Entrep_Q2_Mod7 PDF - Entrepreneurship Module 7

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...

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 Printed in the Philippines by: _________________________ Department of Education – SDO La Union Office Address: Flores St. Catbangen, San Fernando City, La Union Telefax: 072 – 205 – 0046 Email Address: [email protected] 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 home. Activities, questions, directions, exercises, and discussions are carefully stated for you to understand each lesson. Each SLM is composed of different parts. Each part shall guide you step-by-step as you discover and understand the lesson prepared for you. Pre-tests are provided to measure your prior knowledge on lessons in each SLM. This will tell you if you need to proceed on completing this module or if you need to ask your facilitator or your teacher’s assistance for better understanding of the lesson. At the end of each module, you need to answer the post-test to self-check your learning. Answer keys are provided for each activity and test. We trust that you will be honest in using these. 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 module with care. Do not put unnecessary marks on any part of this SLM. Use a separate sheet of paper in answering 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 answering the tasks in this module, do not hesitate to consult your teacher or facilitator. Thank you. LU_ Entrepreneurship_Module 7  Target 4M’s of Operation 4M’s of Operations mainly represent factors that influence on results of any concern process. Operations Management is about delivering products and services to customers to meet or surpass the expectations. It is designing, developing, and executing the Enterprise Delivery System, from sourcing of the necessary input to the transformation of these input into the final output, which come in the form of goods or services or both, must carry all the features and attributes that customers are looking for. All operations managers must, therefore, begin with the customer’s wants and desires in mind. These wants and desires can be classified into customer 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 market and recognizing the importance of marketing mix in the development of marketing strategy. This learner’s material will provide you with information 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 environment 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. 1 LU_ Entrepreneurship_Module 7  Jumpstart For you to comprehend the module well, do the accompanying exercises. Have a great time and good luck! 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 2 LU_ Entrepreneurship_Module 7 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 3 LU_ Entrepreneurship_Module 7  Discover The 4M’s of Operations mainly represent factors that influence the results of any concern process. This was used to make product design and quality defect prevention and to identify potential factors on cause and overall effect. In manufacturing industries this method was used to apply on production control, improvement, overall efficiency measurement, 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 important part of the business plan because it simply states the details in operating the business. It can be defined as a plan prepared by a component of an organization that clearly defines actions it will take to support the strategic objectives and plans of upper management. 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 services, 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 means that the methods used in the main branch must be documented and must be replicated as well in other branches. 4 LU_ Entrepreneurship_Module 7 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 promoting a sustainable competitive advantage that quickly adapts changing demands in business and its operations. Manpower - these are employees 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 competent and some are capable but not honest. It is a rare find to find someone with all the ideal qualities. So for a businessman, they must be able to treasure their employees who are both capable and honest as they are integral to the growth of the business To look for the right employee for the business operation, the 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. 5 LU_ Entrepreneurship_Module 7  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. Without 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 reality. It is important to understand your objectives why you need to purchase machinery 2. Get an external point of view. Depending on the scale of your investment, it may be worth working with an external consultant who can ensure you make the most of your purchase by helping you assess your needs 3. Invest in digital technologies. This technological advantage may 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 may 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 time, 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 equipment, 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 6 LU_ Entrepreneurship_Module 7 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 materials is critical in any business endeavor as the businessman 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 materials, 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 making the right choices—a process known as supplier selection—is a key responsibility of operations management. 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. 7 LU_ Entrepreneurship_Module 7 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 method, called material requirements planning (MRP), relies on a computerized 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). READ ME! IMPORTANT: Running a business is a complex process and all of these element interplay. It is not just one machine for example but many. Manpower issues could also arise, which would challenge the method that has been set up. It is up to the businessman to identify and solve these issues. 8 LU_ Entrepreneurship_Module 7  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 employees 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 important nowadays to make the process of production more effective and efficient. 7. Another method that relies on a computerized program both to calculate the quantity of materials needed for production and to determine 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. 9 LU_ Entrepreneurship_Module 7  Deepen Direction: Form a group of 4 and conceptualize for a play or a skit. Show how a company 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. directions 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 seriously. doing. might think or act. characters 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 entertaining 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. 10 LU_ Entrepreneurship_Module 7  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 transformation 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 11 LU_ Entrepreneurship_Module 7  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 Requirements Planning is the manufacturer arranges for materials to arrive at production facilities just in time to enter the manufacturing process. 15. The methods used in the main branch must be documented and must be replicated as well in other branches. If it is difficult to implement at another site, find what needs to be improved. 12 LU_ Entrepreneurship_Module 7 LU_ Entrepreneurship_Module 7 13 Jumpstart 1.B 2.C 3.A 4.C 5.B 6.A 7.A 8.B 9.B 10.A Explore Enhancement Activity 1: 1. Method 2. Manpower 3. JIT Production 4. Purchasing (Procurement) 5. Machine 6. Machine/Machinery 7. Material Requirement Planning 8. Machine 9. Materials 10. Manpower Gauge 1.B 2.A 3.C 4.A 5.B 6.B 7.A 8.B 9.B 10.A 11.F 12.T 13.F 14.F 15.F Answer Key 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%20assembly%20tasks.%E2%80%9D 14 LU_ Entrepreneurship_Module 7  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: [email protected] [email protected] 15 LU_ Entrepreneurship_Module 7