Republic of the Philippines

Department of Education
Region IX
DIVISION OF ZAMBOANGA CITY
Manicahan District
BOLONG NATIONAL HIGH SCHOOL
School Bolong National High Grade 12
School
Semi- Teacher Sheryl May G, Futalan Learning TVL
Detailed Area Entrepreneurship
Lesson 12
Plan
Teaching Week 6 Quarter 1st Quarter
Dates and September 2-6, 2024
Time
Bolong, Zamboanga City

Content Standard: The learner demonstrates understanding of environment and market in one’s
locality/town.
Performance Standard: The learner independently creates a business vicinity map reflective of
potential market one’s locality/town.
Learning Competency:
The learners:
 Demonstrate understanding of the 4Ms of Operations; CS_EP11/12ENTREP-0h-j-12
4.1 Describe the 4Ms (Manpower, Method, Machine, Materials) of operations in relation
to the business opportunity.
4.1.1 Develop a product description;
4.1.2 Create a prototype of the product;
4.1.3 Test the product prototype;
4.1.4 Validate the service description of the product with potential customers to determine
its market acceptability;
4.1.5 Select/pinpoint potential suppliers of raw materials and other inputs necessary for
the production of the product or service;
4.1.6 discuss the value/supply chain in relation to the business enterprise.
I. Objectives:
At the end of the lesson, the students will be able to:
o Describe the 4M’s (Manpower, Method, Machine, Materials) of operations in
relation to the business opportunity;
o Appreciate the importance of production process, business model and business
 plan.
o Apply the concept of 4M’s of production in a small manufacturing business.
II. Subject Matter: 4Ms of Production and Business Model
Entrepreneurship Module 6
Materials: Laptop, Presentation Slides
III. Procedures:
A. PREPARATION
1. Prayer
2. Classroom Management
3. Checking of Attendance
B. REVIEW/MOTIVATION
C. LESSON PROPER
Activity

Analysis
o What are the words all about?
o How are these words related to each other?

Abstraction
An entrepreneurial venture may either be a sole proprietorship, a partnership,
or a corporation, engaged in merchandising, manufacturing, or service. Nevertheless,
whatever type and nature of business ventures is opened to exploit different business
opportunities, innovation or creativity defines the distinction between an entrepreneur
and an ordinary business person.
Thus, the concept of innovation or creativity must, in almost all instances, be
introduced and practiced. An entrepreneur finds way to introduce innovation from the
production process to the marketing stage, while an ordinary businessperson simply
imitates business practices and procedures.
The concept of innovation or creativity can easily be practiced and highly
noticeable in a manufacturing operation since raw materials are transformed to
finished goods through the production process. Innovation can be introduced from the
production phase up to packaging and delivery.
The three important elements in the production system are; the input, the
transformation of production process and the output.

The Input includes the following:

1. Manpower
2. Materials
3. Machine
4. Design
5. Instructions
The Production process, also referred to as the transformation or conversion
process, is the stage of production where the materials are transformed into the final
product with the aid of manpower and machine.
The output represents the final product from the production process and
distributed to the customers.

4Ms of Production
The most serious issues in the whole production system are the inputs and the
transformation process. Their quality determines the quality of the output.
The factors involved in the input and the production process are usually referred
to as the 4Ms of production, namely Manpower, Method, Machine, and Material
Manpower
Manpower talks about human labor force involved in the manufacture of products.
It is measured as the most serious and main factor of production. The entrepreneur
must determine, attain and match the most competent and skilled employees with the
jobs at the most appropriate time period.
Educational qualifications and experience, status of employment, number of
workers required, skills and expertise required for the job are some of the manpower
criteria that must be highly considered by the entrepreneur.
Materials
It simply refers to the raw materials necessary in the production of a product.
Materials mainly form part of the finished product. Just in case the resources are below
standard, the finished product will unsatisfactory as well. The entrepreneur may
consider cost, quality, availability, credibility of suppliers and waste that the raw
materials may produce.
Machine
Machine is about manufacturing equipment used in the production of goods or
delivery of services. In the process of selecting the type of equipment to purchase, the
entrepreneur may consider types of products to be produced, production system to be
adopted, cost of the equipment, capacity of the equipment, availability of spare parts
in the local market, efficiency of the equipment and the skills required in running the
equipment.
Method
Method or production method is the process or way of transforming raw materials
to finished products. The resources undergo some stages before it is finalized and
become set for delivery to the target buyers. The selection of the method of production
is dependent on product to produce, mode of production, manufacturing equipment to
use and required skills to do the work.
The product is the physical output of the whole production process. It should be valuable and beneficial to
the consumers and should satisfy their basic needs and wants. A product can be heterogeneous or
homogeneous. A heterogeneous product has dissimilar characteristics, parts, and physical appearance. It
can be easily identified from other products. Entrepreneurial ventures that produce heterogeneous
products include makers of furniture, bags, and home decors.
On the other hand, a homogeneous product has a physical appearance, taste, or chemical content that can
hardly be distinguished from that of the other products. Businesses that produce homogeneous products
include makers of soft drinks, and medicines.
After knowing the production process and system, and how the product is being processed, not it is
important to know about product description, wherein product description promotes and explains what a
product is and why it’s worth buying. 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.
Know who your target market is, focus on the product benefits, tell the full story, use natural language
and tone, use power words that sell, and use good images.
These are guidelines for you to have a good product description; since some customers are very particular
with it since they consider the welfare of their family, if it is safe to use.
Prototype is created before the massive production of such product; an entrepreneur must consider
prototyping. One of the important early steps in the inventing process is making a prototype. A prototype
is a duplication of a product as it will be produced, which may contain such details as color, graphics,
packaging and directions. Benefits are the reasons why customers will decide to buy the products such as
affordability, efficiency or ease of use. The features of the product or service merely provide a descriptive
fact about the product or service.
Most importantly, it is better to test your product prototype to meet customers’ needs and expectations;
and for your product to be known and saleable. Pretesting of the product or service is similar to a sample
of the product or service given to the consumer free of cost in order that he/she may try the product before
committing to a purchase.
The entrepreneur’s main concern is the satisfaction of a customer, for they are the life blood of the
business. Without them, all the efforts, will be wasted as well as the chance to venture into a new
business.
In a manufacturing venture, the supplier plays a vital role. They are your business partners, without them
your business will not live. You need them as much as you need your customers to be satisfied. But as an
entrepreneur you have to choose a potential supplier who has loyalty and values your partnership: a
supplier who would lead you to the fulfillment of your business objectives, mission and vision.
This entity is part of a supply chain of a business, which may offer the main part of the value contained
within its products. Certain suppliers may even involve in drop shipping, where they ship goods directly
to the customers of the buyer.
How do supply chain management systems coordinate planning, production, and logistics with suppliers?
Supply chain management systems automate the flow of information among members of the supply chain
so that they can use it to make better decisions about when and how much to purchase, produce, or ship.
Value chain is a method or activities by which a company adds value to an item, with production,
marketing, and the provision of after-sales service. The main goal and benefit of a value chain, and
therefore value chain analysis, is to make or support a competitive benefit.
A supply chain is a structure of organizations, people, activities, data, and resources involved in moving a
product or service from supplier to customer.
The main objective of supply chain management includes management of a varied range of components
and procedures, for instance, storing of raw materials, handling the inventory, warehousing, and
movement of finished product from the point of processing to the point of consumption.
When value chain management is implemented effectively, the flow of products and materials is
improved through the accurate forecasting of sales and demand as well as improved inventory
management. Delays are also minimized and products are visible and traceable throughout the supply
chain.
Supply chain management decreases purchasing cost. Retailors depend on supply chains to quickly
distribute costly products to avoid sitting on expensive inventories. Any delay in production can cost a
company tens of thousands of pesos.
This factor makes supply chain management ever more important.
Value chains help increase a business's efficiency so the business can deliver the most value for the least
possible cost. The end goal of a value chain is to create a competitive advantage for a company by
increasing productivity while keeping costs reasonable.
Business model describes the factors of how an organization creates, delivers, and captures value in
economic, social, cultural or other contexts. The developmentof business model construction and
variation is also called business model innovation and forms part of a business plan.
It is a company's plan on how it will make revenues and make a profit. It describeswhat products or
services the business plans to manufacture and market, and how it plans to do so, as well as what
expenses it will incur.
There are important phases in developing your business model, namely: identifying the specific audience;
establishing business process; recording business resources; developing strong value proposition;
determining key business partners; and creating demand for today’s generation strategy and being open
for innovations.
After developing a business model, we will proceed in developing a business plan.
To be able to successfully complete this module, you need to prepare a business plan and operate your
plan and finally keep records of your business transactions.
Business Plan
What is a Business Plan For?
Entrepreneurs who plan to enter any business endeavor must have a business plan on hand to guide them
throughout the process. Different business plans are prepared for different purposes. There are business
plans written prior to setting up an enterprise, which are similar to a prefeasibility study and a feasibility
study. Many new enterprises need to convince prospective business investors about the soundness and
potential of their business.
There are business plans that are written during the first few years of the enterprise in order to guide the
entrepreneur on which strategies would be most beneficial for the enterprise to take. And there are
business plans that are focused on bringing the enterprise to a higher level of growth, a period where the
enterprise has already reached its peak and would want to enter into another endeavor by creating and re-
establishing itself.
Clearly, a business plan serves many masters. First, it serves the entrepreneur who must set a navigational
course. Second, it serves investors and cautious financiers. And third, it serves the managers and staff of
the organization so that they will know the strategies and programs of the enterprise.

Read the different scenarios below to fully understand the importance of having a business plan.
Scenario 1:
“Jessie is the eldest of the five children of Mr. & Mrs. Natividad. The family is having difficulty to support
their everyday needs. Because of this, Jessie tried selling banana cue and with his dream to make his
business grow, he put up many stalls in the community without considering the advises of his friends to
make a business plan before implementing his decision. After a few months his stalls shutdown.”
Scenario 2:
“Mercy is the youngest in the family. She found out that she loves to cut hair and apply make up on her
friends. Until such time that her friends introduced her to their friends too for haircut and make up when
there are occasions. A few months after, Mercy was told by her friends to put up a beauty parlor in their
place. So, she asks her mother who is also a businesswoman to teach her how to make a business plan
and eventually ended with a successful business.”
Scenario 3:
“Monna is a diligent student: because of her knowledge gained from school about business plan she was
able to enhance her skills in business and finally found herself into her laundry shop business.”
Each scenario taught us that a business is not just about how much income or profit you can get, but it’s
about the life of your business. And in having a business, you also have to consider Technological forces,
Social forces, Political forces, Cultural forces, Economic forces and Legal forces.

D. EVALUATION
General Directions: Answer the following questions based on your learnings about 4M’s of Production
and Value Chain or Supply Chain. Write your answer on the space provided. Five (5) points for each
correct answer for Problem No.1 and 2 points for each correct answer in Problem No. 2.
Independent Activity No. 1. “In your home, when you want to eat egg sandwich
before going to school, your mother would surely prepare it for you. Your egg
sandwich would not be produced without a process.”
1. Who would be your manpower? _______________________________
2. What would be your materials? ________________________________
3. What machines or tools would you use? _________________________
4. What methods are needed to produce the egg sandwich? (Cooking procedure
enumerate them).
ASSESSMENT
Direction: Encircle the letter of your choice.
1. Which of the following refers to the human workforce involved in the manufacture of products?
A. Materials B. Method C. Machine D. Manpower
2. The 4M’s of production are as follows except ONE. Which one is it?
A. Management B. Manpower C. Method D. Machine
3. Which of the following refers to the marketing copy that explains what a product is and why it is worth
purchasing?
A. Prototype C. Business Model
B. Product description D. Suppliers
4. It represents the final products from the production process and distributed to the customers.
A. Input B. Supplies C. Output D. Materials
5. It is a replica of a product.
A. Prototype C. Business Model
B. Product description D. Suppliers
6. Which of the following refers to the system of organizations, people, activities, information, and
resources involved in moving a product or service from supplier to customer?
A. Supply Chain B. Value Chain C. Business model D. Prototype
7. Which of the following is the process or activities by which a company adds value to an article,
including production, marketing, and the provision of aftersales service?
A. Supply Chain B. Value Chain C. Business Model D. Prototype
8. It describes the rationale of how an organization creates, delivers, and captures value in economic,
social, cultural or other contexts.
A. Prototype C. Business Model
B. Product description D. Suppliers
9. It is an entity that supplies goods and services to another organization.
A. Prototype B. Product Description C. Business Model D. Suppliers
10.Which of the following refers to the manufacturing equipment used in the production of goods or
delivery of services?
A. Machine B. Manpower C. Method D. Materials
11.It refers to the process or technique of converting raw materials to finished
products.
A. Machine B. Manpower C. Method D. Materials
12. It simply refers to the raw materials needed in the production of a product.
A. Machine B. Manpower C. Method D. Materials
13. Statement I - Skills and expertise are not important in considering manpower.
Statement II - Benefits are the reasons why customers will decide to buy the products.
A. Only Statement I is true. C. Both Statements are true.
B. Only Statement II is true. D. Both Statements are false.
14.Statement I - Educational qualifications and experience is one of the criteria in considering manpower.
Statement II - Product to produce is one of the factors to be considered in method or production method.
A. Only Statement I is true. C. Both Statements are true.
B. Only Statement II is true. D. Both Statements are false.
15.Statement I - In selecting the type of equipment to purchase, the entrepreneur may consider cost and
capacity of the equipment.
Statement II - The purpose of a product description is to supply customers through details around the
features and benefits of the product.
A. Only Statement I is true. C. Both Statements are true.
B. Only Statement II is true. D. Both Statements are false.