The production process is concerned with transforming a range of inputs into those outputs that are required by the market.

This involves two main sets of resources - the transforming resources, and the transformed resources.
The transforming resources include the buildings, machinery, computers, and people that carry out the transforming processes. The transformed resources are the raw materials and components that are transformed into end products.

Any production process involves a series of links in a production chain. At each stage value is added in the course of production. Adding value involves making a product more desirable to a consumer so that they will pay more for it. Adding value therefore is not just about manufacturing, but relates to all processes e.g. advertising, promotion, distribution, etc that make the final product more desirable.

It is very important for businesses to identify the processes that add value, so that they can enhance these processes to the ongoing benefit of the business.