The aim of this paper is to improve the condition of sugar industry by identifying and eliminating the waste by applying the production planning tools and lean principles. Production lead time reduction is an important means to improve productivity in manufacturing industries. The forecasting of sugarcane supply is carried out using simple moving average, the forecasting of sugar production capacity of industry and sugar market demand is studied and analyzed to see whether the company can satisfy the demand in future. The MRP is also carried out for the chemicals like limestone, phosphate which are bought from outside. The paper also focuses on reducing the break downs in an industry and reduce the waiting time of the sugarcane delivery. The implementation procedure is discussed. The feasibility and the significance of lean production are discussed and the results are also shown.