4Ms of Operations Flashcards
refers to the process that is strictly followed in the manufacturing of a business product.
Method
3 Elements of Manufacturing
a. Input
b. Process
c. Output
This refers to the materials or ingredients that are being used in creating the product.
Input
This refers to the transformation phase where the raw materials or ingredients are being processed by manpower and machines to come up with the final product.
Process
This refers to the final product that is intended to be sold to the target customers.
Output
3 Types of Manufacturing Site Options
a. Home-based
b. Commercial space for rent
c. Commercial space purchase
This site option is highly flexible and the cheapest among the three. This is the best choice for most start-up businesses that do not have the capacity to establish a manufacturing site yet.
Home-based
This is the 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
This is the ideal option for established businesses, but this requires the biggest amount of capital
Commercial space purchase
2 Major Manufacturing Layouts
- Product-focused
- Process-based
[Type of Major Manufacturing Layouts]
These facilities are prearranged according to the flow of the manufacturing operations. It is recommended for a job-shop type of operations.
Product-Focused
[Type of Major Manufacturing Layouts]
These facilities are grouped according to their function. This is used for those with batch or continuous production operations setup.
Process-based
[Type of Major Manufacturing Layouts]
Product production: High volume but a low variety of products
Production cost: High Fixed cost
Equipment and Labor: Uses special purpose equipment and has generally low-skilled labor
Scheduling of production: Relatively simple
Product-focused
[Type of Major Manufacturing Layouts]
Product production: low volume but a wide variety of products
Production cost: Costing estimate is done before the production process
Equipment and Labor: Uses general- purpose equipment and has skilled personnel
Scheduling of production: Complex Scheduling
Process-based
refers to the tools, facilities, and systems that are used to produce a product.
Machines
Entrepreneurs’ Responsibilities in Safeguarding Machines
- Protecting against fraudsters
- Training of employees in keeping information confidential
- Constant updating and checking of software programs
- Assuring that there is a business continuity program (BCP)
- Appointing experts in charge of the business’s software and computers
- Having insurance coverage for equipment
refer to the raw items that are used in creating a product or performing a service.
Materials
3 Materials Requisition Options
Manufacturing of own materials
Outsourcing
Purchasing own products from present suppliers
3 Pricing Methods
Cost-oriented pricing
Competition-oriented pricing
Demand-oriented pricing
refers to the human resources who will handle the business operations.
Manpower
