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Answer Posted / zim
Production Planning—A process to develop tactical plans
based on setting the overall level of manufacturing output
(production plan) and other activities to best satisfy the
current planned levels of sales (sales plan or forecasts),
while meeting general business objectives of profitability,
productivity, competitive customer lead times, and so on, as
expressed in the overall business plan. The sales and
production capabilities are compared, and a business
strategy that includes a sales plan, a production plan,
budgets, pro forma financial statements, and supporting
plans for materials and workforce requirements, and so on,
is developed. One of its primary purposes is to establish
production rates that will achieve management’s objective of
satisfying customer demand by maintaining, raising, or
lowering inventories or backlogs, while usually attempting
to keep the workforce relatively stable. Because this plan
affects many company functions, it is normally prepared with
information from marketing and coordinated with the
functions of manufacturing, sales, engineering, finance,
materials, and so on.
Production Scheduling—The process of developing the
production schedule - A plan that authorizes the factory to
manufacture a certain quantity of a specific item. It is
usually initiated by the production planning department.
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