This paper presents inverse kinematics and workspace analysis of a planar three degree-of-freedom (DOF) parallel manipulator. Furthermore, optimization problem of the manipulator is presented. The manipulator adopts PRR (Prismatic-Revolute-Revolute) mechanism and the prismatic actuators are fixed to the base. This leads to a reduction of the inertia of the moving links and hence enables it to move with high speed. The actuators are linear electric motors. First, the mechanism based on the geometry of the manipulator is introduced. Second, a workspace analysis is performed. Finally, design optimization is carried out to have large workspace. The proposed approach can be applied to the design optimization of various three DOF parallel manipulators in order to maximize their workspace. The performance of mechanism is improved and satisfies the requirements of workspace to align micro-components.