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.