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What can students do to help improve Strategic Management of Resources (SMR) test results?
Roger W. Harris, MS, CFPIM, CIRM, CSCP,
C.P.M., PMP, CPSM
VP of Education, APICS Colorado Chapter
Terra Grande District Staff
VP & GM, MSS Technologies, Inc.
2 © APICS Confidential and Proprietary
Introduction
Roger Harris
• Joined APICS in College
• 30 + years in APICS
• Colorado Chapter President
multiple terms
• Currently VP of Education
• 8000 Supply Chain students over
the years
• Currently employed at executive
level
3 © APICS Confidential and Proprietary
Agenda
What is Strategic Management of Resources?
What are the pass rates of SMR?
How is SMR like fishing?
What experience and knowledge will help the student?
How can you prepare, what areas seem to be
troublesome?
Case study examples of professionals passing the SMR
exam
4 © APICS Confidential and Proprietary
Strategic Management of Resources
Planning and managing resources such as materials,
machines, facilities, labor, money, markets, customers,
suppliers in a “strategic” fashion.
Longer term and higher level thinking than operational or
tactical planning or thinking.
Many CPIM students and instructors don’t have a lot of
experience at the strategic levels of companies.
Must look at the big picture of the environment, competitors,
customers, products and the strategy to blend them together.
Must understand how the “big picture” changes SCM priorities
and techniques.
5 © APICS Confidential and Proprietary
Current Worldwide pass rates for SMR
2014 the pass rate for SMR was 66%
2013 the pass rate for SMR was 54%
2012 the pass rate for SMR was 51%
2011 the pass rate for SMR was 51%
These could include people taking it multiple times, so the
numbers could really be worse
Through student surveys, our students taking CPIM
courses have an approximate pass rate of 82-85% at the
Colorado Chapter
6 © APICS Confidential and Proprietary
SMR pass rates
Does it matter what order you take the exams for CPIM?
Yes!
This study is a couple of years old but still relevant.
If you take the
– SMR as the 1st exam: 33% pass rate
– SMR as the 2nd exam: 38% pass rate
– SMR as the 3rd exam: 53% pass rate
– SMR as the 4th exam: 57% pass rate
– SMR as the 5th exam: 72% pass rate
7 © APICS Confidential and Proprietary
APICS research
0%
25%
50%
75%
100%
20-25 26-30 31-35 36-40 41-45 46-50 51-55 56-60 61-65
Past Research SMR Pass Rates
Age Ranges
8 © APICS Confidential and Proprietary
Exams, ECM & Courseware
I believe that the exams match the Exam Content manual
for the most part
Courseware matches the exam for the most part. Outside
research or study may be required if a student needs
additional knowledge as with any CPIM exam
Some folks disagree with me here but I have taught the
course dozens of times and taken the exam several times.
9 © APICS Confidential and Proprietary
SMR THINKING is just like fishing!
Fishing: What type of fish am I looking to catch?
SMR: What business am I in?
Fishing: What lake, pond or stream should I fish in?
SMR: Where am I going to do business.. Global? Domestic? Local?
Fishing: Where will the fish be feeding?
SMR: Where should I look for customers.. What market segments?
Fishing: What bait or equipment should I use for the particular time,
place or species I am planning to catch?
SMR: What marketing, pricing, differentiation or manufacturing
strategy should I use for the particular product, market or customer?
Fishing: Catch and Release or Keep and Eat?
SMR: One Time Customer or Long Term Customer?
10 © APICS Confidential and Proprietary
What knowledge or experience do students need?
Statistics show that experience does matter! Experience in many areas of business, operations,
planning/materials, sales and marketing and information technology
Experience and knowledge in all three levels of management and
planning ─ strategic, tactical and operational
Take the SMR exam as the last of the 5 CPIM exams
Experience is not a guarantee to pass nor is it absolutely
needed ─ but it can help!
11 © APICS Confidential and Proprietary
How should I study?1 Developing
Business Strategy
2 The Global Environment and Sustainability
3 Operations Strategy
4 Operations Strategy Choices and Financial Measurement
Strategic Management of Resources
5 Aligning Operations with Supply Chain Partners
6 Infrastructure Systems
7 Change Management
8 Case Studies
12 © APICS Confidential and Proprietary
How should I study?
Take a chapter/partner CPIM ─
SMR course Many areas are covered in the
course you may not be 100%
familiar with ─ even if you have
years of experience!
We will talk about this more in the
case studies.
Use the participant guide as a
basis for your study.
Use outside materials as
needed to supplement for
specific subject matter.
13 © APICS Confidential and Proprietary
What about textbooks?
Many are available! Over $500
worth.
Use the APICS Dictionary.
I normally recommend that any
text on the subject matter you
need is good. For example,
your marketing 101 text or sales
management 101 text that you
still have from a course you
took long ago is probably still
valid.
Also any of the texts you have
from the other CPIM modules.
14 © APICS Confidential and Proprietary
What areas seem to be troublesome for many Supply Chain folks?
Some sections seem to be very difficult for APICS people.
These four are the most common from my experience:
SMR Section 1
– Developing Business Strategy –aka Sales and Marketing
SMR Section 2
– Sustainability and Corporate Social Responsibility
SMR Section 6
– Infrastructure Systems----ERP
SMR Section 7
– Change Management / Project Management
15 © APICS Confidential and Proprietary
SMR Section 1 Developing Business Strategy
A lot of sales and marketing material.
Most students do not have a lot of sales and marketing
experience.
My experience shows me that many students need extra
study for Sales strategy and to see how it can change
your supply chain priorities.
16 © APICS Confidential and Proprietary
SMR Section 1
Assessing the external environment
The industry’s dominant economic features
Strength of competitive
forces facing industry
members
Forces driving
industry change
Market positions
occupied by industry
members
Likely strategic moves by
mass
Key factors for future
success in the industry
Industry effectiveness
and profitability
External environment
17 © APICS Confidential and Proprietary
SMR Sales and MarketingFive-Forces Analysis
Firms in other industries
offering substitutes
Rivalry among
competing
sellersCompetitive
pressures created by
jockeying for better
market position,
increased sales and
market share and
competitive
advantage
Potential new entrants
Suppliers
of raw
materials,
parts,
component
s, or other
resource
inputs
Buyers
Competitive pressures coming from attempts of companies
outside the industry to win buyers over their
products/services
Competitive pressures coming from the threat of entry of
new rivals
Competitive
pressures
stemming
from buyer
bargaining
power and
buyer and
seller
collaboration
Competitive
pressures
stemming
from supplier
bargaining
power and
supplier and
seller
collaboration
Source: Crafting & Executing Strategy 18th
edition
18 © APICS Confidential and Proprietary
SMR Sales and Marketing
19 © APICS Confidential and Proprietary
SMR Sales and Marketing
20 © APICS Confidential and Proprietary
SMR Section 1 Developing the Business Strategy
Spend time studying SWOT
Spend time studying the strategies of others and
WHY?
Competitors
Suppliers & Customers
Spend time studying about the environment
Regulations, trends, technology, etc.
Look at the attractiveness of your industry to entrants and
WHY?
What is your chosen competitive strategy and WHY?
21 © APICS Confidential and Proprietary
SMR Section 2 CSR and Sustainability
• Corporate Social Responsibility
• Somewhat of a new title for something that has been going on for
decades. APICS folks may not be involved in this in their day to day
activities at the company.
• Most Successful when part of the Corporate Strategy
• Sustainability
• Sustainability influences social well being, environmental health,
and economic performance today and in the future
22 © APICS Confidential and Proprietary
Section 2 Corporate Social Responsibility
23 © APICS Confidential and Proprietary
Section 2 Sustainability
24 © APICS Confidential and Proprietary
SMR Section 6 Infrastructure Systems
Experience implementing or selling ERP systems can help here
Areas that need a little extra time and study:
– ERP systems and the evolution and strategy and WHY?
– ERP implementations
– Pull system, Where and When strategy applies
– There a lot of other sections to infrastructure but many were
covered well in other modules
25 © APICS Confidential and Proprietary
SMR Section 6 ERP
MRPMRP
closed loop
MRP II ERP
MRP processor
Closed-loop feedback
Best-practice processes
Common database
Sales and operations planning
Total cross-functional software and
process integration
26 © APICS Confidential and Proprietary
Supply Chain Management Leveraging ERP Systems
Advancements in ERP (From APICS CSCP Course)
AIDC
Advancements in ERP
BPM Web-based, open, component-based environment
External
interfaces
EAI
CRM
Collaborative
commerce
Cross-industry/
SRM
CPFR
Supply chain
management
Material Requirements
Planning (MRP)
Forecasting
Manufacturing Resource
Planning (MRP II)
Enterprise Resources
Planning (ERP)
Order entry
Customer service
Master
schedulingStandard
costing
Purchasing Accounting A/P, A/R, GL
Executive
decision
support
EDI
R&D
QM
Advanced costing
HR
APSMES
Manufacturing
engineering
Demand
management
Marketing
Full sales support
Supply chain
execution
Logistics and
distribution
Field service
Product
engineering
Financial planningS&OP
Inventory
managementCRP
Production activity
control
Enterprise
production systems
Environmental
Maintenance
management
Full JIT
support
Strategic
plan
Supply chain
specific-industry
concepts
27 © APICS Confidential and Proprietary
SMR Section 7 Change Management
• Cultures of Strategic Change
• If you are a change consultant/expert, you may not have trouble
with this section
• Risk Management
• If you are risk management certified you may be fine in this section
• Project Management
• If you are a certified project manager you are probably fine with this
section
• If not, you need extra attention here.
28 © APICS Confidential and Proprietary
Approaches to Strategic Change
SMR Section 7
Approaches Actions Plan
Reacting to
change
Respond to rivals
Respond to buyers
Adjust to new policies
React as needed
Defend position
Anticipating
change
Analyze prospects
Research buyer needs and
preferences
Monitor technology
Plan ahead for expected
future changes
Leading change Pioneer new technologies
Be innovative
Set industry standards
Seize the offensive
Set the pace of change
Influence rules
Force rivals to follow
Reactive
Proactive
Source: Crafting & Executing Strategy 18th
edition
29 © APICS Confidential and Proprietary
Risk of Failure
SMR Section 7
Less-likely
failures with
high impact
More-likely
failures with
high impact
Less-likely
failures with
low impact
More-likely
failures with
low impact
Hig
hLow
HighLowLikelihood
Source: Operations and Program Management,
Reprinted by permission of Pearson Education
Goal
Avoid
30 © APICS Confidential and Proprietary
SMR Section 7
Phases of a Project
31 © APICS Confidential and Proprietary
SMR Section 7
Project Statement of Work (SOW) & Work Breakdown
Structure (WBS)
32 © APICS Confidential and Proprietary
SMR Section 7 Change Management
Pay attention to the following:
The strategic value of change
The roles of people and leaders in change
The potential risks and failures and the impact they
have during change
Project management for change:
Definition of a project
Phases of a project
Statements of work (SOW)
Work breakdown structures (WBS)
Controlling projects
Closing out projects
33 © APICS Confidential and Proprietary
Examples of Success
• The following folks are APICS folks that had some trouble
with SMR.
• All took the SMR exam multiple times
• All were discouraged with their progress
• All are real APICS people, Supply Chain Professionals and All
passed the exam and achieved CPIM!
34 © APICS Confidential and Proprietary
Real examples of students that followed this formula
• Dan---10 years experience as a planner – buyer
• Scored 304-316 on first four CPIM exams
• Failed SMR 3 times
• Did not have a copy of the Participant guide for CPIM
• Took all classes of CPIM but SMR
• Was very discouraged with not being able to pass SMR
• Talked for (2) one hour sessions about sections 1, 2, 6, 7
• Passed SMR with a 307
35 © APICS Confidential and Proprietary
• Betty---16 years experience in the food/beverage Mfg. and
transportation
• Failed SMR 3 times
• Did not take CPIM classes as they were not offered in this area of
Spain
• Took 7 years to get through the exams, 2-3 times to pass each
exam
• Did not think the Participant Guide for SMR seemed difficult
• Had an old version of SMR Participant Guide
• Reviewed sections 1, 2 for (2) one hour sessions
• Passed SMR!
Real examples of students that followed this formula
36 © APICS Confidential and Proprietary
• John---12 years experience in SCM & a commercial pilot
working in Supply Chain Management
• Failed SMR exam 3 times
• Attended all 5 CPIM Courses from a Chapter
• No problem with the first 4 CPIM exams
• Used DataChem CD’s
• Purchased over $1200 of study material
• SMR Terminology was a problem
• Reviewed sections 1, 2, 6, 7 for (3) one hour sessions
• Used Real Life Examples
• Passed SMR exam
37 © APICS Confidential and Proprietary
Real examples of students that followed this formula
• Sam---6 years experience in the cheese industry.
Progressively more responsibility in Supply Chain
Management.
• Degree in Supply Chain Management from a great SCM School
• Up and coming future supply chain executive
• Very easy for him to pass the first 4 exams without too much effort
• Failed SMR 2 times
• Attended all CPIM classes offered by a Chapter
• Used Participant guides and ECM and some texts
• Reviewed sections 1 and 7of SMR for 2 hours
• Passed SMR Exam
38 © APICS Confidential and Proprietary
Real examples of students that followed this formula
Dave---30 years experience as a Operations
and Supply Chain Manager with large
companies
Had no problem with any of the other 4 CPIM exams
Failed the SMR on multiple occasions
Had taken the SMR course
Had purchased many texts
Reviewed SMR sections 1,6,7 as well as a couple of
other sections where there were questions
Spent 6 hours reviewing the student guide
Introduced real life examples for areas of concern
Passed the exam without much problem
39 © APICS Confidential and Proprietary
Real examples of students that followed this formula
Barb---20 years of operations, quality and
accounting experience with a small company
Had no problem with any of the other 4 CPIM exams
Failed the SMR on multiple occasions
Had taken the SMR course
Had purchased multiple study materials
Reviewed SMR sections 1, 2, 6, 7 as areas of concern
Spent about 3 hours reviewing the student guide and
real life examples
Passed exam without issue
40 © APICS Confidential and Proprietary
Real examples of students that followed this formula
Joe---15 years experience in materials
management including a director level position
at a medium sized company
Had no problem with any of the other 4 CPIM exams
Failed the SMR twice
Had taken the SMR course twice
Did not want to review SMR sections 1, 6 and 7
Told them that was the only way I would help them
was my formula
Reviewed SMR sections 1, 6, 7 as well as looked at
quizzes from other sections
Spent about 4 hours reviewing student guide and real
life examples
Passed exam without issue
41 © APICS Confidential and Proprietary
Real examples of students that followed this formula
Abe---20 years experience in production
management
Had no problem with self study on any other CPIM
exams
Failed the SMR twice
Had not taken any CPIM courses
Did not have a copy of the student guide
Purchased over $2000 in study materials
Reviewed SMR sections 1, 6, 7 and all the quizzes and
areas of concern
Spent 7 hours on this review
Passed
42 © APICS Confidential and Proprietary
Conclusions
To pass, one must think strategically
Many students don’t have experience with:
Sales and Marketing Strategy
Infrastructure strategy & ERP strategy
Change and Project Management
The Participant Guide for SMR is a great tool
when used with real examples and emphasis is
placed on areas where the student may not
have experience
I believe real life business examples help
students understand much better
43 © APICS Confidential and Proprietary
Clarifications
This presentation is the opinion of Roger Harris
34 years experience in APICS
32 years experience in Business/SCM/Operations
Many successful CPIM/SMR students
– Thousands of CPIM students served….more to go!
I have helped many people that were not my own
students originally – Opinions formed are from my own students’ experience and
difficulty and other peoples’ experience and difficulty with the
SMR exam
This concept to concentrate on 4 areas of SMR
assumes that you have a good understanding of
the other more SCM/Operations based areas
covered by the exam.
44 © APICS Confidential and Proprietary
Information and References
APICS SMR CPIM Instructor Guide
APICS SMR CPIM Participant Guide
One slide from the APICS CSCP Program
APICS Age/Pass Rate Research Project
Roger Harris, trial and error experience
Fishing 101
45 © APICS Confidential and Proprietary
Roger W. Harris, MS, CFPIM, CIRM, CSCP, C.P.M., PMP, CPSM
Past President, APICS Colorado Chapter
VP & GM, MSS Technologies, Inc.
Thank you, thank you very much!