4Ms of Production

INTRODUCTION

Every organization offers either a service or a product to customers. Offering high-quality services and products not only helps attract customers but also builds trust, boosts sales, and gives a competitive edge in the market. Ensuring that the product or service offered is of high quality and provides good value for customers is an integral aspect of every business.

OPERATIONS MANAGEMENT

Operations management is the administration of business activities to accomplish goals, achieve higher productivity, and maximize profitability. It involves the management and control of the functions and operations within a business.

PRODUCTION SYSTEM

A production system is a process that transforms resources into useful goods and services.

Elements in the Production System

• Input → Production Process → Output

Production System

• Input:
  • Manpower
  • Materials
  • Machine
  • Design Instructions
• Production Process:
  • Procurement
  • Inspection
  • Storage
  • Issuance
  • Rework
  • Transfer
• Output: Final Product

4Ms of Production

The most serious issues in the entire production system are the inputs and the transformation process. The quality of these factors determines the quality of the output. These factors are usually referred to as the Four M’s of production: Manpower, Method, Machine, and Materials.

1. Manpower

The human workforce involved in the manufacture of products.

Criteria:

• Educational qualifications and experience required for the job
• Status of employment (permanent or temporary)
• Number of workers required for the job
• Skills and expertise for the job
• Appropriate time needed
• Conduct of background checks and issuance of requirements
• Salary or wages and mandatory benefits
• Availability of potential workers in the community

2. Materials

Refers to the raw materials necessary in the production of a product.

Criteria:

• Cost
• Quality
• Availability
• Credibility of suppliers
• Waste reduction

3. Machine

The manufacturing equipment used in the production of goods or delivery of services.

Criteria:

• Products to be produced
• Production system adopted
• Cost of equipment
• Capacity of the equipment
• Availability of spare parts in the local market
• Efficiency of the equipment
• Skills required to run the equipment

4. Method

The process or way of transforming raw materials to finished products.

Criteria:

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

Three Types of Methods

• Make to Order: Products are customized according to individual/customer specifications.
• Mass Production: Goods are produced in high volumes at a low cost for large numbers of customers.
• Mass Customization: Customers interact to customize products efficiently. Example: NIKE, Levi's, Oakley.

4Ms and IPO

The first M (Material) corresponds to the I (Input). The three other Ms (Man, Machine, Method) are components of the P (Process). The O (Output) represents not only the final product but also every result obtained from the concerned process.