Production is about where raw materials, also called inputs, are converted into outputs. The main role of production is to produce the services and products demanded by customers in the most economical and efficient manner (Kumar 1999). Production planning and control is necessary to make decisions regarding the use, acquisition and allocation of resources in production processes with the objective of satisfying customer needs effectively and efficiently. It is used to determine labor levels, allocate overtime, sequence the order in which tasks occur, and decide production quantities (Graves 1999). Planning challenges begin with specifying customer demand that must be met by the production plan. It is not easy to predict future demand exactly and, therefore, sometimes future demand is not known (Graves 1999). This results in a business that relies on forecasting to predict future demand. It is therefore important for a business to formulate a plan that arises from demand uncertainty. Alternatively, it is important for a company to frequently revise forecasted figures in order to update forecasts. This is done using optimization models. It is very important for a company to identify relevant costs in production planning. It is important to determine the variable costs of production, holding/holding costs and establishment costs (Graves 1999). In production planning, there are three production systems: intermittent production, unit production and continuous production. In continuous production, products are manufactured using a standard process and in a sequence that anticipates demand. It involves a significant capital investment in purchasing equipment and machinery to produce high quality products but with less labor middle of paper......Lean Enterprise Institute, Inc 2009. What is what is Lean? Retrieved from: http://www.lean.org/whatslean/Mekong Capital Ltd, 2004. Introduction to Lean Manufacturing for Vietnam. Retrieved from: http://www.mengkomcapital.comProduction supervision training, 2011. Production planning and control. Retrieved from http://yourbusinessprofitability.com/_mgxroot/page_10766.htmlPlenert, 2007. Reinventing Lean, Elsevier Inc, p15.TechTarget, 2011. Lean Production. Retrieved from: http://searchmanufacturingerp.techtarget.com/definition/lean-productionTimestudy Institute Inc 2011.Lean Concepts. Retrieved from: http://industrialtimestudy.com/lean.htmlTMD friction 2011. Lean Management. Retrieved from: http://www.tmdfriction.com/en/company/lean-management-Trent J 2008. End-To-End Lean management, Library of Congress cataloging-in-PublicationData, United States, pp.153