CPPM CERTIFICATION PREPARATION
Certification Preparation Course
Purpose of Course
This certification examination review course is designed to prepare purchasing and materials management professionals for the Certified Professional Purchasing Manager (CPPM) Examination sponsored by the American Purchasing Society (APS). Certification as a CPPM is increasingly being specified in position descriptions and job announcements as desired and/or minimum qualifications to be met for such professionals.
Course Objectives
1. To develop an understanding of logistics/supply chain management and its relationship to purchasing.
2. To develop an understanding of the purchasing profession and its various subspecialties.
3. To develop an in-depth understanding of the management and leadership processes, and HR Management processes as they relate to purchasing and supply management.
4. To develop an understanding of what to study and how to study in preparation for the CPPM.
5. To determine which CPPM Study tasks require the greatest amount of study and concentration in order to pass the CPP examination.
What is APS?
The American Purchasing Society (APS) is a progressive association of buyers and purchasing managers with more than 5,000 individual and corporate members in the United States and abroad. APS’s purpose is to provide national and international leadership in purchasing and materials management, particularly in the areas of education, research, and standards of excellence. APS provides opportunities for expansion of professional skills and knowledge. APS offers a wide range of educational products and programs for both members and non-members.
What does it take to become a CPPM?
Applicants for CPPM certification must already have earned and received the CPP award or be applying for both programs simultaneously. They also must have either managerial experience or currently be in a managerial position. Once these qualification are obtained, the balance of the CPPM program is based entirely on the results from the examination.
The CPPM Program Content is as follows:
Sourcing Analysis and Supply and Inventory Management
Management and Organization
Leadership
Human Resource Management
The focus of the program is the CERTIFIED PROFESSIONAL PURCHASING MANAGER
BODY OF KNOWLEDGE as shown below:
Sourcing Analysis and Supply and Inventory Management
Make or Buy decisions
Lease-purchase analysis
Types of leases
Financing for purchases of capital equipment
Cooperative purchasing
Product standardization programs:
Inventory functions
Types of inventory
Economic Order Quantity
Economic Order Quantity Computation
Materials Requirements Planning (MRP) systems:
LIFO method of inventory valuation
FIFO method of inventory valuation
ABC Inventory categorization
Methods to minimize the cost of inventory
Perpetual inventory control system usage
Disposal of obsolete or surplus materials and equipment
Arguments for Purchasing control of disposal operations
Methods of disposal
Disposal of hazardous materials
The “price/attribute curve”
Long-term relationship with suppliers
JIT implementation
Process reengineering
Total Quality Management
Role of Purchasing in Total Quality Management
New product innovations
Product life cycles
Cross functional team product development
Forecasting techniques
Using forecasted Producer Price Index
Hedging to prevent loss on a foreign-currency denominated purchase
Gains and losses due to foreign currency denominated contracts
Measures of purchasing efficiency
Management and Organization
Managerial skills needed
Management functions/tasks/responsibilities
Principles of the bureaucratic school of management,
Principles of scientific management
Theory X and Theory Y Managers
Fayol’s management principles
Advantages and disadvantages of centralized and decentralized management
The Hawthorne studies and “Behavioral Management”
Adam Smith and his theory of specialization
Characteristics of goals
Michael Porter’s five forces theory
Factors influencing organizational structure
Job enlargement and job enrichment
FLAT and Tall management organizational structure
Job enrichment and job enlargement
Definitions of efficiency and effectiveness
Three characteristics of an effective control system
Three main kinds of output goals and targets
Investment in training and development in centralized and decentralized work places
Leadership
Leading by example
Intrinsic and extrinsic motivation
Expectancy, instrumentality, and valence
Maslow’s need hierarchy
MBO
House’s “path-goal theory” of motivation
Operant conditioning tools
Herzberg’s theory of motivation
Inequity Theory of Motivation
Leadership power bases
Initiating structure and Consideration Leadership behavior
Blake and Mouton’s “Managerial Grid”
Leadership style and gender
Contingency models of leadership
Evidence and impact of value organizational goals
Leadership Substitution Theory
Transactional and Transformational Leadership
Human Resources Management
Job analysis
Use of performance feedback
Use of Performance appraisals
Human resource planning
