11/12

Entrepreneurship
Quarter 3 – Module 2
4Ms of Operations
 Lesson 1: Testing of Product Prototype

Learning Competencies: Demonstrate understanding of the 4Ms of operations

(TLE_ICTAN11/12EM-Ia-1)

At the end of the lesson, you are expected to:

• discuss the testing of product prototype
• validate the service description of the product with potential customers to
determine its market acceptability; and
• select or pinpoint suppliers of raw materials and other inputs necessary for
the production of the product or service.

What is it?

Testing a prototype is a vital or necessary part of the design and

manufacturing process. Testing and evaluation, determine that the product will
function as it is supposed to, or if it needs to sufficient analysis. It allows the producer
and client to assess the viability of a design. This will help identify potentials so that
the producer will make improvements. The following are the importance of testing
product prototype:
1. Allows the client and customer to determine the prototype and to give their
views.
2. Criticisms and problems are often identified which come to any suggestions
for improvement.
3. Allows the production cost to be assessed and finalized.
4. New design or redesign can take place during this part.
5. The manufacturer allows the designer to plan an efficient and cost effective
production line.
6. This may lead to improvements and become highly competitive.
7. It guarantees customer satisfaction.
8. Ensures a full and relevant evaluation of a prototype which is carried out in
the entire development process.

What’s more?

Directions:
Based on the product prototype you have drawn or sketched, present it to
your target market or customer through online sending like messenger
account, email account or any of your means without face to face
interaction. List down in a form of discussion all the results, comments,
and suggestions in testing your product prototype or design. Follow the
graphic organizer below and use the answer sheet provided.

PRODUCT PROTOTYPE: DISCUSSION:

 Lesson 2: Service Description of the Product

What is it?

SERVICES are rental of goods, alteration or repair of goods owned by

consumers and personal services. These are intangible products that satisfaction can
be measured in future process.
1. Rented goods service. The consumer rented the facility or products of the
sellers in a certain period of time.
2. Owned goods service. Repair and maintenance services rendered by the
sellers to the products of the customer.
3. Non-good service. Personal service on the part of the seller, most common
are the expertise and the profession of the seller.

CHARACTERISTICS OF SERVICES

1. Intangibility – services cannot be displayed, transported, stored, packaged,

or inspected before buying. The credibility of the service provided most of the
time counts.
2. Perishability – services cannot be stored for future sale. The skills of the
provider must enhance and develop to better serve the customer.
3. Inseparability – service provider and services cannot be separated. It cannot
accomplish the purpose if one is missing.
4. Variability – service is difficult to standardize because it varies upon the
performance of the provider.

INDUSTRIAL SERVICES

Acts rendered to the industry or company for the purpose of attaining its goals
and objectives.
1. Maintenance and repair services – includes painting, machinery repair and
janitorial services.
2. Business advisory services – management consulting, advertising agency
services, accounting services and legal services.

What’s more?

Directions:
Based on the product you have proposed, validate what service
description you can tell to the potential customers in order to meet its
market acceptability. Follow the graphic organizer below and use the
answer sheet provided.

PRODUCT: USABILITY OF THE

PRODUCT:
Example: Paracetamol
Example: Medical purposes
 Lesson 3: Raw Materials

What is it?

RAW MATERIALS

These are the unprocessed and basic material that is used to produce goods,
finished products, energy, or intermediate materials which are feedstock for future
finished products. Choosing the right supplier will depend on a wide range of factors
such as:
1. Value for money or the price
2. Quality or how it works
3. Reliability or dependability
4. Service or benefits

GUIDELINESS TO IDENTIFY POTENTIAL SUPPLIER

1. Think strategically in selecting suppliers
2. Set criteria in choosing a supplier
3. Identifying potential suppliers
4. Drawing shortlist of suppliers
5. Choosing a supplier
6. Getting the right supplier fitted to the business

SET CRITERIA IN CHOOSING A SUPPLIER

1. Reliability – state of being reliable, worthy of confidence and dependable

2. Quality – a degree of excellence, superior in kind and high distinguishing
attribute
3. Value for money – the lowest price does not guarantee the best value for
money
4. Communication – the best suppliers that regularly communicate will find
what the customer’s need
5. Financial security – the supplier must be assured that the company has
sufficiently strong cash flow to deliver what the company wants and needs.
6. A partnership approach – a strong relationship will benefit both producer
and supplier.

IDENTIFYING POTENTIAL SUPPLIERS

1. Recommendations from friends
2. Directories of potential supplier, website or yellow page
3. Trade associations
4. Business advisors
5. Local businesses
6. Exhibitions of product
7. Trade press and trade magazines

GETTING THE RIGHT SUPPLIER FITTED TO THE BUSINESS

1. Know the company needs
2. Spend time on research
3. Get advice from existing customers
4. Price
 What’s more?

Directions:
Based on the product you have proposed, select or pinpoint potential
suppliers of raw materials and other inputs necessary for the production
of the product or service. Follow the graphic organizer below and use the
answer sheet provided.

PRODUCT: RAW MATERIALS NEEDED:

Example: Furniture Example: Lumber, plywood

Assessment

Directions: Read each item carefully and write the letter of your choice on your
answer sheet.

1. These are rental of goods, alteration or repair of goods owned by consumers and
personal services.
a. goods c. products
b. services d. facilities
2. This refers to the necessary part of the design and manufacturing process.
a. product prototype testing c. product description writing
b. raw materials searching d. product availability testing
3. This is a service that becomes personal on the part of the seller and most
common are the expertise and the profession of the seller.
a. rented goods service c. non-good service
b. owned goods service d. perishable goods service
4. This refers to the services that cannot be stored for future sale.
a. variability c. intangibility
b. inseparability d. perishability
5. This refers to the credibility of the service provided most of the time counts.
a. intangibility c. inseparability
b. variability d. perishability
6. This refers to the state of being reliable, worthy of confidence and dependable.
a. quality c. reliability
b. value for money d. financial security
7. This is an industrial services that include painting, machinery repair and
janitorial services.
a. maintenance and repair services c. janitorial services
b. business advisory services d. business advisory services
8. This refers to a degree of excellence, superior in kind and high distinguishing
attribute.
a. reliability c. value for money
b. quality d. financial security
9. This refers to a service provider and services that cannot be separated.
a. inseparability c. intangibility
b. perishability d. variability
10. This refers to a service that is difficult to standardize because it varies upon
the performance of the provider.
a. intangibility c. variability
b. perishability d. inseparability