Institute for Supply Management, Inc. ™

1. Institute for Supply Management, Inc.™

2. Certification Overview • What is Certification -- why would you want it? • ISM’s Certification Programs • Program Requirements • International acceptance • Exam Content and Process Levels • Types of Questions on the Exam • Four types of Certification/Accreditation • Study Materials • Costs

3. Certification vs. Certificate Certificate Programs: Continuing education programs that are usually 18 to 24 hours in length, typically self-study, smaller in magnitude and shorter in time than degree programs; designed to instill, expand, or enhance competencies by learning new skills, attitudes, and performance behaviors. Certification Programs: Process by which an association or non-governmental agency acknowledges an individual has met certain predetermined qualifications specified by that organization. It is a credential; a formal acknowledgement granted to an individual to designate to the public that this person has met the requirements in the designated area of certification.

4. Why Certification? • shows commitment to a profession • promotes continuous professional growth and development - lifelong learning • universally accepted standard for identifying & recognizing supply management professionals • world-wide recognition • commitment to yourself, your employer, your customers & suppliers to hold yourself to a professional ethical standard of conduct

5. ISM’s Certification Programs Certified Purchasing Manager (C.P.M.) • Established in 1974 Accredited Purchasing Practitioner (A.P.P.) • Established in 1996

6. Accredited Purchasing Practitioner (A.P.P.) Program ISM has announced a change to the A.P.P. program. After February 28, 2005, ISM will no longer accept new A.P.P. Exam registrations. Those individuals who have registered prior to March 1, 2005, will have up to one year to take their exams. If they are interested in securing A.P.P. Original/Original Lifetime accreditation, they will need to apply by February 28, 2007. Individuals already holding the A.P.P. designation may still apply for reaccreditation.

7. A.P.P. Program – Dates to Remember February 28, 2005 — Last day candidates can register with ISM for the A.P.P. Exam. This allows those individuals, who are interested in obtaining the designation, the time to plan to take the exams. After this date, candidates may still register for the C.P.M. Exam Modules 1 and 2, which can be used to apply for the A.P.P. February 28, 2006 — Last day any candidates can take the A.P.P. Exam at a Prometric Test Center. After this date, candidates may still take C.P.M. Exam Modules 1 and 2, which can be used to apply for the A.P.P. February 28, 2007 — Deadline for all Original and Original Lifetime A.P.P. applications. There is a two-year work experience requirement (one-year with an associate’s degree) for Original and Original Lifetime applications. This allows those candidates an opportunity to earn their A.P.P. The postmark date on a candidate’s application will be used to determine whether he/she meets this deadline.

8. Accredited Purchasing Practitioner (A.P.P.) Program Accredited Purchasing Practitioner (A.P.P.) Program Those involved with the tactical and operational side of purchasing and supply management. Accredited Purchasing Practitioner (A.P.P.) Program - Intended Audience Buyers and those outside the organization’s purchasing and supply management department with definite procurement (supply management) responsibilities, including members of cross-functional teams.

9. A.P.P. Program Requirements A.P.P. Exam Must pass Modules 1 and 2 Experience: One year professional purchasing/supply management experience and at least a two- year degree OR two years professional purchasing and supply management experience Note: Job must have at least a secondary supply chain management responsibility component.

10. Certified Purchasing Manager (C.P.M.) Program Certified Purchasing Manager (C.P.M.) Program Those involved with the managerial, administrative, and strategic as well as tactical aspects of the purchasing and supply management process. Certified Purchasing Manager (C.P.M.) Program - Intended Audience Those in charge of a purchasing/supply management department including managers, directors, and vice presidents. Those working for such a department (e.g., supervisors and seasoned buyers, agents and other professionals). Researchers, teachers, department heads, directors, and deans of academic institutions, concerned with the field. Others defined by program policy and those working in the field aspiring to any of the above positions.

11. C.P.M. Program Requirements C.P.M. Exam: Pass all four modules of the exam Experience: Three years professional purchasing/supply management experience and at least a four-year degree from an accredited institution OR five years professional purchasing/supply management experience.

12. Age of Modules Rule Exam scores may be no more than five years old when the candidate applies for the C.P.M. or A.P.P. designation (see Module 4 exception below). The application postmarked date is used as the application date. Only Module 4 of the updated C.P.M. Exam (offered after January 1, 2001) can be used toward the C.P.M. designation. Module 4 of the C.P.M. Exam taken through December 31, 2000 is no longer valid.

13. Argentina Australia Bahamas Belgium Brazil China France Germany Hong Kong India Ireland Japan Kenya Korea Nigeria Philippines Saudi Arabia Singapore South Africa Spain Taiwan International Acceptance

14. C.P.M. Program Growth

15. Exam Construction Module 1: Purchasing Process Module 2: Supply Environment Module 3: Value Enhancement Strategies Module 4: Management Modules 1, 2, & 3 = 95 questions (90 scored) 105 minutes to complete. Module 4 = 120 questions (110 are scored) 130 minutes to complete. Examinees will not know which of the questions are not part of the scoring process for each module.

16. Exam Content Module 1- Purchasing Process (C.P.M./A.P.P.) Part A: Identifying Requirements (5 Tasks - 23 questions) Part B: Preparation of Solicitations (4 Tasks - 22 questions) Part C: Supplier Analysis (3 Tasks - 19 questions) Part D: Contract Execution, Implementation, and Administration (8 Tasks - 26 questions)

17. Exam Content Module 2- Supply Environment (C.P.M. /A.P.P. ) Part A: Negotiations (2 Tasks - 13 questions) Part B: Information Technology (3 Tasks - 16 questions) Part C: Quality Issues (2 Tasks - 12 questions) Part D: Internal Relationships (4 Tasks - 22 questions) Part E: External Relationships (6 Tasks - 27 questions)

18. Exam Content Module 3 - Value Enhancement Strategies (C.P.M. Only) Part A: Sourcing Analysis (3 Tasks -17 questions) Part B: Supply & Inventory Management (4 Tasks - 19 questions) Part C: Value Enhancing Methods (3 Tasks-26 questions) Part D: Forecasting and Strategies (5 Task -28 questions)

19. Exam Content Module 4 - Management (C.P.M. Only) Part A: Management and Organization (8 Tasks - 61 questions) Part B: Human Resources Management (6 Tasks - 49 questions)

20. Exam Characteristics & Technical Properties • Validity – the test measures what it is supposed to measure • Reliability – dependability or accuracy of test score • Scoring – no curve or quota, one point for correct answers, no points for incorrect answers • Equating – maintains consistency between exam versions • Scaling – converts all scores to a range of 25 to 75 • Criterion Referenced – protect the public

21. Closed-stem Sentence Completion EXCEPT Format MOST/LEAST/BEST Format Complex Multi-choice Master List Format Case Study Format Multiple Choice Exam All items appearing in the C.P.M. Exam have four choices, identified by the letters “A” through “D”. Candidates choose the “best” answer.

22. Closed Stem Format Which of the following is the professional designation of the supply management profession? (A) C.P.A. (B) C.P.M. (C) CPM (D) PEP Answer (Key): B

23. Sentence Completion The degree to which a test actually measures what it purports to measure is referred to as test (A) validity (B) reliability (C) equating (D) weighting Answer (Key): A

24. EXCEPT Format All of the following are types of certification EXCEPT (A) Recertification (B) Original Lifetime Certification (C) Lifetime Certification (D) Original Recertification Answer (Key): D

25. Most/Least/Best Format The demand for which of the following commodities will be LEAST affected by any significant increase in its price? (A) Coal (B) Tobacco (C) Cotton (D) Aluminum Answer (Key): B

26. Complex Multi-Choice An application for certification must include which of the following? I. Copy of the exam score report II. Work experience verification III. Continuing education attended IV. Valid signature (A) I and II only (C) I, II, and IV only (B) II and IV only (D) I, II, III, and IV • Answer (Key): C

27. Exam Process Levels Knowledge (Recall) Remembering ideas, material, or phenomena Comprehension Grasp a meaning of the material presented in a novel way. Application Understanding material to a point where it can be applied to a situation new to him or her.

28. Types of Certification/Accreditation • Original Certification or Accreditation • Original Lifetime Certification or Original Lifetime Accreditation • Recertification or Reaccreditation • Lifetime Certification or Lifetime Accreditation

29. A.P.P. Reaccreditation & Lifetime Requirements A.P.P. Reaccreditation Requirements a. every 5 years. b. 42 CEH’s Categories available for CEH accumulation: a. Module 1 or 2 of the A.P.P. exam or Modules 1, 2, 3 or 4 of the C.P.M. exam b. Formal Education c. Seminars and continuing education A.P.P. Lifetime Requirements Minimum of 18 years relevant verifiable experience.

30. C.P.M. Recertification & Lifetime Requirements C.P.M. Recertification Requirements a. every 5 years. b. 12 C.P.M. points (84 CEHs) Categories available for point accumulation: a. Module 3, and/or 4 b. Formal Education c. Seminars and continuing education d. Contributions to the profession C.P.M. Lifetime Requirements Minimum of 18 years relevant verifiable experience.

31. Current Costs Exam Registration Fees per Module (as of 1/05) MemberNon-Member Domestic Testing $120. $180. International Testing $165. $220. Application Fees (as of 1/05) MemberNon-Member C.P.M. Original $ 90. $150. C.P.M Recertification $ 65. $100. A.P.P. Original $ 65. $105. A.P.P. Reaccreditation $ 50. $ 80.

32. Study Materials Available • Study Guides • Diagnostic Kits • Bibliographic Reference Keys • Articles for Exam Preparation • ISM Knowledge Series - Volumes 1 through 4 • Review Programs ISM and others • The Purchasing Handbook • Annual conference proceedings

33. Certification is about…… • building a knowledge foundation • meeting an objective standard (valid/reliable exam + experience) • showing serious career intent • ongoing learning

34. Commit to a realistic but specific timeline Create an environment that celebrates risk-taking and goal setting Develop a meaningful way to recognize certification w/in the organization, involve your suppliers Work with ISM and the local affiliate to increase awareness Budget for self-development Help Management understand the value certification returns to the organization Next Steps

35. Certification Contact Information • C.P.M. / A.P.P. Automatic Telephone Messaging System - 800/888-6276, extension 3027 • ISM’s Home Page - http://www.ism.ws • Certification email address: certification@ism.ws • Althea (Al) Levine (extension 3094) • Judy Tolliver (extension 3044) • David Migliore (extension 3074) • Karen P. Collins, C.P.M., A.P.P., (extension 3123) • Christina Foster, SPHR (extension 3011) • Customer Service (extension 401)

36. Questions???