Production planning in simple terms is the first and foremost planning and estimation that any production and manufacturing firm would organize. Things like,

• what will be the production capacity of the unit
• how much raw material is needed to generate that amount
• what must be the process of production
•  whether it is economical or not
•  how much labor is needed
•  what kind of skills they may possess
•  whether there is any wastage
• And if yes, then how to reduce it so herein comes the plan B of production- any alternate method of production.

All these concepts and questions should arise whilst in production planning, to overcome the glitches and generate a continuous workflow.

A sound production plan must consider all the aspects of manufacturing an item from scratch. It must be able to predict where things might go wrong, and how to get through it without harming the smooth functioning of the firm, once it begins. Hence, the production plan is designed far ahead in time, even before the firm starts manufacturing properly.