Internal / External Process

 

If the process of production takes place inside the organization, then the type of production is known as Internal Process and if all or any part of production takes place outside  the company or production house then, it is known as External Production process.

 

For example: In the below figure, Cutting and Finishing has been taken place within the production house and are marked as Internal. Whereas, Stitching and Washing is done from some other organization and Henceforth, is marked as External Process. See the window below: