What can students do to help

improve Strategic
Management of Resources
(SMR) test results?

Roger W. Harris, MS, CFPIM, CIRM, CSCP,

C.P.M., PMP, CPSM
VP of Education, APICS Colorado Chapter
Terra Grande District Staff
VP & GM, MSS Technologies, Inc.

Introduction
Roger Harris
Joined APICS in College
30 + years in APICS
Colorado Chapter President
multiple terms
Currently VP of Education
8000 Supply Chain students over
the years
Currently employed at executive
level

APICS Confidential and Proprietary

Agenda

What is Strategic Management of Resources?

What are the pass rates of SMR?

How is SMR like fishing?

What experience and knowledge will help the student?

How can you prepare, what areas seem to be

troublesome?

Case study examples of professionals passing the SMR

exam

APICS Confidential and Proprietary

Strategic Management of Resources

Planning and managing resources such as materials,

machines, facilities, labor, money, markets, customers,
suppliers in a strategic fashion.

Longer term and higher level thinking than operational or

tactical planning or thinking.

Many CPIM students and instructors dont have a lot of

experience at the strategic levels of companies.

Must look at the big picture of the environment, competitors,

customers, products and the strategy to blend them together.

Must understand how the big picture changes SCM priorities

and techniques.

APICS Confidential and Proprietary

Current Worldwide pass rates for SMR

2014 the pass rate for SMR was 66%

2013 the pass rate for SMR was 54%

2012 the pass rate for SMR was 51%

2011 the pass rate for SMR was 51%

These could include people taking it multiple times, so the

numbers could really be worse

Through student surveys, our students taking CPIM

courses have an approximate pass rate of 82-85% at the
Colorado Chapter

APICS Confidential and Proprietary

SMR pass rates

Does it matter what order you take the exams for CPIM?
Yes!

This study is a couple of years old but still relevant.

If you take the

SMR as the 1st exam: 33% pass rate

SMR as the 2nd exam: 38% pass rate
SMR as the 3rd exam: 53% pass rate
SMR as the 4th exam: 57% pass rate
SMR as the 5th exam: 72% pass rate

APICS Confidential and Proprietary

APICS research
Past Research SMR Pass Rates
100%

75%

50%

25%

0%
20-25

26-30

31-35

36-40

41-45
Age Ranges

APICS Confidential and Proprietary

46-50

51-55

56-60

61-65

Exams, ECM & Courseware

I believe that the exams match the Exam Content manual

for the most part

Courseware matches the exam for the most part. Outside

research or study may be required if a student needs
additional knowledge as with any CPIM exam

Some folks disagree with me here but I have taught the

course dozens of times and taken the exam several times.

APICS Confidential and Proprietary

SMR THINKING is just like fishing!

Fishing: What type of fish am I looking to catch?

SMR: What business am I in?
Fishing: What lake, pond or stream should I fish in?
SMR: Where am I going to do business.. Global? Domestic? Local?
Fishing: Where will the fish be feeding?
SMR: Where should I look for customers.. What market segments?

Fishing: What bait or equipment should I use for the particular time,
place or species I am planning to catch?
SMR: What marketing, pricing, differentiation or manufacturing
strategy should I use for the particular product, market or customer?
Fishing: Catch and Release or Keep and Eat?
SMR: One Time Customer or Long Term Customer?
APICS Confidential and Proprietary

What knowledge or experience do students need?

Statistics show that experience does matter!

Experience in many areas of business, operations,
planning/materials, sales and marketing and information technology
Experience and knowledge in all three levels of management and
planning strategic, tactical and operational

Take the SMR exam as the last of the 5 CPIM exams

Experience is not a guarantee to pass nor is it absolutely

needed but it can help!

10

APICS Confidential and Proprietary

How should I study?

11

APICS Confidential and Proprietary

Change
Management

Operations
Strategy

Infrastructure
Systems

The Global
Environment
and
Sustainability

Aligning
Operations
with Supply
Chain
Partners

Developing
Business
Strategy

Strategic Management of Resources

Operations
Strategy
Choices and
Financial
Measurement

Case Studies

How should I study?

Take a chapter/partner CPIM

SMR course
Many areas are covered in the
course you may not be 100%
familiar with even if you have
years of experience!
We will talk about this more in the
case studies.

12

Use the participant guide as a

basis for your study.
Use outside materials as
needed to supplement for
specific subject matter.

APICS Confidential and Proprietary

What about textbooks?

Many are available! Over $500

worth.
Use the APICS Dictionary.
I normally recommend that any
text on the subject matter you
need is good. For example,
your marketing 101 text or sales
management 101 text that you
still have from a course you
took long ago is probably still
valid.
Also any of the texts you have
from the other CPIM modules.
13

APICS Confidential and Proprietary

What areas seem to be troublesome for many

Supply Chain folks?
Some sections seem to be very difficult for APICS people.
These four are the most common from my experience:

SMR Section 1
Developing Business Strategy aka Sales and Marketing

SMR Section 2
Sustainability and Corporate Social Responsibility

SMR Section 6
Infrastructure Systems----ERP

SMR Section 7
Change Management / Project Management

14

APICS Confidential and Proprietary

SMR Section 1 Developing Business

Strategy
A lot of sales and marketing material.
Most students do not have a lot of sales and marketing
experience.
My experience shows me that many students need extra
study for Sales strategy and to see how it can change
your supply chain priorities.

15

APICS Confidential and Proprietary

SMR Section 1
External environment
The industrys
dominant
economic
features
Strength of
competitive
forces facing
industry
members

Industry
effectiveness
and
profitability

Assessing
the external
environment

Key factors
for future
success in
the industry

Likely
strategic
moves by
mass

16

APICS Confidential and Proprietary

Forces
driving
industry
change

Market
positions
occupied by
industry
members

SMR Sales and Marketing

Five-Forces Analysis
Firms in other industries
offering substitutes

Competitive pressures coming from attempts of companies

outside the industry to win buyers over their
products/services

Suppliers
of raw
materials,
parts,
component
s, or other
resource
inputs

Competitive
pressures
stemming
from supplier
bargaining
power and
supplier and
seller
collaboration

Rivalry among
competing
sellers
Competitive
pressures created by
jockeying for better
market position,
increased sales and
market share and
competitive
advantage

Competitive
pressures
stemming
from buyer
bargaining
power and
buyer and
seller
collaboration

Buyers

Competitive pressures coming from the threat of entry of

new rivals

17

APICS Confidential and Proprietary

Potential new entrants

Source: Crafting & Executing Strategy 18th

edition

SMR Sales and Marketing

18

APICS Confidential and Proprietary

SMR Sales and Marketing

19

APICS Confidential and Proprietary

SMR Section 1 Developing the Business

Strategy

Spend time studying SWOT

Spend time studying the strategies of others and

WHY?
Competitors
Suppliers & Customers

Spend time studying about the environment

Regulations, trends, technology, etc.
Look at the attractiveness of your industry to entrants and
WHY?

20

What is your chosen competitive strategy and WHY?

APICS Confidential and Proprietary

SMR Section 2 CSR and Sustainability

Corporate Social Responsibility

Somewhat of a new title for something that has been going on for
decades. APICS folks may not be involved in this in their day to day
activities at the company.
Most Successful when part of the Corporate Strategy

Sustainability
Sustainability influences social well being, environmental health,
and economic performance today and in the future

21

APICS Confidential and Proprietary

Section 2 Corporate Social Responsibility

22

APICS Confidential and Proprietary

Section 2 Sustainability

23

APICS Confidential and Proprietary

SMR Section 6 Infrastructure Systems

Experience implementing or selling ERP systems can help here
Areas that need a little extra time and study:
ERP systems and the evolution and strategy and WHY?
ERP implementations
Pull system, Where and When strategy applies
There a lot of other sections to infrastructure but many were
covered well in other modules

24

APICS Confidential and Proprietary

SMR Section 6 ERP

MRP

MRP processor
Closed-loop feedback
Best-practice processes
Common database
Sales and operations planning
Total cross-functional software and
process integration

25

APICS Confidential and Proprietary

MRP
closed
loop

MRP II

ERP

Supply Chain Management Leveraging

ERP Systems
Advancements in ERP (From APICS CSCP Course)
Advancements in ERP

Supply chain
management
CPFR
SRM

Enterprise
production systems

Manufacturing
R&D engineering

AIDC

Inventory
management

QM

CRP
Purchasing

Advanced costing

Executive
decision
support

Material
Requirements
Planning (MRP)

BPM

Supply chain

Standard
costing

Accounting
A/P, A/R, GL

Demand
management

Order entry
Customer service
Master
scheduling

CRM

Full sales support

Logistics and
distribution

Field service
Full JIT

APICS Confidential and Proprietary

Strategic
plan

Forecasting

Environmental
Cross-industry/
APS
support
MES
specific-industry
Supply chain
Financial planning
EDI
concepts
S&OP
execution

26

Collaborative
commerce

Manufacturing Resource
Planning (MRP II)

Production activity
control

HR
Product
engineering
Maintenance
management

Enterprise Resources
Planning (ERP)

Marketing

Web-based, open, componentbased environment

External
interfaces

EAI

SMR Section 7 Change Management

Cultures of Strategic Change

If you are a change consultant/expert, you may not have trouble
with this section

Risk Management
If you are risk management certified you may be fine in this section

Project Management
If you are a certified project manager you are probably fine with this
section

If not, you need extra attention here.

27

APICS Confidential and Proprietary

SMR Section 7
Approaches to Strategic Change
Approaches
Reactive

Plan

Reacting to
change

Respond to rivals
Respond to buyers
Adjust to new policies

React as needed
Defend position

Anticipating
change

Plan ahead for expected

future changes

Analyze prospects
Research buyer needs and
preferences
Monitor technology

Pioneer new technologies

Be innovative
Set industry standards

Seize the offensive

Set the pace of change
Influence rules
Force rivals to follow

Leading change

Proactive

28

Actions

APICS Confidential and Proprietary

Source: Crafting & Executing Strategy 18th

edition

SMR Section 7

Low

High

Risk of Failure

Goal

29

Avoid
Less-likely
failures with
high impact

More-likely
failures with
high impact

Less-likely
failures with
low impact

More-likely
failures with
low impact

Low

APICS Confidential and Proprietary

High
Likelihood
Source: Operations and Program Management,
Reprinted by permission of Pearson Education

SMR Section 7
Phases of a Project

30

APICS Confidential and Proprietary

SMR Section 7
Project Statement of Work (SOW) & Work Breakdown
Structure (WBS)

31

APICS Confidential and Proprietary

SMR Section 7 Change Management

Pay attention to the following:

The strategic value of change
The roles of people and leaders in change
The potential risks and failures and the impact they
have during change

Project management for change:

32

Definition of a project
Phases of a project
Statements of work (SOW)
Work breakdown structures (WBS)
Controlling projects
Closing out projects

APICS Confidential and Proprietary

Examples of Success

The following folks are APICS folks that had some trouble
with SMR.
All took the SMR exam multiple times
All were discouraged with their progress
All are real APICS people, Supply Chain Professionals and All
passed the exam and achieved CPIM!

33

APICS Confidential and Proprietary

Real examples of students that followed this

formula
Dan---10 years experience as a planner buyer

34

Scored 304-316 on first four CPIM exams

Failed SMR 3 times
Did not have a copy of the Participant guide for CPIM
Took all classes of CPIM but SMR
Was very discouraged with not being able to pass SMR
Talked for (2) one hour sessions about sections 1, 2, 6, 7
Passed SMR with a 307

APICS Confidential and Proprietary

Real examples of students that followed this

formula

Betty---16 years experience in the food/beverage Mfg. and

transportation
Failed SMR 3 times
Did not take CPIM classes as they were not offered in this area of
Spain
Took 7 years to get through the exams, 2-3 times to pass each
exam
Did not think the Participant Guide for SMR seemed difficult
Had an old version of SMR Participant Guide
Reviewed sections 1, 2 for (2) one hour sessions
Passed SMR!

35

APICS Confidential and Proprietary

John---12 years experience in SCM & a commercial pilot

working in Supply Chain Management

36

Failed SMR exam 3 times

Attended all 5 CPIM Courses from a Chapter
No problem with the first 4 CPIM exams
Used DataChem CDs
Purchased over $1200 of study material
SMR Terminology was a problem
Reviewed sections 1, 2, 6, 7 for (3) one hour sessions
Used Real Life Examples
Passed SMR exam

APICS Confidential and Proprietary

Real examples of students that followed this

formula

Sam---6 years experience in the cheese industry.

Progressively more responsibility in Supply Chain
Management.

37

Degree in Supply Chain Management from a great SCM School

Up and coming future supply chain executive
Very easy for him to pass the first 4 exams without too much effort
Failed SMR 2 times
Attended all CPIM classes offered by a Chapter
Used Participant guides and ECM and some texts
Reviewed sections 1 and 7of SMR for 2 hours
Passed SMR Exam

APICS Confidential and Proprietary

Real examples of students that followed this

formula

Dave---30 years experience as a Operations

and Supply Chain Manager with large
companies

Had no problem with any of the other 4 CPIM exams

Failed the SMR on multiple occasions
Had taken the SMR course
Had purchased many texts
Reviewed SMR sections 1,6,7 as well as a couple of
other sections where there were questions
Spent 6 hours reviewing the student guide
Introduced real life examples for areas of concern
Passed the exam without much problem

38

APICS Confidential and Proprietary

Real examples of students that followed this

formula

Barb---20 years of operations, quality and

accounting experience with a small company

Had no problem with any of the other 4 CPIM exams

Failed the SMR on multiple occasions
Had taken the SMR course
Had purchased multiple study materials
Reviewed SMR sections 1, 2, 6, 7 as areas of concern
Spent about 3 hours reviewing the student guide and
real life examples
Passed exam without issue

39

APICS Confidential and Proprietary

Real examples of students that followed this

formula

Joe---15 years experience in materials

management including a director level position
at a medium sized company

Had no problem with any of the other 4 CPIM exams

Failed the SMR twice
Had taken the SMR course twice
Did not want to review SMR sections 1, 6 and 7
Told them that was the only way I would help them
was my formula
Reviewed SMR sections 1, 6, 7 as well as looked at
quizzes from other sections
Spent about 4 hours reviewing student guide and real
life examples
Passed exam without issue
40

APICS Confidential and Proprietary

Real examples of students that followed this

formula

Abe---20 years experience in production

management
Had no problem with self study on any other CPIM
exams
Failed the SMR twice
Had not taken any CPIM courses
Did not have a copy of the student guide
Purchased over $2000 in study materials
Reviewed SMR sections 1, 6, 7 and all the quizzes and
areas of concern
Spent 7 hours on this review
Passed

41

APICS Confidential and Proprietary

Conclusions

To pass, one must think strategically

Many students dont have experience with:

Sales and Marketing Strategy
Infrastructure strategy & ERP strategy
Change and Project Management

The Participant Guide for SMR is a great tool

when used with real examples and emphasis is
placed on areas where the student may not
have experience

I believe real life business examples help

students understand much better

42

APICS Confidential and Proprietary

Clarifications

This presentation is the opinion of Roger Harris

34 years experience in APICS
32 years experience in Business/SCM/Operations
Many successful CPIM/SMR students
Thousands of CPIM students served.more to go!

I have helped many people that were not my own

students originally
Opinions formed are from my own students experience and
difficulty and other peoples experience and difficulty with the
SMR exam

This concept to concentrate on 4 areas of SMR

assumes that you have a good understanding of
the other more SCM/Operations based areas
covered by the exam.
43

APICS Confidential and Proprietary

Information and References

APICS SMR CPIM Instructor Guide

APICS SMR CPIM Participant Guide

One slide from the APICS CSCP Program

APICS Age/Pass Rate Research Project

Roger Harris, trial and error experience

Fishing 101

44

APICS Confidential and Proprietary

Thank you, thank you very much!

Roger W. Harris, MS, CFPIM, CIRM, CSCP, C.P.M., PMP, CPSM

Past President, APICS Colorado Chapter

VP & GM, MSS Technologies, Inc.
rharris@msstech.com
45

APICS Confidential and Proprietary