In a presentation held to one of my companies I consulted, the overall cycle of TDD is not clear, I draw this diagram to explain the relation between story development and the TDD cycle. It helped the audience to grasp the idea easily.

The other process is when dealing with bugs, for each bug follow the normal TDD cycle, write a test that fails because of the bug, then Fix the code, see green bar, then refactor as required. See the following diagram.