CPIM Part 2B - Module 3

This course focuses on material and capacity scheduling and planning. It includes a details explanation of material requirements planning (MRP) a technique suitable for use in job shops. The course also introduces another material planning technique, material-dominated scheduling, which is applicable to process industries and other mature production environments. The course explains capacity requirements planning in detail and introduces other capacity-planning techniques, including processor-dominated scheduling.

Why

This course focuses on inventory management, material and capacity scheduling and planning, supplier relationships, and the influence of lean and Just-in-Time philosophies. The course explains capacity planning in detail, introduces other capacity planning techniques such as processor-dominated scheduling in continuous flow processes, and reviews project management essentials.

Objective

The DSP module focuses on the various techniques associated with production and capacity scheduling. Key topics include a detailed discussion of material requirements planning (MRP), capacity requirements planning, inventory management practices, and procurement and supplier planning. Techniques such as material and capacity-constrained scheduling are included. Candidates will also become familiar with supplier partnerships, lean principles, and outsourcing strategies and techniques.

Who should attend?

Supply Chain professionals, particularly those involved in ERP implementations, or anybody considering CPIM certification should take this course. You will learn tactical functions of Production Planning, Purchasing, Logistics, Materials Handling, Stockrooms, and Operations Scheduling and will take home proven techniques to improve inventory accuracy, streamline replenishment orders, shorten cycle times, & improve Customer Service.

Course content

Section A: Inventory Management 

• Describe the role that inventory plays in manufacturing and distribution.

• List goals of inventory management.

• Provide examples of types of inventory as materials move through the value and supply chains.

• Differentiate between inventory with dependent and independent demand. Explain the functions of inventory, including

  • To buffer against fluctuations in supply and demand

  • To create economic advantages

• Describe the way classifications may change over the lifespan of inventory.

• Provide examples of the use of inventory in service industries.

• Define an ABC classification system and describe its use in inventory management.

• Distinguish between the focuses of aggregate and itemized inventory policies.

• Provide examples of the types of trade-offs that occur in aggregate inventory policy.

• List possible ways of accumulating inventory costs.

• Define types of inventory valuation (e.g., actual, standard, FIFO).

• Provide examples of inventory metrics related to operating efficiency, financial effectiveness, and customer service.

• Define categories of inventory costs (e.g., item, carrying, ordering, stockout).

• Describe the interaction of inventory costs.

• Describe the use of the economic order quantity (EOQ).

• Describe inventory order constraints and provide examples of order modifiers.

• Describe the impact of lean production principles on inventory planning.

• Describe lean tools used in inventory planning (e.g., value mapping).

• Explain the role of safety stock in inventory management and describe the process for calculating it.

• Define the risk pooling strategy in inventory management.

• Describe lot size techniques (e.g., fixed order quantity, lot for lot).

• Distinguish between order point and periodic review techniques used to time orders.

• Provide examples of order point triggers.

• Describe the spectrum of inventory management techniques that involve suppliers/vendors more actively in planning and managing inventory.

• Illustrate the negative results of poor inventory record accuracy.

• Contrast periodic inventory counting and cycle counting.

• Explain the purpose of transaction management in inventory management.

• Describe approaches to storage layout.

• Explain the technology used to track inventory.

Section B: Material Requirements Planning 

• Define the MRP process.

• Describe the manufacturing environment conditions under which MRP is favored for material planning.

• Compare MRP with material planning methods used in ETO and lean environments.

• List the inputs into MRP process and characterize the information provided by each (e.g., inventory data, master production schedule, planning factors, bill of materials).

• Describe the use of where-used and pegging reports in the MRP process.

• Define the term phantom bill of materials.

• List examples of planning factors that affect material planning.

• Explain the importance of an effective item numbering system.

• Provide examples of good item numbering practices.

• Distinguish between significant and non-significant item numbering systems.

• Describe MRP outputs (e.g., planned order releases, action messages).

• Explain the purpose of a firm planned order.

• Define the term planning horizon.

• Distinguish between bucket and bucketless MRP systems.

• Distinguish between the regeneration and net change approaches to MRP system updating.

• List the advantages and disadvantages of frequent MRP replanning.

• Define the elements of the MRP grad (e.g., gross requirements, scheduled receipts).

• Describe the treatment of service items in MRP systems.

• Describe major actions in:

  • BOM explosion

  • Low-level coding

  • Offsetting lead time

  • Gross to net requirements calculation

• Illustrate actions taken by the MRP planner.

• Provide examples of metrics used to evaluate material planning performance.

Section C: Detailed Capacity Planning

• Define the terms capacity, capacity management, capacity planning, and capacity control.

• Describe the role of capacity planning at different levels within the manufacturing and planning hierarchy (e.g., resource planning in the production plan, rough-cut capacity planning during master production planning, detailed capacity planning during material requirements planning).

• Describe the basic challenge and goals of detailed capacity planning.

• Describe how capacity planning is conducted in different manufacturing processes (e.g., continuous flow, repetitive, intermittent, and project) and different industries, such as service and remanufacturing.

• Explain the basic process used in capacity requirements planning (CRP).

• Trace the steps used in CRP.

• Provide examples of the advantages and limitations of CRP.

• Describe the feedback loop between CRP and master scheduling and execution and control of operations.

• List the load inputs into CRP (e.g., released and planned orders)

• List capacity-related inputs into CRP (e.g., routing data, work center data, lead time).

• Describe how rated capacity and demonstrated capacity are calculated.

• Describe how efficiency and utilization factors are calculated.

• Explain the role of safety capacity in CRP.

• Explain how the load is calculated.

• Describe capacity simulation tools.

• List tactics for resolving imbalances between load and capacity.

• List considerations for choosing metrics to assess the effectiveness of capacity planning.

Section D: Managing Projects

• Define a project and describe its distinguishing features.

• Describe the activities included in project management.

• List the phases in a project life cycle and describe the major tasks associated with each phase.

• Define and describe the role of key project documents, including the statement of work, the project plan, and the project scope statement.

• Describe the work breakdown structure and how it is used in project management.

• List tools used to plan and control project schedules and budgets (e.g., network planning, estimating techniques).

• Describe the purpose of a responsibility matrix.

• List examples of cross-cutting skills effective project managers possess.

• Describe Tuckman’s theory of team formation and the manager’s role in this process.

• Explain how variance analysis is used to control project performance.

• Explain the importance of controlling changes to project scope.

Section E: Planning Procurement and External Sources of Supply

• Describe factors considered in making the decision to purchase or outsource rather than to make in-house.

• List goals for procurement.

• Distinguish among possible types of customer-supplier relationships.

• Describe the use of the risk v. profit matrix to determine sourcing strategy. Distinguish among strategic alliances, strategic partnerships, and tactical buying as sourcing strategies.

• List sourcing alternatives: sole, single, multi-source.

• List examples of criteria considered in selecting suppliers.

• Provide examples of collaborative relationships with suppliers and the purpose of specific arrangements, including:

  • Concurrent engineering

  • Retailer-supplier relationship

  • Third party logistics providers(3PLs)

  • Distributor-manufacturer integration

• Provide examples of the impact of sustainable procurement on purchasing practices.

• Describe aspects of item specifications needed for purchasing.

• Trace the purchasing process from requisition to invoice approval.

• Describe examples of contract types between supply chain partners that aim at balancing opportunity and for both sides.

• Define a purchase order and describe the use of a blanket order.

• Describe characteristics of effective supplier evaluation systems.

• Provide examples of criteria that can be used to rate supplier performance including sustainable criteria.

For further information and registration, please email to us: 

media@cel-consulting.com

CPIM is an APICS certification which is recognized as the international standard for individual assessment in the field of production and inventory management. The CPIM program provides a common basis for individuals and organizations to evaluate their knowledge of this evolving field.

APICS is an international professional organization for operations management. It is the global leader and premier source of the body of knowledge in operations management. Since 1957, APICS has educated more than 100,000 professionals. APICS education and certification programs are recognized worldwide as the standard of professional competence in production and inventory management, operations management and supply chain management.

CEL Consulting presents in Vietnam, Hong Kong, Indonesia and Singapore, is the 1st APICS Authorized Education Provider in Vietnam. CEL philosophy is to deliver practical training with evidence, exercises and case studies drawn from the business. CEL believes that training and people development should be structured to generate tangible value focused on specific business issues.

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