CPIM-Part-2

The APICS Certified in Production and Inventory Management (CPIM) Part 2 exam, titled Master Planning of Resources , focuses on tactical planning and execution within a manufacturing or supply chain environment. The main points revolve around several key areas:

1. Master Production Scheduling (MPS): This is a core element. You'll need to understand:

• MPS development and maintenance: Creating and updating the MPS based on demand forecasts, capacity constraints, and available materials.
• MPS input and output: Knowing what data goes into creating an MPS (forecasts, sales orders, inventory levels) and what information comes out (planned production quantities, projected inventory levels).
• Relationship between MPS and other planning activities: How the MPS interacts with sales and operations planning (S&OP), material requirements planning (MRP), and capacity requirements planning (CRP).
• Strategies for managing MPS: Dealing with demand variability, capacity limitations, and other disruptions.

2. Material Requirements Planning (MRP): Here, the emphasis is on translating the MPS into material requirements. Key topics include:

• Bill of Materials (BOM): Understanding the structure of BOMs and how they're used in MRP.
• MRP calculations: Knowing how MRP determines the timing and quantity of material needs. This includes understanding lot sizing techniques.
• MRP system inputs and outputs: Understanding the data needed for MRP (BOMs, inventory records, MPS) and the resulting reports (planned order releases, exception messages).
• MRP system maintenance: Keeping the system up-to-date with accurate data.
• Dealing with MRP exception messages: Understanding and resolving common issues such as shortages, excess inventory, and capacity problems.

3. Capacity Requirements Planning (CRP): This focuses on ensuring that sufficient capacity exists to meet the production plan. Important aspects are:

• CRP inputs and outputs: Understanding the relationship between the MPS and CRP. How capacity requirements are determined and compared with available capacity.
• Capacity planning techniques: Knowing different methods for matching capacity to demand (e.g., level scheduling, chase scheduling).
• Capacity management strategies: Techniques for managing capacity constraints (e.g., overtime, subcontracting).
• Analyzing capacity utilization: Interpreting capacity reports and identifying capacity bottlenecks.

4. Rough-Cut Capacity Planning (RCCP): This is a higher-level capacity planning process that precedes detailed CRP. You should understand its purpose and how it fits into the overall planning process.

5. Demand Management: Understanding the influence of demand planning on all the other processes. This includes forecasting techniques and dealing with demand variability.

6. Inventory Management: While not the primary focus, a sound understanding of inventory management principles is essential, especially as it relates to the other planning processes.

7. Software and Technology: While you won't be tested on specific software packages, you should be familiar with the role of ERP systems and other software tools in supporting these planning activities.

In essence, Part 2 of the CPIM exam tests your ability to integrate and manage these diverse planning processes to create a feasible and efficient production plan. You need to understand not just the individual components but also how they relate to each other and the overall impact on the organization's performance. Remember to focus on the relationships between these areas and how changes in one area impact the others.