Elevate the Expectation

1. Elevate the Expectation October 2008 Update Southwest District – November 8, 2008

2. APICS: Our Mission APICS builds knowledge and skills in operations management professionals to enhance and validate abilities and accelerate careers. We help our members and their organizations successfully compete and build a stronger global economy. 2

3. Three Pillars • Membership • Education • Certification

4. Financial Results and Budgets 4

5. October Board Meeting Summary • Move related expenses were $2.1 million compared with a year-to-date budget of $2.4 million that has provided a $366 thousand positive variance. • As of September 30, 2008 membership total is 41,839. This represents a decrease of 1,320 (-3.06%) from the January 1st baseline. • Board approved the 2009-2011 Budget recommendation from the Finance Committee • Board approved changes to the 2009-2011 prioritiesand objectives based on recommendation from the Finance Committee. • Board was updated on the awareness and brand development for APICS. 5

6. 2008 Strategic Priorities/Objectives 6

7. 2008 Priority: Net Revenue • Meet budgeted net revenue from operations as indicated in the 2008 budget as approved by the Board. 7

8. 2008 Priority: Membership • Through combination of reduced attrition and increased recruitment and in collaboration with our partners, total membership will not decline further than 41,450 by December 31, 2008. • Membership is expected to decline based on the significant dues increase effective April 1, 2008. • The member growth objective is 10,000 by 2010, or a total of 53,659. 8

9. 2008 Priority: Product Development • 75% of members and non-member customers agree or strongly agree APICS products are relevant. • 60% of members and non-member customers agree or strongly agree APICS products are of high quality. • Total sales of core products: $17.9M • Books & Materials, Exam Fees, Exhibit Income, Program Fees, Publications, & Registration 9

10. 2008 Priority: Product Development • Priority: Implement a process to align courseware to the exam content manuals. • Metric: There is one-to-one correlation between the topics covered in the Courseware and the exam content manuals. • Status • On-Track. CPIM and CSCP courseware is being revised to align with the exam content manuals based on revisions for 2009. 10

11. 2008 Priority: Product Development • Priority: Publish OMBOK (Assuming Board Approval) • Metric: OMBOK will be published before the conference. • Status: • The OMBOK Framework was released and marketed at the 2008 APICS International Conference & Expo. The document is available as a free download by members and is featured on the APICS home page. Advertisements and articles for the Framework have been developed and placed in APICS publications. 11

12. 2008 Priority: Internationalization • We see expansion outside North America as the big growth opportunity for APICS. Elements need to be in place to enable substantial growth in the future while maintaining/enhancing the structure we have. • Objectives: • Increase number of international members outside North America by 966. • Status: 12

13. 2008 Priority: Internationalization • Objectives: • Increase number of certification exams outside of North America by 15% by 2010. 13

14. 2008 Priority: Internationalization • Increase number of volunteers (to 10) participating at “association” level from outside of North America by 10%. • Status: • International Committee 5 • Membership discussion group 5 • Future Leaders Summit 2 14

15. 2008 Priority: Awareness • Define where APICS is in marketplace compared to other associations. • Elevate profession. • Status: • In September, Branding & Image conducted six two-hour focus group sessions at the 2008 APICS International Conference & Expo in Kansas City. • Next Steps:  • Complete qualitative research phase in Q4 2008. • Develop and implement membership surveys in Q1 2009. • Deliver final research results in Q2 2009. 15

16. 2008 Priority: Awareness • Ensure placement of at least 6 different stories/interviews in major media outlets on an annual basis by 2010 • Status - Ongoing • Media Relations • “How to Succeed in Manufacturing.” • Interview with Abe Eshkenazi published in Inbound Logistics and carried by Mailing Systems Technology E-newsletter. • “Strong Supply Chains Mean Stronger Companies” Morgan International E-Newsletter (140,000 subscribers worldwide). • Article promoting the launch of the new Lean Manufacturing series. • Opportunity to provide monthly articles on operations and supply chain management issues. • Kansas City Star • Article on Green and Supply Chain Management. • Lead story in the weekly business section. 16

17. 2008 Priority: Awareness • Increase number of employment ads preferring or requiring APICS certification by 10% in postings on APICS career center, monster.com, and careerbuilder.com. • Status: Monthly average: 17

18. APICS Now and In the Future • Brief History • APICS Today • APICS of the Future (my version)

19. History • Those who cannot remember the past are condemned to repeat it. • George Santayana, The Life of Reason, Volume 1, 1905US (Spanish-born) philosopher (1863 - 1952)

21. History • 1957 • Nyles Reinfeld (National Institute of Management) selected 27 people in P&IC to establish a professional organization – met on March 9th in Cleveland, OH • 1958 • First APICS chapter in New Bedford, MA chartered • First conference held in Cleveland in October

22. History • 1961 • First chapter outside of U.S. chartered in Canada • 1963 • APICS Dictionary first published • 1966 • Most chapters now in APICS chartered • 1967 • First official headquarters in Washington, DC in Watergate building • 1973 • First certification testing for Certified in Production and Inventory Management (CPIM)

23. History • 1980 • Membership more than 46,000 • First student chapter founded at Auburn University • 1991 • Certified in Integrated Resource Management (CIRM) offered • 2006 • Certified Supply Chain Professional (CSCP) offered

24. Names • American Production and Inventory Control Society (APICS) • “The Educational Society for Resource Management” • The Association for Operations Management (2004)

25. History • History is more or less bunk. It's tradition. We don't want tradition. We want to live in the present and the only history that is worth a tinker's dam is the history we made today. • Henry Ford, Interview in Chicago Tribune, May 25th, 1916US automobile industrialist (1863 - 1947)

26. For four-fifths of our history, our planet was populated by pond scum. • J. W. Schopf

27. APICS Today • 260 Chapters and 42,000 members • 170 Student chapters and 2,300 student members • Certifications • 30,000 current CPIMs • 4,000 CIRM • 4,500 CSCP • Certification Exams • 30,000 in 30 countries

28. APICS Advantage • APICS BOK • APICS Dictionary terms accepted as the industry standard • Internationally recognized APICS certifications • Expansive network of APICS districts and chapters • A community of professionals in all areas of operations management throughout the nation and internationally • Opportunities for leadership development and personal growth

29. The future is much like the present, only longer. • Dan Quisenberry

30. We can draw lessons from the past, but we cannot live in it. • Lyndon B. Johnson, December 13, 196336th president of US (1908 - 1973)

31. APICS Future

32. Disclaimer • The following comments have not been approved or endorsed by the APICS Board of Directors

33. APICS Future • Focus • Traditionally products and services • Member-centric • Continued value to members / field • More than entry-level

34. APICS Future • Membership • Historically manufacturing-based • Services? • 2,000 International members currently • A “global” organization

35. APICS Future • Certification • CPIM fundamental to our position today • CSCP gaining market acceptance • Core competency • Other opportunities?

36. APICS Future • Education • More than certifications and courseware • “Go to” resource for supply chain management and operations knowledge • Integrator • Influence the profession • Relevance of the field • Support academics • Continuing through a professional’s career

37. APICS Future • Collaboration • Forcing customers to make a choice • CSCMP, AST&L, SCC – joint conferences, etc. • IBF – S&OP conference • others

38. APICS Future • Leverage technology • Difficult to see into the future • The future ain't what it used to be. • Yogi BerraUS baseball player, coach, & manager (1925 - )

39. People • Personal development • APICS prepares leaders • Future Leaders Program

40. Students • We cannot always build the future for our youth, but we can build our youth for the future. • Franklin D. Roosevelt32nd president of US (1882 - 1945)

41. Student Chapters • Extremely important to APICS • Members and leaders of the future • Opportunity to learn organizational management as well as body of knowledge • Scholars Program • Case competitions • Student Chapter Management Program

42. The future will be better tomorrow. • Dan QuayleUS Republican politician (1947 - )

43. Thank you for being a part of APICS!

45. APICS Objectives Deja vu

46. Corporate (Washington) Office Chapter and Membership International Operations Education and Research International Conference 6. Relations 7. OMBoK (Production) Handbook 8. Organizational Study 9. Public Education 10. Communications APICS Objectives

47. 1. Washington Office • To use the first year’s operational experience to establish an office manual, which will best utilize our people, time, and equipment.

48. 2. Chapter and Membership • To grow in terms of new chapters and members, while retaining present members.

49. 3. International Operations • To break the language barrier by having key publications translated into Spanish and/or French.

50. 4. Education and Research • To build the Education and Research Foundation through chapter, business, and personal donations.