diff --git a/erpnext/config/manufacturing.py b/erpnext/config/manufacturing.py
index bd258fb..493a011 100644
--- a/erpnext/config/manufacturing.py
+++ b/erpnext/config/manufacturing.py
@@ -37,11 +37,6 @@
 					"name": "Operation",
 					"description": _("Details of the operations carried out."),
 				},
-				{
-					"type": "doctype",
-					"name": "Manufacturing Settings",
-					"description": _("Global settings for all manufacturing processes."),
-				},
 
 			]
 		},
@@ -62,6 +57,16 @@
 			]
 		},
 		{
+			"label": _("Setup"),
+			"items": [
+				{
+					"type": "doctype",
+					"name": "Manufacturing Settings",
+					"description": _("Global settings for all manufacturing processes."),
+				}
+			]
+		},
+		{
 			"label": _("Standard Reports"),
 			"icon": "icon-list",
 			"items": [
diff --git a/erpnext/manufacturing/doctype/manufacturing_settings/manufacturing_settings.json b/erpnext/manufacturing/doctype/manufacturing_settings/manufacturing_settings.json
index 1fa949d..a7d48fc 100644
--- a/erpnext/manufacturing/doctype/manufacturing_settings/manufacturing_settings.json
+++ b/erpnext/manufacturing/doctype/manufacturing_settings/manufacturing_settings.json
@@ -9,10 +9,17 @@
  "document_type": "Master", 
  "fields": [
   {
-   "description": "Will not allow to make time logs outside \"Workstation operation timings\"", 
-   "fieldname": "dont_allow_overtime", 
+   "fieldname": "capacity_planning", 
+   "fieldtype": "Section Break", 
+   "label": "Capacity Planning", 
+   "permlevel": 0, 
+   "precision": ""
+  }, 
+  {
+   "description": "Plan time logs outside Workstation Working Hours.", 
+   "fieldname": "allow_overtime", 
    "fieldtype": "Check", 
-   "label": "Don't allow overtime", 
+   "label": "Allow Overtime", 
    "permlevel": 0, 
    "precision": ""
   }, 
@@ -40,6 +47,14 @@
    "label": "Capacity Planning For (Days)", 
    "permlevel": 0, 
    "precision": ""
+  }, 
+  {
+   "description": "Default 10 mins", 
+   "fieldname": "mins_between_operations", 
+   "fieldtype": "Data", 
+   "label": "Time Between Operations (in mins)", 
+   "permlevel": 0, 
+   "precision": ""
   }
  ], 
  "hide_heading": 0, 
@@ -50,7 +65,7 @@
  "is_submittable": 0, 
  "issingle": 1, 
  "istable": 0, 
- "modified": "2015-02-23 09:05:58.927098", 
+ "modified": "2015-02-23 23:44:45.917027", 
  "modified_by": "Administrator", 
  "module": "Manufacturing", 
  "name": "Manufacturing Settings", 
diff --git a/erpnext/manufacturing/doctype/production_order/production_order.py b/erpnext/manufacturing/doctype/production_order/production_order.py
index ba61b3c..5c66d40 100644
--- a/erpnext/manufacturing/doctype/production_order/production_order.py
+++ b/erpnext/manufacturing/doctype/production_order/production_order.py
@@ -23,9 +23,6 @@
 }
 
 class ProductionOrder(Document):
-	def __setup__(self):
-		self.holidays = frappe._dict()
-
 	def validate(self):
 		if self.docstatus == 0:
 			self.status = "Draft"
@@ -159,6 +156,7 @@
 
 		frappe.db.set(self,'status', 'Cancelled')
 		self.update_planned_qty(-self.qty)
+		self.delete_time_logs()
 
 	def update_planned_qty(self, qty):
 		"""update planned qty in bin"""
@@ -182,47 +180,44 @@
 
 		self.set('operations', operations)
 
-		self.plan_operations()
 		self.calculate_operating_cost()
 
-	def plan_operations(self):
-		if self.planned_start_date:
-			scheduled_datetime = self.planned_start_date
-			for d in self.get('operations'):
-				while getdate(scheduled_datetime) in self.get_holidays(d.workstation):
-					scheduled_datetime = get_datetime(scheduled_datetime) + relativedelta(days=1)
-
-				d.planned_start_time = scheduled_datetime
-				scheduled_datetime = get_datetime(scheduled_datetime) + relativedelta(minutes=d.time_in_mins)
-				d.planned_end_time = scheduled_datetime
-
-			self.planned_end_date = scheduled_datetime
-
 
 	def get_holidays(self, workstation):
 		holiday_list = frappe.db.get_value("Workstation", workstation, "holiday_list")
 
-		if holiday_list not in self.holidays:
+		holidays = {}
+
+		if holiday_list not in holidays:
 			holiday_list_days = [getdate(d[0]) for d in frappe.get_all("Holiday", fields=["holiday_date"],
-				filters={"parent": holiday_list}, order_by="holiday_date", as_list=1)]
+				filters={"parent": holiday_list}, order_by="holiday_date", limit_page_length=0, as_list=1)]
 
-			self.holidays[holiday_list] = holiday_list_days
+			holidays[holiday_list] = holiday_list_days
 
-		return self.holidays[holiday_list]
+		return holidays[holiday_list]
 
 	def make_time_logs(self):
-		time_logs = []
+		"""Capacity Planning. Plan time logs based on earliest availablity of workstation after
+			Planned Start Date. Time logs will be created and remain in Draft mode and must be submitted
+			before manufacturing entry can be made."""
 
+		if not self.operations:
+			return
+
+		time_logs = []
 		plan_days = frappe.db.get_single_value("Manufacturing Settings", "capacity_planning_for_days") or 30
 
-		for d in self.operations:
+		for i, d in enumerate(self.operations):
+			self.set_operation_start_end_time(i, d)
+
 			time_log = make_time_log(self.name, d.operation, d.planned_start_time, d.planned_end_time,
-				flt(self.qty) - flt(d.completed_qty), self.project_name, d.workstation)
+				flt(self.qty) - flt(d.completed_qty), self.project_name, d.workstation, operation_id=d.name)
 
 			self.check_operation_fits_in_working_hours(d)
 
 			original_start_time = time_log.from_time
 			while True:
+				_from_time = time_log.from_time
 				try:
 					time_log.save()
 					break
@@ -240,14 +235,41 @@
 					frappe.msgprint(_("Unable to find Time Slot in the next {0} days for Operation {1}").format(plan_days, d.operation))
 					break
 
-				print time_log.as_json()
+				if _from_time == time_log.from_time:
+					frappe.throw("Capacity Planning Error")
+
+			d.planned_start_time = time_log.from_time
+			d.planned_end_time = time_log.to_time
+			d.db_update()
 
 			if time_log.name:
 				time_logs.append(time_log.name)
 
+		self.planned_end_date = self.operations[-1].planned_end_time
+
 		if time_logs:
 			frappe.msgprint(_("Time Logs created:") + "\n" + "\n".join(time_logs))
 
+	def set_operation_start_end_time(self, i, d):
+		"""Set start and end time for given operation. If first operation, set start as
+		`planned_start_date`, else add time diff to end time of earlier operation."""
+		if i==0:
+			# first operation at planned_start date
+			d.planned_start_time = self.planned_start_date
+		else:
+			d.planned_start_time = get_datetime(self.operations[i-1].planned_end_time)\
+				+ self.get_mins_between_operations()
+
+		d.planned_end_time = get_datetime(d.planned_start_time) + relativedelta(minutes = d.time_in_mins)
+
+		if d.planned_start_time == d.planned_end_time:
+			frappe.throw(_("Capacity Planning Error"))
+
+	def get_mins_between_operations(self):
+		if not hasattr(self, "_mins_between_operations"):
+			self._mins_between_operations = frappe.db.get_single_value("Manufacturing Settings",
+				"mins_between_operations") or 10
+		return relativedelta(minutes = self._mins_between_operations)
 
 	def check_operation_fits_in_working_hours(self, d):
 		"""Raises expection if operation is longer than working hours in the given workstation."""
@@ -289,6 +311,10 @@
 				and getdate(self.expected_delivery_date) < getdate(self.planned_end_date):
 					frappe.msgprint(_("Production might not be able to finish by the Expected Delivery Date."))
 
+	def delete_time_logs(self):
+		for time_log in frappe.get_all("Time Log", ["name"], {"production_order": self.name}):
+			frappe.delete_doc("Time Log", time_log.name)
+
 @frappe.whitelist()
 def get_item_details(item):
 	res = frappe.db.sql("""select stock_uom, description
diff --git a/erpnext/manufacturing/doctype/production_order_operation/production_order_operation.json b/erpnext/manufacturing/doctype/production_order_operation/production_order_operation.json
index 2fe6c32..b1a6330 100644
--- a/erpnext/manufacturing/doctype/production_order_operation/production_order_operation.json
+++ b/erpnext/manufacturing/doctype/production_order_operation/production_order_operation.json
@@ -148,7 +148,8 @@
    "no_copy": 1, 
    "permlevel": 0, 
    "precision": "", 
-   "reqd": 1
+   "read_only": 1, 
+   "reqd": 0
   }, 
   {
    "fieldname": "planned_end_time", 
@@ -158,7 +159,8 @@
    "no_copy": 1, 
    "permlevel": 0, 
    "precision": "", 
-   "reqd": 1
+   "read_only": 1, 
+   "reqd": 0
   }, 
   {
    "fieldname": "column_break_10", 
@@ -290,7 +292,7 @@
  "is_submittable": 0, 
  "issingle": 0, 
  "istable": 1, 
- "modified": "2015-02-23 07:55:19.368919", 
+ "modified": "2015-02-24 00:27:44.651084", 
  "modified_by": "Administrator", 
  "module": "Manufacturing", 
  "name": "Production Order Operation", 
diff --git a/erpnext/manufacturing/doctype/workstation/workstation.py b/erpnext/manufacturing/doctype/workstation/workstation.py
index d345e26..4c23499 100644
--- a/erpnext/manufacturing/doctype/workstation/workstation.py
+++ b/erpnext/manufacturing/doctype/workstation/workstation.py
@@ -3,9 +3,8 @@
 
 from __future__ import unicode_literals
 import frappe
-import datetime
 from frappe import _
-from frappe.utils import flt, cint, getdate, formatdate, comma_and
+from frappe.utils import flt, cint, getdate, formatdate, comma_and, get_datetime
 
 from frappe.model.document import Document
 
@@ -49,23 +48,27 @@
 	return frappe.db.get_value("Company", frappe.defaults.get_user_default("company"), "default_holiday_list")
 
 def check_if_within_operating_hours(workstation, from_datetime, to_datetime):
-	if not is_within_operating_hours(workstation, from_datetime, to_datetime):
-		frappe.throw(_("Time Log timings outside workstation operating hours"), NotInWorkingHoursError)
+	if not cint(frappe.db.get_value("Manufacturing Settings", None, "allow_overtime")):
+		is_within_operating_hours(workstation, from_datetime, to_datetime)
 
 	if not cint(frappe.db.get_value("Manufacturing Settings", "None", "allow_production_on_holidays")):
 		check_workstation_for_holiday(workstation, from_datetime, to_datetime)
 
 def is_within_operating_hours(workstation, from_datetime, to_datetime):
-	if not cint(frappe.db.get_value("Manufacturing Settings", None, "dont_allow_overtime")):
-		return True
+	start_time = get_datetime(from_datetime).time()
+	end_time = get_datetime(to_datetime).time()
 
-	start_time = datetime.datetime.strptime(from_datetime,'%Y-%m-%d %H:%M:%S').strftime('%H:%M:%S')
-	end_time = datetime.datetime.strptime(to_datetime,'%Y-%m-%d %H:%M:%S').strftime('%H:%M:%S')
+	working_hours = frappe.db.sql_list("""select idx from `tabWorkstation Working Hour`
+		where parent = %s
+			and (
+				(start_time between %s and %s) or
+				(end_time between %s and %s) or
+				(%s between start_time and end_time))
+		""", (workstation, start_time, end_time, start_time, end_time, start_time))
 
-	for d in frappe.db.sql("""select start_time, end_time from `tabWorkstation Operation Hours`
-		where parent = %s and ifnull(enabled, 0) = 1""", workstation, as_dict=1):
-			if d.end_time >= start_time >= d.start_time and d.end_time >= end_time >= d.start_time:
-				return True
+	if not working_hours:
+		frappe.throw(_("Time Log timings outside workstation operating hours"), NotInWorkingHoursError)
+
 
 def check_workstation_for_holiday(workstation, from_datetime, to_datetime):
 	holiday_list = frappe.db.get_value("Workstation", workstation, "holiday_list")
diff --git a/erpnext/projects/doctype/time_log/time_log.json b/erpnext/projects/doctype/time_log/time_log.json
index 603efe3..9194f82 100644
--- a/erpnext/projects/doctype/time_log/time_log.json
+++ b/erpnext/projects/doctype/time_log/time_log.json
@@ -75,12 +75,14 @@
    "reqd": 0
   }, 
   {
+   "default": "Project", 
    "fieldname": "time_log_for", 
    "fieldtype": "Select", 
    "label": "Time Log For", 
    "options": "\nProject\nManufacturing", 
    "permlevel": 0, 
    "precision": "", 
+   "read_only": 1, 
    "reqd": 0
   }, 
   {
@@ -117,7 +119,8 @@
    "label": "Production Order", 
    "options": "Production Order", 
    "permlevel": 0, 
-   "precision": ""
+   "precision": "", 
+   "read_only": 1
   }, 
   {
    "depends_on": "eval:doc.time_log_for == 'Manufacturing'", 
@@ -126,7 +129,8 @@
    "label": "Operation", 
    "options": "", 
    "permlevel": 0, 
-   "precision": ""
+   "precision": "", 
+   "read_only": 1
   }, 
   {
    "fieldname": "operation_id", 
@@ -230,7 +234,7 @@
  "icon": "icon-time", 
  "idx": 1, 
  "is_submittable": 1, 
- "modified": "2015-02-23 08:00:48.195775", 
+ "modified": "2015-02-24 03:57:27.652685", 
  "modified_by": "Administrator", 
  "module": "Projects", 
  "name": "Time Log", 
diff --git a/erpnext/projects/doctype/time_log/time_log.py b/erpnext/projects/doctype/time_log/time_log.py
index 3adf879..ffe65bf 100644
--- a/erpnext/projects/doctype/time_log/time_log.py
+++ b/erpnext/projects/doctype/time_log/time_log.py
@@ -6,7 +6,7 @@
 from __future__ import unicode_literals
 import frappe, json
 from frappe import _
-from frappe.utils import cstr, flt, add_days, get_datetime, get_time
+from frappe.utils import cstr, flt, get_datetime, get_time, getdate
 from dateutil.relativedelta import relativedelta
 from dateutil.parser import parse
 
@@ -109,25 +109,28 @@
 	def update_production_order(self):
 		"""Updates `start_date`, `end_date`, `status` for operation in Production Order."""
 
-		if self.time_log_for=="Manufacturing" and self.operation:
-			operation = self.operation
+		if self.time_log_for=="Manufacturing" and self.production_order:
+			if not self.operation_id:
+				frappe.throw(_("Operation ID not set"))
 
 			dates = self.get_operation_start_end_time()
-			tl = self.get_all_time_logs()
+			summary = self.get_time_log_summary()
+
+			pro = frappe.get_doc("Production Order", self.production_order)
+			for o in pro.operations:
+				if o.name == self.operation_id:
+					o.actual_start_time = dates.start_date
+					o.actual_end_time = dates.end_date
+					o.completed_qty = summary.completed_qty
+					o.actual_operation_time = summary.mins
+					break
 
 
-			frappe.db.sql("""update `tabProduction Order Operation`
-				set actual_start_time = %s, actual_end_time = %s, completed_qty = %s, actual_operation_time = %s
-				where parent=%s and idx=%s and operation = %s""",
-				(dates.start_date, dates.end_date, tl.completed_qty,
-					tl.hours, self.production_order, operation[0], operation[1]))
-
-			pro_order = frappe.get_doc("Production Order", self.production_order)
-			pro_order.flags.ignore_validate_update_after_submit = True
-			pro_order.update_operation_status()
-			pro_order.calculate_operating_cost()
-			pro_order.set_actual_dates()
-			pro_order.save()
+			pro.flags.ignore_validate_update_after_submit = True
+			pro.update_operation_status()
+			pro.calculate_operating_cost()
+			pro.set_actual_dates()
+			pro.save()
 
 	def get_operation_start_end_time(self):
 		"""Returns Min From and Max To Dates of Time Logs against a specific Operation. """
@@ -137,7 +140,7 @@
 
 	def move_to_next_day(self):
 		"""Move start and end time one day forward"""
-		self.from_time = add_days(self.from_time, 1)
+		self.from_time = get_datetime(self.from_time) + relativedelta(day=1)
 
 	def move_to_next_working_slot(self):
 		"""Move to next working slot from workstation"""
@@ -145,13 +148,13 @@
 		slot_found = False
 		for working_hour in workstation.working_hours:
 			if get_datetime(self.from_time).time() < get_time(working_hour.start_time):
-				self.from_time = self.from_time.split()[0] + " " + working_hour.start_time
+				self.from_time = getdate(self.from_time).strftime("%Y-%m-%d") + " " + working_hour.start_time
 				slot_found = True
 				break
 
 		if not slot_found:
 			# later than last time
-			self.from_time = self.from_time.split()[0] + workstation.working_hours[0].start_time
+			self.from_time = getdate(self.from_time).strftime("%Y-%m-%d") + " " + workstation.working_hours[0].start_time
 			self.move_to_next_day()
 
 	def move_to_next_non_overlapping_slot(self):
@@ -160,13 +163,13 @@
 		if overlapping:
 			self.from_time = parse(overlapping.to_time) + relativedelta(minutes=10)
 
-	def get_all_time_logs(self):
+	def get_time_log_summary(self):
 		"""Returns 'Actual Operating Time'. """
 		return frappe.db.sql("""select
-			sum(hours*60) as hours, sum(ifnull(completed_qty, 0)) as completed_qty
+			sum(hours*60) as mins, sum(ifnull(completed_qty, 0)) as completed_qty
 			from `tabTime Log`
-			where production_order = %s and operation = %s and docstatus=1""",
-			(self.production_order, self.operation), as_dict=1)[0]
+			where production_order = %s and operation_id = %s and docstatus=1""",
+			(self.production_order, self.operation_id), as_dict=1)[0]
 
 	def validate_project(self):
 		if self.time_log_for == 'Project':
diff --git a/erpnext/stock/doctype/stock_entry/stock_entry.py b/erpnext/stock/doctype/stock_entry/stock_entry.py
index 4e229cb..a48c5f3 100644
--- a/erpnext/stock/doctype/stock_entry/stock_entry.py
+++ b/erpnext/stock/doctype/stock_entry/stock_entry.py
@@ -19,6 +19,7 @@
 class StockOverReturnError(frappe.ValidationError): pass
 class IncorrectValuationRateError(frappe.ValidationError): pass
 class DuplicateEntryForProductionOrderError(frappe.ValidationError): pass
+class OperationsNotCompleteError(frappe.ValidationError): pass
 
 from erpnext.controllers.stock_controller import StockController
 
@@ -185,7 +186,7 @@
 			total_completed_qty = flt(self.fg_completed_qty) + flt(prod_order.produced_qty)
 			if total_completed_qty > flt(d.completed_qty):
 				frappe.throw(_("Row #{0}: Operation {1} is not completed for {2} qty of finished goods in Production Order # {3}. Please update operation status via Time Logs")
-					.format(d.idx, d.operation, total_completed_qty, self.production_order))
+					.format(d.idx, d.operation, total_completed_qty, self.production_order), OperationsNotCompleteError)
 
 	def check_duplicate_entry_for_production_order(self):
 		other_ste = [t[0] for t in frappe.db.get_values("Stock Entry",  {