What are the 5Ms?
The 5Ms represent the five key pillars of any manufacturing operation — Man, Machine, Material, Method, and Money. Efficient control of these ensures optimal productivity and profit.
At a small paint factory in Jaipur, production was often delayed due to missing pigments, idle workers, and maintenance downtime. After adopting ERP, they linked every 5M parameter — from labor to batch costing — and improved delivery by 40%.
1. Man (Human Resource)
ERP tracks attendance, skills, and shift allocation. You can assign manpower to production lines based on skill levels, attendance, and load.
- Attendance from biometric or face recognition.
- Auto job allocation based on availability.
- Performance evaluation reports.
2. Machine (Maintenance & Uptime)
ERP records machine utilization, maintenance schedules, and downtime reasons. Preventive maintenance alerts help avoid sudden breakdowns.
- Machine-wise job tracking.
- Predictive maintenance alerts.
- Downtime analytics dashboard.
3. Material (Inventory & Supply)
Material shortages can halt production. ERP integrates purchase, store, and production modules to ensure the right material is available at the right time.
- Auto material requisition from job cards.
- Reorder level alerts.
- Material costing and consumption tracking.
4. Method (Process Standardization)
Standard operating procedures (SOPs) ensure consistency. ERP helps define and enforce methods across all departments.
- BOM-based process planning.
- Step-wise production tracking.
- Process deviation reports.
5. Money (Finance & Cost Control)
ERP integrates accounting, costing, and budgeting. Every material issue or job update affects financial records instantly.
- Job-wise costing and profitability reports.
- Budget vs. actual expenditure tracking.
- Automated GST and ledger postings.
Practical Example — 5M Integration in Action
When a production order is created:
- Manpower and machines are auto-assigned.
- ERP checks for material availability.
- Processes follow pre-set methods.
- All costs are captured instantly under job costing.
Key Takeaways
- Managing the 5Ms gives total control over production.
- ERP connects people, machines, and money in one flow.
- Indian SMEs can achieve efficiency without heavy IT cost.