Overview of Estonian machinebuilding industry. Main components of production. Product, its description. Production concepts. Organisation and management of manufacturing enterprise. Business chain. Company structure. Process management. Responsibilities and authorities. Information flows. Customers, markets. Integrated production. Production systems and their classification. Technological capabilities. Production subsystems. Quality, productivity and flexibility - factors promoting the competitiveness. Quality functions as key factors. Quality, productivity and flexibility - factors promoting the competitiveness. Productivity. Human resources management. Practical exercises in computer class. Order handling process. Essence of production planning. Layout planning. Transportation tasks. Determination of an optimal order of detail machining.