Production planning

It utilizes the resource allocation of activities of employees, materials and production capacity, in order to serve different customers.

Kaplan (1986) summarized that "the demand for information for internal planning and control apparently arose in the first half of the 19th century when firms, such as textile mills and railroads, had to devise internal administrative procedures to coordinate the multiple processes involved in the performance of the basic activity (the conversion of raw materials into finished goods by textile mills, the transportation of passengers and freight by the railroads.

"[8] Herrmann (1996) further describes the circumstances in which new methods for internal planning and control evolved: "The first factories were quite simple and relatively small.

Through the late 1800s, manufacturing firms were concerned with maximizing the productivity of the expensive equipment in the factory.

Foremen ruled their shops, coordinating all of the activities needed for the limited number of products for which they were responsible.

They were experts with superior technical skills, and they (not a separate staff of clerks) planned production.