4 Ms

• Operations Plan - states the details in operating the business.
• Operations Management - controls the implementation of the business plan.
• 4Ms of Operations

  • Methods
  • Manpower
  • Machines
  • Materials
• Methods - represents the day-to-day operations of the business.
• SOPs - standard operating procedures
• Manufacturing of Goods - The entrepreneur who will engage in producing his or her products will have to consider the basic guidelines and principles in manufacturing.
• Manufacturing - is the process of translating raw materials into finished goods that are acceptable to the customer’s standards.
• 3 Elements of Manufacturing

  • Inputs
  • Process
  • Output
• Inputs - the materials or ingredients to be used in creating the product.
• Process - the transformation phase where inputs are processes by manpower and machines to come up the final product.
• Output - the final product of the process stage, which is intended to be sold to target customers.
• In choosing a manufacturing site, consider the most efficient manufacturing site in which the manufacturing process will take place.
• Sample Manufacturing Sites

  • Home-based
  • Commercial space for rent
  • Commercial space purchase
• In considering the location:

  • Transportation routes should be efficient.
  • Location should be accessible to major types of transport vehicles.
  • Location must operate in an environment-friendly manner.
• Options for internal layout/floor plan

  • Product-based layout
  • Process-based layout
• Product-based layout - facilitates are prearrange according to the flow of the manufacturing operations.
• Process-based layout - where the facilities are grouped according to their function.
• The entrepreneur must prepare a manufacturing process flow, which serves as a step-by-step guide of the employees and the manufacturing equipment.
• Ultimate objective for all operational process:

  • Ensure that maximum efficiency are met.
• Methods:

  • Manufacturing
  • Service Delivery Process
  • Distribution Method
  • Payment Process
• Distribution - the process of bringing the products/services to customers.
• In selling physical goods, the entrepreneur must plan the location, processes, and the distribution of the products to the customers.
• People involve in Supply Chain:

  • Supplier
  • Manufacturer
  • Distributors
  • Agents
  • Customers
• Manpower - The entrepreneur will need the expertise of qualified employees that can handle operational functions, so that he or she will be free from the daily activities and can thus focus on the strategic and management functions of the business.
• Manpower - is one of the highest costs of operating a business but also the most instrumental to success.
• Job Description - enumerates the duties and responsibilities of the potential employee, including the scope, limitations, and terms and conditions of employment.
• Job Title - the heading of the job description, which is the summary of what the employees will do.
• Duties - clearly describe the job that the employee will assume with allowance for flexibility.
• Compensation and Benefit Range - details the potential salary and benefits that the employee will get.
• Responsibilities and Accountabilities - must be communicated to well to the employee so that he/she will know what to expect with the job.
• Work Schedule and Work Hours - must be indicated in the job description.
• In hiring suitable employees for the job needed, entrepreneurs will have to look for the following criteria:

  • Educational Background
  • Work Experience
  • Specific Skill or Knowledge
  • Work Attitude
• Preparatory Selection of Job Applicants - once the job description and employee qualifications are finalized, it is now time to preselects a set of candidates for the position required.
• Job Contract - generally summarizes the terms and conditions of the candidate's employment with the business.
• Training Employees - is one of the biggest investments of an entrepreneur therefore, he or she must devise strategies on how to keep employees satisfied working in the company.
• OJT - or on-the-job training, is training employee under a supervision.
• Buddy System - an expert team member is assigned to assist a new employee in his or her function.
• Mentor-mentee program - training program for supervisors wherein they will be mentored by senior executives/officers in the company.
• Succession Plan - should be prepared to ensure business operations will continue even in their absence or the absence of key employees, or when they decide to resign or retire.
• Manpower:

  • Employee Qualification
  • Preparatory Selection of Job Applicants
  • Selection of Job Applicants
  • Job Offer
  • employee Development