Production Planning: Product Line Plan
Product line plans generally cover 1 to 3 years, usually shown by months or quarters. They are composed of aggregate forecasts that are converted into end-item forecasts. These detailed forecasts provide input that the master scheduler uses to create a statement of production.
The purpose of a product line plan is to:
• Aggregate forecasts.
• Establish aggregate production goals (aligned to corporate goals).
• Plan efficient and cost effective use of production resources, such as machines and manpower.
• Outline the level of planned manufacturing output and its cost.
• Provide input to a master schedule and rough-cut capacity plan.
• Balance sales forecasts, production forecasts, and income forecasts for an entire product line.
• Determine whether there are enough resources, in aggregate, to meet the plan.
