In industry, production must simultaneously take into account customer orders, equipment capacity, staff availability and supply constraints. A delay from a supplier, a breakdown, a fluctuation in demand or staff unavailability can quickly jeopardise the established schedule.
La production planning enables these constraints to be organised in order to draw up a realistic and coherent plan. It involves determining the quantities to be produced, the resources required and the production periods, and then adjusting these decisions in line with any variances observed.
Its effectiveness depends as much on the quality of the data as on coordination between sales, procurement, logistics, production and maintenance. When properly structured, it helps to ensure that deadlines are met, stock levels are controlled and production capacity is utilised in a balanced manner.
What is production planning?
Industrial planning coordinates several areas: sales, manufacturing, procurement, stock levels and, depending on the organisation, financial matters. It is therefore not simply a matter of assigning a date to an order.
Its role is to determine the quantities to be produced and the resources required, based on orders, forecasts and available data. In this way, it links commercial demand to the company’s actual capabilities.
In the medium and long term, it is used to forecast the volumes and capacities required. In the short term, it sets out the work to be carried out, which will then be detailed in the scheduling process.
Planning sets out the general framework for production. Scheduling then organises the actual sequence of operations over the course of a day or a week.
What are the main issues?
Consistent planning helps the business to balance several objectives: delivering on time, keeping stock levels to a minimum, making proper use of equipment and coping with unforeseen events.
Balancing workload and capacity
The workload corresponds to the work to be carried out. Capacity represents the resources actually available: machinery, working hours, skills and workstations.
When the workload consistently exceeds capacity, delays start to build up. Conversely, under-utilised capacity can lead to periods of inactivity. The planner must therefore identify these discrepancies at a sufficiently early stage.
Managing stock and procurement
Too little stock increases the risk of stock-outs. Too much stock ties up cash and takes up space. The aim is to have materials and components available when needed, without unnecessarily stockpiling items.
This coordination depends, in particular, on suppliers’ lead times, the quantities ordered, projected consumption and the reliability of stock data.
Meet client deadlines
The programme must take into account agreed deadlines, production times, quality controls and logistical stages. An urgent order may alter priorities, but its impact on other orders must be assessed.
Maintaining quality and coordinating services
Overly tight scheduling can reduce the time available for checks, adjustments or maintenance. It must also provide a common framework for sales, procurement, production, maintenance and logistics.
What constraints make planning difficult?
The programme must be regularly adjusted, as the initial data changes:
- changes in orders or forecasts; ;
- adding an urgent order; ;
- delay on the part of a supplier; ;
- the absence of a critical component; ;
- equipment breakdown or maintenance; ;
- lack of a qualified member of staff; ;
- a changeover that took longer than expected; ;
- production time differs from the estimate; ;
- limited capacity in a specific role; ;
- new environmental constraints.
The bottlenecks are the stages whose capacity limits the throughput of the entire process. An improvement at another stage does not necessarily increase output if this stage remains at full capacity.
For example, before prioritising an order, it is necessary to check the available materials, the skills required, the machine’s capacity and the impact of the change on other lead times. Without this analysis, a local emergency could disrupt several operations.
What are the stages of the process?
Planning can be organised across three complementary timeframes.
The Industrial and Commercial Plan
The Industrial and Commercial Plan (ICP) corresponds to the strategic level. In the sources consulted, its time horizon is described as ranging from 18 to 24 months. It links business objectives with overall resources.
The Production Master Plan
The Production Master Plan (PMP) translates forecasts into more precise production volumes and timeframes. Its time horizon is shorter, generally ranging from three to six months in the sources consulted.
Scheduling and workload planning
On a daily or weekly basis, the scheduling system sequences tasks, issues production orders and allocates operations to workstations. The workload plan compares the planned workload with available capacity.
In practice, the process involves:
- the analysis of orders and forecasts; ;
- the calculation of requirements; ;
- stock-taking; ;
- assessment of workload and capacity; ;
- the structure of the programme; ;
- coordination with procurement and logistics; ;
- communicating priorities to the workshop; ;
- monitoring of implementation; ;
- variance analysis; ;
- updating the plan.
What methods and tools should be used?
Methods should be chosen according to the type of production, the range of products, the volume of data and the maturity of the organisation.
- MRP and MRP2: They are used to determine the quantities to be procured or manufactured based on production requirements.
- ABC method: It categorises items according to their value and importance in order to focus monitoring on sensitive items.
- Gantt and PERT: They make it easier to visualise tasks, durations and dependencies.
- Production ERP: It centralises data relating to products, stock, orders and operations.
- APS: It helps with planning, taking capacity constraints into account, and testing various scenarios.
- MES: It provides information on performance, real-time data and downtime.
- Artificial intelligence: The sources consulted present it as a potential tool for forecasting, predictive maintenance and flow analysis.
However, the quality of the outcome depends on the reliability of the data and on how well the tools are integrated into existing processes.
Exploring planning methods in greater depth
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Which indicators should we monitor?
The indicators enable a comparison to be made between the planned programme and the work actually carried out.
- OTD or on-time rate: proportion of orders delivered on the expected date.
- Lead time: the time taken from the placing of an order to the availability of the finished product.
- Capacity utilisation rate: level of utilisation of resources relative to available capacity.
- TRS or TRG: indicators used to monitor equipment performance and analyse losses.
An indicator should lead to an analysis. A fall in the service rate may, for example, be due to a shortage of materials, an incorrectly estimated cycle time or insufficient capacity.
How can we improve planning?
Improvement does not rely solely on software. It requires, first and foremost, reliable data, clear lines of responsibility and regular communication.
A number of measures can be put in place:
- share forecasts and constraints across sales, production, procurement and finance; ;
- update production times and actual capacities; ;
- analyse discrepancies between the plan and actual performance; ;
- test several scenarios before accepting a new priority; ;
- use a suitable tool when manual tables are no longer sufficient; ;
- link planning data to workshop information; ;
- to establish common rules for handling urgent orders.
The process S&OP illustrates this approach to coordination between commercial, industrial and financial decisions.
Challenges facing the Swiss industry
The sources cited include, in particular, the watchmaking, mechanical engineering and pharmaceutical industries. These sectors often have high standards in terms of precision, quality and adherence to deadlines.
Small-batch production, the need for specialist skills and reliance on certain components make trade-offs more sensitive. Realistic planning must therefore take into account the technical constraints on the ground, and not just the expected volumes.
Digital tools can support this organisation, but they are no substitute for an understanding of the processes or for communication between teams.
Training in planning methods
Practical workshop experience provides a hands-on understanding of machinery, production times and unforeseen circumstances. A structured training programme complements this experience by teaching methods for calculating requirements, analysing capacity and monitoring key performance indicators.
NCAcademy offers the Production Planner Certificate for professionals who wish to deepen their understanding of industrial planning and make better use of the associated methods and tools.
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Conclusion
Production planning links demand, resources, stock levels and workshop capacity. It helps to anticipate discrepancies, coordinate departments and adjust priorities when conditions change.
Its quality depends as much on the methods and tools used as it does on the reliability of the data, local knowledge and the flow of information.
FAQ: Five questions about industrial planning
What is the difference between planning and scheduling?
Planning defines production volumes, resources and timeframes. Scheduling organises the precise sequence of tasks over a shorter time horizon.
What is finite capacity planning?
It draws up the schedule taking into account the actual availability of machinery, operators and working hours.
Why use artificial intelligence?
According to the sources consulted, it can support forecasting, maintenance and scenario analysis. Its effectiveness, however, depends on the quality of the data.
How does the ABC method help with stock management?
It categorises items so that monitoring can be focused on the most important or sensitive items.
What are the consequences of a poor production plan?
An unrealistic programme can lead to delays, stock-outs, unnecessary stock, frequent changes in priorities and an unbalanced use of resources.
Sources used
- JITbase, A comparison guide to 20 APS software programmes and productivity gains, 2026.
- CXP Group / VIF, Study on the benefits of the S&OP process in industry, 2015.
- University of Maroua, Master’s course materials on production management and scheduling, 2023.
- FCBA Institute of Technology, Special report on artificial intelligence and its impact on industry, no date given.
- BK Systèmes, Expert opinion on the distinction between planning and scheduling, 2025.
- BASSETTI Group, Definition of the three levels of planning: PIC, PDP and scheduling, 2026.
- Industrial Intelligence, Analysis of the challenges posed by digitalisation and Industry 4.0, 2026.