UNDERSTANDING

THE 4Ms OF OPERATIONS

(Describe 4Ms, Develop Product Description,
Create and Test Product Prototype)
Learner’s Module in Entrepreneurship G11
Quarter 2 ● Module 1

FRANCES ANNE C. BERAQUIT

Developer
Department of Education • Cordillera Administrative Region

NAME:__________________________ GRADE AND SECTION ____________

TEACHER: ______________________ SCORE _________________________
 Republic of the Philippines
DEPARTMENT OF EDUCATION
Cordillera Administrative Region
SCHOOLS DIVISION OF BAGUIO CITY
No. 82 Military Cut-off, Baguio City

Published by:
DepEd Schools Division of Baguio City
Curriculum Implementation Division
Learning Resource Management and Development System

COPYRIGHT NOTICE
2020

Section 9 of Presidential Decree No. 49 provides:

“No copyright shall subsist in any work of the Government of the Philippines.
However, prior approval of the government agency of office wherein the work is
created shall be necessary for exploitation of such work for profit.”

This material has been developed for the implementation of K-12 Curriculum
through the DepEd Schools Division of Baguio City – Curriculum Implementation
Division (CID). It can be reproduced for educational purposes and the source must
be acknowledged. Derivatives of the work including creating an edited version, an
enhancement or a supplementary work are permitted provided all original work is
acknowledged and the copyright is attributed. No work may be derived from this
material for commercial purposes and profit.

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 PREFACE

This module is a project of the DepEd Schools Division of Baguio City through
the Curriculum Implementation Division (CID) which is in response to the
implementation of the K to 12 Curriculum.

This Learning Material is a property of the Department of Education, Schools

Division of Baguio City. It aims to improve students’ academic performance
specifically in Entrepreneurship.

Date of Development : October 2020

Resource Location : DepEd Schools Division of Baguio City
Learning Area : Applied Subject/Entrepreneurship
Grade Level : 11/12
Learning Resource Type : Module
Language : English
Quarter/Week : Q2/W1
Learning Competency/Code : Demonstrate the 4Ms of operations by describing
the 4Ms (Manpower, Method, Machine, Materials)
of operations in relation to the business
opportunity; Develop a product description; create
a prototype of the product; and test the product
prototype (CS_EP11/12ENTREP-0h-j-12)

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 ACKNOWLEDGEMENT

As the author of this learning module, I would like to express my sincerest

gratitude to those who meaningfully contributed in the development of this material.
To our School Principal, Ms. Ma. Joan D. Andayan, thank you for the moral support
you gave me in crafting this learning module. To our Assistant School Principal, Ms.
Pia P. Duligas, thank you for the guidance and technical assistance. To my mentors,
Mr. Norbert C. Lartec and Ms. Glenda M. Saludo, thank you for the motivation,
imparting your knowledge and expertise on this subject, and proficiency towards the
development of this module. Lastly, my humblest gratitude to DepEd Division of
Baguio for the given opportunity to develop a module for Filipino learners.

Development Team
Frances Anne C. Beraquit Author
OdicarJoice F. Chavez Layout Artist

School Learning Resources Management Committee

Ma. Joan D. Andayan School Principal
Pia P. Duligas Assistant School Principal
Genevieve C. Tudlong School LR Coordinator
Norbert C. Lartec Master Specialist

Quality Assurance Team

Mary Jane N. Malihod EPS – EPP/TLE/TVL
Leticia A. Hidalgo PSDS – District 7

Learning Resource Management Section Staff

Loida C. Mangangey EPS – LRMDS
Christopher David G. Oliva Project Development Officer II – LRMDS
Priscilla A. Dis-iw Librarian II
Lily B. Mabalot Librarian I

CONSULTANTS

JULIET C. SANNAD, EdD

Chief Education Supervisor – CID

CHRISTOPHER C. BENIGNO
OIC - Asst. Schools Division Superintendent

MARIE CAROLYN B. VERANO, CESO V

Schools Division Superintendent

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 TABLE OF CONTENTS

COPYRIGHT NOTICE ii
PREFACE iii
ACKNOWLEDGEMENT v
TABLE OF CONTENTS vi
What I Need to Know 2
What I Know 3
What’s In 4
What’s New 4
What Is It 5
What’s More 8
Activity 1: 4Ms 8
What I Have Learned 8
Activity 2: Fill in the Gap 8
What I Can Do 9
Activity 3: New Product Concept 9
Activity 4: Group Product Development 10
Post-Assessment 11
Additional Activities 12
Activity 5: Their feedback is important! 12
Answer Key 13
References 14

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 UNDERSTANDING
THE 4Ms OF OPERATIONS
(Describe 4Ms, Develop Product Description,
Create and Test Product Prototype)

Learner’s Module in Entrepreneurship G11

Quarter 2 ● Module 1

FRANCES ANNE C. BERAQUIT

Developer
Department of Education • Cordillera Administrative Region

1
 What I Need to Know

Welcome to this module on UNDERSTANDING THE 4Ms!

The primary objective of Entrepreneurship subject is to aid students in acquiring the

most essential knowledge and competencies required in carrying out a business. This
module will help you understand the 4Ms of business operations, develop a product
description, create a product prototype and test the product prototype.

HOW TO USE THIS MODULE

This module contains several lessons. To make the most out of them, you need to do
the following:
1. Scan the list of Learning Objectives to get an idea of the knowledge and skills you
are expected to gain and develop as you study the module. These outcomes are
based on the content standards, performance standards, and learning competencies
of Applied Entrepreneurship.
2. Take the What I Know. Your score will determine your knowledge of the lessons in
the module. If you get 100% of the items correctly, you may proceed to the next
module. However, you are highly encouraged to take this module for a deeper
understanding on the topic.
3. Each Lesson aims to develop one of the learning objectives set for the module. It
starts with an activity that will help you understand the lesson and meet the required
competencies.
4. Take your time in reading this module. Write down points for clarification. You may
discuss these points with your teacher.
5. Perform all activities and answer all worksheets. The activities and assessments are
designed to enhance your understanding of sets. The activities will also give you an
idea how well you understand the lessons. Review the lessons if necessary, until you
have achieved a satisfactory level of understanding.
6. At the end of the module, take the Post-Assessment to evaluate your overall
understanding about the lessons.

LEARNING OBJECTIVES
At the end of the module, you should be able to:
1) enumerate the 4Ms of business operations;
2) give importance of the 4Ms;
3) develop a product description;
4) create a product prototype; and,
5) test the product prototype.

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 What I Know

General Reminder:
Please use a separate sheet of paper (preferably SHORT BOND PAPER) for your
answers in all the activities included in this module. Write your name (LN, FN, MI)
and section at the upper left portion of your answer sheet.

Instruction: Write the letter of your answers on your answer sheet. (One point each)

For numbers 1-10, write H if the resource is a human resource, and NH if it is a nonhuman
resource.
1. Machines
2. Tools
3. Workers
4. Land
5. Water
6. Capital
7. Labor force
8. Time
9. Entrepreneur
10. Process

For numbers 11-15, write A if the statement is correct. Otherwise, write F.

11. The 4Ms of operations are materials, machineries, method, and manpower.
12. Resources could be classified into three namely human, nonhuman, and unnatural.
13. Marketing plan contains all the marketing strategies and action programs needed to
make the business succeed.
14. In the manufacturing sector, the unprocessed materials used in production is called
the finished products.
15. The flowchart is a helpful visual aid in presenting the method used by a business for
its production or operation.

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 What’s In

Congratulations, entrepreneur, for making it this far! You must keep in mind and in
heart everything that you have learned in your previous lessons. Before you proceed to the
next lesson and activities, let’s have a recap on what you have previously learned.
The business planning process is a five-step procedure which starts with idea
generation, followed by environmental scanning, feasibility study, business implementation,
and evaluation. Every step of the business planning process is essential to make your
business venture successful. The feasibility study or the business plan is the core of the
business planning process. It is a detailed analysis, comprised of the different plans in the
business plan (marketing plan, operation or production plan, financial plan, organizational
plan and socio-economic plan), in determining the profitability and credibility of the business
relative to every aspect which could affect the business. In your previous modules, you have
already started the activities for the marketing plan. The marketing plan is a written
document which includes all the marketing strategies and action plan which could eventually
lead to the success of the business. These marketing strategies are in terms of the
Marketing Mix that determines the potential demand of customers for your product in your
chosen market.
In the previous activities given, you were able to discover new and innovative ideas.
In this module, you will learn the various resources which you need to properly combine in
order to come up with an output or product and be able to sell it to the market.

What’s New

Let your creativity be known! Do this simple activity. Assume that when you were
cleaning your room, you found these five (5) things which you thought were useless.

Instruction: Come up with an idea or a product by combining the five (5) items you have
found in your room. Illustrate it by drawing your idea and create a product name for it.

yarn bulb and empty jar

old pajama working comb

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 What Is It

Another part of the business plan is the production or operation plan. The
production or operation plan is a written document which shows the conversion process
which takes place in a business – from input to a desirable output. A production plan is
usually used by businesses under the manufacturing sector, while an operation plan is used
by servicing businesses. In a full-blown business plan, this chapter includes manufacturing
process, product description, production plant location (vicinity map), production plant layout
(floor plan), materials and equipment needed, and labor requirements.
The inputs in the conversion process of a business are known as resources.
Businesses need various resources to create a product suitable for the market’s needs. In
the previous lesson we had, we have defined resources as items which an enterprise owns
to generate future benefits. The proper combination of these resources available in the
business environment could lead to efficiency and achievement of the business’ goals and
objectives. There are two (2) classifications of resources: human and nonhuman resources.
However, these could be further elaborated into 4Ms: manpower, materials, machineries,
and method. These 4Ms represent the most important inputs which influence the final
outputs of a business.

Manpower – this refers to the human resource,

particularly the workforce, needed in the production
process of the business. You need to hire the
competent people right for the job and position so that
your business would achieve maximum efficiency and
produce quality products. This includes the
recruitment, selection, training, and development of
your workers. For start-up small businesses, an
organization of four (5) to six (6) crews is ideal to avoid large start-up costs. It will be further
discussed in the succeeding module.

Materials – these are the basic ingredients in any type of

business. In the manufacturing sector, these pertain to the
unprocessed (raw) materials needed in production. The
proper and right amount of the materials needed by the
business is determined in the marketing plan since the
demand for the product is presented there. In your own
business (if manufacturing), remember to identify all the
raw materials needed for the production, the quantity
needed for each material, and the corresponding costs to
get the total costs allotted for the raw materials. The total raw materials costs will be needed
for your financial plan later on. A sample table for the raw materials needed in cooking
adobo (good for three servings) is shown:

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 ITEM COST PER UNIT QUANTITY NEEDED TOTAL COST
Garlic Php5/bulb 1 bulb Php 5.00
Onion Php5/bulb 1 bulb 5.00
Chicken Php140/kg 1 kg 140.00
Potato Php50/kg ½ kg 25.00
Black pepper Php5/small pack 1 small pack 5.00
Soy sauce Php10/pack 1 pack 10.00
Vinegar Php10/pack 1 pack 10.00
TOTAL COST Php 240.00

Machineries – these are the basic tools to convert the input

into output. These include various tools, equipment,
instruments, or devices which could be used by the business
to produce a product or generate a service. These
machineries are designed to make the work faster and easier.
Nevertheless, it still requires manpower for these to operate
successfully. In selecting the appropriate machine, you must
also take into consideration the following:
1. machine requirements of the enterprise;
2. list of available technical machine and equipment which met the requirement;
3. supplier of the machine;
4. availability of spare parts;
5. life span of the machine;
6. possible substitutes of the machine; and
7. the budget of the enterprise.

In the previous example of serving adobo, the cooking utensils, cooking pots, and
gas stove are considered under machineries. This is also essential since the total costs of
machineries will be needed for your financial plan. A sample table for the machineries
needed is given below:
COST PER QUANTITY
ITEM SUPPLIER TOTAL COST
UNIT NEEDED
Cooking utensils Tiongsan Php900/set 1 set Php 900.00
Cooking pot (large) Market Php1,500 1 1,500.00
2-burner gas stove Tiongsan Php1,300 1 1,300.00
TOTAL COST Php 3,700.00

Method – this refers to the set of procedures and instructions which

you must follow in order to achieve your goal. It is the process of
commencing and conducting business operations. It must always be
systematic and people in the enterprise must be well-informed about
this. In managing your business, you must establish clear policies and
guidelines for your staff to be more efficient and productive. These
policies and guidelines will determine how your people will work and

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they will be able to identify their work priorities. The methods used in managing the
organization will link people to each other and to other resources (materials and
machineries). Using a flowchart will help the business visualize the actual method involved.
In the production context, the method used is known as the manufacturing process.
This is comprised of series of steps which shows how the materials (raw) will be converted
or transformed into a finished product. It usually begins with preparation of the raw materials
and ends with serving or delivery of the product. For servicing businesses, their operating
process varies with the type of service they are offering. It is important that your people
follow a step-by-step procedure in creating the business product/s. The manufacturing
(good) or operating (service) process must be clear and understandable to employees and
even external parties. The sample manufacturing process of a common fast-food enterprise
is shown below:

In some references, there is another M included. The 5 th M is known as

money. Money refers to the capital investment of the entrepreneurs. The
money invested in the business will be used to purchase materials and
machineries and pay the salaries of manpower. These are the funds
needed to make the business operational and productive. Most
businesses also use the term working capital to refer to the capital
invested.

Job well done, learner! Remember all the concepts you have learned and
apply it in your group business! You may now proceed to the activities given.

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 What’s More

Remember that the 4Ms of the production or operation process are essential factors
in the production plan of a business plan. Answer the activities below to apply what you have
learned.

Activity 1: 4Ms
Instruction: From the “What’s New” activity, identify the manpower, materials, machineries,
and method you use to create the product. Write your answers on your answer sheet.
Manpower: Who did you need to create the product? (One point)
Materials: What were the raw materials you needed to create the product? (One point
each)
Machineries: What were the tools or equipment (e.g. pair of scissors) you needed to
create the product? Give only three (3) main machineries you used. (One point each)
Method: Create a flowchart (refer to the example given in the discussion) to show your
production process. Limit only to five (5) periods only.

What I Have Learned

Activity 2: Fill in the Gap

Instruction:Find the ten (10) words in the word search puzzle then use these words to
complete the statements. Write your answers on your answer sheet. (One point each)

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 The ____(1)____ is a written document which shows the conversion process which
takes place in a business – from _____(2)_____ to a desirable output. The inputs included in
this plan is called _____(3)_____ which are readily available in the business environment.
These could be further elaborated into 4Ms and these represent the most important inputs
which influences the _____(4)_____ of a business. The first M is ____(5)____ which refers
to the human resource, particularly the workforce, needed in the production process of the
business. The basic ingredients in any type of business are known as _____(6)_____. In the
manufacturing sector, these pertain to the ____(7)____ needed in production. On one hand,
____(8)____ are the basic tools to convert the input into output which are very important in
the conversion process. Lastly, ____(9)____ refers to the set of procedures and instructions
which you must follow to achieve the goals of your business. To make the process more
recognizable, a ____(10)____ is needed by the business.

What I Can Do

Activity 3: New Product Concept

You have previously learned that a product concept or description refers to the
idea for a product which your business decides on how it will be offered to the market. It
gives a description on the product’s value proposition (product quality appropriate to its
price) to the market. Here are some tips on how you will create a product concept or
description:
1. It should explain what the product is about and why it is worth purchasing.
2. It gives an idea what the product uses, and benefits are.
3. It may include the suggested price of the product.
4. It appeals to your target consumers’ imagination.
5. Make it short, simple and interesting.

Instruction: Copy and complete the table on your answer sheet. Create five (5) product
concepts or description and use the tips mentioned. The product concepts must be one
sentence only. You may refer to the previous activities given and incorporate it in your
product conceptualization. Only one (1) representative from your group will pass the copy of
this activity.

PRODUCT NAME:
PRODUCT CONCEPT or DESCRIPTION (Two pointes each)
Concept 1
Concept 2
Concept 3
Concept 4
Concept 5

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Activity 4: Group Product Development

Since you have previously sketched your business product, finally you are now ready
to create a product prototype. A product prototype is a sample or model product which you
create to test the product concepts you have developed. Always remember to use the 4Ms
of production or operation. Typically, you may need to build several prototypes to create a
good, if not perfect, one.

Instruction: Create a three to ten-minute video on how you designed and produced your
product. The video should contain the materials, machineries and methods used. One (1) to
three (3) members should be present in the video. Submit your output via email, Facebook
messenger, or any other online medium to your subject teacher. Refer to the rubric
below.

CRITERIA 10 points 6 to 9 points 1 to 5 points

DURATION The duration of the The video exceeds The duration of the
video is three to ten- ten minutes. video is below three
minutes. minutes.
CONTENT The video presents The video lacks one The video does not
all the relevant relevant information include the relevant
information needed needed and is, information needed.
(materials, method, somehow, presented It is also presented in
and machineries). It in an organized an unorganized
is presented in a manner. manner.
very organized
manner.
PRESENTATION The presenter very The presenter fairly There are several
well demonstrates demonstrates confusing scenes
understanding of the understanding of the and the group
group’s product. It is group’s product. The product’s information
evident that the product, somehow, is not properly
group did their lacks video conveyed.
product. projection.

CREATIVITY The video The video The video

presentation presentation meets presentation lacks
exceeds the expectations, creativity and style. It
expectations, and it and it presents is evident that the
presents high creativity and style. work done was
creativity and style. It is evident that the rushed.
Maximum effort was group put effort.
put in the video.

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 Post-Assessment

Instruction: Write the letter of your answers on your answer sheet. (One point each)

For numbers 1-10, write H if the resource is a human resource, and NH if it is a nonhuman
resource.
1. Capital
2. Entrepreneur
3. Labor force
4. Land
5. Machines
6. Process
7. Time
8. Tools
9. Water
10. Workers

For numbers 11-15, write A if the statement/s is/are correct. Otherwise, write F.
11. In the merchandising sector, the unprocessed materials used in production is called
the raw materials.
12. Production plan contains all the marketing strategies and action programs needed to
make the business succeed.
13. Resources could be classified into two namely human and nonhuman resources.
14. The 4Ms of operations are known as mastery, machineries, method, and manpower.
15. The flowchart is a helpful visual aid in presenting the method used by a business for
its production or operation.

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 Additional Activities

Activity 5: Their feedback is important!

Instruction: Show the video or a picture of your final product to five (5) people and ask them
to give comments or suggestions regarding the product. Copy and complete the table below
in your group answer sheet.

FEEDBACK
Feedback 1
Feedback 2
Feedback 3
Feedback 4
Feedback 5

Using the feedbacks given, suggest five (5) ways on how to improve your product. (One
point each)

Good job! Now that you have finished answering the module, it’s time
for self-assessment. Let’s see how well you understood the lesson in
this module.

Please draw a happy face � if your answer to the question is yes.

SELF-
ASSESSMENT Draw the sad face ☹ if your answer to the question is no and you are
highly encouraged to go over the module again.

Am I able to enumerate the 4Ms of business operations? �☹

Can I give the importance of the 4Ms? �☹

Am I able to develop a product description, create and test the product

�☹
prototype?

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Answer Key

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References
Barringer, Bruce R., and Duane Ireland. 2010. Writing a Business Plan. Pearson Education.
Eduardo A. Morato, Jr. 2016. A Triology on Entrepreneurship. Eduardo A. Morato, Jr.
Kotler, Philip. 2002. Marketing Management, Millenium Edition. United States of America:
Pearson Custom Publishing.
Robles, Lorena, and Marta Zarraga-Rodriguez. 2015. "Key Competencies for
Entrepreneurship." Procedia Economics and Finance 23 828-832.
https://www.shopify.com.ph/blog/13640265-the-16-step-guide-to-evaluating-the-viability-of-
any-product-idea
https://www.mbaskool.com/business-concepts/marketing-and-strategy-terms/11884-
customer-requirements.html

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