In chapters 6 and 7, we will deal with the ex-ante analysis of the production process i.e., a ‘plan’ of a feasible production process (chapter 3, section 3.5). First we shall consider a ‘simple elementary production process’, i.e. an elementary process before it has been organized according to criteria of full utilization of the productive capacity of the funds. Then we shall go on to the analytical description of an ‘organized elementary process’, which maximizes the productive capacity by using line and parallel production, and through the utilization of a number of funds that renders the various productive capacities compatible.

The elementary process

Before turning to the notion of elementary process, let us look again at the definition of fund and flow (chapter 3, section 3.1). The flow elements are present either as input only (e.g. raw materials and energy) or as output only (e.g. the finished product and waste), while fund elements perform a service inside the production process, entering and leaving several processes (for example a loom, a worker).

The elementary production process is the process whereby an ‘economically indivisible unit’ of output is obtained by means of an ‘elementary technical unit’ (or a ‘chain’ of ‘elementary technical units’ operating in sequence). As mentioned, an ‘economically indivisible unit’ is the minimum exchangeable unit which is not subsequently reducible for exchange purposes in a specific market (for instance, a piece of cloth of so many yards, a packet of detergent of so many kg., a certain model of a car or computer).