Taking -- and Passing -- the Test: A Series on APICS

18 Pages·2007·0.08 MB·English

Collected by: Prof. Dr. Vincent Gaspersz, CFPIM,CSSBB/MBB,CMQ/OE,CQE,CQA,QMS-A 1
Taking -- and Passing -- the Test:
A Series on APICS Certification
by Pete Stonebraker, Ph.D. CPIM*

Test Preparation Activities:
Article 1 in the Series

This is the first article of “Taking -- and Passing-- the Test: A Series on APICS Certification”.
This five-part series is designed to assist prospective CPIM test-takers to develop strategies to maximize
test-taking performance. Though this series does not teach the exam, per se, there are many things that a
test-taker can do to increase the likelihood that they will pass the CPIM tests.

As we start a new business year (we have returned from vacation; the kids are back in school), we
try to anticipate the future events that will effect our jobs, our careers, and our professional growth.
Certainly one major impact will be ”The Test”, the APICS Certified in Production & Inventory
Management series of tests.

There is never really enough time to study; the test structure has changed; my 60+ hour work
week is enough -- already; the multiple choice/multiple answer format is nasty; you have to have a life.
Certainly, these are among the more common reasons for procrastinating; but we can all find other
equally good reasons to delay taking the test.

However, as a Chicago Chapter member, or even just by working in the Chicago area, we can
take advantage of one of the most technically advanced and professional of APICS training programs.
The Chicago Chapter instructor corps is one of the most knowledgeable, experienced, and dynamic in
APICS. Most instructors for the two-day, eight-week, and in-house CPIM preparation courses have more
than 10 years teaching experience, many have presented at national and regional conferences, more have
served on regional and national committees, and several made substantive written contributions to the
APICS body of knowledge. The Chicago area is simply one of the best areas, if not the best, to prepare
for APICS certification.

This is the first in a series of five articles designed to facilitate passing the CPIM tests. This
article addresses general test-taking strategies and methods to improve an individual score. Certainly,
there is some discussion, and even disagreement, among subject matter experts, on exactly how to prepare
for the test. (One very highly qualified instructor suggests that the only way to take an APICS test is with
a hangover.) However, this series will give some more serious basic and foundational suggestions on
methods and activities that have been proven to work for many test-takers. Subsequent articles in this
series will address the “Foundations of the Body of Knowledge”, “Tactical Methods of Test
Preparation”, and “Course-by-Course Strategies for Test Preparation”.

Perhaps the first, and most important step, is to address test phobia. The APICS body of
knowledge is not rocket science. Much of it is the same basic common sense that many of us use daily in
our jobs. Granted, there are definitions, concepts, and strategic and operational issues, and some things
that are just “Apicisms.” (This is not in the APICS dictionary, but should be. “APICISM - a component of
the APICS body of knowledge which was established in the 80/80 read-write card days, which has
evolved over time, and which is widely accepted today by experts in the field”).

Secondly, recognize that the body of knowledge is designed for all manufacturing, distribution,
and service environments. Some components of the body of knowledge just do not apply to, or are not
used by, some businesses. (I recently had the interesting experience of teaching a Fortune 50 company the
Collected by: Prof. Dr. Vincent Gaspersz, CFPIM,CSSBB/MBB,CMQ/OE,CQE,CQA,QMS-A 2
Master Planning module, only to find that the company did not, for what turned out to be very good
reasons, master plan. Rather, they dumped the forecast directly into MRP.) Test-takers often have
difficulty with questions concerning methods or concepts that are not used by their employer or that they
have not personally experienced. But, in some cases, there are good reasons why a company does not use
an approach suggested by the body of knowledge. These situations may involve conscious tradeoffs of
costs and benefits of alternative courses of action by management. But, in many other cases, using the
APICS-recommended approach would reduce costs and improve customer service, particularly in the
long run.

Thirdly, establish a test-preparation plan of action. The following suggestions have been used
with some thirty or more two-day and in-house groups. Some groups of between eight and forty
participants have had 100% pass rates and most groups have had 85+% pass rates. These pass rates were
achieved by students who attended a CPIM test review course and who, based on self-reports, spent
approximately 25 additional hours of outside-of-class preparation. The following test-preparation
activities are recommended:

Course study

Attend an 8-week/2-day CPIM preparatory class - all course sessions 20 hrs
Prepare end of section exercises in group- or self-study (1 hour/session) 7 hrs
Attend any extra or review sessions available 3 hrs
30 hrs
Individual review study

Review/highlight key ideas in each section (@1 hr/section) 8 hrs
Review each end of section quiz (2 hour each) 4 hrs
Review sample test (4 hours) 4 hrs
Review key transparencies (many instructors designate these) 4 hrs
Review key definitions/terminology 5 hrs
25 hrs

Fourthly, you should schedule and take the test several weeks after your preparation period. Do
not wait months to take a test. Procrastination just makes the process more difficult. Establish a schedule
of review activities such as the above format and tell your family, supervisor, or friends. By announcing
your goal and schedule, you will have more difficulty postponing the process, and you will likely
establish a support network to help you through the study process.

Fifth. If you have questions on the materials, contact a subject matter expert. Most Chicago
APICS instructors give their contact information, but students rarely contact us to ask questions. Frankly,
most instructors would be flattered to hear from you.

Sixth. The first certification examination, after the prerequisite Basics of Supply Chain
Management, that a prospective test-taker should prepare for is one that most closely corresponds to
his/her job or experience. Simply, the preparation process will be easier and the likelihood of success will
be greater if one prepares for a test in a familiar area. Having said this, there is a recommended sequence
of test-taking, which is Basics, Master Planning of Resources (MPR), Detailed Scheduling and Planning
(DSP), Execution and Control of Operations (ECO), and Strategic Management of Resources (SMR).
Basics must be first, and SMR is a “capstone” module; however, the others may be sequenced according
to one’s background.
Collected by: Prof. Dr. Vincent Gaspersz, CFPIM,CSSBB/MBB,CMQ/OE,CQE,CQA,QMS-A 3
Seventh, recognize that the modules overlap. Though the recent reorganization of the course
structure eliminates much of the overlap of the detailed course information that existed in the prior course
structure, there does remain a notable overlap of the more generalized concepts.

Certainly, as you develop your strategies become CPIM certified, these seven points should be
considered, and, as appropriate, adjusted to your particular needs. In the subsequent articles of the series,
both general and specific, and strategic and tactical approaches to test taking will be considered. The next
article in the series considers the foundations of the body of knowledge, and how they can be useful in
test preparation and exam score improvement.
Collected by: Prof. Dr. Vincent Gaspersz, CFPIM,CSSBB/MBB,CMQ/OE,CQE,CQA,QMS-A 4
Taking — and Passing — “the Test”:
A Series on APICS Certification
by Pete Stonebraker, Ph.D. CPIM

The Strategic Foundations of the Body of Knowledge:
Article #2 in the Series

This is the second article in the “Series on APICS Certification”. The first article noted general
suggestions on appropriate test-preparation activities. In this article, the foundations of the body of
knowledge are discussed. The strategy here is to identify the key concepts or methods that are foundations
of the APICS body of knowledge and use them to focus or conceptualize a question, thereby reducing the
number of possible answers, and improving the test score.

The APICS body of knowledge very broadly covers the areas of supply chain management,
including resource acquisition (primarily purchasing or raw material extraction), manufacturing,
distribution, and customer service system management. The notion of value-adding is central during most,
if not all, of the stages of the supply chain, because, as one Chicago Chapter President once said: “the
supply chain is where productivity occurs, everything else is just a peripheral service.” Thus, the body of
knowledge is composed of numerous foundations, including stratagems, concepts, methods, and
computations, all focused toward productive management of the supply chain. These foundations can be
categorized as quantitative, like a science, more qualitative, like an art, or thirdly, applied, which is, a
quantitative idea that is applied to a specific situation. Much of the APICS body of knowledge is applied,
that is, the correct decision or solution depends on the situation.

There are often tradeoffs in the application of various models, which permit knowledgeable
managers to weigh the costs and benefits of alternative approaches in specific situations. The same
“cookie-cutter” solution is not appropriate to all resource acquisition, manufacturing, distribution, and
service situations. Yet, simultaneously, many situations can be generalized as one or several foundational
concepts. For example, different inventory management models are appropriate for dependent or
independent demand, but most models address cost and customer service using various assumptions.
Similarly, many APICS test questions can be generalized to the level of a foundational concept and
answered correctly.

Some test-takers have difficulty understanding or using an approach with which they have no
direct job experience. This often occurs to test-takers who have worked in one industry or for one
company for many years, and is particularly important because of the applicative nature of the body of
knowledge. However, if the test-taker is able to generalize to a foundation of the APICS body of
knowledge, they can gain a broader perspective of the underlying rationale and decisions, and thus
understand where and why those decisions are appropriate, and answer specific questions with greater
accuracy.

The following foundations of the APICS body of knowledge are offered as the key to many
certification test questions in several or all modules:

(cid:0) Position on the Supply Chain. Raw materials extractors and manufacturers operate very
differently from distribution and customer service operations. The methods and bases for inventory,
capacity, scheduling, demand management, quality, lead time, and employee education/selection
decisions are all very different in these varying operations environments. Thus, an APICS test question
might describe one operations environment, but include distractor answers that correctly characterized
other environments. For example, despite efforts to smooth and integrate the entire supply chain,
Collected by: Prof. Dr. Vincent Gaspersz, CFPIM,CSSBB/MBB,CMQ/OE,CQE,CQA,QMS-A 5
generally, the closer to the end customer, the more important forecasting and inventory management
become; while operations that are closer to raw material extraction are generally more concerned with
capacity and scheduling. A test question might describe one position on the supply chain, but distractor
responses would characterize other positions.

(cid:0) Appropriate Competitive Priority. The competitive niche of the firm, and therefore the
competitive priority, drives many supply chain decisions. Thus, an APICS test question may describe a
situation which is driven by one of the competitive priorities, while distractors characterize situations
where other competitive priorities are predominant. For example, the competitive priority cost (price) is
usually associated with the high volume, low variety, stable-state businesses; but, flexibility is usually
associated with lower volume, more customizing, and growth-state businesses.

(cid:0) Relationship of Operations with Other Organizational Functions. Supply Chain
Management operates within a broad organizational context of staff drawn from many fields, including
human resources, marketing, financial, and information systems, among others. Understanding the
requirements of each of the other major organizational proponents is a key to numerous test questions.
Because each functional area of an organization has different objectives, conflicts arise and compromises
are necessitated among the functional proponents. For example, test questions may address the Sales and
Operations Planning process, financial or budgeting activities, human resource training, and other cross-
functional issues from the perspective of one of the functional areas, while distractors characterize the
perspective of another functional area.

(cid:0) Level of Planning. The hierarchy of planning is central to manufacturing/distribution
management. Though variously stated and diagramed, most depictions of the hierarchy have a long range
activity (Production and Resource Planning),a mid-range activity (Master Scheduling and Rough-Cut
Capacity Planning), a short-range activity (MRP and CRP), and an execution activity (Priority
Management and Input/Output Control). Higher-level, longer-range planning activities would be much
more general, and focused toward product groups than the more detailed, product-specific short-term
planning activities. A test question might ask about a long-range activity, for example, and include
distractor answers that characterize another level.

(cid:0) Balancing Demand and Resources. Many decisions at different planning levels involve
balancing demand against resources. However, at various levels of planning, the sources of demand and
available resources are differently defined. Test questions may ask about sources of demands or types of
resources, or which balancing approach is the most appropriate for a particular planning level. For
example, demand management involves consuming the forecast (which is projected against the resource,
usually capacity) with customer orders (demand). At lower levels of planning, load-leveling is used to
balance demand with available capacity.

(cid:0) Appropriate Production/Distribution Environment. The characteristics of the MTS, ATO,
MTO, and ETO environments are notably different. Practices which are commonplace in one
environment may not be feasible or cost-effective in other environments. Thus, test questions often
specify an environment or a product which is associated with a particular environment, then include
distractor answers from other environments. For example, finished goods inventory is generally more
important in a MTS environment, but raw materials inventory is more important in MTO and ETO
environments.

(cid:0) Type of Layout. Among the more common layouts are product, process, project, and cellular.
The characteristics of each of these layouts differs, with notable advantages and disadvantages;
consequently one type of layout is more appropriate to a specific situation than another. The Hayes and
Wheelwright Product/Process Continuum, cited in references of many of the courses, describes these
Collected by: Prof. Dr. Vincent Gaspersz, CFPIM,CSSBB/MBB,CMQ/OE,CQE,CQA,QMS-A 6
characteristics in great detail. Test questions may note one of the environments, and give distractors
drawn from other environments. For example, a question might ask which of the following (list) was not a
characteristic of a specified environment.

These seven foundations of the body of knowledge, while somewhat overlapping and
redundant, are at the core of many of the APICS certification test questions. Certainly, it would be
possible to add or further sub-categorize this list. Certification test questions often describe a specific
situation, position, or status noted above, while distractor answers will characterize a different situation. It
is often helpful to visualize examples of situations in each of the above areas. For example, many food
and drug businesses use process layouts, while printing and molding operations often use product or
cellular layouts. The strategically-focused test taker will use these techniques to develop an internalized
or intuitive understanding of the APICS body of knowledge and thus better evaluate certification test
questions. The next article in this series will address the tactical strategies of test preparation.
Collected by: Prof. Dr. Vincent Gaspersz, CFPIM,CSSBB/MBB,CMQ/OE,CQE,CQA,QMS-A 7
Taking — and Passing — “the Test”:
A Series on APICS Certification
by Pete Stonebraker, Ph.D. CPIM*

Tactical Strategies of Test Preparation
Article #3 in the Series

This is the third article in the “Series on APICS Certification”. The first article noted general
suggestions on appropriate test-preparation activities; and the second article defined the foundations of
the body of knowledge, which could be used to focus or conceptualize a question. This article suggests a
number of very specific tactical approaches which could be used to prepare to take any of the
certification tests.

Many articles have suggested various tactical approaches to multiple choice or multiple answer
testing. For example, if a test-taker has no idea of the correct answer, select answer “C” because it is the
most often used correct answer. (I knew an accountant for whom this strategy was a prescription for
disaster.) Or, the test-taker should try to eliminate one or two “distractor” responses, then guess at the
remaining answers. This article will assume that the test-taker has familiarized her/himself with such
general multiple-choice test-taking techniques, and instead will concentrate on tactical methods that are
specifically appropriate for APICS certification test preparation and taking.

These “tactical approaches” are identified in three categories: 1) general techniques applicable to
all types of questions, 2) methods applicable to qualitative questions and 3) methods applicable to
quantitative questions. The general techniques focus on the way that certification exam questions are
often prepared. Additionally, the qualitative and quantitative methods are suggested because different
approaches can be used to prepare for those types of questions.

Note that flash cards, acronyms, or other memory-aid devices are recommended, particularly for
terminology-intense tests such as the APICS certification examinations, though the ideal level of
preparation is to develop an intuitive understanding of the material. Some test-takers are able to get by
with a minimum use of these aids, while other test-takers improve their performance by extensively using
such aids. The decision to use memory aids and the specific type of aide is highly individual and based on
the educational and learning experience of each student. Each test-taker should assess the need for
memory aids and develop their own strategy for using them.

General Techniques

(cid:0) Read Each Question Twice. During the test preparation process, get in the habit of reading
each question twice or read the question softly, lip-synching each word to understand the full emphasis
and context of the question. The correct answer to many test questions hinges on one word or phrase;
such questions are incorrectly answered because the test-taker did not carefully read the question or did
not realize the impact of the particular word or phrase on the overall context of the question. A simple
example is the use of “not” or “except” in many questions, though there are many other more complex
examples.

(cid:0) “Rewrite” Multiple Choice Questions. Multiple choice questions in the end of section
materials and the sample tests should be mentally rewritten, or, better yet, actually rewritten on paper, so
that each of the possible answers is correct and all other answers are incorrect. Note that there is a limited
number of possible questions that can be developed as certification test questions by the test committee.
Often, certification test questions are minor variations of existing sample test or end-of section questions.
Additionally, this is a very good exercise to develop your understanding of the materials.
Collected by: Prof. Dr. Vincent Gaspersz, CFPIM,CSSBB/MBB,CMQ/OE,CQE,CQA,QMS-A 8
(cid:0) Computer-Assisted Testing. Familiarize yourself with the computer-assisted testing process.
Specifically be aware of the mechanics of the testing software and how you can return to a question or use
the on-screen calculator. Use of the CD, the sample test questions, and the self-test, packaged with the
participant guide, are very helpful.

Methods applicable for Qualitative Questions

(cid:0) Establish Example Situations. For every concept, find an example in your job or in other
organizations that you are familiar with. Some six to eight standard situational examples will likely
suffice to cover all of the testable concepts. Review how each concept is demonstrated or proven by the
example, or note the exceptions and understand why those exceptions are appropriate to the specific
situation.

(cid:0) Relate a Conceptual Diagram. A picture is worth 1000 (or more) words. Almost all
conceptual questions can be raised to the level of a generalization or to a descriptive diagram. Thus, for
each test, there are perhaps some eight to ten key diagrams which conceptually relate the major course
concepts and can be used to clarify many test questions. For example, most certification tests address the
characteristics of MTS, MTO, ATO, and ETO, and most test-preparation courses include one or several
diagrams which clarify the characteristics of each.

(cid:0) Understand APICS Terminology. Because the certification examination is so terminology-
and definition-oriented, it is extremely important that the dictionary terms be carefully reviewed. Flash
cards, the key terminology section of the Examination Content Manual, or the dictionary might be used to
assist this review. However, it is important to move beyond a memorized definition to a fully internalized
understanding of the term. Advanced test-takers may recognize that some terminology differs, based on
the source and usage. (The definitions of product and processes manufacturing methods are notorious
examples in the literature.) Thus, it may be helpful, particularly for advanced test-takers, to identify those
exceptions and the sources during preparation and, during the exam, to attempt to anticipate the source of
the question.

Methods Applicable for Quantitative Questions

(cid:0) Understand Standard Example Problems. Make flash-cards which summarize each in-class
or end-of section problem or exercise. Many certification test questions are similar to the questions or
problems in the materials, except that the numbers or context, or both, have been slightly changed. Note
that the use of very standardized problems in the course materials and on the tests is necessary because
many of the models and algorithms can be differently defined, both in formula and in the statement of the
problem. To avoid confusion, the test questions must written to be consistent with the course materials.

(cid:0) Identify Components of Quantitative Examples. The course materials often contain rather
elaborate and generally realistic problems. As many as three pages of spreadsheet input data are
sometimes used. Because these course material problems would require more than a minute or two to
solve, test questions are often simplifications of the course material problems. For example, course
materials might require calculation of a utilization factor or efficiency from appropriate data; however,
the calculated values might be given for a test question. Note that this also avoids potential confusion
which can be caused by the several definitions and formulations of efficiency and utilization.

(cid:0) Memorize Several Basic Formulas. The distractor answers of test questions are often based
on an incorrect statement of the formula or a misrepresentation of a relationship. Thus, careful attention
to the detail of the formulas is important. Inverted answers (for example 1/x or 1-x) are often used as
distractors.

(cid:0) Understand Foundation Calculations and Models. Often seemingly complex problems can
Collected by: Prof. Dr. Vincent Gaspersz, CFPIM,CSSBB/MBB,CMQ/OE,CQE,CQA,QMS-A 9
be reduced to extremely simple processes and answers, based on some foundational concept. For
example, the profit or loss at the break-even point is zero, the bias of regression is zero, the projected
available balance is updated by adding production and subtracting sales, and a simple moving average
forecast for one period ahead involves only the last two actual demands (you don’t have to calculate the
whole series). Recognizing such foundations can potentially avoid extensive calculations and confusion.
Further, many test questions contain information that is not necessary to the solution.

These ten suggestions are central to the tactical strategies for test preparation, and, if
wisely used, will certainly enhance test performance. These suggestions are designed to assist the test-
taker to focus specific tactical situations in test questions and general techniques, and for qualitative and
quantitative questions. The next article in this series will address course-by-course strategies in test
preparation for the Strategic Management of Resources and the Master Planning of Resources courses.
Collected by: Prof. Dr. Vincent Gaspersz, CFPIM,CSSBB/MBB,CMQ/OE,CQE,CQA,QMS-A 10
Taking — and Passing — “the Test”:
A Series on APICS Certification
by Pete Stonebraker, Ph.D. CPIM

Course-By-Course Strategies in Test Preparation (#1)
Article #4 in the Series

This is the fourth article in the “Series on “APICS Certification”. In the first article, suggestions
were offered on appropriate test-preparation activities, and the second article defined the foundations of
the body of knowledge. The third article discussed a number of very specific, tactical approaches to
preparing to take any of the certification tests. In this, and the following, article specific test-taking
strategies will be offered for each of the five CPIM modules. This article focuses on the Basics of Supply
Chain Management and the Strategic Management of Resources modules. The subsequent, and last,
article in this series focuses on the Master Planning of Resources, the Detailed Planning and Scheduling,
and the Execution and Control of Operations modules.

The Reconfiguration of CPIM
In the present, somewhat turbulent restructuring, or
Course Modules
reconfiguration of the APICS certification test modules, it may be
Prior Current
of use to restate the relationship of the prior and current course
modules. Note that, in creating the revised modules, the scope of
the body of knowledge has been only slightly broadened and
S&T SMR
generally updated, but most of the materials have been drawn from
(some JIT)
the previous courses and presented in a restructured and

reorganized format. The associated chart describes the primary
MP MPR
relationships between the previous and current modules.
(some JIT)

It is important to state that the examination data bases have
Inv Mgt DPS
also been adjusted for the new modules. However, there has not
been a major rewriting of the examination questions. Questions M/CRP (some JIT)
from the prior courses have been reviewed and categorized
according to where they best fit the current module structure. It will PAC ECO
likely be several years before the entire examination data bases are JIT (some JIT)
fully updated to fit the new materials because each new question
must undergo a trial period before it becomes a part of the test data BASICS BASICS
base. For this reason, those questions that have been retained in the (some JIT)
data base are generally those classic or foundational questions
which pertain to the traditional scope of the materials.

The Basics of Supply Chain Management (BASICS) and the Strategic Management of Resources
(SMR) both cover a wide scope of operations management topics. Of course, the BASICS addresses
foundational levels of the material, while SMR includes a high level and broad range of more complex
material. Specifically, the BASICS course contains many very clear explanations of computations and
definitions, which are often assumed at the higher levels of course materials. However, generally, the
BASICS has not been notably changed from the prior course, while the SMR course has perhaps been
most significantly changed.

The Basics of Supply Chain Management

(cid:0) Successful completion of the BASICS course generally assumes several preconditions.
Specifically the test-taker must have foundational skills in math, reading, analysis, and test-taking, which
generally correspond, at a minimum, to high school or an associates degree and extensive experience, or a
college degree with less experience. Additionally, it is likely that the BASICS is the first APICS
certification test for many test takers. Thus, familiarization with the general APICS testing methods