Professional Documents
Culture Documents
The Mission
of ISM is to
Lead Supply
Management
2
Strategic Imperatives
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The CPSM
CPSM Eligibility:
Three years of full-time, professional supply management
experience (nonclerical, nonsupport) with a bachelor's
degree from regionally accredited institution or international
equivalent
OR
Five years of full-time, professional supply management
experience (nonclerical, nonsupport) without a qualified
bachelor's degree
AND
Successfully pass three CPSM Exams, OR, if you are a
C.P.M. in good standing, pass the Bridge Exam
11
Study Guide
12
CPSM Exams
Three Exams:
1) Foundations of Supply Management
2) Effective Supply Management Performance
3) Leadership in Supply Management
13
Exam Characteristics
Criterion-referenced test:
- Determines if candidate is/is not qualified in
the area in which the candidate is being tested
- Compares examinees scores to
predetermined passing (or cut) scores
- If score is at or above the passing score, the
person passes the test. If the persons score is
below the passing score, the person fails the
test.
15
Exam Characteristics
Exam:
- Does not indicate how good a supply
management professional is or will be
- Does not indicate whether one candidate is a
better supply management professional than
another candidate
- Not designed to rank candidates against each
other
- Indicates whether candidate has met
the standards set by ISM for receiving
the CPSM designation
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CPSM Exam 1
Foundation of Supply Management
20
Exam 1
Section A - Contracting/Negotiations
Questions
Task 1-A-1 Competitive bids, quotations and proposals.
6
Task 1-A-2 Strategies and tactics for negotiations.
4
Total
32
Exam 1
Section B Cost and Finance
Questions
Task 1-B-1 Prepare and/or administer a supply management
department budget.
32
Exam 1
Section C International
Questions
Task 1-C-1 Identify and assess international markets for
7
goods and services.
Task 1-C-2 Develop international sources of materials
and services.
Total 17
Exam 1
Section D Social Responsibility
Task 1-D-1 Develop and act upon a code of business
conduct.
Questions
5
Total 14
Exam 1
Section E Sourcing
Questions
Task 1-E-1 Analyze potential sources of goods or services.
6
Task 1-E-2 Evaluate competitive offerings to determine the
overall best offer.
Total 20
Exam 1
Section F Supplier Relationship Management
Questions
Task 1-F-1 Identify opportunities and benefits for rationalizing the
supply base.
4
Total
35
Exam 1
Sample Practice Question 1
Which of the following BEST defines certification classification for Minority
Business Enterprises (MBE)?
(A) Social demographics of the buying company
Exam 1
Sample Practice Question 1 Answer
Which of the following BEST defines certification classification for Minority
Business Enterprises (MBE)?
(A) Social demographics of the buying company
Exam 1
Sample Practice Question 1 Answer
Option (C) is correct because the national certification
organizations define MBE as 51% owned and controlled by one or
more socially and economically disadvantaged individuals.
Option (A) is incorrect because MBE refers to the certification of the
supplier ownership and control.
Option (B) is incorrect because certification is not based on the
ethnicity of the suppliers employees.
Option (D) is incorrect because an MBE is defined as an ethnic
minority.
Exam 1
Sample Practice Question 2
A supply professional is seeking competitive bids on 700
standard parts. Comparing bids on a part-by-part basis will be
very time-consuming, and the supply professional feels the
effort would not be a good use of time. Which of the following
would be the LEAST appropriate method to utilize?
(A)
(B)
(C)
(D)
Exam 1
Sample Practice Question 2
A supply professional is seeking competitive bids on 700
standard parts. Comparing bids on a part-by-part basis will be
very time-consuming, and the supply professional feels the
effort would not be a good use of time. Which of the following
would be the LEAST appropriate method to utilize?
(A)
(B)
(C)
(D)
Exam 1
Sample Practice Question 2
D.) Solicit pricing for 150 random parts and base
decision on that data. Option (D) is correct
because this approach does not provide the buyer
with ample, empirical data on which to make
decisions.
Options (A), (B) and (C) are all valid strategies for bidding
a large number of items. Note that e-commerce is not
illogical because e-commerce is a delivery method and
can be used in conjunction with lotting.
Exam 2
Section A Forecasting
Task 2-A-1 Provide data on current and future and
global/domestic market conditions.
Questions
6
6
Total 19
Exam 2
Section B Logistics
Task 2-B-1 Design/modify logistics facility layouts.
Questions
4
Exam 2
Section C Materials and Inventory Management
Questions
6
Total
19
Exam 2
Section D Organizational/Department Assessment
Questions
7
Total 26
Exam 2
Section E Planning
Task 2-E-1 Implement or utilize requirements planning.
(xRP - ERP, MRP, MRP II, DRP, DRP II)
Questions
8
Exam 2
Section F Product and Service Development
Questions
Task 2-F-1 Participate in product/service development or
6
specification/requirement changes.
Task 2-F-2 Manage ramp-up strategy and implementation
to full-scale production.
Total 12
Exam 2
Section G Project Management
Questions
9
10
Total 19
Exam 2
Section H Quality
Questions
Task 2-H-1 Develop and administer a supplier certification
6
program.
Task 2-H-2 Develop measurements for continuous quality
improvement.
Total 21
Exam 2
Sample Practice Question 1
When developing Key Performance Indicators (KPIs) for the purchasing
department, all of the following should be considered EXCEPT:
(A) The organizations goals and mission statement
Exam 2
Sample Practice Question 1 Answer
When developing Key Performance Indicators (KPIs) for the purchasing
department, all of the following should be considered EXCEPT:
(A) The organizations goals and mission statement
Exam 2
Sample Practice Question 1 Answer
Option (C) is correct because an individuals goals and objectives are based on the
purchasing departments goals. The Key Performance Indicators (KPIs) of the
department should be considered when writing individual staff members goals
and objectives.
Option (A) is incorrect because the purchasing departments goals and mission
statement indicate what is important to the organization and help determine what
is important to its supporting organizations. These must be considered when
determining what is important to measure and monitor.
Option (B) is incorrect because it is important to develop KPIs in conjunction with
internal customers.
Option (D) is incorrect because KPIs need to be based on data collected for
measurement purposes.
Task 2-D-1
Exam 2
Sample Practice Question 2
Mary Smith and her investment recovery team mapped the
process for the highest cost products in her companys finished
goods inventory. Her process map suggested many
informational elements related to the input side of the analysis.
Which of the following BEST illustrates an informational input
necessary to ensure an effective analysis?
(A)
(B)
(C)
(D)
Exam 2
Sample Practice Question 2 Answer
Exam 2
Sample Practice Question 2 Answer
Exam 3
Section A Leadership
Total of 96 Questions !
Exam 3
Section A Leadership
Task 3-A-1 Represent the supply management organization in
decisions related to the organization policies.
Task 3-A-2 Develop and implement business plans.
Task 3-A-3 Develop, implement and monitor a strategic supply
management plan.
Task 3-A-4 Plan/develop/provide operating policies, guidelines and
procedures.
Task 3-A-5 Develop/implement changes to supply management
policies as needed.
Task 3-A-6 Participate in company acquisitions, mergers and
divestitures.
Exam 3
Section A Leadership
Task 3-A-7 Represent the supply organization in meetings with
corporations and government agency.
Task 3-A-8 Lead or participate in cross-functional and/or multifunctional
teams.
Exam 3
Section A Leadership
Task 3-A-13 Supervise and lead human resources to achieve initiatives.
Task 3-A-14 Conduct/authorize job training for the professional development of
the staff.
Task 3-A-15 Develop/manage/evaluate/measure relationships with internal
departments.
Task 3-A-16 Develop/utilize criteria for evaluating supply management
department performance.
Task 3-A-17 Conduct role design evaluation and potential job redesign
requirements.
Exam 3
Section B Risk and Compliance
Total of 32 Questions !
Exam 3
Section B Risk and Compliance
Task 3-B-1 Develop, implement and manage a risk profile and
strategies.
Task 3-B-2 Develop and implement a risk management and/or
claims management program.
Task 3-B-3 Implement supply management processes in
consideration of legal issues.
Task 3-B-4 Develop/implement/maintain a database/physical filing
system.
Exam 3
Section B Risk and Compliance
Task 3-B-5 Verify the existence, accuracy and completeness of
relevant financial transactions.
Task 3-B-6 Assess risk from end of life cycle issues in the
marketplace.
Task 3-B-7 Manage and control the storage/disposal of
hazardous/regulated materials.
Task 3-B-8 Comply with programs that prevent and respond to
discrimination or harassment.
Exam 3
Section C Strategic Sourcing
Total of 37 Questions !
Exam 3
Section C Strategic Sourcing
Task 3-C-1 Establish and execute strategic sourcing plans..
Task 3-C-2 Establish and standardize strategic sourcing procedures
and business process improvements.
Task 3-C-3 Identify, evaluate, select and implement technologies
that support supply management functions.
Task 3-C-4 Leverage spend through identification, prioritization,
development and execution of strategies.
Task 3-C-5 Conduct analysis to determine insourcing or outsourcing
strategy.
Exam 3
Sample Practice Question 1
In general, assets that are likely candidates for divestiture are those in which:
I. Redundant capabilities exist between the organizations.
II. Services are aligned with the organizations strategic interests.
III. Facilities are outdated.
(A) I and II only
(B) II and III only
(C) I and III only
(D) I, II and III
Task 3-A-6
Exam 3
Sample Practice Question 1 Answer
In general, assets that are likely candidates for divestiture are those in which:
I. Redundant capabilities exist between the organizations.
II. Services are aligned with the organizations strategic interests.
III. Facilities are outdated.
(A) I and II only
(B) II and III only
(C) I and III only
(D) I, II and III
Task 3-A-6
Exam 3
Sample Practice Question 1 Answer
Option (C) is correct because both I and III are reasons for the divesting
assets. It is unlikely you would want to dispose of or divest products or
services that are in alignment with the organizations strategic objectives
(II, above); since all the other responses include II, option (C) is the
correct choice.
Options (A), (B) and (D) are incorrect as each of these options includes II;
as stated above, II would be a reason not to divest. However, options I
and III, along with any existing liabilities or legacy costs the organization
wishes to minimize , all are reasons to consider divestiture.
Task 3-A-6
Exam 3
Sample Practice Question 2
Which of the following initiatives could a supply
organization implement to more fully integrate
financial and information flows?
(A) Inventory and logistics information systems
(B) Accounts payable and accounts receivable
systems
(C) Procurement-to-pay cycles
(D) Respective warehousing systems
Exam 3
Sample Practice Question 2 Answer
Which of the following initiatives could a supply
organization implement to more fully integrate
financial and information flows?
(A) Inventory and logistics information systems
(B) Accounts payable and accounts receivable
systems
(C) Procurement-to-pay cycles
(D) Respective warehousing systems
Exam 3
Sample Practice Question 2 Answer
Option (C) is correct because only a complete
inter-corporate procurement-to-pay cycle
synchronization will result in a best-in-class
integration and alignment between the supply
manager and supplier.
Options (A), (B) and (D) are incorrect because they
provide only some of the information needed to
more fully integrate financial and information flows.
Bridge Exam
Questions from parts of all 17 categories of Exams 1,
2 and 3; 180 questions (all scored; 3 hours
allowed):
- From 20 of 25 tasks in Exam 1
- From 19 of 24 tasks in Exam 2
- From 22 of 32 tasks in Exam 3
Exam spec highlights all bridge components
Last day to
take the
C.P.M./CPSM
Bridge Exam
December 31,
2009
December 31,
2009
December 31,
2013
December 31,
2013
December
31, 2014
65
66
67
Questions?
~
Thank You!
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