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Production Planning

What is Production Planning?

Production planning is plan of action taking by a manufacturing company for allocating resources and setting up the steps required to produce a product or service. In particular, the plan lists the various steps in the order in which the process of production is to be carried out.

At the same, production planning indicates the target time and cost centre where it is to be carried out. The routing thus forms the basis for calculating the production costs. Moreover, the production planning helps the company to be better organised by dividing a project into several small tasks.