Entrepreneurship

MODULE
Module No.1-2: Week_1-2_: _Second Quarter
TOPIC
Creating the product

Learning Competencies
Describe the 4Ms (Manpower, Method, Machine, Materials) of operations in
relation to the business opportunity:
1. Create a prototype of the product and testing
2. Validate the service description of the product with potential customers
to determine its market acceptability
3. Select/pinpoint potential suppliers of raw materials and other inputs necessary for the
production of product or service,
Code: TLE_ICTAN11/12EM-1a-2

Let’s Recall
After having the knowledge with the different resources required to start a
production and the description needed by an entrepreneur to create the product, he
is now ready for the next step which is very essential in business, the creation of a prototype or
a sample product. We have to remember that all of the resources in management which is the
4M’s (Manpower, Machine, Method and Material) final output is the real product itself and
checking its functionality or effectiveness will be possible upon testing. After testing and
passing, the production is now ready for operation. To detail the actual process and its
importance, It is described in the understanding part of this module.

Let’s Understand
Create a prototype of the product

A prototype product is the sample product that follows the description created by the
entrepreneur. But in the other way, sometimes the entrepreneur creates a sample or prototype
of the product and that will be the basis of the product description (Ness 2018).
A blog written by Jess Ness discussed aspects in creating a prototype (Ness 2018) which
itemized below.

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 It can be a drawing to
show your sample
product. This shows the
The creation of an actual visual dimensions height,
product can show width, and color.
functionalities of the product

A prototype that can be

used for presentation to
investors.

An actual sample of
the product with
functionalities ready
for production

The actual pre-production prototype should undergo testing to check its functionality
and effectiveness conforms with the requirement of the customer.

Test the product prototype

To test the product prototype differs in each strand. For Cookery, Food and Beverages
strand, you need to test the prototype product in terms of taste, smell and the different visual
appearances including its changes within time. It should maintain the freshness and distinct
features so that it will be delightful to customers. For Electronics, ICT, Automotive and
Electrical strand, the students have to test their prototype products on its functionalities,
durability and usability and design acceptance to its possible customers. It should be easily
operated, long lasting and functional to be valuable to the possible buyers as its market. For
other strands in Senior High School, they must remember that the testing of the product should
conform with the product description and specification set by the entrepreneur.
The testing needs to undergo the next process, which is discussed below, the validation
process by customers

Validate the service description of the product with potential customers to

determine its market acceptability
The marketability of the product will depend on the acceptance of the proposed
customer or market. The entrepreneur needs to include not only the product but also a service
description. This is also true on products of the technical strands which can be technically
aligned. It can help to maintain the product functionality and features which will be valuable
to the market or customers. Other strands like food and beverages, can have both product and

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service description if includes delivery of items to the customer. There are ways to validate
product description. First, the entrepreneur itself will check the functionalities of the product if
it conforms with the product description and specification. Next can be the family members if
in the case of foods, drinks and other types of products and they can give a good assessment
because of the scenario now due to Covid 19, we cannot go for product testing outside the
house specially for students. But if the situations become normal or Covid 19 has been
eradicated, the customer can validate the product description created by the entrepreneur if it
is acceptable or needed modifications and additional features for them to be satisfied. The
product also needs to be safe and with standards set by agencies of the government like licenses
or permits to assure that the business will operate normally without any problems. For any
inventions related to foods, which is mostly done in manufacturing business, there is a
government agency like Bureau of Foods and Drugs or BFAD that ensures the market for
safety.

Select/pinpoint potential suppliers of raw materials and other inputs

necessary for the production of product or service

After the validation of the product or service, and results are successful or it has been
accepted by the proposed market, the entrepreneur can now think for the potential suppliers
before he undergoes production of the product. First to consider is the quality of the product
sold by the supplier because inputs matter in having a good quality product. Second, the
competitive price of the supplies because your business needs to be competitive in order to gain
advantage in competition. Third is the location of the supplier to your target business since
transportation also adds to the cost of operation. Fourth is the consistency of supply can also
be noted because that can also interrupt your production once it becomes functional.
The items discussed in the aspects about the supplier of the raw materials for your
product is very important to create a smooth flow of production which in turn provides a good
quality product valuable to customers. This leads to the discussion of the value supply chain.

Discuss the value supply chain in relation to the business enterprise

The materials that will be used in the production of a product should have a good quality
to remove unnecessary problems in processing the product. The entrepreneur now needs to
consider the value supply chain in the process of production. According to Ramji Vinodh who
answers in a question about the importance of value in the supply chain, implies it is essential
in “converting raw materials into work in process and converting work in process to finish
goods' '. In production of the product it is the “value added'' in the supply chain that is
maintained and non-value activities are minimized or removed in the process to have an
efficient flow of the production. (Vinodh 2018) The entrepreneur should identify value added
activity in the supply chain to ensure business enterprise is creating good quality products.

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 Let’s Apply
Activity 1
Multiple choice: Select the letter of the best answer from the choices given below
A. Visual B. Proof of concept C. Presentation D. Pre-production
1. A prototype that shows the visual dimensions height, width and color.
2. An actual sample of the product with functionalities ready for production
3. A prototype that can show functionalities of the product
4. A prototype that can be use for presentation to investors
5. This prototype can be a drawing to show your sample product.

Activity 2
Multiple choice: Understand the given questions and select the letter of your answer using the
different process preparing the enterprise
A. Test the prototype C. Select/pinpoint potential suppliers
B. Validate the prototype D. Value supply chain
1. This process is used by the entrepreneur to identify if the taste, smell and the different
visual appearances corresponds with the product description.
2. This process is considered mainly in converting raw materials into work in process
and converting work in process to finish goods
3. It is important in acquiring raw materials for your product and it is very important to
create a smooth flow of production.
4. Entrepreneur itself will check the functionalities of the product if it conforms with the
product description and specification
5. Non value activities are minimized or removed in the process to have an efficient flow
of the production

Let’s Analyze
Scenario activity (From week 1 Quarter 2)

Juan became interested in developing his Calabasa bread to be marketed and will be his
starting business. He thinks that it will be bought by families near his vicinity. Because the
taste of calabasa bread has little sweetness and saltiness, it is ideal for breakfast and other
occasions. Although there are substitutes that will be possible in the area, the calabasa bread is
new to them and it is a healthy food that can be served in breakfast and in snacks. Moreover
the design and color of the calabasa bread is appealing to customers.

Activity:

After creating Juan’s product description of the malunggay bread using the 5 W’s and
How in the analyzing part of the module 1 including the pictures or drawings to describe the
proposed product of Juan, create the process of testing, validating the product description,

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 Select/pinpoint potential suppliers of raw materials and other inputs necessary for the
production of product or service and considering the value supply chain

Product Description Testing Validating the Select/pinpoint Value supply chain

product potential
description suppliers

Note:(Tandaan)
The activity can also be applied in other strands using the created product. You can
make use of the scenario above or create your own process with your actual product.

Let’s Try (Evaluation)

Multiple choice: Understand the given questions and select the letter of your best answer on
the situations given below

1. The resources needed by the entrepreneur to do the different tasks in the production
A. Machine, Material, Main power, Method C. Marine, Material, Manpower
B. Marine, Material, Manpower, Method D. Machine, Material, Manpower, Method
2. It is the sample product that follows the description created by the entrepreneur
A. Prototype B. Copy Material C. Metal type D. None of these
3. The entrepreneur wants to determine the durability, usability and design acceptance to
its possible customers
A. Accerting B. Testing C. Critiquing D. Mentoring
4. Entrepreneurs can minimize or remove in the process an inefficient activity to have a
good flow of the production.
A. Value supply B. Material value C. Manpower assessment D. Validation
5. The process in considering the quality of the product sold by the supplier because
inputs matter in having a good quality product
A. Test the prototype C. Select/pinpoint potential suppliers

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 B. Validate the prototype D. Value supply chain
6. The product also needs to be safe and with standards set by agencies of the government
like licenses or permits.
A. Test the prototype C. Select/pinpoint potential suppliers
B. Validate the prototype D. Value supply chain
7. Sometimes the entrepreneur creates a sample or prototype of the product and that will
be the basis of the product description
A. Test the prototype C. Select/pinpoint potential suppliers
B. Validate the prototype D. Create the product prototype
8. Sometimes the entrepreneur considers the consistency of supply because it can also
interrupt the production
A. Test the prototype C. Select/pinpoint potential suppliers
B. Validate the prototype D. Create the product prototype
9. Sometimes the entrepreneur considers the competitive price of the supplies because the
business needs to be competitive
A. Test the prototype C. Select/pinpoint potential suppliers
B. Validate the prototype D. Create the product prototype
10. The entrepreneur should identify value added activity in the supply chain to ensure
business enterprise is creating good quality products..
A. Test the prototype C. Select/pinpoint potential suppliers
B. Validate the prototype D. Value supply chain