4M's

• The 4M's are: METHOD, MACHINE, MATERIALS, MANPOWER
• METHOD - Refers to the process that is strictly followed in the manufacturing of a business product.
• The transformation of raw materials into a finished product is called manufacturing
• Input This refers to the materials or ingredients that are being used in creating the product.

  • Process - Refers to the transformation phase where the raw materials or ingredients are being processed by manpower and machines to come up with the final product.
  • Output Refers to the final product that is intended to be sold to the target customers. 
• Manufacturing Sites Options

  • Home-Based -cheapest among the three and highly flexible. Best choice for start-up businesses that do not have the capacity to establish a manufacturing site yet. 
  • Commercial Space for Rent Recommended option if the business already needs a commercial space for the processing of the product and if the home-based option is not viable or feasible.
  • Commercial Space Purchase - Ideal option for established businesses, but requires the biggest amount of capital.
• Major Manufacturing Layout are categorized into two:

  • Product-Focused Facilities are prearranged according to the flow of manufacturing operations. Recommended for a job-shop type of operation.
  • Process-based - Facilities are grouped according to their function, This is used for those with batch or continuous production operations set-up.
• MACHINE 

  • The tools, facilities, and systems that are used to produce a product.
• ICT Equipment companies use to better serve their customers:

  1. Landline Phones
  2. Mobile Phones
  3. Computers
  4. Point of Sale (POS) Machines
  5. Accounting and Inventory Software
  6. Website
• MATERIALS 

  • The raw items that are used in creating a product or performing a service.
• Materials Requisition Options

  1. Manufacturing of own materials - A large amount of capital must be prepared because all expenses in the manpower, machines, and materials will be shouldered by the entrepreneur.
  2. Outsourcing - A third-party manufacturer will do the manufacturing of the materials needed.
  3. Purchasing own products from present suppliers - The entrepreneur will purchase finished products from a manufacturer.
• Pricing Methods:

  • Cost-oriented Pricing Method in which some percentage is added to the cost of the product in deciding the final price based on the desired margin. 
  • Competition-oriented Pricing - Refers to a method in which the entrepreneur considers the prices of its competitors’ products to set the prices of its own products.
  • Demand-oriented Pricing - Refers to a method in which the demand dictates of the entrepreneur will make the price go higher or lower.
• MANPOWER

  • The human resources who will handle the business operations.
• Qualification Standards

  1. Manpower - The personality required to a worker’s overall physical attributes. 
  2. Experience - Refers to the length of working experience in relation to the job criteria required as a worker. 
  3. Academics - Refers to the worker’s academic qualifications or educational attainment required of them to perform the job.