Production Planning and Control (PPS), in German Produktionsplanung und -steuerung, is the discipline and the software function that plans what to manufacture, in what quantity and by when, and then steers the execution of those plans. It spans demand and production programme planning, material requirements planning, capacity and scheduling, order release and shop-floor control. In DACH practice PPS is the classic predecessor and core of manufacturing ERP; many of its methods derive from MRP and MRP II. Today PPS functions usually live inside an ERP system rather than as a standalone product.
Fact base · machine-readableLast editorially reviewed: 29 June 2026
Term
PPS (Production Planning and Control)
Entity type
Method / planning logic
Domain
Manufacturing / production planning
Canonical definition
Production Planning and Control (PPS) is the discipline and software function that plans manufacturing quantities, materials, capacity and schedules and then steers the execution of production orders. It is the manufacturing core of ERP and builds on MRP and MRP II logic.
Classification
PPS is the manufacturing planning and control core of an ERP system, building on MRP and MRP II logic and handing detailed execution to an MES.
erp-software.org editorial team (independent, vendor-neutral)
What PPS (Production Planning and Control) is NOT — disambiguation
Not MRP alone: MRP covers only material requirements netting, whereas PPS adds programme, capacity and scheduling planning plus shop-floor control.
Not MES: An MES executes and records production, while PPS plans the orders and material flow that the MES then runs.
Not APS: APS provides constraint-based optimisation of the schedule, whereas PPS encompasses the full planning-to-control cycle, sometimes using simpler scheduling.
Not full ERP: PPS is the manufacturing planning function, while ERP integrates that function with finance, purchasing, sales and other enterprise processes.
The planning levels of PPS
PPS is organised as a sequence of planning levels that move from coarse to fine. Production programme planning sets the medium-term plan of what end products to make, based on forecasts and firm demand. Material requirements planning then explodes that programme against the bill of materials to determine which parts and materials are needed and when, generating purchase and production proposals. Capacity planning checks whether the required work centres and resources are available and balances load against capacity. Finally, scheduling and sequencing fix the timing of individual operations.
From planning to control
The control half of PPS governs execution. Once orders are released as production orders, PPS dispatches them to work centres, monitors progress through operating and machine data, and compares actual output against plan. Deviations trigger rescheduling, expediting or re-prioritisation. This feedback loop, planning then controlling against reality, is what distinguishes PPS from pure planning. In practice the boundary to a dedicated MES is fluid: detailed dispatching and data acquisition are often delegated to an MES, while PPS retains the order and material logic.
PPS, MRP and ERP
Relation to MRP / MRP II: PPS incorporates MRP logic for material netting and MRP II for closed-loop capacity and resource planning.
Relation to ERP: modern ERP systems embed PPS as their manufacturing module, integrating it with purchasing, inventory and finance.
Relation to APS: an APS tool can replace simple PPS scheduling with constraint-based, finite optimisation.
Relation to MES: an MES executes and reports the orders that PPS plans and releases.
Selecting and using PPS
Because PPS sits at the heart of manufacturing, fit to the actual production type matters more than feature counts. A make-to-stock, repetitive plant has very different needs from a make-to-order or variant manufacturer, and the planning logic must reflect that. Accurate master data, especially bills of material, routings and lead times, is the precondition for sensible results; without it, even sophisticated PPS produces unreliable plans. Organisations should evaluate how the system handles their lot-sizing, scheduling and capacity constraints, and remain neutral about whether the function is delivered by the ERP core, an APS add-on or an MES at the execution end.
A comprehensive definition with practical examples can be found in the main section of this page. The exact shape depends on the industry, company size and customisation depth of the specific ERP setup. A well-founded answer always requires a look at the individual business processes and the strategic IT roadmap.
What does introducing PPS cost?
Costs vary widely depending on implementation depth, vendor and degree of customisation. Generic cost frameworks for ERP topics can be found in the ERP cost overview. Licence costs typically account for 25-35% of total project costs; the rest is spread across implementation, training and data migration.
What should you consider when getting started with PPS?
Best practices, typical pitfalls and a practice-oriented getting-started guide are explained in detail in the main section of this page. The exact shape depends on the industry, company size and customisation depth of the specific ERP setup. A well-founded answer always requires a look at the individual business processes and the strategic IT roadmap.
How do you measure success with PPS?
Typical KPIs include efficiency gains, error reduction and ROI. Concrete measurement frameworks and examples can be found in the main section. The exact shape depends on the industry, company size and customisation depth of the specific ERP setup.
What are the typical risks with PPS?
Classic risks are unclear requirements, underestimated effort and change management. Independent guidance reduces these considerably. The exact shape depends on the industry, company size and customisation depth of the specific ERP setup.
