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Every manufacturing system can only survive with a high level of system planning and budgeting. Production planning is a sequential ladder in the manufacturing setting to ensure that materials input (raw materials, men, money, and machine) is made available within a stipulated time frame, in the appropriate amount to produce the demanded output of goods and services based on the schedule specified. Production planning also helps in making available high quality of goods and services in the right quantities to the customer at the demanded delivery timing to attain higher degree of customer satisfaction. Through production planning, different departmental activities i.e., engineering, production, purchasing, sales, and marketing, as well as stock control department, and other units that may relate to production are coordinated to attain a regular, steady, and balanced flow of production thus, enhancing reduction in production cycle time. Production planning serves as an instrument which estimates to gear up the performance of different departments and individuals of an organization in such a manner that will enhance better service to customers, fewer rush orders, more efficient use of equipment, reduced idle time of both machine and personnel, improved plant morale, good public image, and lower capital requirement, it may also create alternative plans to meet any form of emergency or contingency during the cause of production. From the foregoing, a manufacturing system that incorporates production planning in its operations will be more efficient, effective, and economical as compared with those that did not.

The Role of Production Planning in Enhancing an Efficient Manufacturing System – An Overview