VINZONS PILOT HIGH SCHOOL

Senior High School Department

ENTREPRENEURSHIP-REVIEWER

4MS’ OF OPERATIONS

The method refers to the process that is strictly followed in the manufacturing of a business product.

Three Elements of Manufacturing

Input - This refers to the materials or ingredients that are being used in creating the product.

Process - 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.

Output - This refers to the final product that is intended to be sold to the target customers.

Manufacturing Site Options

Home-based - 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.

Commercial space for rent - This is the recommended option if the business already needs commercial
space for the processing of the product and if the home-based option is not viable or feasible.

Commercial space purchase - This is the ideal option for established businesses, but this requires the
biggest amount of capital.

Major Manufacturing Layouts

Product-focused - These facilities are prearranged according to the flow of the manufacturing operations.
It is recommended for a job-shop type of operations.

Process-based - These facilities are grouped according to their function. This is used for those with batch
or continuous production operations setup.

Machines refer to the tools, facilities, and systems that are used to produce a product. The machinery and
equipment required can be identified after the manufacturing layout of the business has already been
determined.

Materials refer to the raw items that are used in creating a product or performing a service. The materials’
specifications, quantity needed, and the schedule of delivery should be clearly planned.

Pricing Methods

Cost-oriented pricing - This method sets prices based on the cost of producing the product or service,
including materials, labor, overhead, and desired profit margin

Competition-oriented pricing - This method sets prices based on the prices of competing products or
services. It can involve matching competitors' prices, undercutting them, or setting prices higher to position
the product as premium.
Demand-oriented pricing - This method sets prices based on customer demand and willingness to pay. It
can involve price discrimination, where different customers are charged different prices, or value-based
pricing, where prices are set based on the perceived value of the product or service.

Manpower refers to the human resources who will handle the business operations.

Qualification Standards

• MANPOWER
• EXPERIENCE
• ACADEMICS

PRODUCT DESCRIPTION - The purpose of creating a product description is to supply the customers with
important information about the features of the product.

PRODUCT SATISFYING FEATURES

1. Design can improve the marketability of the product through its appearance. A distinct design may
differentiate the product from others in the market.

2. Product Color is an important consideration for products. The use of the right color combination is
appealing to the customers.

3. Product quality is the collection of characteristics of a product that contributes to its ability to fulfill and
meet the requirements of the end users.

4. Product Warranty It is a feature where the buyer is assured that the product being purchased meets the
specification stated in the product label.

A prototype is a working model of entrepreneurial ideas for a new product.

Prototypes Based on What They Represent

1. Functional Prototype This type is designed to imitate the function of the real product as close as
possible no matter how different it may look from the actual product.

2. Display Prototype This type is designed with more focus on appearance rather than on the functions.
This prototype may or may not function but should represent the same look as the actual product.

3. The miniature is a smaller version of the product that focuses on the functional and display aspects of
the product.

4. Throwaway prototype This type will eventually be discarded or thrown away rather than becoming part
of the actual product. Throwaway prototypes are also called close-ended prototypes.

5. The evolutionary prototype involves building a basic but strong type that can further improve and build
to form an actual product.

METHODS IN EVALUATING PROTOTYPE

1. Planning This method is done by creating important tasks and selecting user groups to test the product.
The planned session allows time for giving instructions, running the test, and conducting a post-interview
to the user.

2. Running Session In this method, the evaluator will not give any hints or assistance unless the user is
unable to complete the task.

Observation of the interaction and taking notes of the problem encountered are the main activities in this
evaluation.

3. Output This method focuses on producing a list of problems encountered in terms of usability and
categorizes them by importance.

Services are intangible products that are performed to satisfy a need or to fulfill a demand.

The rental, alteration, or repair of goods owned by the owners and other personal services are some
examples.

FIVE I’S OF SERVICES

1. INTANGIBILITY - Services are untouchable. They cannot be displayed, transported, packed, or

inspected before buying. Therefore, the credibility of the service provider is always important.

2. INVENTORY - Services cannot be stored for future use. Once the service provider delivers the service,
it vanishes. This is also known as perishability.

3.INSEPARABILITY - The provider delivers the service at the time of consumption. A service can only be
delivered or consumed when the provider is present.

4. INCONSISTENCY - Services are difficult to standardize. Each delivery of a particular service can never
be exactly the same as the other because it varies in terms of the performance of the provider. This is also
known as variability.

5. INVOLVEMENT - The customer and the provider of the service participate in the same activity. It cannot
accomplish the purpose if one is missing.

FOUR ELEMENTS OF PRODUCT POSITIONING

1. Vision and Mission:

• Definition: This outlines the long-term goals and purpose of your product. It guides development
and marketing efforts.

2. Product Category:

• Definition: This defines the specific market segment where your product competes.

3. Customer Pain Points:

• Definition: This identifies the problems or challenges that your target customers face.

4. Product Differentiation:

• Definition: This highlights the unique features and benefits that set your product apart from
competitors.
A label is a piece of printed information about the product’s features and attributes. It also provides a
description of certain services that a business may provide to its customers.

Types of Label

Brand label - It is the label that is simply applied to the product or package. It gives the customer information
about the brand. It can be removable or non-removable from the product.

Descriptive label - It specifies the product usage, construction, care, performance, or other features.

Grade label - It identifies the product quality with letters and numbers or words. It contains the expiry date,
content values, and other features.

LABEL DEVELOPMENT PROCESS

Initial design - This is the starting point where the basic concept and layout of the label are created.

Consumer test-This involves gathering feedback from potential customers to assess the label's appeal,
clarity, and effectiveness.

Final design-Based on the feedback from the consumer test, the initial design is refined and finalized.

Proofs - This involves creating physical or digital proofs of the final label design to ensure accuracy and
consistency before mass production.

Delivery and quality checking - This is the final stage where the approved label design is sent to the
printer or label manufacturer and then checked for quality upon delivery.

RAW MATERIALS - the unprocessed materials used in the primary production or manufacturing of goods

A SUPPLY CHAIN is a connected network of individuals, organizations, and activities that produces and
distributes a specific product to the final consumer.

SUPPLY CHAIN MANAGEMENT refers to the management of the flow of goods and services, including all
processes in transforming raw materials into finished products.

SUPPLY CHAIN MANAGEMENT PROCESS

Customer relationship management is an approach in handling business interaction with current and
potential customers. This process provides a structure for maintaining and developing relationships with
customers.

Customer service management represents the business to the customer. It provides a system of
responding to customer complaints, concerns, questions, and comments.

Demand management is a process used to forecast, plan, and manage the demand for products and
services.

Order fulfillment This process involves generating, filling, delivering, and providing service for customer’s
orders.

Manufacturing flow management includes all activities needed to obtain, implement, and manage
manufacturing flexibility in the supply chain.

Supplier relationship management provides support for developing and maintaining good relationships
with highly valued suppliers to gain performance advantages.
Product development and commercialization This process provides the structure for working with
customers and suppliers to develop products and offer them to the market.

Returns management is a process that enables the business firm to manage volumes of returned products
efficiently while minimizing the costs.

A value chain is a step-by-step activity needed to create a product or a service. A business conducts value
chain analysis by evaluating the detailed procedures involved in each step.

RECRUITMENT - the process of finding and enticing potential applicants to fill the vacant positions in an
organization the human resources team oversees hiring potential candidates to be new employees of the
business.

RECRUITMENT PROCESS

Recruitment planning is the first step in the recruitment process, where all vacant positions are analyzed
and described. A recruitment plan is mandatory to attract potential candidates from a pool of candidates

The selection process pertains to the process of picking the right applicant for the right job. The
organization should create a selection process to support the job description and to identify the applicant’s
knowledge, abilities, skills, and other characteristics required to do the job.

An organizational structure is the way the activities of the organization are organized, controlled, and
coordinated to achieve the organization’s goal. These activities include rules, roles, and responsibilities of
the organization’s employees.

Centralization occurs when major decisions are made by the top management. The decisions and actions
of lower management and employees must have approval from the top management.

Decentralization occurs when lower management is allowed to make important decisions. It is applicable
to businesses that are widely dispersed in several areas.