4M's - ENTREP

• The most serious issues in the whole production system are the inputs and the transformation process. Their quality determines the quality of the output.
• Four M's of production

  • Manpower
  • Method
  • Machine
  • Materials
• Manpower


  Human labor force involved in the manufacture of products
• Manpower criteria


  • Educational qualifications and experience
  • Status of employment
  • Numbers of workers required
  • Skills and expertise required for the job
• Materials


  Raw materials necessary in the production of a product
• Materials criteria


  • Cost
  • Quality
  • Availability
  • Credibility of suppliers
  • Waste that the raw material may produce
• Machine


  Manufacturing equipment used in the production of goods or delivery of services
• Factors in selecting equipment

  • Types of products to be produced
  • Production system to be adopted
  • Cost of the equipment
  • Capacity of the equipment
  • Availability of spare parts
  • Efficiency of the equipment
  • Skills required in running the equipment
• Method


  Process or way of transforming raw materials to finished products
• Factors in selecting production method

  • Product to produce
  • Mode of production
  • Manufacturing equipment to use
  • Required skills to do the work
• Product description


  Promotion that explains what a product is and why it's worth buying
• Guidelines for good product description

  • Know your target market
  • Focus on product benefits
  • Tell the full story
  • Use natural language and tone
  • Use power words that sell
  • Use good images
• Prototype


  Duplication of a product as it will be produced, containing details like color, graphics, packaging and directions
• Benefits


  Reasons why customers will decide to buy the products (e.g. affordability, efficiency, ease of use)
• Features


  Descriptive facts about the product or service
• Supplier


  Entity that offers goods and services to another business
• Importance of suppliers


  • Business partners without whom the business will not live
  • Need to choose loyal and valuable suppliers that help fulfill business objectives
• Value chain


  Method or activities by which a company adds value to an item, with production, marketing, and provision of after-sales service
• Supply chain


  Structure of organizations, people, activities, data, and resources involved in moving a product or service from supplier to customer
• Business model


  Describes the rationale of how an organization creates, delivers, and captures value in economic, social, cultural or other contexts
• Phases in developing business model

  • Identifying specific audience
  • Establishing business process
  • Recording business resources
  • Developing strong value proposition
  • Determining key business partners
  • Creating demand strategy and being open for innovations
• Business plan


  Important tool to have an idea about the future of the business and guide in implementing and operating the business proposal
• Business plan


  Used to secure investment capital from financial institutions or lenders, influence people to work for the enterprise, secure credit from suppliers, and fascinate potential customers
• Business is not just about income or profit, but the life of the business. Businesses have to consider technological, social, political, cultural, economic and legal forces.
• Components of a Business Plan

  • Introduction
  • Executive Summary
  • Management Section
  • Marketing Section
  • Financial Section
  • Production Section
  • Competitive Analysis
  • Market
  • Organizational chart
• Introduction


  Discusses what the business plan is all about
• Executive Summary


  Part of the business plan which is the first to be presented but the last to be made
• Management Section


  Shows how you will manage your business and the people you need to help you in your operations
• Marketing Section


  Shows the design of your product/service; pricing, where you will sell and how you will introduce your product/service to your market
• Financial Section


  Shows the money needed for the business, how much you will take in and how much you will pay out
• Production Section


  Shows the area, equipment and materials needed for the business
• Competitive Analysis


  Strategy where you identify major competitors and research their products, sales and marketing strategies
• Market


  The persons who will buy the product or services
• Organizational chart


  Diagram showing graphically the relation of one official to another, or others of a company
• Manpower refers to the human labor force involved in the manufacture of products
• Materials refer to the raw materials necessary in the production of a product
• Method refers to the process or way of transforming raw materials to finished products
• 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
• A prototype is a duplication of a product as it will be produced, which may contain such details as color, graphics, packaging and directions
• Suppliers are business partners, without them your business will not live