Organization in lines

-Production Planning
Production planning is generally the initial step of production management. This includes a series of phases through which the production process can be optimized in the best suitable form. This facilitates manufacturers to manage their internal resources efficiently in order to fulfill the demand of customers.
The marketing department of an organization provides required data for production planning as it forecasts the product demand and also, determines how many quantities are required of different products to meet the demand of orders received. This also includes establishing delivery schedules. To meet the different demands, decisions related to produce or purchase (Make or Buy) have to be taken for avoiding any excess or deficit using two ways, i.e. level capacity and matching demand.

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  Level Capacity
  

This method includes keeping production capacity constant at an appropriate level. Stock, overtime, backlog, etc. are maintained in order to meet different demands.

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  Matching Demand
  

In this method, the adjustments are made in production capacity to meet future demand by adjusting the workforce level through new hiring or staff layoff.
Main Functions of Production Planning
Below are the three main functions of production planning in production management:

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  Estimating
  

This includes identification of manpower needs, required raw materials (both quality and quantity), and machine capacity for the purpose of meeting the production targets that are already planned.

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  Routing
  

This is considered as a process to determine the order of operations or a path for the smooth flow of raw materials within a manufacturing concern. In Simple words, routing into manufacturing indicates the flow of operations and work. Through routing, the production process is systemized and resources are utilized in an optimum way for attaining better results.
It also monitors if operations are being completed according to the specifications or not, gives confirmation that inspections have been done at each phase, and keeps informing the next operation.

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  Scheduling
  

This function of production planning focuses on the time period or duration of the completion of production. It is aimed at prioritizing different jobs and its major concern is to see if jobs are being completed as per the pre-defined timelines. Due to this, load balance on work areas and utilization of labor time can be achieved. So it is an important function to ensure timely delivery and gain cost-effectiveness. Different types are there in scheduling such as Operation Schedule, Master Schedule, Daily Schedule, and many more.