I want to know, how can I make a complete manufacturing production plan and track it?

My firm is a manufacturing unit of wood and iron, we have five different stages where operations take place (Cutting & assembling, sanding, polishing, finishing and packaging & dispatching).

I have seen many videos regarding this but got confused regarding production process and flow between project and production plan.

I need help to know what is project and production planning and why are they not linked to each other. Here, after receiving sales order, we first distribute the raw material to subcontractors and assigned them the PO for work. The raw material which is wood, then they start the work in the above mentioned hierarchy each stage takes around 10 to 15 days to finish their work.

I need to track mainly that which item is on which stage and what all items are there on each stage and if possible, can i get a notification that item X is delayed to go to next stage?

Shall i use production planning for that or project ?

Please help me with this flow as what to do next in a chronological manner?