Principles of Production and Inventory Management (PPIM)

The PPIM, Principles of Production & Inventory Management course aims to cover the Principles of Techniques relating to the field of Production & Inventory Management within the broader field of Enterprise Planning (ERP). This programme is designed to provide the learner with:

  • A working knowledge of the three areas of production and inventory management, i.e. strategic planning, operations planning and operations execution.
  • The ability to use a number of statistical techniques to make sound judgement decisions relating to the day-to-day operational aspects of the business.
  • A sound grounding in the basic principles of the remaining CPIM modules and to prepare students for further study towards obtaining the CPIM qualification

Target Group

This program is suitable for all those seeking a career in the field of Production and Inventory Management, or the broader areas of Enterprise Resource Planning, such as Purchasing, Accounting, Marketing, Data Processing, and Engineering.

Aims and Objectives

  • The primary aim of this program is to equip the learner with the knowledge and skills necessary to be able to perform in one of the many disciplines associated with production and inventory management such as planning, inventory control, warehouse management, materials planning, and quality control.
  • A further aim of the program is to provide learners who are specializing in one area of production and inventory management with an insight into the many disciplines they come into contact with on a day-to-day basis – including suppliers and customers.
  • The primary objective of the program is to broaden the learner’s exposure to the many business functions that go into making up the field of production and inventory management.


  • Resource Management
  • Product Development and Process Design
  • Forecasting and Demand Management
  • Master Planning of Resources
  • Materials Planning
  • Capacity Planning
  • Executing Push/pull Systems
  • Lean Manufacturing
  • Purchasing and Procurement
  • Inventory Fundamentals, methodologies & Techniques
  • Total Quality Management
  • Statistical Quality Control
  • Warehousing and Materials Handling
  • Distribution Management
  • Facilities Location and Transportation

One – Resource Planning

Outcomes, Introduction, Long-Range Planning, Medium-Range Planning, Short-Range Planning, Product and Process Strategies, Alternate Plant Layouts, Summary

Two – Product Development and Process Design

Outcomes, Introduction, The Product, Production Decisions, Product Management, Product Design, Product Life Cycle, Computers in Product Development, Process Design, Choice of Production Method, Ergonomics and Work Study, Summary

Three – Forecasting and Demand Management

Outcomes, Introduction, What Is a Forecast?, Data Collection and Accuracy, Forecasting Techniques, Quantitative Forecasting Methods, Mean, Median and Mode, Time-Series Forecasting Models, Forecast Error, Safety Stock and Forecast Uncertainty, Summary.

Four – Master Planning of Resources

Outcomes, Introduction, The Production Plan, Developing the Production Plan, Master Production Schedule [MPS], Developing the MPS, Rough-Cut Capacity Planning [RCCP], Performance Measurement, Rules for Successful Master Scheduling, Summary

Five – Materials Planning

Outcomes, Introduction, Objectives of Materials Planning, Dependent vs Independent Demand, Inputs to Materials Planning, The MRP Grid, Materials Planning Outputs, Users and Uses of the Bills Of Material, Performance Measures, Summary

Six – Capacity Planning

Outcomes, Introduction, The Capacity Planning Process, Key Definitions, Measures of Capacity, Inputs to Capacity Planning, The Capacity Processing Logic, Outputs From Capacity Planning, Input/Output Control, Performance Measures, Summary

Seven – Executing Push Systems

Outcomes, Introduction, Loading the Factory, Controlling Movement Through the Factory, Managing Push Systems, Authorizing Push Activities, Documentation, Executing Push Activities, Priority Rules, Bottleneck Management, Input/Output Control, Data Collection Techniques, Summary

Eight – Executing Pull Systems

Outcomes, Introduction, Production Pull Systems, Pull System Characteristics, Kanbans, Line Balancing, Executing Pull Activities, Reporting Pull Activities, Synchronous Manufacturing, Agile Manufacturing, Summary

Nine – Mid Term Exam

Ten – Lean Manufacturing

Outcomes, Introduction, Lean Manufacturing, 5S Methodology, Theory of Constraints [TOC], TOC and Distribution Management, TOC and Suppliers, TOC and the Team, Advance Planning Systems [APS], Summary

Eleven – Purchasing and Procurement

Outcomes, Introduction, Objectives of Purchasing, Market Research in Procurement, Selecting Suppliers, The Purchasing Specification, Value Engineering and Value Analysis, The Purchasing Cycle, BEE in Procurement, Stock Pricing and Valuation, Summary

Twelve – Inventory Fundamentals

Outcomes, Introduction, What is Inventory? Types and Functions of Inventory, Inventory Sub Categories, Inventory Costs, Inventory and Customer Service, Safety Stock Inventory, ABC Classification of Inventory, Control of Inventory, Inventory Performance Measures, Summary

Thirteen – Inventory Methodologies and Techniques

Outcomes, Introduction, When to Order, “How Often” to Order, Order Review Methodologies, Order Quantity Constraints and Modifiers, Lot Sizing Techniques, Quantity Discounts, Summary

Fourteen – Total Quality Management

Outcomes, Introduction, Defining Quality, Design and Conformance, The Quality Gurus, Four Absolutes of Quality, Total Quality Management, Responsibility for Quality, Quality Costs, Inspection, Quality Training, Quality and Customer Satisfaction, Summary

Fifteen – Statistical Quality Control

Outcomes, Introduction, Quality Tools, The “Normal” Distribution, Control Charts, Interpretation of Control Charts, Process Capability, Acceptance Sampling, Sampling Plans, Summary

Sixteen – Warehousing and Materials Handling

Outcomes, Introduction, Space Requirements, Warehouse Productivity, Storage Methods, Storage Equipment, Order Picking Systems, Materials Handling, Classification of Equipment, Docking Aids, Summary

Seventeen – Distribution Management

Outcomes, Introduction, Distribution Networks, Activities of Physical Distribution, Distribution Centre Management, Distribution Requirements Planning, DRP], Ordering Models, Managing Day-to-Day Variations, Summary

Eighteen – Facilities Location and Transportation

Outcomes, Introduction, Facility Location, Site Selection, Transportation, Designing the Transportation System, Freight Management, Modes of Transport, Containerization, Packaging and Labelling, Summary

Nineteen – Final Exam


60 Hours – 3 hours per week for 20 weeks


Classroom based, lecture led

Entry Requirements

There are no formal entry requirements for this program. However, it is strongly recommended that learners intending to take this program have a Grade 12 Certificate and have completed the BMOM (Basics of Manufacturing and Operations Management), or have 2 – 3 years’ relevant working experience.


The program consists of a number of assessment tools. These include homework and class assignments for each session, a first assessment (mid-term assessment) based on the content of the first eight sessions, and a final assessment based on the final eight sessions of the course.