ENTREP (Last Semester)

• 4Ms of Operations:


  Method, Machine, Materials, and Manpower (4ms of operations)
• 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.


  METHOD
• THREE ELEMENTS OF MANUFACTURING:


  Input, process, and output
• refers to the materials or ingredients that are being used in creating the product.

  Input
• transformation phase where the raw materials or ingredients are being processed by manpower and machines to come up with the final product.

  Process
• refers to the final product that is intended to be sold to the target customers.

  Output
• MANUFACTURING SITE OPTIONS:


  Home-based, Commercial space for rent, Commercial space purchasing
• site option is the cheapest among the three and highly flexible. This is the best choice for most start-up businesses that do not have the capacity to establish a manufacturing site yet.

  Home-Based
• 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 for rent
• ideal option for established businesses, but this requires the biggest amount of capital. It provides the entrepreneur with the freedom and flexibility to design, manage, and run the commercial space completely.

   

  Commercial space Purchasing
• MAJOR MANUFACTURING LAYOUTS ARE CATEGORIZED INTO TWO:

  Product-focused and process-based
• These facilities are pre-arranged according to the flow of the manufacturing operations. It is recommended for a job-shop type of operation.

  Product-Focused
• These facilities are grouped according to their function.This is used for those with batch or continuous production operations set-up.

  Processed-based
• refers to the tools, facilities, and systems that are used to produce a product.The machinery and equipment required can be identified after the manufacturing layout of the business has already been determined.

  MACHINE
• refer to the raw items that are used in creating a product or performing a service. The materials’ specifications, quantity needed, and the schedule of delivery should be clearly planned. The reliability of the suppliers should also be proven, and single sourcing of materials should be avoided.

  MATERIALS
• MATERIALS REQUISITION OPTIONS:

  Manufacturing of own materials, Outsourcing, and purchasing own products from present supplier
• this option, a large amount of capital must be prepared because all expenses in the manpower, machines, and materials will be shouldered by the entrepreneur. 

  Manufacturing of own Materials
• this option, a third-party manufacturer will do the manufacturing of the materials needed. These third party companies are considered well versed in producing such material and have tailored it to the entrepreneur’s needs at a lower cost. It saves the entrepreneur from buying expensive machinery.

  Outsourcing
• this option, the entrepreneur will purchase finished products from a manufacturer. The manufacturer of the product is also allowed to sell to the entrepreneurs’ competitors. The entrepreneur becomes one of the distributors of the manufacturer (distribution business, retailers, sari-sari stores, and franchises). With that, the entrepreneur saves the cost of machines and manpower and allows him to buy and sell a broad range of finished products.

  purchasing own products from present suppliers
• business grows, the entrepreneur should hire qualified employees that can handle operational functions so that he can focus on the strategic and management functions of the business.

  Manpower
• requirement is one of the factors in the high expenses in business, but it is also the most instrumental to its success. Personnel should be arranged accordingly, from the managerial, supervisory to the staff or workforce needed in the operation of the business. In the selection process, the entrepreneur should identify applicants that have the necessary knowledge, skills, and other qualifications that will help the business achieve its goals. 


  Manpower
• requirement is one of the factors in the high expenses in business, but it is also the most instrumental to its success. Personnel should be arranged accordingly, from the managerial, supervisory to the staff or workforce needed in the operation of the business. In the selection process, the entrepreneur should identify applicants that have the necessary knowledge, skills, and other qualifications that will help the business achieve its goals. 

  Manpower
• QUALIFICATION STANDARDS: There are three kinds of qualification standards: 

  Manpower

  Experience

  Academics