Production budget is a forecast of production for the budget period. It is prepared from two angles: In terms of quantity and in terms of money.
Following budgets are prepared under the production budget:

Material Budget to estimate the material cost
Direct Labour Cost Budget to estimate the labour cost which are required to product the quantity as specified in the production budget.
Overhead Budget to estimate production overheads.

Production budget is prepared after taking various budgets into consideration. For a proper estimation of various costs associated with the production process makes it important to prepare production budget for the period in which production will take place.   _{Your Comment}