A. Output B. Input
C. Manpower D. Machine
8. Which of the choices is NOT included in the 4M’s of operations?
A. Manpower B. Money
C. Method C. Materials

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9. Which from the 4M’s is the process part from the model presented?
A. Manpower B. Machine
C. Method D. Materials
10. What do you think from the 4M’s of operation is very functional that without
this M everything will not function?
A. Manpower B. Machine
C. Method D. Materials

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 Discover

The 4M’s of Operations mainly represent factors that influence the results
of any concern process. This was used to m ake product design and quality defect
prevention and to identify potential factors on cause and overall effect. In
manufacturing industries this m ethod was used to apply on production control,
improvement, overall efficiency measurem ent, processes, and design.
The 4M’s of operation in relations to business opportunity means that the
four critical domains, usually attributed to manufacturing, those are: man,
machine, material and method work together. These four critical domains are also
applicable to business opportunities since business is in essence tied to
manufacturing as well. When putting up a business, manpower is critical as well
as the other elements. The businessman must take all of those into account.
The 4M’s of operation is an i m p ort an t pa rt of t he b u si ne s s pla n
because it sim ply states the details in operating the business.

It can be defined as a plan prepared by a com ponent of an organization that

clearly defines actions it will take to support the strategic objectives and plans of
upper m anagem ent. However, to fully understand operational plans, we should first
look at the overall planning process within a business.

Let us now describe the 4 major domains of 4M’s of Operations in relation

to business opportunity.

1.) Method - is a detailed procedure for accomplishing something. It is a systematic

way of doing a particular job. Method was used in business when developing or
innovating a new products or serv ices, expanding your business enterprise,
searching for skilled workers to include in the workforce, and for improving the
efficiency of its process.

- refers to the system and step by step process in the business. Without a
scalable process, it would be difficult to expand the business. This m eans that the
methods used in the m ain branch must be documented and m ust be replicated as
well in other branches.

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In analyzing this method, an entrepreneur must do these steps:

1. Identify the operation to analyze.

2. Gather all relevant information about the operation, including tools,
materials, and procedures.

3. Talk to employees who use the operation or have used similar operations. They
may have suggestion for improving it.

4. Chart the operation, whether you are analyzing an existing operation or a new
operation.
5. Evaluate each step in the existing operation or proposed new operation.
Does the step add value? Does it only add cost?
6. Revise the existing or new operation as needed.

2.) A wise selection of Manpower to join in your workforce provides strategic

solutions in prom oting a sustainable com petitive advantage that quickly adapts
changing demands in business and its operations.
Manpower - these are em ployees that processes and give insights on how to reduce
cost, increase productivity to achieve a better business result.
Manpower - this is the worker. When setting up a business, finding honest and
capable people is always a challenge. In my experience, people can be honest but
may not be capable or com petent and som e are capable but not honest. It is a rare
find to find som eone with all the ideal qualities. So for a businessm an, they m ust be
able to treasure their em ployees who are both capable and honest as they are integral
to the growth of the business
To look for t he right employee for the business operation, t he following are
the kind of staff one should have:
1. Skilled 6. Able to attain targets and set
2. Well qualified and well verse in goals
business 7. Not indulge in wasteful
3. Responsible expenditure
4. Dedicated and committed to 8. Loyal
work 9. Team player
5. Honest and with integrity

How to maximize the staff contribution to work?

• Motivate the staff.
• Make sure they are comfortable in their workplace.
• Staff should be provided with necessary benefits.
• Self-respect is very essential.
• The staff should also share in the profits if possible.

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 • Appreciation
• Leisure time should be provided for extra-curricular activities.
• One must listen to the woes of the employees.
3.) Machines - machinery is also important. W ithout the proper equipment, you will
not be able to perform the needed tasks efficiently. You may be able to use the
manpower to do it but it is usually more efficient if machines are able to automate
the work.
Machine plays a vital part in operating a business. Aside from manpower the use of
machinery is important nowadays to make the process of production more effective
and efficient. A machine is a mechanical structure that uses power to apply forces
and control movement to perform an intended action. It is controlled by people or a
machine itself to produce the necessary or required number of productions needed.
You may be able to use the manpower to do a particular job but it is usually more
efficient if machines are able to automate the work. The right machine equipment
can improve your processes, productivity, and capacity to innovate. Not only will you
save time and resources, but you’ll also avoid costly quick fixes.

The following are the right equipment to purchase in starting a business:

1. Assess your business realit y. It is im portant to understand your objectives why
you need to purchase machinery
2. Get an external point of view. Depending on the scale of your investm ent, it m ay
be worth working with an external consultant who can ensure you make the m ost of
your purchase by helping you assess your needs
3. Invest in digit al technologies. This technological advantage m ay monitor a real -
time production and quality control to reduce waste and rework.
4. Create a technology roadmap. A technology roadmap is a planning tool that
aligns your business objectives to long- and short-term technology solutions.
5. Shop around for suppliers. You m ay browse the internet to access different
website that offers specialized machinery equipment.
6. Keep training in mind. All too often, entrepreneurs don’t consider the tim e,
money and resources required to train employees on new equipment
7. Think safety first. A healthy and safe work environment means your employees
and your company can be more productive, and this rule applies to your equipment
and technology purchases as well.
8. Keep it green. When purchasing equipm ent, be sure that it’s energy efficient. Not
only to save money, but also by contributing to the health of the planet.

4. MATERIALS - In manufacturing industry, companies are involved in turning raw

materials into physical products, which are then sold to consumers. One of the

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things that a manufacturing company can do to achieve efficiency is to source quality
raw materials from credible suppliers. For perishable and edible products, the
business should investigate how raw materials are stored, processed, and shipped
to consumers.

Materials - sourcing raw m aterials is critical in any business endeavor as the

businessm an would want to have the cheapest possible at the highest quality.

Once the production process is in place, an entrepreneur shifts to the daily

activities of materials management, which encompass the following activities:
A. Purchasing
B. Inventory control
C. Work scheduling

A. PURCHASING AND SUPPLIER SELECTION

➢ The process of acquiring the materials and services to be used in production
is called purchasing (or procurement).

As a rule, there’s no shortage of vendors willing to supply parts and other m aterials,
but the trick is finding the best suppliers.

In selecting a supplier, an entrepreneur must consider the following questions:

• Can the vendor supply the needed quantity of materials at a reasonable

price?
• Is the quality good?
• Is the vendor reliable (will materials be delivered on time)?
• Does the vendor have a favorable reputation?
• Is the company easy to work with?

Getting the answers to these questions and m aking the right choices—a process
known as supplier selection—is a key responsibility of operations managem ent.

E-Purchasing - Technology is changing the way businesses buy things. Through e-

purchasing (or e-procurement), companies use the Internet to interact with suppliers.

B. INVENTORY - If a manufacturer runs out of the materials it needs for

production, then production stops. In the past, many companies guarded
against this possibility by keeping large inventories of materials on hand. It
seemed like the thing to do at the time, but it often introduced a new
problem—wasting money. Most manufacturers have since learned that to
remain competitive, they need to manage inventories more efficiently.

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Just-in-Time Production =One method is called just-in-time (JIT) production: the
manufacturer arranges for materials to arrive at production facilities just in time to
enter the manufacturing process.

Material Requirements Planning = Another m ethod, called m aterial requirem ents

planning (MRP), relies on a com puterized program both to calculate the quantity of
materials needed for production and to determine when they should be ordered or
made

C. WORK SCHEDULING - manufacturers make profits by transforming inputs

(materials and other resources) into outputs (finished goods).

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 Explore

ENHANCEMENT ACTIVITY: FILL ME UP!

Direction: Fill up the table by filling the missing words in the table B based on
your understanding on what you have read in the column A. Write answers on a
separate sheet of paper.
A B

1. It is a detailed procedure for accomplishing

something.
2. These are em ployees that processes and give
insights on how to reduce cost, increase
productivity to achieve a better business result.
3. The manufacturer arranges for materials to
arrive at production facilities just in time to enter
the manufacturing process.
4. The process of acquiring the materials and
services to be used in production.
5. Plays a vital part in operating a business
6. It is im portant nowadays to make the process of
production more effective and efficient.
7. Another m ethod that relies on a com puterized
program both to calculate the quantity of
materials needed for production and to
determ ine when they should be ordered or
made.
8. A mechanical structure that uses power to apply
forces and control movement to perform an
intended action.
9. Used to make new products.
10. It is a detailed procedure for accomplishing a
particular job used when developing or
innovating new product or service and
expanding a business enterprise.

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 Deepen

Direction: Form a group of 4 and conceptualize for a play or a skit. Show how a
com pany use the 4M’s in their business operation. The following rubric will be used
in assessing your performance.
Rubrics for Scoring the Performance
CATEGORY 4 3 2 1
Great job! You Your role-play is The role-play is The role-play is
offered creative on-topic, but it is somewhat off- completely off-
new insights on the missing topic. Pay more topic, as if your
Content some creativity and attention to the
topic! group did not even
insight. direction s next time! read the
directions.
Excellent work! Everyone in your For the most part, Your group failed
Every member of group stayed in your group stayed in to stay in
your group stayed character, but character. Next character, and it
in some members time, spend more looked like you
Roles character, and it didn't seem to time preparing for had not
was clear you took really be "into” how the prepared for how
your roles what they were characters the
doing. might think or act. characters
seriously.
might think or act.
Your group did an Your group obviously Your group needs to It seems that your
excellent job spent some time spend more time group used the
preparing and preparing for preparing for preparation time
rehearsing your role- the role-play, but the role-play. for
Preparation play, and it shows - some Reading lines from a something else.
everything went very rehearsal might have script is a sure sign
smoothly. helped you're not prepared.
things run more
smoothly.
Excellent! Your Good! Your Keep working! Don't Argh! I expect
presentation was presentation, forget that, though much better
entertainin g and while it was fun the process is work from you
Overall informative! to watch, could have entertaining, you're next time.
Impression been more also
informative. supposed to
learn something from
it.

NOTE: Because of New Normal Education: CONCEPTUALIZE a business/company

using the M’s of operation and form a group work using social media access with
your classmate and, you choose your leader and send all your part or task to the
leader for compilation in one file. Make sure that the four members will have a
different task or choose one M using the MACHINE, METHOD, MANPOWER,
MATERIALS. You take a video of yourself using the M given to you. How are these M’
performed in the business industries? The leader will compile it in one file and send
to the teacher.

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 Gauge

Multiple Choice
Direction: Carefully read each item. Use separate sheet for your answers. Write
only the letter of the best answer for each item.

1. Which of the choices refers to critical in any business endeavor as the

businessman would want to have the cheapest possible at the highest quality?
A. Materials B. Machine
C. Manpower D. Method
2. Which of the following is a systematic way of doing a particular job?
A. Methods B. Machine
C. Manpower D. Materials
3. What do you call the delivering of products and services to customers to meet or
surpass the expectations?
A. Operation Management B. Quality expectations
C. Delivery expectations D. Price Expectations
4. Which of the 4M’s of operations are called the worker?
A. Materials B. Machine
C. Manpower D. Method
5. What do you call the cost or the amount at which something is valued and also
defined as to put a cost on something, or find out a cost?

A. Price B. Delivery
C. Quality D. Method
6. Which is called the transform ation process where input is converted into output?
A. Input B. Process
C. Output D. Quality
7. Which of the following choices refers to the system and step by step process in
the business?
A. Machine B. Manpower
C. Method D. Materials
8. Which of the 4m’s of operations is controlled by people or a machine itself to
produce the necessary or required number of productions needed?

A. Materials B. Machine
C. Manpower D. Method
9. Which is a key responsibility of operations management?
A. Services Required B. Supplier Selection
C. Products Selection D. Services

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 10. Which of the selection below refers to the expectations are captured in the
discussions with the customer and then refined for inclusion in the project product
description.?
A. Quality expectations B. Price Expectation
C. Delivery expectation D. Product Selection

II. True or False

Direction: On your answer sheet, write T if the statement is true, and F if

otherwise.

11. All operations managers must, therefore, begin with the customer’s wants and
desires in mind
12. Manpower was used in business when developing or innovating a new products
or services, expanding your business enterprise, searching for skilled workers to
include in the workforce, and for improving the efficiency of its process.
13. Manpower is controlled by people or a machine itself to produce the necessary or
required number of productions needed
14. Material Requirem ents Planning is the m anufacturer arranges for m aterials to
arrive at production facilities just in time to enter the manufacturing process.
15. The m ethods used in the main branch m ust be documented and m ust be
replicated as well in other branches. If it is difficult to im plement at another site,
find what needs to be improved.

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References

Printed Materials

Eduardo A. Morato Jr. Entrepreneurship (Manila, Philippines: Rex Bookstore, Inc.,

2016), 137-138.

Wilbert Venzon, Entrepreneurship. Lesson 4. Demonstrate understanding of the 4M’s

of Operation (Place: Publishing, 2020), 79-87.

Website:

“Introduction about 4MS,” LinkedIn, Last modified August 08, 2019,

https://www.linkedin.com/pulse/introduction-4ms-long
bao#:~:text=%E2%80%9CThe%20proposed%204M%20approach%20takes,%
2C%20and%20the%20assem bly%20tasks.%E2%80%9D

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 For inquiries or feedback, please write or call:

Department of Education – SDO La Union

Curriculum Implementation Division
Learning Resource Management Section
Flores St. Catbangen, San Fernando City La Union 2500
Telephone: (072) 607 - 8127
Telefax: (072) 205 - 0046
Email Address:
launion@deped.gov.ph
lrm.launion@deped.gov.ph

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