Production planning is the process of deciding what products or work orders should be produced, in what quantities, within what time frame, and with which materials, labor, equipment, and capacity. In manufacturing, it translates demand, inventory status, engineering constraints, and resource availability into an executable plan for operations.
Production planning is commonly used in ERP, MRP, MES, and advanced planning systems. It may include demand review, material requirements, capacity checks, order prioritization, and release timing. The output is often a production plan, master production schedule, or planned work order set that guides purchasing, shop floor execution, and delivery commitments.
Production planning should not be confused with production scheduling. Planning defines the broader quantities, timing, and resource needs. Scheduling assigns specific jobs to machines, lines, crews, or time slots. It is also distinct from MRP, which focuses mainly on material requirements, although MRP is often an input to or part of the planning process.