The 5 M’s of management are Man Material Machine Money Methods 1. Man – Man, the first of the five M’s is the most important. The right personnel for the right position is a sure bet for organizational effectiveness and efficiency. Man in management is referred as a human resource. Even in the automated world no organization can flourish without human resource. Human resources determine the workings of the other four basic business resources. People make sure materials; machines, money and methods are utilized in a productive manner to achieve goals or aims and objectives of organizations and enterprises. With the right man in the right job, a large portion of effective business management will have been achieved. You have labor that is required to perform certain tasks to produce your products. If your labor force is not happy you may find your operations struggling. When a direct employee The ones actually making your company money interfaces with a piece of equipment they must be comfortable working at a specific station for extended periods of time. Thus, making the factory automation equipment ergonomically compliant will help ensure a safe and productive environment for your direct labor force. Man/Operator Was the document properly interpreted? Was the information properly circulated to all the functions? Did the recipient understand the information? Was the proper training to perform the task administered to the person? Was too much judgment required to perform the task? Were guidelines for judgment available? Did the environment influence the actions of the individual? Are there distractions in the workplace? Is fatigue a mitigating factor? Is his work efficiency acceptable? Is he responsible/accountable? Is he qualified? Is he experienced? Is he medically fit and healthy? How much experience does the individual have in performing this task? can he carry out the operation without error? 2. Material – Material is a basic ingredient in management be it a service industry or a product industry. Most of the industries locate them self nearby to the availability of material. Without materials, human resource is made redundant. A group of cement factory workers waiting for supply of limestone may have nothing much to do for as long as the supply does not arrive. Even if it arrives, but in poor quality, the production is certainly doomed for a loss. Quality compromised is business pauperized. Poor quality of materials potentially ruins entrepreneurship. 3. Machine – Machine are the basic tools to produce goods or to generate services. Selection of an appropriate machine not only enhances efficiency but also saves times and increases revenue. Tailoring the requirement of the organization, selections of a right technical machine and equipment, availability of spare parts, substitutes and technology and the organization budget are the crucial criteria while purchasing a machine. Maintenance and overhauling issues along with its life span also cannot be overlooked. In service industry, technology matters a lot these days. Machines have made man fulfill almost effortlessly various dreams of creating things that make a existence more worthwhile. 4. Money – Without money, no venture or enterprise can motivate workers, get quality and sufficient materials, get the right machines and maintain them or even ensure that time is properly managed. Where there is not enough money, no good workers, materials, or machines can be employed or purchased… Money management is the process of managing money, which includes investment, budgeting, banking and taxes. It is also called investment management. Money management is a strategic technique employed at making money yield the highest of interest-yielding value for any amount of it spent. Spending money to provide all cravings regardless of whether they are justifiable or not to be included in budget basket is a natural human phenomenon. The idea of money management techniques is developed to plummet the amount individual, firm and institutions spends on items that add no significant value to its living standard, long-term portfolios and asset-basins. Warren Buffett, in one of his documentaries, admonished prospective investors to embrace his highly esteemed “frugality” ideology. 5. Method – Every thing has a right way to do and this right way is known as method in management. In short it means an art of doing. A set of procedures and instructions is known as a method. The visible methods of a company include Plans, Policies, Procedures, and Data. The less visible ones include a company’s norms and its culture, and the norms and culture of the society around it and the methods of its customers suppliers, associates, and competitors. A method determines how people work and their work priorities. Methods link people to each other and link people to materials. The scientific method is a method for solving complex problems. GAAP is a method for evaluating financial performance. ISO9000 is a method for evaluating quality performance. ISO9000 quality assurance standards have as much to do with improving quality as GAAP has to do with improving profits. A popular method of management is what is referred to as management by objectivities’. This involves setting objectives and targets for different aspects of the organization. The manager’s job is then to make sure that these objectives are achieved given an allocated amount of resources. The objective will be achieved, exceeded, or fallen short of requiring remedial action where appropriate.

The 5M model is a troubleshooting and risk-management model used for aviation safety. Based on Wright’s original work on the man-machine-environment triad[3] at Cornell University, the 5M model incorporates a diagram of 3 interlocking circles and one all-encompassing circle. The smaller circles are labeled Man, Machine, and Medium; the intersecting space in the middle, where they all meet, is labeled Mission; while the larger circle is labeled Management 1. Man people including the physiology and psychology of those involved, as well as their performance and proficiency. 2. Machine equipment including the design, manufacture, maintenance, reliability, performance, etc. 3. Medium / measurement environment, inspection including weather, terrain, obstructions, lighting, etc. 4. METHOD purpose the reason these three factors are brought together. 5. Management leadership the prevailing supervisory approach in terms of regulations, policies, procedures, and attitude involved in establishing, operating, maintaining, and decommissioning. These have been expanded by some to include an additional three, and are referred to as the 8 Ms Method / mother nature process, environment Material includes raw material, consumables, and information Maintenance This is also used in more general troubleshooting or root-cause analysis, such as with the fishbone diagrams.

5M’s of business can be considered as fiber pillars of business. Aiming towards a successful business these are most important internal elements to be addressed. These five elements need to be considered as assets of organization. The 5M’s include Manpower staffing, Materials Production, MachineryEquipment, MoneyFinance and Method Process. Each category in the 5M’s business management model represents a function or a part of a function that contributes to bottom line. The most effective managers are those who can efficiently obtain and distribute the 5M’s. • Manpower –Man, the first and most important tangible element of 5M’s. Human resource determine the workings of the other four basic business resources. People make sure materials, machines, money and methods which are utilized in a productive way to achieve objectives of organizations. Poor employment practices leads to failure of business. The right personnel for the right position is a sure bet for organizational effectiveness and efficiency. • Materials –Without materials human resources, machinery or any other element of organization are useless. A group of sugar factory workers waiting for supply for sugarcane may have nothing to do for as long as the supply does not arrive. Even if it arrives, but is poor quality, the production will be of low quality. Poor quality of materials potentially ruins the production. Bad production results in loss in business. • Machinery –Machines have replaced man in nearly all production related jobs. Nowadays production has become much effortless due to machines. Recently computers joined in the fray of increasing production and reduction in time spent by man for manufacturing. However without man and material machines will be useless. They need to be operated by man and fed with materials. • Money –It is the most important element of any business, no business can be started or operated without money. Without money no venture can get quality goods and sufficient materials, get good machines or motivate workers. Lack in proper management of finance has been one of the reasons of business collapse in history. • Methods –Along with all four tangible elements man, material, machine, money one intangible element is very important which is method. To run any business a proper method of operation is very important. Managing all assets in proper process can give profit where as even you have all resources and your method to operate gets wrong you will face loss. Bottom line –Successful business means effectively obtaining and distributing manpower, materials, machinery, money and methods.

What is the 5M method? The 5M method is a project management tool for analysing the causes of a problem. It is structured around the 5Ms, which designate the main families of possible causes for a malfunction. History The 5M method was created by the Japanese professor Kaoru Ishikawa 1915-1989, hence the name “Ishikawa method”. The 5 families the 5Ms are The Workforce the organisation’s staff, skills, motivation, numbers… Material equipment, machines, software and hardware… Materials consumables, elements processed in the production chain… The Method way of doing things, procedures, instructions… The Environment environment, working conditions, relational aspects… The 5M method is sometimes completed by other aspects, such as the Measure, which refers to the method of measurement, calibration or the readability of the results. When this family of causes is added, the 5M method becomes the 6M method. It can also be completed with the following elements Money, which refers to sources of funding, Management, which refers to hierarchical responsibilities and decision-making. Drawing up the Ishikawa diagram The Ishikawa diagram, also known as the cause-effect diagram or the 5M diagram, aims to identify and organise the causes of a problem into large families, in a visual way. It is therefore the visual tool of the 5M method. The process of constructing this diagram is carried out in several stages Identify the problem, Think about all the causes that could explain the problem, in the form of a team brainstorm, Drawing the Ishikawa diagram, to graphically represent the causes of a problem and rank them. The Ishikawa diagram consists of a continuous line or arrow that indicates the problem. On the far left, the name of the problem is written as specifically as possible. Once the problem has been specified, the next step is to draw 5 branches that will point to the continuous line. These 5 branches are the 5Ms, which, as we have seen, represent the main families of causes of a given problem. Once these 5 branches have been drawn, the causes listed during the brainstorming are taken up again and divided into the different families of causes. The last step is to list the action plan to reduce or eliminate the causes of the problem. Ishikawa diagram example of production delay Let’s take a first example of a problem in a factory a production delay. In our problem, the factory suffers from a production delay. An analysis is then carried out by the managers and operators of the factory to identify, during a brainstorming session, the potential causes of this delay. The production delay can be due to multiple factors, which are classified into the major families 5M. The following causes are identified Manpower lack of motivation, lack of personnel and lack of training. Equipment failure of electrical equipment, damage to certain machines. Material delay in raw material supplier, shortages. The Method lack of supervision. Environment overly intensive working conditions and poorly organised environment. After identifying and sorting out these causes, the teams can find appropriate solutions to improve the problem. They can then focus on the causes they consider to be predominant. In our case, for example, they can apply the 5S method to improve the working conditions and the organisation of the environment, and thus restore motivation to the operators. Ishikawa diagram example of a drop in customer satisfaction in a clothing shop Let’s take another example a drop in customer satisfaction in a clothing shop. In the same way as in the previous example, an analysis is carried out to identify the potential causes of this dissatisfaction. The dissatisfaction is due to supply problems, long waiting times at the checkout, a gloomy environment and a printer failure. From this information, the causes can be sorted as follows Manpower lack of motivation, lack of staff and lack of training. Equipment insufficient number of cash registers, delivery trucks often breaking down. Material waste of paper faulty printer. The Method lack of procedures. The Environment lack of lighting. In the same way, it is a question of finding appropriate solutions to improve the problem. In our example, it might be appropriate for the shop to invest in lighting and cash registers to limit the causes of the malfunction. Why use the 5M method? Thanks to the 5M method and its horizontal visualisation tool, the faulty phenomena are better identified. By finding the root cause of the problem, this method not only creates an optimal environment in the teams for an effective search for solutions, but also anticipates other causes that could aggravate the problem Written by Emma Guignard Pour en savoir plus sur les solutions de Zozio

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