Planning is the determinative phase of production management. It “figures out” what is to be done. Production planning translates sales forecasts into master production schedules, takes off material, personnel & equipment requirements & prepares detailed area or department schedules. It also determines the maintaining of raw materials & finished goods at proper levels. Also, it prepares alternative plans of action as a means of meeting emergencies. Control balances production & inventories apart from the determinative phase of planning. Production control supervises the execution of production schedules so that work flows through the manufacturing departments on time & without interruptions. Control also maintains raw material inventories at levels that neither tie-up excessive amounts of working capital nor lead to shortages that interrupt production. At the same time, finished goods inventories are regulated so that they neither become excessive nor fall so low that they fail to meet demands & so cause back orders to accumulate.
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