5M’s of production factors

By Ahmad Nasrudin · Updated on December 25, 2019

5Ms of production factors

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5M’s of production factors is a term that refers to the main production factors needed by an organization to operate optimally.

The 5M model component consists of:

Man refers to humans as labor.
Machines refer to facilities or tools used by companies, both for operational and non-operational activities.
Money refers to money as capital to finance all company activities.
Method refers to the method or procedure as a guide for implementing company activities.
Materials refer to inputs that are processed into final products for sale to consumers.

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