5M’s of production factors

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:

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