
Explore the three pillars of production, planning, and control, from raw materials to final products, and learn how demand-based planning and timely control optimize time, quality, and cost.
definition of production planning and control (PPC) highlights managing the manufacturing process, coordinating resources from procurement to shipping to meet quality, quantity, cost, and time goals.
Determine manpower, materials, and equipment needs from customer demand. Plan production schedules to meet demand, optimize resources, maintain inventory levels, and coordinate labor and machines from procurement to shipping.
Identify and integrate pre-planning, planning, and control within production planning and control, detailing resources such as man, material, machine, and money, routing, process planning, scheduling, and evaluation.
Understand the levels of production planning and control, from strategic long-range planning by top management to tactical and operational short-range planning, aligning decisions with demand and optimizing resources.
Production planning and control coordinates all production phases to ensure smooth operations, improve quality, reduce inventory, and optimize resource utilization, boosting sales and profitability.
Define the sequence of operations, machines, and resources to convert raw material into the finished product, establishing the shortest route, timing, and efficiency in process planning.
Explore the factors that affect process planning, including production volume, delivery dates, machine accuracy and capability, manpower skills, raw material specifications, process capability, and product quality requirements.
Explore product realization from design and material selection to tolerances and surface finish, then apply process planning, program operations, verify, schedule, and apply feedback.
Explore manual process planning and computer aided process planning to optimize production, noting time-consuming limits and disruptions, while leveraging the engineer's knowledge of facilities, processes, tools, and sequencing.
Determine how many machines are required for production targets using standard time and machine capacity. Understand how optimal plant investments and machine utilization boost process planning and return on investment.
Calculate the required number of milling machines to produce 70,000 square pockets, using a six-minute standard time, 2000-hour monthly capacity, and 90% utilization; illustrate process planning and computer aided process planning.
Determine resource capacity to meet demand over the intermediate time horizon through aggregate production planning, focusing on product lines and matching supply with demand using available production alternatives.
Learn how aggregate production planning balances forecasted demand and supply across a yearly horizon, selecting cost-efficient production alternatives such as overtime, hiring, and subcontracting to minimize total costs.
Learn how aggregate planning uses demand forecasts, capacity constraints, and company policies to determine production levels, workforce, inventory, overtime, subcontracting, backlogs, and costs.
Learn meeting demand strategies by adjusting capacity and using production alternatives, including level production, chase demand, overtime, and under time, plus inventory to absorb fluctuations.
Explore capacity adjustment strategies to meet forecasted demand through regular time, overtime, hiring, subcontracting, or back ordering, considering costs and capacity constraints to minimize annual production costs.
Level production maintains uniform output year-round, using inventory from lean periods to meet variable demand.
Chasing demand aligns production with changing demand over time, producing more when demand rises and less when it falls. Minimize inventory focus while satisfying demand through timely production.
Apply quantitative techniques to minimize total production cost using unit costs, capacity constraints, and demand data. Explore pure and mixed strategies, including linear programming and transportation methods, for production planning.
Analyze quarterly demand and costs to plan production that meets one year of demand, using hiring and firing costs, per pound production cost, and inventory carrying costs with 100 workers.
Level production strategy ensures producing 100,000 per quarter for a 400,000 annual demand, using inventory to balance quarterly gaps and totaling 870,000 in annual costs.
Demonstrates the chase demand approach by aligning workforce and production with quarterly demand, accounting for hiring and firing costs and regular time production to minimize yearly costs.
Explore mixed strategies in production planning, combining level production and chase demand, while managing capacity constraints, inventory limits, layoffs, and vacations during low demand.
Learn how capacity is defined as output rate and key resources per period, and how to plan and optimize utilization to meet forecasted demand.
Execute strategic capacity planning by evaluating facilities, equipment, and labor, using capacity utilization and ROI to align with demand. Decide when to increase or reduce capacity based on market demand.
Calculate capacity utilization rate as capacity used divided by the best operating level, the nominal capacity a process is designed for, illustrated with 100 kg vs 70 kg.
Assess capacity utilization rate to guide decisions, distinguishing theoretical, rated, and effective capacity, and implement changes in processes to improve efficiency and overall capacity utilization.
Explore capacity utilization, efficiency, and capacity load as key metrics in production planning. See how standard output compares with actual performance and how capacity planning maximizes utilization.
Analyze how demand dimensions—quantity, timing, location, and quality—shape capacity requirements and guide decisions on how much, when, where, and what capacity to add.
Learn how capacity planning sets the facility's output rate to meet demand, guiding capital spending, capacity additions or reductions, and managing workforce and inventory levels.
Explore capacity definitions through concrete input and output measures across sectors like car manufacturing, hospitals, pizza parlor, and retail, comparing labor hours, beds, pizzas served, and revenue per foot.
Define and apply the best operating level to balance capacity and planning, maximizing output while minimizing wear, with an analogy of engines, assembly lines, and driving range for fuel efficiency.
The average unit cost of output varies with production volume, rising at low volumes, optimizing around 500 soap cakes, and increasing at high volumes due to machine wear and maintenance.
Identify the best operating level for a hotel by analyzing average cost per room, noting economies of scale up to 500 rooms and diseconomies beyond.
Learn how economies of scale reduce cost per unit as output grows, and how diseconomies raise costs at higher volumes, noting the best operating level to minimize average cost.
Explore economies of scale and diseconomies of scale, identify the best operating level at around 300 units, and analyze how capacity planning affects average unit cost.
Explore how economies of scale lower cost per unit as output grows by spreading fixed costs, boosting efficiency, and utilizing bulk discounts, until diseconomies emerge at the best operating level.
Explore how diseconomies of scale arise from distribution, bureaucracy, confusion, and vulnerability, leading to chaotic operations, underutilized capacity, and poor planning due to management complexity.
Diseconomies of confusion arise as process linkages grow, with n nodes producing n(n-1)/2 links. Identify optimal capacity utilization to minimize average cost per unit using the right manpower or machines.
Compute capacity utilization by dividing capacity used by operating level. With 83 units vs 120, rate is about 0.69 (70%), revealing unused capacity and opportunities to improve efficiency and productivity.
Determine capacity requirements through forecasting sales and calculating machine and labor needs, balancing regular and overtime production, and options for outsourcing to maintain line balance and meet demand.
Determine capacity requirements from demand forecasts, develop and evaluate alternatives (including outsourcing), select and implement the optimum capacity development plan.
Map four-year demand forecasts to machine and labor capacity for small and family size mustard bottles, calculate utilization, and determine required machines and operators for production planning and control.
Production Planning and Control (PPC) is a core area of manufacturing and operations management that connects production requirements with processes, machines, capacity and demand. Effective PPC helps organizations determine what should be produced, how production should be planned, what resources are required and how available capacity can be aligned with operational requirements.
This course provides a structured understanding of Production Planning and Control, process planning, aggregate production planning, capacity planning, capacity utilization, demand strategies, economies of scale and production planning calculations.
The course combines conceptual learning with examples and 50 exercises with solutions, allowing you to strengthen both your understanding of PPC principles and your ability to work through production planning problems.
The overall decision flow can be understood as:
Production Requirement → Process Planning → Aggregate Planning → Capacity Planning → Analysis → Production Decision
This integrated approach is important because production decisions should not be made in isolation. Process requirements affect machine requirements, demand influences aggregate plans, capacity influences achievable output, and operating levels influence production economics.
Understand Production Planning and Control
The course begins with the fundamentals of Production Planning and Control (PPC).
You will examine the definition of PPC, its objectives, its major functions and the different levels at which production planning and control decisions can occur.
You will also explore the benefits and limitations of PPC.
This establishes the foundation for understanding production planning as a coordinated system rather than simply creating a production schedule.
A useful conceptual flow is:
Production Need → Planning → Resource Coordination → Production Control → Review
Understanding this foundation prepares you for the more quantitative and strategic production-planning topics covered later in the course.
Learn Process Planning
The course then moves into process planning, an important connection between product requirements and actual production operations.
You will explore:
Process planning
Factors affecting process planning
Product realization
Methods of process planning
Machine requirements
Machine requirement calculations
Process planning helps determine how production requirements can be translated into the processes and resources needed to produce an output.
The relationship can be viewed as:
Product Requirement → Process Selection → Machine Requirement → Production Capability
This is an important stage because production plans must ultimately be supported by appropriate processes and machine capacity.
Understand Machine Requirements
Machine requirements are specifically addressed through conceptual learning and calculation-based examples.
A production plan may define the required output, but planners must also consider whether sufficient machine capability exists to support that requirement.
The course therefore connects process planning with machine-resource decisions.
A practical planning sequence is:
Required Output → Process Requirement → Machine Requirement → Capacity Check → Production Decision
This helps build the analytical foundation needed for later topics in aggregate and capacity planning.
Master Aggregate Production Planning
A major part of the course focuses on Aggregate Production Planning (APP).
Aggregate planning addresses how production capacity and output can be aligned with expected demand over a planning period.
You will study the objectives of aggregate planning and the aggregate planning process before moving into different approaches for meeting demand.
The course examines:
Meeting demand strategies
Strategies for adjusting capacity
Level capacity
Chase demand
Quantitative techniques for aggregate production planning
Pure strategies
Level production strategies
Chase demand strategies
Mixed strategies
This allows you to understand that production planning often involves choosing between different ways of balancing demand and available resources.
A useful aggregate planning workflow is:
Demand Requirement → Capacity Assessment → Strategy Selection → Production Plan → Operational Evaluation
Compare Level and Chase Demand Strategies
The course provides dedicated coverage of level capacity and chase demand strategies.
A level approach focuses on maintaining a more consistent production or capacity level, while a chase approach adjusts production more closely in response to changes in demand.
The curriculum also includes examples of:
Pure strategies
Level production strategies
Chase demand strategies
Mixed strategies
This enables you to examine different aggregate planning approaches rather than viewing production planning as a single fixed method.
The broader planning question becomes:
Should production remain relatively stable, adjust with demand, or combine multiple approaches?
Understanding these alternatives is central to aggregate production planning.
Apply Quantitative Techniques to Aggregate Planning
Production planning requires more than conceptual understanding.
The course introduces quantitative techniques for Aggregate Production Planning and supports them with strategy examples.
You will work through examples involving pure strategies, level production strategies and chase demand strategies before examining mixed strategies.
The objective is to develop a structured approach to evaluating production alternatives.
A useful problem-solving model is:
Problem → Demand & Capacity Information → Planning Strategy → Quantitative Analysis → Comparison → Decision
This framework can be applied when evaluating different aggregate production alternatives.
Develop Strong Capacity Planning Fundamentals
Another major component of the course is capacity planning.
Capacity planning focuses on determining whether an operation has sufficient productive capability to meet its requirements.
You will study:
Capacity planning
Strategic capacity planning
Capacity utilization rate
Capacity decisions
Capacity utilization
Factors affecting capacity requirements
Importance of capacity planning
Measuring capacity
Capacity requirement determination
The course progresses from fundamental capacity concepts into examples and calculations.
A useful capacity-planning flow is:
Expected Requirement → Available Capacity → Capacity Measurement → Utilization Assessment → Capacity Gap → Capacity Decision
This connects production demand with operational capability.
Understand Capacity Utilization
Having production capacity does not automatically mean that capacity is being used effectively.
The curriculum therefore examines capacity utilization and the capacity utilization rate, along with a dedicated capacity utilization example.
Capacity utilization helps production planners compare operating activity with available productive capability.
Understanding utilization supports decisions about whether capacity is being effectively used and whether future requirements may require adjustments.
This creates an important connection:
Available Capacity → Actual Utilization → Requirement Analysis → Capacity Decision
Determine Capacity Requirements
The course goes beyond describing capacity and examines how capacity requirements can be determined.
You will learn about:
Factors affecting capacity requirements
Determining capacity requirements
Steps in capacity planning
Capacity requirement examples
This creates a structured way of thinking about capacity decisions.
The planning sequence can be summarized as:
Production Requirement → Capacity Requirement → Existing Capacity → Gap Analysis → Capacity Planning Decision
Capacity planning therefore becomes part of a broader operational decision process rather than an isolated calculation.
Understand Best Operating Level
The curriculum also examines the concept of best operating level.
You will study the relationship between operating level and average unit cost of output, supported by examples.
The course also includes a specific example involving the best operating level for a hotel, demonstrating how capacity concepts can be considered beyond a traditional manufacturing environment.
The underlying decision relationship is:
Operating Level → Resource Utilization → Unit Cost → Operating Decision
This helps connect capacity planning with operational economics.
Explore Average Unit Cost of Output
Capacity decisions have economic consequences.
The course examines average unit cost of output in relation to operating level and capacity.
As production or service activity changes, the economic effect of scale and operating level also becomes relevant.
Understanding this relationship helps explain why simply increasing output does not automatically guarantee greater efficiency.
Production planners therefore need to consider both:
Capacity Capability + Cost Behaviour
when evaluating operating decisions.
Understand Economies of Scale
The course provides dedicated coverage of economies of scale, including examples, graphs and operating-level relationships.
Economies of scale help explain how increasing the scale of operations can influence production economics.
The curriculum examines:
Economies of scale
Economies of scale and operating-level curves
Examples and graphical interpretation
This extends capacity planning beyond the question of whether production is possible to the question of how operating scale can influence efficiency and cost.
Understand Diseconomies of Scale
Growth in operating scale does not always produce continuing benefits.
The curriculum therefore also examines diseconomies of scale and the concept of diseconomies of confusion.
This provides an important counterpoint to economies of scale.
As organizations or operations become larger, additional complexity can influence coordination, communication and operating efficiency.
The course therefore presents both sides of scale:
Increasing Scale → Potential Economies → Greater Complexity → Potential Diseconomies
This is an important consideration when evaluating long-term capacity and operating-level decisions.
Learn Strategic Capacity Planning
Capacity decisions can have longer-term implications, which is why the course specifically includes strategic capacity planning.
Strategic capacity planning connects expected requirements with decisions about the productive capability needed to support operations.
Rather than looking only at current production, capacity planning requires consideration of future requirements and appropriate operating levels.
A useful strategic framework is:
Requirement → Capacity Assessment → Utilization → Operating Level → Cost Implications → Capacity Decision
This provides a structured way to think about production capacity.
Strengthen PPC Skills with 50 Exercises and Solutions
A major practical component of this course is the dedicated section containing 50 exercises and solutions.
After learning the fundamentals of PPC, process planning, aggregate planning and capacity planning, you can reinforce your understanding through structured exercises.
Working through exercises is particularly useful in production planning because many decisions require learners to connect multiple concepts rather than memorize individual definitions.
The exercise section supports a practical learning cycle:
Concept → Problem → Analysis → Solution → Review → Understanding
The objective is to strengthen your ability to interpret production-planning problems and work systematically toward a solution.
What You Will Learn
By completing this course, you will develop an understanding of:
Production Planning and Control (PPC)
Objectives of PPC
Functions of PPC
Levels of Production Planning and Control
Benefits and limitations of PPC
Process planning
Factors affecting process planning
Product realization
Methods of process planning
Machine requirements
Machine requirement calculations
Aggregate Production Planning
Objectives of aggregate planning
Aggregate planning process
Strategies for meeting demand
Strategies for adjusting capacity
Level capacity
Chase demand strategy
Quantitative techniques for Aggregate Production Planning
Pure aggregate planning strategies
Level production strategies
Chase demand strategies
Mixed aggregate planning strategies
Capacity planning
Strategic capacity planning
Capacity utilization rate
Capacity decisions
Capacity utilization
Factors affecting capacity requirements
Importance of capacity planning
Capacity measurement
Best operating level
Average unit cost of output
Economies of scale
Economies of scale and operating-level relationships
Diseconomies of scale
Diseconomies of confusion
Determining capacity requirements
Steps in capacity planning
Capacity requirement examples
Production planning problem solving through 50 exercises and solutions
Who Should Take This Course?
This course is suitable for production planners, manufacturing professionals, operations professionals, industrial engineers, mechanical engineers, production engineers, operations management learners and students studying Production Planning and Control.
It is also useful for professionals who work with production requirements, capacity, machine utilization, planning or manufacturing operations and want to strengthen their understanding of the principles behind PPC.
Engineering and management students can use the course to build a structured foundation in process planning, aggregate planning and capacity planning.
Production and operations professionals can use it to reinforce how demand, process requirements, machine requirements and capacity decisions connect.
Learners preparing for roles related to production planning can particularly benefit from the combination of concepts, quantitative examples and the dedicated 50-exercise practice section.
Build an Integrated View of Production Planning
Production Planning and Control becomes more useful when its individual components are viewed as one connected system.
Process planning determines how production can be carried out.
Aggregate planning determines how production and capacity can respond to demand.
Capacity planning determines whether sufficient productive capability exists.
Capacity utilization provides insight into how available capability is being used.
Operating-level analysis connects capacity with economic performance.
Economies and diseconomies of scale explain how changes in operational scale can affect performance.
The complete learning model can therefore be summarized as:
Demand → Process → Machines → Aggregate Plan → Capacity → Utilization → Operating Level → Analysis → Production Decision
By understanding these relationships and reinforcing them through examples and exercises, you can build a stronger foundation in Production Planning and Control and its role in manufacturing and operations management.