By Stephen N. Chapman, CPIM

Chair, Basics of Supply Chain Management Committee

The world of business in general and that of production and inventory management (P&IM) in particular is changing. Part of that change appears to be taking two specific but related directions. First, more of the data and decision tools used by P&IM professionals are available on computers accessible by many company employees. Second, more of the analyses and actions of P&IM professionals are focused on the total system of delivery of products or services, in other words, integrated resource management, and not merely on the relatively narrow topics of inventory, scheduling and planning.

The result of all this activity is clear. Many progressive organizations no longer view the organization as a system of relatively independent, specialized functions, which was basically the pattern for the development of the Certified in Production and Inventory Management (CPIM) program. Instead, many organizations view themselves as a closely linked set of processes that delivers the products or services to the customer. The CPIM program committees within APICS are aware of these changes, and these changes prompted the committees to revise the program.

The CPIM program was developed along much the same lines as functional specialists within organizations. The concept was one of "divide and conquer." If the job could be defined specifically enough, a specialist could optimize functions in one particular area. The overall assumption was that if all functional links in a chain were optimized, the chain of activities itself would function at an optimal level. System thinking challenged that view, recognizing that if a chain of process were to run at an optimal level, the individual "links" might often run at a less than optimal level, and might also have to be tightly linked with other processes around them.

The six current modules of CPIM (Just-in-Time, Inventory Management, Materials and Capacity Requirements Planning, Production Activity Control, Master Planning, and Systems and Technologies) exist essentially as stand-alone modules. They can be taken in any order, and the exam questions must therefore assume that the test-taker has little or no knowledge of the material in the other modules. Not only is that assumption restrictive in developing effective test items, it also is contrary to the way that P&IM systems are being developed and used in industry.

In revising the program to address a more integrated approach to P&IM management, APICS developed a new module, called the Basics of Supply Chain Management (Basics). Basics introduces fundamental concepts in managing the complete flow of materials in the supply chain. While no one can predict how the CPIM program will evolve as a result of this new module, the new module does represent a unique opportunity for additional developments.

The new module accomplishes two goals:

1. It provides a basic coverage of material in each of the existing six modules, plus additional material not effectively covered in those modules. As a result, each of the existing modules can now develop exam questions that assume that the candidate has a basic knowledge of the other areas, allowing integrative test items to be developed and possibly allowing increased depth of coverage in those modules. Many people entering the CPIM process have requested guidance about where to begin. The answer is now clear-start with the Basics of Supply Chain Management. Although the new module presents an opportunity for changes in the other modules, those changes will occur only from the systematic development of the individual module certification committees, and no changes will occur without notification to all potential test-takers.

2. The new module also provides an introduction to the supply chain as a set of interlinked processes used to manage the flow of material, services and information from basic raw materials all the way to the delivery of the material or service to a final end-user.


Who should take the module?
Several groups of individuals should consider taking the new course:

1. People facing their initial testing experience with CPIM will find the Basics exam to be an obvious starting point. Also, as pointed out in the CPIM Exam Content Manual, exams for the other modules assume that the candidate knows the Basics.

2. Individuals within an organization-inventory clerks, customer service personnel, cost accountants, information service personnel, sales people and others-may need basic knowledge, especially if the organization is implementing a major integrated planning system. These people may not need the depth of knowledge offered in the other six CPIM modules. The Basics module alone may provide them with a better understanding of the purpose of the systems in the company and may make these individuals more effective in their interactions with other functions within the supply chain. Since candidates may take only the Basics exam (and no other CPIM exams), APICS will provide a Recognition of Achievement acknowledgment to every candidate who passes the Basics exam.

3. Middle and top-level managers who have not worked directly in supply chain activities may also gain from the perspectives of the concepts, and the knowledge may make them much more effective managers.

4. University students typically do not have the depth of knowledge to take exams in the original six CPIM modules, even if they concentrate in operations management or marketing. They may have adequate knowledge to take the Basics module as their initial CPIM experience. This module can lead to an accelerated learning program toward CPIM and can provide them with a more effective transition into an operations career.


Module structure
The topics in the module follow what one would expect in examining the basics of the supply chain. The first part covers businesswide concepts, including operating environments, financial fundamentals and an overview of the major managerial systems and tools used in the supply chain. The second section examines customer linkages, including demand management. The third section provides an overview of the design and management of the transformation processes that will satisfy the demand. The final major section examines supply issues, including inventory management principles, purchasing and distribution.

Since this module is intended to cover only a basic overview of the supply chain, test questions are very direct. All are written in a positive manner (no "except" questions, for example) with four clear choices. Most questions test basic knowledge, while some deal with applications. Anyone who would like further information should obtain the 1997 CPIM Exam Content Manual for the complete module outline and sample questions.

The Basics Committee recognizes that many who are interested in the module may not be interested in continuing with the CPIM process. Even those who are interested in continuing might be intimidated by an overwhelming amount of reading and reference material. For that reason, the committee selected only three references. The basic reference is Introduction to Materials Management by J.R. Tony Arnold. This book is already familiar to many in APICS, as it has served as the basis of a Principles of Materials Management course offered by many chapters. The second obvious reference is the APICS Dictionary.

The third reference consists of reading included in the CPIM Exam Content Manual. When the committee developed the module outline, it intended to cover the material that was appropriate for the topic. It did not wish to be constrained by a specific book or other reference. Once the outline was developed, the committee discovered that the Tony Arnold book covered much of the outline, but did not adequately cover several areas. Supplementary material was therefore developed for inclusion in the CPIM Exam Content Manual. That supplementary material provides the third reference for the module.

The APICS course in the basics has been redesigned to include the supplementary material. Although the second edition of Introduction to Materials Management does not contain all the module information, Tony Arnold intends to include all relevant information in the third edition. Since no publication date has yet been announced for that third edition, individuals preparing for the module examination should obtain the supplementary material.

Change is often disturbing, and some individuals may be unsettled by another modification in the CPIM program. But APICS and the Curricula and Certification Council are committed to keeping the certification program as relevant as possible. Industry views provide products and services to customers as an integrated chain of processes, and so too must APICS if it is to maintain its relevance as the premier organization for professionals involved in P&IM. The new module, Basics of Supply Chain Management, is yet another step in the ongoing efforts to maintain APICS as a leading-edge professional society for resource management.

Copyright © 2020 by APICS — The Educational Society for Resource Management. All rights reserved.

Web Site © Copyright 2020 by Lionheart Publishing, Inc.
All rights reserved.


Lionheart Publishing, Inc.
2555 Cumberland Parkway, Suite 299, Atlanta, GA 30339 USA
Phone: +44 23 8110 3411 | br> E-mail:
Web: www.lionheartpub.com


Web Design by Premier Web Designs
E-mail: [email protected]