ASCM CPIM Certification Exam Syllabus

Understand the business environment and develop corporate strategy 

- Know and analyze the business environment

- Develop and implement corporate and business unit strategies to align resources and create lasting competitive advantage

• Define corporate mission, vision, and values
• Establish product and service differentiation and competitive priorities (examples include: availability, cost, quality, delivery, and flexibility)
• Determine the firm’s order winners and qualifiers
• Evaluate key customer segments and incorporate requirements as appropriate for the corporate and business unit strategy
• Consider vertical and horizontal integration alternatives

Develop, align, and implement functional and operational strategies

- Determine operations strategy to utilize core competencies and available resources, manage cost, and support company policies, as well as support regulatory and intellectual property guidelines

- Determine technology choices (examples include: levels of automation, cloud, and agile) to improve efficiency, costs, and organizational capabilities

- Perform make-buy analysis to assess costs, capacity availability, quality, and other considerations

- Establish chase, level, hybrid, and subcontracting production strategies
- Establish lead and lag capacity strategies

- Support marketing strategies (Four Ps – product, price, promotion, and place)

- Determine the push-pull boundary and the manufacturing environment to align with strategy (examples include: make-to-stock (MTS), assemble-toorder (ATO) / configure-to-order (CTO), make-to-order (MTO), engineer-toorder (ETO), and remanufacturing)

- Align the facilities strategy with manufacturing/service strategies

Design processes and layouts to align with strategic goals

- Examine the trade-offs of process choices within the product-process matrix (examples include: project, fixed-position, job shop, batch, mass customization, assembly line, repetitive, intermittent, discrete, and continuous flow)

- Examine trade-offs within the service decision (examples include: degree of contact, opportunity for sales, and production efficiency)

- Determine layout to support product and service design decisions (examples include: fixed position, process/functional layout, cellular/product focus, and assembly line)

- Align process choices and layouts with product/service life cycles

Define and monitor key performance indicators (KPIs) to evaluate performance in relation to the organization’s strategic goals

- Use appropriate financial metrics (examples include: cash-to-cash cycle time, cash conversion cycle, and cash flow)

- Use appropriate operational metrics (examples include: customer service

levels, order fill rate, and stockout percentage)

- Apply KPI tools (examples include: KPI trees, maturity assessment, SCOR metrics, and balanced scorecard)

- Review sales and operations planning (S&OP) process effectiveness

Identify and manage supply chain risks (examples include: supply disruption, financial, environmental, physical, political, cyber, intellectual property, and branding)

- Use supply chain mapping and event monitoring for risk identification within  regulatory requirements to support different levels of risk tolerance

- Review capital budgeting goals and performance

- Implement total productive maintenance (TPM)

- Comply with health, safety, and environment requirements/regulations

Define and support sustainability goals

(environmental, financial, social)

- Identify impact and implement mitigation plans to support triple bottom line (TBL) and sustainability goals

- Identify, report, and verify sustainability metrics

- Review sustainability guidelines (examples include: Global Reporting Initiative (GRI), ISO sustainability standards, and United Nations (UN) Global Compact)

- Use safety and environmental standards to control and protect the organization and environment

Understand the role of the S&OP process in the organization

- Review the role of S&OP in the planning and control hierarchy
- Understand the impact of different business environments on the S&OP process
- Evaluate the involvement of various levels of management and their roles in the S&OP process
- Identify the planning horizon and the appropriate aggregation level
- Implement the steps of the S&OP process
- Review the various inputs and outputs of each of the S&OP steps

Review aggregate demand plan

- Review product portfolio, new product introduction (NPI), life cycle stages, and competitive priorities

- Review demand from all sources (examples include: market, customer base, forecast, open customer orders, service requirements, safety/buffer stock, and internal requirements)

- Review key supply capabilities

- Incorporate product life cycle considerations into the supply plan  (examples include: new product introductions (NPI) and obsolescence)

• a. Identify bottlenecks, capacityconstrained resources (CCR), and supply chain risks
• b. Evaluate types, sizes, and locations of buffers, such as lead time, inventory, and capacity

Reconcile portfolio, demand, supply, and financial plans

- Review different methods for balancing supply and demand

- Evaluate trade-offs related to different volume/mix combinations

- Evaluate alternative supply and demand plans and associated risks

- Assess the financial implications of the plan

- Review trade-offs between customer service levels, inventory, and backlog levels

Determine customer needs and specifications

- Segment customers based on their needs, business unit strategies, and required capabilities
- Engage in customer relationship management (CRM) based on segmentation
- Set customer service policies, safety stock levels, and performance targets
- Determine appropriate use of point-ofsale (POS) data and collaborative planning, forecasting, and replenishment (CPFR)
- Maintain effective customer communications using appropriate tools
- Determine and monitor order delivery performance metrics

Understand marketing and product management considerations

- Influence demand to better align with supply
- Manage product configuration, product changes, and product life cycles

- Evaluate and manage the impact of marketing promotions on demand including potential product/service cannibalization

- Review demand channels (examples include: retail, wholesale, distributor, e-commerce, business-to-business (B2B), and business-to-consumer (B2C))
- Determine independent demand (examples include: forecast, customer orders, service or warranty, samples, testing, distribution or warehouse requirements, inter-company or interplant orders, rework, and donations)
- Determine dependent demand

- Understand demand forecasting concepts
- Review the relationship between the purpose of the forecast and required timeliness and accuracy of the data
- Review management considerations and trade-offs related to forecast method selection
- Select a time horizon, time buckets, and a level of aggregation for forecasting purposes
- Apply qualitative techniques to create forecasts (examples include: historical analogy, panel consensus, executive opinions, Delphi method, sales force polling, and consumer surveys)
- Apply quantitative techniques to create forecasts

- Evaluate forecast performance using appropriate forecast error metrics (examples include: bias, cumulative forecast error (CFE), mean forecast error (MFE), mean percent error (MPE), mean absolute deviation (MAD), mean absolute percent error (MAPE), demand filters, and tracking signals)

- Collaborate with customers and suppliers to improve forecast accuracy

- Mitigate the bullwhip effect

- Understand the role of master scheduling in the planning and control hierarchy
- Evaluate the impact of different business environments and strategies on the master scheduling process
- Identify sources of independent demand to be considered in the master scheduling process
- Create the master production schedule (MPS)

5. Apply planning bills to perform twolevel or multilevel master scheduling
6. Use and maintain the master schedule

Perform rough-cut capacity planning

(RCCP)

- Review bill of resources to determine capacity requirements and the impact of the RCCP on supply
- Identify and manage critical work centers to support the MPS
- Develop work center efficiency and utilization goals and monitor performance
- Incorporate maintenance schedules in capacity planning

1. Check relevant material requirements plan input and data sources
a. Define item master data and inventory data as required to support the material planning process (examples include: item description, current usage rates, scrap/yield factor, on-hand balances, and historical demand)
b. Use MPS data to describe types, quantities, sources, priorities, customer orders, forecasts, and time phasing of product demand
c. Define engineering data forn product structure and parent/component relationships (examples include: information on part interdependencies, lead times, and engineering changes)
2. Utilize bills of material (BOMs) to calculate multilevel time-phased requirements and create long-range and short-range material plans that support company needs and supplier constraints
3. Use the MRP time-phased record to calculate and display gross requirements, scheduled receipts, projected available balances, net requirements, planned order receipts, planned order releases, and firm planned orders (FPO)
4. Make decisions to facilitate material planning, establish priorities, review exceptions, resolve conflicts through pegging relationships, support other decisions and productivity measures based on the type of environment and product life cycles, and implement bottom-up replanning as needed
5. Monitor system feedback mechanisms, such as action messages, to enable the appropriate adjustments necessary to balance supply and demand
6. Manage closed-loop integration with master planning, final assembly, and configuration processes to monitor material availability with demand quantities, timing, and priorities

- Identify sources of demand to be considered in the FAS
- Create the FAS to support the demand plan

- Use and maintain the FAS

Create and manage supplier relationships

- Identify capable suppliers and undertake appropriate certifications
- Review supplier selection alternatives (examples include: sole, single, and multisourcing; domestic and foreign providers; and special services)
- Develop various supplier relationships (examples include: partnership, strategic alliance, joint venture, contract manufacturing, subcontracting, and transactional)
- Perform supplier relationship management (SRM)
- Include relevant supply chain links (examples include: retail, distribution, and transportation companies)
- Engage in environmentally responsible purchasing
- Apply procurement planning, new product introduction (NPI), and engineering change control to improve supply performance
- Measure supplier performance using appropriate methods (examples include: balanced scorecard, pricebased metrics, time-based metrics, cost-based metrics, and quality-based metrics)

Purchase/procure goods and services

- Apply methods of procuring and requesting materials and services (examples include: contracts, kanbans, blanket orders, supplier scheduling, electronic data interchange (EDI), continuous replenishment, purchase orders, consignment, pricing agreements, vendor-managed inventory (VMI), outsourcing, and e-commerce)
- Select appropriate delivery methods (examples include: modes of transportation, third- or fourth-party logistics (3PL or 4PL), cross-docking, point-of-use delivery, and direct shipment)
- Use supplier participation in decisionmaking (examples include: product design, quality requirements, related technology, sustainable business practices, and accounting processes)
- Define goals and benefits of the various supplier relationships (examples include: improvements in technology, inventory levels, customer service, quality, lead times, visibility, cost, impacts on the environment, damage and loss prevention, continuous improvement, access to new markets, and time to market)
- Apply a supplier rating system to encompass quantitative measures (examples include: cost, on-time delivery, product quality, and environmental impact) and qualitative measures (examples include: social performance, workforce diversity, human rights, labor, and anticorruption)
- Understand effective communication techniques, cultural differences, commercial versus government interests, and information technology (IT)
- Use data necessary for collaboration (examples include: risk assessments, technical and quality specifications, engineering changes, supply chain inventories, and future demand)

Monitor and manage product costs

- Determine the different types of product costs (examples include: direct, indirect, overhead, fixed, variable, and landed costs, as well as total cost of ownership (TCO))
-Apply appropriate costing methods that determine the cost of producing a product (examples include: absorption, variable, job, and activitybased costing (ABC)) to compare actual to planned, budgeted, or standard costs
- Review variances in cost through inventory valuation and an analysis of obsolescence, scrap/yield, rework, repairs, returns, and defective output
- Measure costs related to quality (examples include: prevention, appraisal, internal failure, and external failure costs)

- Re-plan order priorities to respond to supply and demand changes
- Revise lead time, lot size, safety stock quantity, kanban quantity, cycle times, and other parameters to reflect product life cycles, current conditions, and company strategy
- Utilize what-if analysis and simulation to evaluate potential changes to the existing material plan
- Monitor the status of buffers

Conduct product life cycle management (PLM)

1. Develop new product introduction (NPI) schedule
a. Apply design for manufacture and assembly (DFMA) and modularization
b. Review constraints that may impact the NPI schedule
c. Create a prototype schedule in consideration of supply and demand plans
2. Develop an end-of-life plan
a. Review product obsolescence timing and inventory impact
b. Review lifetime and minimum order quantity requirements from suppliers and for customers

1. Determine target inventory levels to support service and financial goals

a. Review the impact of sourcing risks (examples include: financial, political, transportation, and environmental) on inventory planning decisions
b. Understand the trade-offs in stocking levels, customer service, environmental impact, and inventory accuracy targets in different business environments
c. Determine centralized versus decentralized inventory management strategies
2. Understand the types and classifications of inventory

1. Determine appropriate push or pull

item replenishment method (examples

include: material requirements

planning (MRP), reorder point (ROP),

periodic review, visual review system,

min-max system, two-bin inventory

system, and kanban systems)

2. Based on order policy, determine lot

size and order quantities, considering

cost and service trade-offs, by using

appropriate dynamic techniques

(examples include: least total cost,

least unit cost, lot-for-lot (L4L), and

period order quantity) or fixed

techniques (examples include:

economic order quantity (EOQ) and

fixed order quantity)

3. Determine safety stock or days of

supply needs based on inventory costs

and customer service level objectives

4. Manage maintenance, repair, and

overhaul (MRO) inventories based on

various inputs (examples include: mean time between failure (MTBF),

mean time to repair (MTTR), mean

time for failure (MTFF), forecasts, and

sales history)

5. Manage inventory requiring special

handling to comply with regulations,

environmental standards, and

protocols of materials handling,

personal protective equipment (PPE),

and safety

1. Review and manage the elements of

total carrying costs, total ordering

costs, total stockout costs, and their

trade-offs

2. Review inventory valuation methods

(examples include: first in, first out

(FIFO); last in, first out (LIFO); average

cost system; and transfer pricing)

3. Review projected or standard cost

versus actual cost

4. Measure and review inventory metrics

(examples include: inventory turns and

days of supply)

1. Manage inventory locations and

quantities considering the trade-offs of

different storage methods, flow and

material handling options, and

transaction management (examples

include: stock location systems,

automated storage/retrieval systems

(AS/RS), vendor-managed inventory

(VMI), and consignment)

2. Monitor inventory accuracy to support

business objectives (examples

include: audit programs, physical

inventory, cycle counting, and spot

inventory checks)

3. Address and reduce inventory

inaccuracy and loss

a. Review and reduce sources of

inventory inaccuracy (examples

include: put-away and picking

errors, bill of material (BOM)

errors, registration errors, transaction and data entry errors,

and mislabeling)

b. Review and reduce sources of loss

(examples include: shrinkage,

scrap, theft, shelf life, and

damage)

4. Utilize appropriate inventory

traceability throughout the supply

chain from point of origin to final

destination

a. Develop and monitor the proper

identification of inventory

(examples include: country of

origin declaration, documentation

requirements, and traceability of

inventory movement) using

appropriate tracking techniques

(examples include: bar coding and

radio frequency identification

(RFID) tagging)

b. Ensure adherence to traceability

standards (examples include: ISO

traceability standards and global

trade identification number (GTIN))

c. Maintain lot control and serial

numbers

d. Adhere to product recall guidelines

5. Track in-transit inventory

a. Create and monitor advance ship

notice (ASN) and delivery

information

b. Implement and manage shipment

tracking technology (examples

include: satellite and internet of

things (IoT))

1. Develop, manage, and review the

disposition process to support

sustainability, quality, and supply

goals

a. Review the waste hierarchy

(examples include: reduce, reuse,

remanufacture, recycle, recover,

and disposal)

b. Review the circular economy

implications (examples include:

company rules, regulations,

environmental standards, product costs, ownership, lead times, and

material handling)

2. Develop and manage reverse logistics

processes around the waste hierarchy,

considering company acceptance

guidelines, regulatory requirements,

recall guidelines, and customer

expectations

1. Determine production or flow rate

a. Determine the elements of lead

time, including queue, setup, run,

wait, and move times

b. Calculate load from all sources,

such as planned and released

orders, repetitive schedules, pastdue orders, rework orders, and

work in process (WIP), including

process and setup times

c. Evaluate throughput by measuring

efficiency, utilization, productivity,

takt time, cycle time, and

input/output control (I/O)

d. Manage schedules and throughput

in various industries

2. Create work sequences to improve

efficiency, resolve supply and demand

imbalances, and consider time fence

policies and the manufacturing

calendar

a. Utilize appropriate tools to create

efficient schedules in a push

environment (examples include:

time standard, priority control,

dispatch list, setup matrix, lot

splitting, overlapped schedule,

alternate operations or routings,

and sequencing rules)

b. Utilize appropriate tools to create

an efficient pull environment

(examples include: mixed-model

scheduling, rate-based scheduling, synchronization, balancing

operations, and line balancing)

3. Manage bottlenecks utilizing theory of

constraints (TOC) techniques

(examples include: improve flow,

couple and decouple operations as

needed, and elevate the bottleneck as

appropriate)

4. Plan non-standard demand

a. Identify the impact of unplanned

or non-standard work (examples

include: samples, tests, and

engineering prototypes) and

quality problems on resources

b. Assess impacts of industry-specific

conditions on resources (examples

include: remanufacturing, byproducts, co-products, and

recycled material)

Create production and service schedules

1. Evaluate theoretical, demonstrated,

available, and rated capacity

2. Recognize industry specific demand

and capacity characteristics to

manage loads

3. Create the load on capacity using

appropriate operations scheduling

techniques (examples include: infinite

and finite capacity planning,

constraint-based finite scheduling,

and load balancing)

4. Apply appropriate simulation and

modeling techniques to assess

viability of various options or

opportunities

5. Manage various methods of balancing

capacity and load (examples include:

rescheduling, splitting orders,

modifying order quantities,

outsourcing, workforce development,

and changing capacity through

workforce changes)

6. Determine and maintain safety

capacity and capacity cushions as

appropriate for the business

environment

7. Load operations and adjust capacity to

accommodate process variability and

planned downtime

Implement and manage detailed schedules

1. Release manufacturing and service

orders and issue materials as

scheduled

2. Measure actual capacity performance

to the plan

3. Manage material routing

a. Evaluate the size of process

batches and transfer batches to

support production and inventory

plans

b. Review equipment and labor

statuses, work orders, preventive

maintenance schedules, and their

impact on the plan

c. Determine when alternate

operations or routings should be

utilized

4. Manage the size of queues

a. Review input/output analysis (I/O),

capacity, load, and open orders

b. Determine and implement

prioritization rules

5. Manage exceptions to maintain valid

plans; evaluate variances to standard

performance; and determine

performance process stability, process

capability, and theoretical and

demonstrated capacity

6. Manage the control process through

established standards and procedures

in support of the organization’s goals

7. Authorize backflush/inventory release

1. Generate supplier authorization to

ship on blanket purchase orders

1. Determine network configuration

trade-offs (examples include: total

costs, inventory investment, customer

service, lead time, and inbound and

outbound transportation costs)

2. Develop the distribution plan

a. Develop a distribution locationspecific product forecast

b. Develop the replenishment

planning parameters for stock

keeping units (SKUs) within the

distribution network

c. Undertake time-phased planning

logic for distribution requirements

planning (DRP)

3. Review distribution plans and master

schedules to support the sales and

operations planning (S&OP) decisions

4. Review inventory levels and locations

required within the distribution

network to support supply and

demand plans

5. Monitor key performance indicators

(KPIs) of the distribution network

(examples include: level of service, ontime schedule performance, lead time,

inventory turns, safety stock levels,

stockouts, and customer satisfaction)

Manage customer orders

1. Monitor inventory availability and lead

time in support of sales, marketing,

and customer service level goals

2. Monitor open customer orders

(backlog) to meet on-time delivery

goals

3. Expedite past due customer orders

(backorders) considering resource availability, and cost and service

tradeoffs

1. Review reverse logistics needs as part

of the distribution network design

2. Consider the use of alternate

providers to meet reverse logistics

needs (examples include: third-party

logistics providers (3PL) and bricksand-mortar locations for returns)

3. Develop policies around the waste

product hierarchy

1. Consider the impact of processes and

their outputs on internal and external

customers, and on corporate

sustainability goals

2. Review costs related to quality

3. Review processes and outputs utilizing

appropriate quality tools (examples

include: basic seven tools of quality

(B7) and seven new tools of quality

(N7)) to identify process problems and

their root causes

4. Undertake internal and external

benchmarking for process

improvement

1. Utilize lean concepts and undertake

process improvements (examples

include: kaizen events, reduction of

waste and non-value-added activities,

throughput improvement, process

flexibility, inventory reduction, and

one-piece flow)

2. Utilize lean tools (examples include:

pull systems, scrum, kanban, takt 

1. Develop technology systems

requirements or specifications to

support company goals

a. Determine current and ideal state

utilizing appropriate tools

(examples include: flowcharts,

benchmarking, and process

mapping)

b. Identify gaps, system limitations,

costs, process knowledge needed,

and human resource (HR) policies

to be considered

2. Support technology implementation

a. Demonstrate need for ideal state

to be achieved, consider tradeoffs

and resource availability, assign

ownership, and utilize project

management tools