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CSCP Exam Content Manual 2016 (PDFDrive) PDF
CSCP Exam Content Manual 2016 (PDFDrive) PDF
MANUAL
VERSION 4.0
APICS CSCP
Exam Content Manual
Version 4.0
Visit apics.org/ecmerrata for APICS CSCP Exam Content Manual errata.
The references in this manual have been selected solely on the basis of their educational value to
the APICS CSCP certification program and on the content of the material. APICS does not endorse
any services or other materials that may be offered or recommended by the authors or publishers of
books and publications listed in this manual.
©2016 APICS
No portion of this document may be reproduced under any circumstances. CSCP is a registered
trademark of APICS.
Stock #09031-V40
09031-V40
Table of Contents
Letter to Candidates ................................................................................................................ 1
Introduction .............................................................................................................................. 2
About the APICS CSCP Examination ....................................................................................... 2
Question Format ............................................................................................................................... 2
Taking the Test .................................................................................................................................. 3
Interpreting Test Scores ................................................................................................................... 3
Studying for the APICS CSCP Exam......................................................................................... 3
APICS CSCP References ................................................................................................................... 4
Terminology ....................................................................................................................................... 4
Additional Resources for APICS CSCP Candidates ................................................................ 4
APICS CSCP Learning System .......................................................................................................... 4
APICS CSCP Instructor-Led Review Courses ................................................................................... 5
APICS Educational Programs............................................................................................................ 5
APICS Certified in Production and Inventory Management (CPIM) Basics of Supply Chain
Management (BSCM) Review Course and Examination ................................................................. 5
APICS CSCP Certification Maintenance: Continuing Professional Development................. 5
The Importance of Certification Maintenance ................................................................................ 5
APICS Code of Ethics ............................................................................................................... 6
APICS Certified Supply Chain Professional (CSCP) ................................................................ 7
Scope of the Subject Matter............................................................................................................. 7
APICS CSCP Content ........................................................................................................................ 8
Content Outline ................................................................................................................................. 8
Key Terminology .............................................................................................................................. 14
Supplemental Glossary .................................................................................................................. 16
Bibliography ..................................................................................................................................... 20
Sample Questions .................................................................................................................. 21
Answers to Sample Questions .............................................................................................. 23
2 ©APICS
For Example 2, choose the response that best assuming information not given, as well as
answers the question. assuming you know what is being asked
without reading the question completely, or
Example 2: Which of the following is used “second guessing” the question. Every effort
as a key performance indicator (KPI) to has been made to avoid misleading wording
measure variability of demand through the and to provide sufficient information for each
supply chain? question.
4 ©APICS
will likely be some content in the APICS CSCP Additionally, individuals who are not
Learning System not covered by the exam; experienced with certification examinations
conversely, there will likely be some content in using the multiple-choice format of items
the exam not covered by the learning system. typically find it beneficial to take the BSCM
Thus, it is essential for candidates to use the examination.
current exam content manual in their studies.
For a complete list of APICS resources, visit
APICS CSCP Instructor-Led Review the APICS website at apics.org or call APICS
Customer Service at 800-444-2742 or +1-
Courses 773-867-1777.
The instructor-led format combines the APICS
CSCP Learning System print and online
components with the leadership of a qualified APICS CSCP Certification
instructor; peer collaboration; company
networking; and a structured, set schedule to Maintenance: Continuing
keep participants on track. Learn more about Professional Development
APICS recognized instructors at
apics.org/recognizedinstructors or find local
The Importance of Certification
APICS partners that provide APICS CSCP
courses at apics.org/finder. For courses in Maintenance
North America, visit the Partner and Event The growing number of individuals choosing to
Finder on the APICS website at pursue professional development through the
apics.org/finder or call APICS Customer APICS CSCP program indicates a strong
Service at 1-800-444-2742 (United States awareness that continuing education and
and Canada) or +1-773-867-1777 to obtain skills development are essential to meeting
contact information for your local chapter. For the information and technological challenges
courses outside North America, visit in today’s rapidly evolving workplace and
apics.org/international to locate the nearest global marketplace. Professional development
partner. opens doors to individual career opportunities
and organizational success.
APICS Educational Programs Although APICS CSCP recognition and
In addition to the annual APICS International maintenance are voluntary programs, they
Conference & Expo, APICS offers a variety of equally demonstrate one’s commitment to
educational programs. For a list of APICS achieving the highest level of professional
learning opportunities and information on development and standards of excellence.
course availability, call APICS Customer
Service at 1-800-444-2742 (United States The APICS CSCP certification maintenance
and Canada) or +1-773-867-1777. program upholds both the objectives of the
APICS CSCP program and the APICS vision to
APICS Certified in Production and promote lifelong learning. This flexible
Inventory Management (CPIM) Basics program recognizes that individuals are at
of Supply Chain Management (BSCM) various levels in their careers, come from
many industries, have different educational
Review Course and Examination needs and career goals, and have varying
The APICS CPIM BSCM module introduces
access to continuing education. Thus,
terminology, approaches, and techniques for
requirements for maintaining certification can
managing the internal supply chain in a
be met through multiple sources and a variety
manufacturing organization. For that reason,
of professional development activities
the references and the review course may be
intended to help prepare for the challenges
valuable resources for APICS CSCP candidates
ahead and maintain a professional edge by:
who are not familiar with the production and
inventory management environment.
6 ©APICS
management of demand and supply,
APICS Certified Supply Chain relationship with, and waste management.
Professional (CSCP)
Supply Chain Improvement and Best Practices
CSCP Subcommittee This section covers managing and balancing
supply and demand through measuring,
Ann K. Gatewood, CFPIM, CIRM, CSCP (Chair) analyzing, and improving supply chain
Gatewood Associates, LLC processes. It addresses compliance with
Nishat Ahmed, CPIM, CIRM, CSCP, CPM, standards and regulations, the importance of
M.C. Dean, Inc. sustainable best practices and social
Vinod Lall, Ph.D., CSCP responsibility, and the assessment and
Minnesota State University–Moorhead mitigation of risk within the supply chain.
Robert Pinchot, CPIM, CSCP
The successful candidate will be able to
DuPont
recognize and analyze specific supply chain
Eduardo A. Shelley, CFPIM, CIRM, CSCP situations and opportunities and select the
Savire Tecnologia y Procesos appropriate approaches, tools, techniques,
Susan A. Vowels, MBA, CSCP and technologies. The candidate will be able
Washington College to define the actions necessary to implement
selected solutions. This includes an
understanding of and the ability to manage:
Scope of the Subject Matter
Please read the introductory material in this
• the alignment of supply chain processes
manual for essential information about the
and capabilities with strategic business
examination.
goals
APICS CSCP covers concepts, strategies, • organizational roles and infrastructures
processes, tools, and technologies applied to in the supply chain
managing the end-to-end forward and • material, information, and financial
backward flow of materials, information, and flows
value in a supply chain. • intra-and inter-organizational
relationships
The subject matter is organized into three • the selection and use of technologies
content areas: to enable effective processes
management.
Supply Chain Design
This section addresses the concepts and In addition, the candidate preparing for the
strategies used for developing a supply chain Certified Supply Chain Professional (CSCP)
strategy that aligns with business goals and certification must have a fundamental
corporate strategy, basic strategy tools, and understanding of the following key business
techniques for implementation. It includes concepts:
designing a supply chain for the flow of • Business acumen (qualitative skills,
product, information and cash, the use of the math, statistics)
SCOR ® model, project management, and • Ethical considerations (morals,
information technology. character, habits)
• Leadership
Supply Chain Planning and Execution
This section addresses the processes required
to supply chain partners, reverse logistics
procure and deliver goods and services,
including the scheduling and logistics of
executing the plan. It includes the
8 ©APICS
Performing gap analysis between 5. Information technology considerations
current and future state a. Role of technology in supply chain
Developing action plan to close gaps management
b. Information system architecture
Knowledge and skills in this area include: c. Use of information technology in
the supply chain
1. Supply chain considerations d. Comprehensive supply chain
a. Flow of inventory, funds and management system
information e. Need for timely and accurate data
b. Network configurations f. Electronic business
c. Inventory location and level considerations
d. Product design 1. Virtual organization
e. Supply chain technology enablement
f. SCOR® model 2. Internet-enabled supply chains
g. Fulfillment strategies considering 3. E-commerce considerations
market requirements 4. Business-to-business and
1. Responsiveness business-to-consumer
2. Efficiency
h. New product development 6. Key technology applications
/requirement changes a. Enterprise resources planning
i. Supply chain strategy (ERP) systems
j. Supply chain network design b. Advanced planning and scheduling
k. Supply chain network optimization (APS) systems
c. Supply chain event management
2. Business considerations (SCEM)
a. Financial modeling d. Warehouse management systems
b. Market research (WMS)
c. Product lifecycle stages e. Transportation management
d. Reverse supply chain systems (TMS)
e. Specialized supply chains (MRO,
humanitarian and disaster relief) 7. Data acquisition and management
f. Collaboration with supply chain a. Data acquisition and
partners communications tools
b. Interface devices
3. Project management considerations c. Data communications methods
a. Project initiation d. Databases
b. Project planning and design hierarchical/relational/network
c. Project execution e. Acquisition and use of data
d. Project monitoring and controlling f. Automatic identification
e. Project closure technologies
10 ©APICS
5. Supply management B. Manage the Relationship with Supply
a. Total cost of ownership Chain Partners
b. Make-versus-buy analysis
c. Range of buyer-supplier Understanding the market and the critical
relationships roles played by both the upstream and
d. Developing supply plans downstream supply chain partners are
e. Supplier relationship management important to the success of the Supply Chain.
(SRM)
f. Contracting Tailoring, aligning and managing
g. Expediting the relationships with the supply chain
partners will enhance the performance of the
6. Inventory management entire supply chain. Important processes
a. Inventory planning include:
1. Locations of inventory
2. Levels of inventory Managing relationships with
customers
b. Inventory control Managing relationships with suppliers
1. Order quantity determinations
2. Ordering systems Knowledge and skills in this area include:
3. Safety stock and safety lead
time 1. Segmentation
4. Organization of storage a. Market
locations b. Customers and suppliers
5. Methods of tracking inventory c. Other supply chain partners
6. Methods for assessing
inventory accuracy 2. Customer relationship management
(CRM) and supplier relationship
7. Warehouse management management (SRM)
a. Warehousing objectives and a. Customer and supplier selection
considerations b. Customer and supplier
b. Warehouse capacity forecasting relationship types
and planning c. Negotiation
c. Manual and automated material d. Terms and conditions
handling processes e. Contracts and enforceability
d. Tradeoffs between warehousing f. Performance management
and transportation processes g. Technology usage
12 ©APICS
B. Comply with Standards, Regulations, and 3. Social, environmental, safety, and
Sustainable Best Practices quality accreditations and
certifications
Managing globally dispersed sources of supply a. ISO 14001 - environmental
and demand requires an understanding of the management systems
standards and regulations of the jurisdictions b. ISO 26000 - guidance for social
in which goods and funds flow. In addition, responsibility
designing and operating a supply chain c. SA 8000 certification – social
requires an understanding of the concepts of accountability
sustainable business practices and how to d. ANSI Z.10 – occupational safety
adapt and apply them to a specific supply and health management systems
chain. Important processes include: e. ISO 9001 certification – quality
management systems
Identifying applicable standards,
regulations, sustainable best practices
C. Manage Risk in the Supply Chain
Performing gap analysis for
compliance Risk is inherent in supply chains and
Developing and implementing an companies may go out of business due to a
action plan major risk event. Instead of only responding
to risk events, companies must be able to
Knowledge and skills in this area include: model, anticipate and prevent risk events.
An understanding of the techniques to
1. International standards and regulatory identify, mitigate, and manage risks is
compliance important for supply chain management and
a. Import/export considerations overall business success. Important
b. Intellectual property rights processes include:
c. Licensing compliance
1. Software
Identifying the risks
2. Technology
d. Global accounting standards Assessing and classifying the risks
e. Country specific accounting Developing risk mitigation and
regulations management plan
f. Country and local labor laws Executing risk mitigation plan and
g. International labor considerations management plan
14 ©APICS
F market demand
fill rate market research
fourth-party-logistics (4PL) market share
free trade zone (FTZ) master production schedule (MPS)
material requirements planning (MRP)
G mix forecast
Global Reporting Initiative (GRI) modular design strategy
global strategy modular system
glocalization multicountry strategy
multisourcing
H
harmonized system classification codes O
horizontal marketplace obsolescence
ordering cost
I order losers
incoterms order qualifiers
independent demand order winners
information system architecture outsourcing
innovative product
interplant demand P
inventory accuracy Pareto analysis
inventory optimization software partnership
inventory turnover passive tag
inventory valuation pipeline inventory
inventory velocity plan-do-check-action (PDCA)
inventory visibility planning horizon
ISO 14000 Series Standards portal
ISO 26000 private trading exchange (PTX)
ISO 31000 product differentiation
product family
J product life cycle management (PLM)
joint replenishment system project management
joint venture pull system
push system
K
kaizen
Q
kaizen event
quality function deployment (QFD)
kanban
quick response program (QRP)
keiretsu
key performance indicator (KPI)
R
radio frequency identification (RFID)
L
rapid replenishment
landed cost
return on assets (ROA)
legacy systems
return on investment (ROI)
level of service
reverse auction
level strategy
reverse logistics
lifecycle analysis
reverse supply chain
line haul costs
risk pooling
risk register
M
make-to-order
make-to-stock
16 ©APICS
Days of Supply according to their health, physical and
In addition to the definition in the APICS environmental hazards. GHS is a system that
Dictionary, the following definition is provided: defines and classifies the hazards of chemical
as a financial measure it is the value of all products, and communicates health and
inventory in the supply chain/ the average safety information on labels and material
daily cost of goods sold rate. safety data sheets.
18 ©APICS
Supplier's/Customer's/Products' Risk Rating lease and maintain equipment, inventory
The numerical risk rating for supplier, depreciation, damage and returns costs, and
customer or product. Normalized and used for more.
comparison purposes. Total Cost to Serve can be measured per
event and at the aggregated supply chain level
Supply Chain Continuity (assuming reporting capabilities exist).
Strategic and tactical capability, pre-approved Measuring Cost to Serve at transactional level
by management, of an organization to plan for generally requires activity based costing
and respond to conditions, situations, and capabilities for direct cost and a system to
events in order to continue supply chain allocate indirect cost.
operations at an acceptable predefined level.
Upside Supply Chain Adaptability
Supply Chain Cycle Time A discrete measurement of the quantity of
The time it would take to fill a customer order increased production a supply chain can
if inventory levels were zero. Sum of the achieve and sustain in 30 days-time.
longest lead times for each stage in the supply
chain. Upside Supply Chain Flexibility
A discrete measurement of the amount of
The Organization for Economic time it takes a supply chain to respond to an
Co-operation and Development (OECD) unplanned 20% increase in demand without
Guidelines for Multinational Enterprises: service or cost penalty.
A set of recommendations on responsible
business conduct addressed by governments Waste Exchange
to Multinational Enterprises (MNEs) operating 1) Arrangement in which companies exchange
in or from adhering countries that encourage their wastes for the benefit of both parties.
and maximize the positive impact MNEs can 2) An exchange service of valuable
make to sustainable development and information between generators and potential
enduring social progress. users of industrial and commercial wastes,
whereby a beneficial use rather than disposal
Total Cost to Serve is the end result. This service identifies both
The sum of the supply chain cost to deliver the producers and potential markets for by-
products and services to customers. Total products, surpluses, unspent materials and
Cost to Serve includes the cost to plan the other forms of solid waste that is no longer
supply chain, cost to source materials, needed.
products, goods, merchandize and services,
cost to produce, manufacture, remanufacture, Waste Hierarchy
refurbish, repair and maintain goods and A tool that ranks waste management options
services if applicable, cost to manage orders, according to what is most environmentally
customer inquiries and returns, and cost to sound. It gives top priority to preventing waste
deliver products and services at the agreed in the first place, and can be applied to
location (point of revenue). various applications.
20 ©APICS
4. Which of the following is an expected
Sample Questions benefit of implementing supply chain
event management?
The following ten questions are similar in
format and content to the questions on the (A) It will reduce the need for supply
CSCP exam. These questions are intended for chain performance reporting.
practice—that is, to enable you to become (B) It will improve forecasting accuracy.
familiar with the way the questions are asked. (C) It notifies partners when a deviation
The degree of success you have in answering from plans occurs.
these questions is not related to your potential (D) It reduces the cost of
for success on the actual exam, and should communications between partners.
not be interpreted as such. Read each
question, select an answer, and check your 5. Which of the following applications
responses with the explanations on pages would enable a company to detect
21–22. patterns in the preferences of a
customer segment?
1. Which of the following is the primary
advantage of using web-based (A) Business intelligence
electronic data interchange (EDI) for (B) Advanced planning system
communication of transactions? (C) Sales force automation
(D) Artificial intelligence
(A) There is more flexibility in
transaction formats. 6. Cash-to-cash cycle time is a measure of
(B) It lowers the cost per transaction. how efficiently a company
(C) It eliminates translation of
transactions. (A) recovers its investment in plant and
(D) A larger number of transactions are equipment.
supported. (B) manages assets to generate cash
flow.
2. Quality remains an elusive concept in (C) converts inventory into sales.
most organizations because (D) collects on sales to customers.
(A) it depends on customer perception. 7. Which of the following types of inventory
(B) there are many quality philosophies. is used to protect against variations in
(C) it is everyone’s responsibility. supply and/or demand?
(D) quality targets change frequently.
(A) Cycle stock
3. An example of the use of a third-party (B) Transportation inventory
logistics (3PL) company would be when (C) Safety stock
a company contracts with another (D) Anticipation inventory
company to
8. Which of the following outcomes is
(A) perform its shipping and receiving typically a characteristic of strategic
functions. sourcing?
(B) produce and deliver a major
subassembly. (A) It includes automation of contract
(C) provide payroll services. management processes.
(D) act as a sales agent in another (B) It reduces the price of goods and
country. services.
22 ©APICS
4. C (IB6) C is the best choice because
Answers to Sample Questions supply chain event management
monitors the supply chain and notifies
Note: References to the content outline
designated individuals when specified
appear in parentheses.
events or exceptions occur or when
trends are recognized. A is not the best
1. B (IB5) B is the best choice because a
choice because it enables performance
web-based EDI system would eliminate
reporting but does not reduce the need
the cost of a private or value-added for it. B is not the best choice because
network. A is not the best choice supply chain event management itself
because the EDI transaction formats are does not affect any specific application.
independent of the network used for D is not the best choice because supply
transmission.
chain event management does not
directly affect the amount or cost of
C is not the best choice because the
communications among partners.
transactions still must be translated to
and from the standardized format. D is 5. A (IIC2) A is the best choice because
not the best choice because the business intelligence applications
standards are independent of the collect, organize, and analyze
transmission method used. information. Use of these applications
on customer data would allow the
2. A (IIIA3) A is the best choice because the company to detect patterns in the data.
customers are the ultimate judges of B is not the best choice because
quality and they may have differing advanced planning systems address
requirements and priorities. B is not the operations rather than customers. C is
best answer because the philosophies not the best choice because sales force
have similar definitions of quality and automation does not capture or organize
address how to improve it. C is not the the data required to detect patterns in
best choice because the fact that it is customer preferences. D is not the best
everyone’s responsibility has nothing to choice because artificial intelligence
do with the concept of what is quality. D applications are intended to learn and
is not the best choice because targets reason like humans to address specific
should change once they have been problems.
achieved.
6. B (IIA4) B is the best choice because the
3. A (IIB4) A is the best choice because a definition of cash-to-cash cycle time is
3PL company is a company that that it is an indicator of how efficiently a
manages part or all of a company’s company manages assets to improve
product delivery operations and shipping cash flow. It is the inventory days +
is part of the product delivery accounts receivable days – accounts
operations. B is not the best choice payable days. A is not the best choice
because neither producing the because cash-to-cash cycle time does
subassembly nor delivering it is part of not consider the investment in plant and
the company’s product delivery equipment. C is not the best choice
operations. C is not the best choice because it is limited to the inventory
because payroll services are not a part days component of cash-to-cash cycle
of the company’s product delivery time. D is not the best choice because it
operations. D is not the best choice is limited to the accounts receivable
because selling does not necessarily component of cash-to-cash cycle time.
include any delivery operations.
24 ©APICS
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