Supply Management Core... · 2019-11-07 · CPSM WORKSHEET S The following worksheets are...
Transcript of Supply Management Core... · 2019-11-07 · CPSM WORKSHEET S The following worksheets are...
CPSM
WORKSHEETS
The following worksheets are supplemental materials
within the CPSM Instructor Courseware. You may utilize
the worksheets to condense key information on
Competencies or Tasks.
© 2018 ISM All Rights Reserved No part of this publication may be reproduced without written permission from the Institute for Supply Management®. Printed in the United States of America.
Content
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Supply
Management
Core
(Exam 1)
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CPSM® Worksheets Page 2
© Copyright 2018 Institute for Supply Management®. All rights reserved. Reprinted with permission from the
publisher, the Institute for Supply Management®.
CPSM Exam 1
Supply Management
Core
CPSM® Worksheets Page 3
© Copyright 2018 Institute for Supply Management®. All rights reserved. Reprinted with permission from the
publisher, the Institute for Supply Management®.
Task 1-A-1
• Identify and define the eight typical steps in the sourcing cycle
• Identify stakeholders both internal and external
• Identify the differences between needs versus wants
• Define three main considerations supply management should consider o Budget
o Operational
o Strategic
CPSM® Worksheets Page 4
© Copyright 2018 Institute for Supply Management®. All rights reserved. Reprinted with permission from the
publisher, the Institute for Supply Management®.
Task 1-A-2
• Identify the first two steps in sourcing process and their importance
• List 3 considerations to assess organizational capacity
• Key reason to consider available market
• List 5 areas of compliance that need alignment with organizational policies
• What are the main factors to consider with regulatory requirements when sourcing
CPSM® Worksheets Page 5
© Copyright 2018 Institute for Supply Management®. All rights reserved. Reprinted with permission from the
publisher, the Institute for Supply Management®.
Task 1-A-3
• Define
o Full and open competition
o Limited competition
o Technical competition
• What are the pro’s and con’s of dealing with
o Manufacturers vs distributors?
o Small vs large suppliers?
o National vs local suppliers?
o International vs domestic suppliers?
• What are the key influences on the decision to use an existing source vs a new source?
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© Copyright 2018 Institute for Supply Management®. All rights reserved. Reprinted with permission from the
publisher, the Institute for Supply Management®.
Task 1-A-3
• Outline the key issues related to identifying and evaluating global sourcing of goods and services
• Discuss the key considerations related to evaluation of another country’s infrastructure
• Articulate the issues surrounding development of international sources including
• Landed cost analysis
• Exchange rates
• Payment mechanisms
• Taxes
• Fees
• Tariff
• Duty drawback
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© Copyright 2018 Institute for Supply Management®. All rights reserved. Reprinted with permission from the
publisher, the Institute for Supply Management®.
Task 1-A-4
• Identify what an RFI is, when to use, benefits and problems
• Identify what an RFP is, when to use, benefits and problems
• Identify what an RFQ is, when to use, benefits and problems
• Identify what an IFB is, when to use, benefits and problems
CPSM® Worksheets Page 8
© Copyright 2018 Institute for Supply Management®. All rights reserved. Reprinted with permission from the
publisher, the Institute for Supply Management®.
Task 1-A-5
• Identify the major steps in a make or buy/outsource decision
• List factors that influence outsourcing/ make or buy/offshoring decisions
• Discuss labor and organizational constraints on outsourcing and how to counteract them
• Identify the benefits and risks of offshoring
• Define privatization
• Name key considerations in a post-audit evaluation of the outsourcing decision
CPSM® Worksheets Page 9
© Copyright 2018 Institute for Supply Management®. All rights reserved. Reprinted with permission from the
publisher, the Institute for Supply Management®.
Task 1-A-6
• Name the critical foundation of successful technology implementation
• List supply management goals and objectives to be achieved by implementing technologies
• Identify the steps involved in selecting an e-solution
• Describe four contemporary e-sourcing tools
• Discuss when and how reverse auctions are used
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© Copyright 2018 Institute for Supply Management®. All rights reserved. Reprinted with permission from the
publisher, the Institute for Supply Management®.
Task 1-A-6
• What is spend analysis and what are considerations in selecting and implementing spend analysis technology?
• Describe the benefits from automated contract management systems
• Why do organizations implement supplier performance measurement technology?
CPSM® Worksheets Page 11
© Copyright 2018 Institute for Supply Management®. All rights reserved. Reprinted with permission from the
publisher, the Institute for Supply Management®.
Task 1-A-7
• Explain the process for identifying and aligning stakeholders
• Define the role and responsibilities of a steering committee
• Discuss the use of the following in assessing opportunity
o Spend analysis
o Cost analysis
o Risk analysis
o Market analysis
o Requirements analysis
CPSM® Worksheets Page 12
© Copyright 2018 Institute for Supply Management®. All rights reserved. Reprinted with permission from the
publisher, the Institute for Supply Management®.
Task 1-A-7
• Name internal and external characteristics of spend categories
• Identify factors to consider when deciding which category to address first
CPSM® Worksheets Page 13
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publisher, the Institute for Supply Management®.
Task 1-A-8
• Understand the definition of a strategic sourcing plan
• Be aware of policies and procedures for a strategic sourcing program
• Identify analytical skills needed by supply managers
• Discuss the five internal conditions that affect sourcing strategies
• Describe the impact of the market on sourcing strategies
CPSM® Worksheets Page 14
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publisher, the Institute for Supply Management®.
Task 1-A-8
• Name two considerations in evaluating categories to evaluate risk and determine sourcing strategies
• Describe the process for determining when and how to develop strategic relationships with suppliers
• List the key elements of a roll-out plan and a communication plan
CPSM® Worksheets Page 15
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publisher, the Institute for Supply Management®.
Task 1-A-9
• Identify and define the two key components of specifications
• How do performance and design specifications differ?
• Identify four characteristics of competitive proposals
• What is “two-step” bidding?
• What is a pre-bid conference and how is it used?
CPSM® Worksheets Page 16
© Copyright 2018 Institute for Supply Management®. All rights reserved. Reprinted with permission from the
publisher, the Institute for Supply Management®.
Task 1-A-9
• Define
o Bid bond
o Performance bond
o Payment bond
o Letter of credit
CPSM® Worksheets Page 17
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publisher, the Institute for Supply Management®.
Task 1-A-10
• Define o Decision matrix
o Offer responsiveness
o Technical analysis
o Operational analysis
o Life cycle costing
• How does price analysis differ from cost analysis?
• What is a learning curve and how is it used?
CPSM® Worksheets Page 18
© Copyright 2018 Institute for Supply Management®. All rights reserved. Reprinted with permission from the
publisher, the Institute for Supply Management®.
Task 1-A-10
• What are Incoterms® Rules and how many are there?
• What are FOB term?
• How does a business continuity plan differ from a contingency plan?
CPSM® Worksheets Page 19
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publisher, the Institute for Supply Management®.
Task 1-B-1
• What are areas of focus within category management
• Types of governance
• Name 5 ways to establish categories
• What are elements for category specific action plan
CPSM® Worksheets Page 20
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publisher, the Institute for Supply Management®.
Task 1-B-2
• Discuss key aspects of selecting a category team
• Name the 8 steps in a sourcing cycle
• Define 5 activities of project management for a category plan
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publisher, the Institute for Supply Management®.
Task 1-C-1
• What is a negotiation
• Define each of the items o Importance of pre-planning
o Category strategy considerations
o Financial concerns
o Risk tolerance
• Why is it important for negotiation objectives and positions to reflect the level of acceptable risk?
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publisher, the Institute for Supply Management®.
Task 1-C-2
• What is the significance of the “Best Alternative to a Negotiated Agreement” (BATNA)?
• What is a ZOPA?
• Identify and define the three aspects of planning negotiation strategies and tactics
• Identify and define three negotiation philosophies
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publisher, the Institute for Supply Management®.
Task 1-C-3
• Identify three practical tactical negotiation strategies and define when each should be used
• Identify five practical tactics for dealing with a sole source
• What is the difference between a consortium and a cooperative?
• Discuss the anti-trust issues related to dealing with a consortium
CPSM® Worksheets Page 24
© Copyright 2018 Institute for Supply Management®. All rights reserved. Reprinted with permission from the
publisher, the Institute for Supply Management®.
Task 1-D-1
• Identify and define six elements of a contract
• What are the legal conditions related to acceptability of an oral contract?
• Define
o Promissory estoppel
o Statute of frauds
o Reservation of rights
o Liquidated damages
o Implied warranties
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publisher, the Institute for Supply Management®.
Task 1-D-1
o Incidental, general, and consequential damages
o Patent
o Copyright
o Trademark
o Licensing
• How do binding and non-binding letters of intent differ?
• Identify seven different forms of fixed-price contracts
CPSM® Worksheets Page 26
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publisher, the Institute for Supply Management®.
Task 1-D-1
• Identify six different forms of cost reimbursable contracts
• Describe two main types of termination clauses
• List 5 types of damages
• Define warranties and the various types
• List 4 components of a requirements document
CPSM® Worksheets Page 27
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publisher, the Institute for Supply Management®.
Task 1-D-2
• What is signature authority?
• Define execution of instrument
• Define notice of awards
• What is involved in a closeout of award?
• What is a protest?
CPSM® Worksheets Page 28
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publisher, the Institute for Supply Management®.
Task 1-D-3
• Describe contract administration from the awarding of a contract through its completion
• Discuss price adjustment clauses; the various forms, the “intent” of each form, and when each should be used
• Define
o Statement of work (SOW)
o Service-level agreement (SLA)
o Annual work plan (AWP)
CPSM® Worksheets Page 29
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publisher, the Institute for Supply Management®.
Task 1-D-3
• What is the difference between termination and cancellation?
• What are three alternatives to litigation?
• List 4 breach of contract terms
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publisher, the Institute for Supply Management®.
Task 1-D-4
• What is the difference between a general agent and a special agent?
• Define the term “fiduciary duty” and explain how it relates to a supply manager
• Identify four key elements of fiduciary duty of an agent to the principal
• What is the difference between actual and apparent authority?
• Define antitrust / anticompetitive
CPSM® Worksheets Page 31
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publisher, the Institute for Supply Management®.
Task 1-D-4
• Define anti-corruption / anti-bribery
• Name two key areas of transparency in procurement
• What is the difference between UCC and CISG?
CPSM® Worksheets Page 32
© Copyright 2018 Institute for Supply Management®. All rights reserved. Reprinted with permission from the
publisher, the Institute for Supply Management®.
Task 1-D-5
• What is an audit?
• Define three key elements of auditability
• List the five key requirements of internal control in the COSO framework
CPSM® Worksheets Page 33
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publisher, the Institute for Supply Management®.
Task 1-E-1
• Define CRM
• What is a “supply chain map” and what is its purpose?
• Explain the concept of “six sigma”
• Define
o Return on equity
o Return on assets
o P/E ratio
CPSM® Worksheets Page 34
© Copyright 2018 Institute for Supply Management®. All rights reserved. Reprinted with permission from the
publisher, the Institute for Supply Management®.
Task 1-E-1
• Define o Currency risk
o Switching costs
o Inventory pipeline costs
• Supply managers must gather sufficient information to understand and document internal customer needs. Identify three situation-specific information gathering methods
CPSM® Worksheets Page 35
© Copyright 2018 Institute for Supply Management®. All rights reserved. Reprinted with permission from the
publisher, the Institute for Supply Management®.
Task 1-E-2
• Identify four governing principles of sound relationships
• Discuss the legal implications of selling to a supplier
• Explain the concept of continuous improvement
• List 5 characteristics of a strategic supplier alliance
• With regard to supplier alliances, define the following
o Basic alliance
o Operational alliance
CPSM® Worksheets Page 36
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publisher, the Institute for Supply Management®.
Task 1-E-2
• Define the following
o Business alliance
o Strategic alliance
• Identify the four stages of developing a supplier alliance
• What is “reverse marketing” and when is it appropriate?
• What is “value chain analysis?”
CPSM® Worksheets Page 37
© Copyright 2018 Institute for Supply Management®. All rights reserved. Reprinted with permission from the
publisher, the Institute for Supply Management®.
Task 1-E-3
• List 6 factors to analyze a supplier’s ability to perform
• What are two reasons for conducting a supplier visit?
• Describe 5 supplier evaluation methods
CPSM® Worksheets Page 38
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publisher, the Institute for Supply Management®.
Task 1-E-4
• What is the purpose of a business review with a supplier?
• Why should business reviews incorporate supplier segmentation?
• What criteria should be considered in the frequency of business reviews?
• Why is location important in a business review?
• Who should participate in business reviews?
CPSM® Worksheets Page 39
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publisher, the Institute for Supply Management®.
Task 1-E-5
• What is SWOT analysis and how is it useful?
• Define o Data mining
o Supplier segmentation
• Identify five critical success factors in supplier base optimization
• How does an “approved” supplier differ from a “preferred” supplier?
• Identify three common problems among organizations that do not effectively segment suppliers
• Identify four steps in a supplier segmentation process
CPSM® Worksheets Page 40
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publisher, the Institute for Supply Management®.
Task 1-E-6
• List at least 4 benefits of supplier innovation
• Define a center of excellence
• List four stages of a supplier innovation framework
• Name 2 risks that supplier innovation may have
CPSM® Worksheets Page 41
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publisher, the Institute for Supply Management®.
Task 1-E-7
• What is a supplier exit strategy?
• Identify the legal considerations that should be examined before initiating a supplier exit strategy
• Identify five key areas of financial implications that should be clarified before initiating a supplier exit strategy
CPSM® Worksheets Page 42
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publisher, the Institute for Supply Management®.
Task 1-E-8
• Describe the purpose of service level agreements and the requirements typically addressed
• Identify various measurement methods and how they are used
• List various quality processes used in quality improvement methods
• Explain the purpose(s) for and the steps in performing process capability studies
CPSM® Worksheets Page 43
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publisher, the Institute for Supply Management®.
Task 1-E-9
• Why is it important to ensure that the supplier is paid according to the agreed upon payment terms within the contract?
• Define P2P
• What are six steps in P2P electronic process flow?
• Name three key functions are involved in the payment process
CPSM® Worksheets Page 44
© Copyright 2018 Institute for Supply Management®. All rights reserved. Reprinted with permission from the
publisher, the Institute for Supply Management®.
Task 1-E-10
• Define a vision statement
• Define a mission statement
• Name 5 roles that supply management adds value in support of strategic objectives
• What is the purpose of an organizational business plan?
CPSM® Worksheets Page 45
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publisher, the Institute for Supply Management®.
Task 1-E-11
• Name at least 3 areas to focus continuous improvement processes
• Define o Lean
o Six Sigma
o Lean Six Sigma
o Root Cause Analysis
o Kaizen
• List 4 benefits of integration of technology
CPSM® Worksheets Page 46
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publisher, the Institute for Supply Management®.
Task 1-F-1
• Discuss development of cost management strategies for supply management including
o The key issues
o Cost modeling
o Standard cost setting
o Contribution to profit
• Define
o Value analysis
o Value engineering
CPSM® Worksheets Page 47
© Copyright 2018 Institute for Supply Management®. All rights reserved. Reprinted with permission from the
publisher, the Institute for Supply Management®.
Task 1-F-1
• Define
o Standard costs
o Product cost roll-up
o The cost of quality
o Total cost of ownership
o Form, fit and function
CPSM® Worksheets Page 48
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publisher, the Institute for Supply Management®.
Task 1-F-2
• Define/describe the following o Total cost of ownership (TCO)
o Should cost
o Target cost
o Profitability
o Cash flow
o Balance sheet
o Profit and loss statement (income statement)
o Sarbanes-Oxley Act (SOX)
CPSM® Worksheets Page 49
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publisher, the Institute for Supply Management®.
Task 1-F-2
• Identify what is measured and how for each of the following o Return on investment
o Return on assets employed
o Return on total assets
o Margin analysis
• What is the difference between operating lease and financial lease?
• List 5 financial factors in a lease vs buy decision
• List 3 operational factors in a lease vs buy decision
CPSM® Worksheets Page 50
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publisher, the Institute for Supply Management®.
Task 1-F-3
• What is the difference between cost savings and cost avoidance?
• How does standardization contribute to cost reduction?
• Discuss the process for implementing a cost reduction program
• What is spend segmentation and how is it used?
CPSM® Worksheets Page 51
© Copyright 2018 Institute for Supply Management®. All rights reserved. Reprinted with permission from the
publisher, the Institute for Supply Management®.
Task 1-F-4
• What is the differences between cost reduction and cost avoidance?
• List at least 3 challenges with organizational alignment
• What is the purpose of governance
• List 3 items that should be achieved with reporting
• What is the purpose of auditing and verification?
CPSM® Worksheets Page 52
© Copyright 2018 Institute for Supply Management®. All rights reserved. Reprinted with permission from the
publisher, the Institute for Supply Management®.
Task 1-G-1
• What are two things that a budget should do?
• Name the 5 steps in budgeting
• List 4 purposes of budgeting
• Define 7 types of budgets
CPSM® Worksheets Page 53
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publisher, the Institute for Supply Management®.
Task 1-G-2
• Define o Leveraging
o Cash flow
o Depreciation
o Lead division buying
• Identify and define the five stages of product life cycle
• What is a commodity market?
CPSM® Worksheets Page 54
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publisher, the Institute for Supply Management®.
Task 1-G-2
• Describe impact of tax laws from the supply management perspective
• Articulate the issues relating to balancing considerations such as
o Bond and currency markets
o Supplier financing
o Market conditions
o Commodity markets
CPSM® Worksheets Page 55
© Copyright 2018 Institute for Supply Management®. All rights reserved. Reprinted with permission from the
publisher, the Institute for Supply Management®.
Task 1-G-3
• Describe the key requirements of SOX
• Summarize the areas of regulatory requirements that can affect supply management
• List the categories of objectives that a financial reporting policy is designed to address