This model assumes a manufacturing company with just a single employee. A company with multiple employees can be built up by forming a kind of modified cartesian product structure on the routine described in the diagram. An example of a two employee company build up from a "product" of this model with itself will be given after this model is complete.
This describes a hypothetical routine for a single employee making, inspecting, and repairing shirts for some shirt order.
Each bubble represents a state or action the employee can take. A link exists between bubbles A and B if an employee can take action B immediately after having taken action A, where A and B can be any of the actions expressed in the bubbles in the diagram.
Note that in the situation being modeled, if an employee makes a defective shirt, he or she has to either repair that shirt or toss that shirt into the "Bad Shirt Bin Bucket" before making any new shirts.
Also, the employee has to toss a shirt into the "finished pile" if he or she does not find any defects in that shirt as soon as that shirt is made.