operational plan outline using 4ms example

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• Chef Courses
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The 4Ms of Operation for a Successful Restaurant Business

Learn how money, materials, manpower, and the market can make or break your establishment.

Running a successful restaurant takes a lot of hard work, dedication, and passion for the business. But before you think you’ve got all bases covered, the truth is, growing a business triumphantly relies more on how well you utilize the 4Ms of operation to your full advantage.

In the movie Chef , we find the protagonist Carl Casper goes from working in a prestigious restaurant to owning and running a food truck. The leap from a high-end industrial kitchen to a more compact setting would make many think that the transition would be a piece of cake.

This, however, is not the case. Just like the fancy establishment he used to work in, the success of his food truck endeavor still depended on the same principles, also known as the 4Ms of operation.

Principles for Efficiently Building and Running a Restaurant

What exactly do the 4Ms entail? Having a good grasp of the fundamentals can drastically change the way you operate, which can push the business towards the growth you desire.

It’s important to know who your market is and how to satisfy them. Consider the following points:

• Understand who your customers are and make sure your food and services cater to them
• Learn what this niche group of diners expect from the food you serve
• Analyse the type of operation you have and make necessary adjustments to suit your target customers
• Always keep an updated inventory of ingredients needed in your daily restaurant operations, and make sure they are readily available
• Price your menu  accordingly (based on your niche market) make sure your pricing remains competitive yet profitable

2. Manpower

No business will run smoothly without the right staffing. Human resources are the backbone of efficient performance and it is also one of the 4Ms of operation. Organize your workforce with the following in mind:

Employ the right people

• Make sure that your staff is clean in appearance and is presentable.
• Good grooming is essential in the restaurant business. You want your staff to reflect the sanitary codes you live by.
• Project an image and attitude that’s right for your restaurant

Adopt the economies of scale

• Enjoy cost advantages with bulk buying and leverage on your staff to produce at maximum capacity

Assign responsibilities

• Make each kitchen staff accountable for smooth and efficient workflow. Less energy and resources are wasted when each person is assigned a task. It also ensures that staff members are not overworked and handling too many jobs.

Ensure work safety

• In any restaurant business, the staff must follow basic safety procedures in handling and operating equipment to avoid injuries.

Assess the efficiency

• Calculate time and activity for flexibility and maximum performance
• Running a well-oiled kitchen staff that runs almost like clockwork requires seeing feedback often in order to improve efficiency.

Staff rotation

With proper staff rotation and scheduling, your staff will work better in teams. Again, you want your staff to get ample rest. Overworked employees become less effective and efficient over time. Under the 4Ms of the restaurant business the staff is crucial thus:

• Prepare weekly or monthly work schedules
• Use your task analysis as a basis
• Rotate managers
• Give equal workloads to all shifts
• Include cleaning schedules
• Be open but firm about complaints

3. Materials

Materials refer to the ingredients, kitchen equipment, and physical inventory such as cutlery and plates. When you start selecting materials, take the time to ensure their quantity. Like safety, quality is also paramount. Forecasting and inventory should precede any planning for the large production of food. Forecast raw materials or ingredients by planning the menu and quantity of dishes in advance.

Ingredients

It’s important to think of the following when selecting and purchasing ingredients:

• When compared to raw ingredients, the convenience of ready-to-use products cuts down on preparation time for certain recipes such as soups, stocks bases, and sauces
• The ability and resources to prepare from scratch or whether you should consider  modern and convenient alternatives
• Consistency of working with ready-to-use products or raw ingredients

Equipment and utensils

Machinery, utensils, and other equipment play a big part in what your restaurant business can offer. Ask yourself the following questions:

• What are the types needed?
• What is the capacity of each machine?
• How much space will it occupy? Can your kitchen accommodate it?
• What layout is appropriate?
• Are they detachable?
• Are they easy to clean and sanitize?
• Are chopping boards and knives color-coded to prevent cross-contamination?

Physical inventory

Inventory determines what and how much of each type of plate or utensil you require to run your restaurant.

• A perpetual inventory helps keep track of all goods entering and leaving the storeroom
• The ending inventory of the previous day is the daily beginning inventory of the day
• Physically verify actual stored goods once every month, and have at least one neutral person witness the counting

Having a physical inventory ensures you always have the right supplies on hand. Overstocking might seem cost-effective, but only if inventory forecasts show your bulk purchases will be consumed in a timely manner.

Every business requires money to begin operations. Investments must be thoroughly considered for the efficient use of resources and funds. To limit losses, ensure:

• Proper forecasting and inventory to prevent overstocking
• Buying high-quality ingredients for longer shelf life
• Well-trained and productive staffing
• Proper preparation, holding, and serving methods
• Maximizing the use of goods to prevent wastage of stocks

Understanding how to run a successful restaurant business is fairly simple. The key is always to keep the 4Ms of operation in mind. These operational basics can help aspiring restaurant owners build a stronger foundation for their business. You may not know it, but chances are you already know this operation. You just did not realize how important they are to your business. Improve and grow your restaurant by constantly checking on your framework. 

Congratulations, you’ve completed the 4 Ms to Running a Successful Restaurant topic!

Pick a related topic from the Principles of Food Preparation module, see the next module, or go back to the Chefmanship Academy modules page.

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• 1. HUMSS APPRECIABLE
• 3. CHECKIN G OF ATTENDA NCE
• 4. Turn On Camera Always turn your camera on so we can see each other Mute your Mic Raise your Hand/ Type in Chat Box Enjoy Learning Mute your Mic when you are not talking Raise your hand or type in the chat box if you have questions for the teacher to note or recognize it Let's enjoy this new kind of learning
• 5. REVIEW OF PAST LESSON
• 6. 4 1 WORD PICS
• 7. M___ ___H___N___
• 8. AWESOME! You’ve Guessed the word.
• 9. M __ __ E __ I
• 10. AWESOME! You’ve Guessed the word.
• 11. M__ __ H __ D
• 12. AWESOME! You’ve Guessed the word.
• 13. M__ N__ O __ __
• 14. AWESOME! You’ve Guessed the word.
• 15. LET’S EXPLORE:  are familiar on how baker produced pandesal?  Determine the steps in producing pandesal. Fill-up the table below for your guide. PANDESAL PRODUCTION STEPS:
• 16. PANDESAL PRODUCTION STEPS: 1. Preheat oven at 175°C (350°C). 2. Mix all ingredients. 3. Knead the dough, place in bowl, cover with damp cheesecloth and leave for two hours. 4. Divide the dough depending on your desired size. 5. Roll in breadcrumbs and arrange on baking trays in cut side up manner. 6. Bake for 12-15 minutes or until golden brown.
• 17. OBJECTIVE At the end of the lesson the learners should be able to Describe the 4Ms of operations in relation to the business opportunity.
• 19.  In developing a Business Plan, we also must consider the essential of the 4Ms of Operation in all business opportunities & strengths.
• 20. - an important part of the business plan because it simply states the details in operating the business. Operations Plan
• 21. The 4Ms of Production METHOD MANPOWER MACHINE MATERIALS OUTPUT
• 22. - This is the process of combining raw materials and how these are going to be transformed using the other factor inputs of production. This resource input is also called technology or techniques of production since it prescribes the intensity in the use of factor inputs. The 4M’s 1. METHOD
• 23. - The process of translating raw materials into finished goods that are acceptable to the customer’s standards. MANUFACTURING
• 24. a. Inputs - the materials or ingredients to be used in creating the product. b. Process - the transformation phase where inputs are processed by manpower and machines to produce the final product. 3 Elements of Manufacturing
• 25. c. Output - the final product of the process stage, which is intended to be sold to target customers. 3 Elements of Manufacturing
• 26. Manufacturing Site – the manufacturing process will take place  Home-based – this option is cheapest and highly flexible. Most start-ups to not have the capacity to establish a manufacturing site.  Commercial Space for Rent – this is advisable if the business really requires a commercial space to produce goods and if the home option is not viable anymore.
• 27. Manufacturing Site  Commercial Space Purchase – this option requires the biggest amount of expenditure, but it also provides the entrepreneur substantial freedom & flexibility to design & run the commercial space.
• 28.  Location – for the delivery of raw materials & finished goods, the transportation route from manufacturing site be efficient. It should be accessible to major type of vehicles. It must operate in an environmentally friendly manner.
• 29.  Distribution – is the process of bringing the products or services to customers. - Distribution is not a straight process from entrepreneur to customer, thus the term SUPPLY CHAIN or DISTRIBUTION CHANNEL was coined. DISTRIBUTION METHOD
• 30.  Manufacturers – handles the invention, development & production of product/services.  Distributors – are entrepreneur who often buy the products/services from manufacturers and sell them at mark up price to either wholesaler or retailer. DISTRIBUTION METHOD
• 31.  Agents – on the other hand, do not own the product or services because they do not buy this products from manufacturer. Instead, they negotiate with the buyer as to how much or how many are to be sold, so the manufacturer will be able to deliver goods directly to customer. DISTRIBUTION METHOD
• 32. - The right human resources who will handle certain business operations. It is one of the highest cost of operating the business, but also the most instrumental to its success. The 4M’s 2. MANPOWER
• 33. Technology used in efficiently operating the business. It was also described as the “best friend” of manpower in producing goods and offering services. The 4M’s 3. MACHINE
• 34. 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 equipment, - availability of spare parts in the local market - efficiency of the equipment
• 35. - To be used in creating a product or performing a service, which includes supply chain management. The 4M’s 4. MATERIAL
• 36. The entrepreneur may consider; - Cost, - Quality, - Availability, - Credibility of suppliers
• 37. 1.Manufacturing own products or offer services – if this is the case entrepreneurs need to prepare huge capital for the materials, machines and manpower which we all know will cause the company a Materials Requisitioning Options
• 38. 2. Outsourcing of manufacturing or service activities to a third party – this is the process where a company appoint a third-party manufacturer to do the manufacturing operations of the business. Materials Requisitioning Options
• 39. PATENT - The right to protect the entrepreneur to exclude others from making or using the product or service.
• 40. TRADEMARK -a sign or symbol that helps to distinguish the product from the others.
• 41. NON-DISCLOSURE AGREEMENT -states that the third party will be given full access to any confidential information if it should be disclosed to anyone else.
• 42. 3.Purchasing own products or services from present suppliers. - this is where entrepreneurs purchased finished products from manufacturer or offering the services of another company. Materials Requisitioning Options
• 43. MONEY - it is a financial resource used to purchase all the resources needed by the firm for its operation.
• 44. PRODUCT DESCRIPTION - It is the promotion that 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.
• 45. PROTOTYPING - A duplication of a product as it will be produced, which may contain such details as color, graphics, packaging and directions. One of the important early steps in the inventing process is making a prototype.
• 46. BUSINESS MODEL - describes the reasons of how an organization creates, delivers, and captures value in economic, social, cultural or other contexts.
• 47. The following are the components found in a Business Plan. INTRODUCTION - this part discusses what is the business plan all about.
• 48. The following are the components found in a Business Plan. EXECUTIVE SUMMARY - is part of the business plan which is the first to be presented but the last to be made.
• 49. The following are the components found in a Business Plan. MANAGEMENT SECTION - shows how you will manage your business and the people you need to help you in your operations.
• 50. The following are the components found in a Business Plan. MARKEITNG SECTION - shows the design of your product/service; pricing, where you will sell and how you will introduce your product/service to your market..
• 51. The following are the components found in a Business Plan. FINANCIAL SECTION - shows the money needed for the business, how much you will take in and how much you will pay out.
• 52. The following are the components found in a Business Plan. PRODUCTION SECTION - shows the area, equipment and materials needed for the business.
• 53. The following are the components found in a Business Plan. COMPETITIVE ANALYSIS - is the strategy where you identify major competitors and research their products, sales and marketing strategies.
• 54. The following are the components found in a Business Plan. MARKET - The persons who will buy the products or services.
• 55. The following are the components found in a Business Plan. ORGANIZATIONAL CHART - is the diagram showing graphically the relation of one official to another, or others of a company
• 57. - Why is it important to know the 4Ms of Operation in relations to the Business Opportunity?
• 58. ACTIVITY: “MATCH ME”
• 59.  I will present/show 8 numbers corresponding to 8 items/questions. You will match the meanings from the given choices. You will be given 2 points for every correct answer. Direction:
• 60. 1 2 5 3 6 4 7 8
• 61. 1. To be used in creating a product or performing a service, which includes supply chain management. METHOD MATERIALS
• 62. 2. The process of translating raw materials into finished goods that are acceptable to the customer’s standards. PRODUCTION MANUFACTURING
• 63. 3. The right human resources who will handle certain business operations. MANPOWER METHOD
• 64. 4. The right to protect the entrepreneur to exclude others from making or using the product or service. TRADEMARK PATENT
• 65. 5. Technology used in efficiently operating the business. MACHINE MONEY
• 66. 6. The process of combining raw materials and how these are going to be transformed using the other factor inputs of production. MATERIALS METHOD
• 67. 7. a sign or symbol that helps to distinguish the product from the others. TRADEMARK LOGO
• 68. 8. the materials or ingredients to be used in creating the product. INPUT OUTPUT
• 71. ACTIVITY: “#HASHTAG IT”
• 72. Directions: The students will create two to three #HASHTAGS about their significant learning on 4Ms of Operation/Production. Applying what they have learned regarding the lesson.
• 73. GOOGLE QUIZ: Check Link at the Chat Box. Directions: Click the button corresponding to best answer for each of the question. After which click submit button and you will view the result of your quiz. EVALUATION:
• 74. 1. Read about Product Description as well as the 3 Rules to Visualize a Product Description that Sell. 2.Answer Activity 2 & 3 in the Learning Activity Sheets, page 5-6.

Editor's Notes

• Good morning class, Good morning mam Grace & mam jaq. I hope everyone is fine. With out further a do let’s start
• May I request Ruffa Mae Tumaliaun to lead us a Prayer.
• Now, let us check the attendance. Allow me to read the names of those who join in our virtual class.
• Just a friendly reminder my dear students. 1. Turn on camera read.( for us to know if you are really the one attending the online class. 2. Mute your Mic – for us to have a smooth flow of the online class. 3. Raise your Hand/ Type in Chat Box 4. Enjoy Learning, Let’s enjoy this new kind of learning. I encourage everyone to actively participate in the entire duration of the online class.
• In your Previous lesson, you learned about the 7Ps of marketing mix. What are the 7Ps of marketing mix in rel. to bus. Opportunity?? Brand name was also introduced, Again what is Brand Name? 7Ps of Marketing Mix consist of Product, Place, Price, Promotion People, Packaging & Positioning in relation to the business opportunity. Where in Marketing is about creating & accumulating customers. Marketing Plans are integrated to capture market portion & setback competitors. Brandname was also introduced, where in it is a name,symbol or other feature that distinguishes seller goods/services in the market place. Your brand is your greatest asset bec. Your brand is your customers over-all experience of your business.
• Before we start, Let’s exercise your mind. Our first activity is called 4 Pics one word. In this activity I will flash/show 4 images and you are going to guess the word that matches the four images using the letters available. So, let’s start.
• For the 1st Images can you guess the picture. Type in the chat box your answer. Ok let’s see if got the answer. MACHINE very good
• Next, Let see if you’re correct. Good job its materials.
• Another one, yes very good its Method
• And the Last picture. You’re right its Manpower. What is your observation about the pictures? What do you think is our lesson for today? The pictures presented talks about the 4Ms of operation. Manpower, machine, methods & materials.
• Another Activity. This activity allows you to explore. So, are familiar on how bakers produced pandesal? Pandesal pinoys favorite bfast at meryenda Determine the steps in producing pandesal. You have to Fill-up the table below for your guide. So, Imagine the step-by-step procedure in pandesal production. A simple steps/procedure on producing pandesal. In few minutes I will call volunteer to present their output to the class
• So, here’s a simple step in producing Pandesal. So yun na ang operation naten. its not as easy as we think right. It requires you a lot of time & skill to produce such product. So, as we go on with our lesson you will understand deeper what is the connection of Pandesal Production with our topic for today which is the 4Ms of Operation. So, lets proceed with the proper discussion na
• So, at the end of the lesson this is the thing I want you to obtain, Describe the 4Ms of operations in relation to the business opportunity. After seizing & opportunity you have now your product. So, its time to operate the business and we need to consider the 4Ms of operation.
• After seizing & opportunity you have now your product. You know already your target customer. You know the technique in promoting your product(whom we offer the products) So, its time to operate the business and we need to consider the 4Ms of operation. Production, it is best to consider the costumers point of view in terms of their influences as to why they will buy the prod.. Does your products aim to answer consumer wants or needs and meet their expectation over the product. This stage in business plan is crucial you are talking about the production of the product which will be sold in the market for consumption.
• As the name implies is simply the plan to make the business from the production to the distribution up to selection of employees. In short, it is the series of steps in operating the business. Because in this part of the bus. plan we know the product na, we know the technique in promoting the prod, we know na our target customer. This part of the bus. Plan talks about the day-to-day activities which enables the smooth run of the business. A strong operational pal should include the 4 operational aspect called 4Ms of operation.
• As I mentioned we will be focusing on the 4Ms of Production. By the most serious issues in the whole production system are the inputs and the transformation process. Their quality determines the quality of the output. In short, yung quality ng ating inputs/materials determines the quality ng ating finished products. So the factors involved in inputs & production process are usually referred to us the 4Ms of Production namely the Method, Manpower, Machine & materials. So with the combination of this 4 you will have your OUTOUT.
• The first M is method. So, basically method refers to the system and step by step process in producing a certain product. It is the day-to-day operation of the business. An entrepreneur must set SOPs(STANDARD OPERATING PROCEDUREs) for instance our business is Bakery so from buying of materials, mixing of ingredients, baking, up to selling of finished products there should be step by step procedures going back to our activities awhile ago in Pandesal Production first you need to Preheat oven at 175°C (350°C). Mix all ingredients and so on up to selling the pandesal to cutomers.
• -This means that the 4 critical domains, usually attributed to manufacturing.
• In input, we must collect materials/ingredients needed in production. For example, going back with our activity which is Pandesal production your inputs/ingredient are yeast, flour, refined sugar, butter & salt. Process- simply the production itself where input are processed by manpower&machine to come up with the final product.( mixing all the ingredients up to baking)
• Output- is your final product which is intended to be sold to target customers.
• Your input, Process & output cannot be done if you don’t have the site/place to conduct the manufacturing. Manufacturing Site – the manufacturing process will take place(place to conduct production) The entrepreneur must also consider the most efficient manufacturing site in which the manufacturing process will take place. So depending on the entrepreneur objectives he/she opt to have any of the manufacturing site. HOME-BASED – mostly of start-up business production is done at home Commercial Space for rent-
• Why rent if you can purchase, this option requires biggest capital but also provides the entrepreneur more flexibility to design & run the commercial space. Purchasing a commercial space is considered an investment rather than expenses of course, those established & stable business does this manufacturing.
• We also have to consider the location of the manufacturing site. We have to make sure that delivery of raw materials & finished goods is conducted efficiently & accessible to big vehicles. And make sure our waste is being dumped properly
• Distribution – simply how these products reach the target customers. So, Distribution is not a straight process from manufacturer to customer usually meron silang tinatawag na supply chain/Distribution channel. The manufacturer will deliver the products to the distributors, to the wholesalers/retailers & then finally to the customers. In short, meron pang dinadaanan ang products naten before ir reacher the customers.
• Manufacturers- sila mismo gumagawa ng products/producers.
• Agents they do not buy the products, unlike distributors that they buy the products & sell to the wholesalers/retailers at a mark up price. Mark up price- patong/ the amount added to the cost price of goods to cover overhead & profit. Agent act as middleman/independent contractor who works on commission to sell products, but they do not own the product instead, they negotiate with the buyer as to how many to be sold so the manufacturer will be able to deliver the goods directly to customers.
• -Manpower talks about human labor/workforce/workers involved in the manufacture of products. It’s the most serious & main factor of production. Human labor helps direct, organized & plan the production process. -The entrepreneur/company must determine, attain & matched the most competent employees to help him run the business.
• -Refers to the devices and equipment's used in manufacturing of products. Machinery is also important with out the proper equipment you will not be able to perform the needed task efficiently. Let’s go back again to our example which is the Bakery/Pandesal production, what are the equipment we need, of course First we need is a gas stove, oven, baking utensils & bakery itself.
• May consider the following first the Types of products to be produced, for ex. In baking what type of oven do we need. - production system to be adopted,- cost of equipment,- capacity of equipment, what type of equipment do we need(how big is the oven do we need)- availability of spare parts in the local market(- efficiency of the equipment- actually the cost & efficiency of the equipment always come together bec. What we need is that the lower the cost but the high-quality equipment.
• -Materials talks about the raw materials necessary in production of product. Sourcing raw materials is critical in any business endeavor as the businessman would want to have the cheapest possible at the highest quality. Just in the case resources are below standard, the finished prod. Will be of unsatisfactory as well. For example, In bakery one their product is eggpie so your ingredients in making egg pie are – all purpose flour, salt, butter, evaporated milk & egg. So my namiss kang 1 engredient so it turned out na substandard yung product mo.
• The entrepreneur may consider the following in having the material; First is the cost & quality as I said the low cost and the high quality is what we need even in equipment same with the materials. Next is the availability, so availability the question is Are the raw materials always available as our needs arises. Last is the credibility of supplier- can the supplier can give us what we need in the right time, at the right price.do they sell quality materials.that why sourcing raw materials is very critical in any bus. Endeavor as an entrepreneur would want to have the cheapest possible at the higher quality.
• The company can save the machines and manpower. However, the entrepreneur cannot own the brand name of the product or service and the manufacturer is not restricted to sell to the entrepreneur’s competitors.
• 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.
• 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. 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.
• It is a company's plan for how it will make revenues and make a profit. It describes what products or services the business plans to manufacture and market, and how it plans to do so, as well as what expenses it will incurred.
• So just a quick recap of our discussion