What can students do to help improve SMR test results?

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


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


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.


Current Worldwide pass rates for SMR

2014 the pass rate for SMR was 66%




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


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


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


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.


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?


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!


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


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.


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.


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


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.


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


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


SMR Sales and Marketing


SMR Sales and Marketing


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?


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


Section 2 Corporate Social Responsibility


Section 2 Sustainability


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


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


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


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.


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


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


SMR Section 7

Phases of a Project


SMR Section 7

Project Statement of Work (SOW) & Work Breakdown

Structure (WBS)


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


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!


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


• Betty---16 years experience in the food/beverage Mfg. and

transportation


• 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!



• 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



• 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


• 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



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



Barb---20 years of operations, quality and

accounting experience with a small company


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



Joe---15 years experience in materials

management including a director level position

at a medium sized company


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



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


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


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.


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


Roger W. Harris, MS, CFPIM, CIRM, CSCP, C.P.M., PMP, CPSM

Past President, APICS Colorado Chapter

VP & GM, MSS Technologies, Inc.

[email protected]

Thank you, thank you very much!

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What can students do to help improve SMR test results?