a pics competency model brochure

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APICS MATERIALS MANAGER

COMPETENCY MODEL



APICS MATERIALS MANAGER

COMPETENCY MODEL

APICS Corporate Ofce: 8430 West Bryn Mawr, Suite 1000, Chicago, IL 60631 USA

Phone 773-867-1778 Toll Free 800-444-2742 Fax 773-639-3008 apics.org

All rights reserved. No part of this publication covered by the copyright herein may be

reproduced or copied in any form or by any means – graphic, electronic, or mechanical,

including photocopying, taping, or information storage and retrieval systems – without written

permission of the publisher.



©2010 APICS Te Association or Operations Management

Materials managers support the complete cycle o material ow—rom the purchase and control o

materials to the planning and control o work in process and the nished product. In short, these

proessionals ensure that an organization's available goods can satisy the demands o customers.

Organizations depend on efective materials managers to minimize waste, manage inventory levels, and

ensure that output is in line with the company’s balance sheet.

APICS Te Association or Operations Management is the premier membership

organization providing education, certication, and career development opportunities to

supply chain proessionals worldwide. Te APICS Certied in Production and Inventory

Management coursework and corresponding certication gives proessionals the

knowledge and skills they need to be successul. Knowledge and skills combined with

work experience create the competencies required or individuals to excel in their careers

and distinguish themselves in their eld. In recognition o this, APICS developed the

Materials Manager Competency Model to guide individuals considering careers in materials

management, materials management proessionals seeking to advance their positions, and

human resource managers who are hiring in this eld.

About the Model

Te structure o the APICS Materials Manager Competency Model ollows guidelines set by the

Employment and raining Administration o the United States Department o Labor. Te model

is visually represented in a diagram or easy reerence, as seen on the ollowing page. Te model is

organized into tiers o competencies and includes descriptions o the activities and behaviors associated

with each competency. Te Competency Model Clearinghouse denes competency as “the capability toapply or use a set o related knowledge, skills, and abilities required to successully perorm ‘critical work

unctions’ or tasks in a dened work setting.” In many cases, the competencies outlined in this model are

adapted rom the APICS Operations Management Body of Knowledge (OMBOK) Framework .

Acknowledgements

Te APICS Materials Manager Competency Model was a research project undertaken by staf in the

proessional development division o APICS. Tey were supported by the APICS 2009 Future Leaders.

In addition, APICS staf and leaders used public domain inormation obtained rom the Competency

Model Clearinghouse (www.Careeronestop.org) in the model’s creation.

INTRODUCTION



©2010 APICS Te Association or Operations Managemen © 2 0 1 0 A P I C S T e A s s o c i a t i o n f o r O

p e r a t i o n s M a n a g e m e n t




FOUNDATIONAL COMPETENCIES

Personal Eectiveness

Competencies (Tier 1)Personal efectiveness competencies represent motivesand traits as well as interpersonal and sel-management

styles, and generally are applicable to any number o industries.

Awareness o the needs o others• Understand others’ business needs and goals.• Have perspective into others’ points of view.• Build rapport and credibility with colleagues.• Anticipate others’ needs and respond to their

concerns and problems.

Integrity

• Demonstrate trustworthiness and professionalism indealing with clients, peers, and team members.

• Respond in a consistent manner to situationsthat require honesty and candor.

• Avoid conicts between work and personalinterests or activities.

Continuous learning• Demonstrate an interest in personal learning and

development; seek eedback rom multiple sourcesabout how to improve and develop; modiy behaviorbased on eedback or sel-analysis o past mistakes.

• Take steps to develop and maintain knowledge,skills, and expertise necessary to achievepositive results; participate ully in relevanttraining programs and actively pursue otheropportunities to develop knowledge and skills.

• Anticipate changes in work demands andparticipate in assignments or training thataddress these changing demands; treatunexpected circumstances as opportunities to

learn.• Engage in personal career development by identiying occupational interests, strengths,options, and opportunities; make insightulcareer planning decisions based on integrationand consideration o others’ eedback; seek outadditional training to pursue career goals.

Eective communication• Express information to individuals or groups

considering the audience and the nature o theinormation (e.g., technical or controversial); speak clearly and condently; organize inormation in

a logical manner; speak using common Englishconventions including proper grammar, tone andpace; track audience responses and react appropriately to those responses; efectively use eye contact andnonverbal expression.

• Receive, attend to, interpret, understand,and respond to verbal messages and othercues; pick out important inormation in verbalmessages; understand complex instructions;appreciate eelings and concerns o verbalmessages.

• Practice meaningful two-way communicationby speaking clearly, paying close attentionand seeking to understand others, listeningattentively and clariying inormation andattending to nonverbal cues and respondappropriately.

• Inuence others; persuasively present thoughtsand ideas; gain commitment and ensure supportor proposed ideas.

Interpersonal skills• Relate well to clients, colleagues, and team members.• Maintain a positive, supportive, and appreciative

attitude.• Actively listen to others and demonstrate an

understanding o their point o view.• Create and open environment that encourages

people to work together to solve problems andimprove practices and services.

• Explore and resolve conicts as they arise.• Communicate clearly to avoid

misunderstanding.

Creativity • Demonstrate intellectual curiosity about why things

are the way they are. Challenge the status quo.• Change, elaborate, adapt, and improve own

ideas or those o others.• Demonstrate a bias towards action; materialize

thoughts into products or services.



©2010 APICS Te Association or Operations Managemen

Academic Competencies (Tier 2) Academic competencies are primarily learned in anacademic setting and include cognitive unctions andthinking styles.

Math, statistics, and analytical thinking• Practice applied mathematics in collecting and

interpreting quantitative data.• Demonstrate the ability to scrutinize and break down

acts and thoughts into their strengths and weaknesses.• Develop the capacity to think in a careful and

discerning way, to solve problems, to analyzedata, and to recall and apply inormation.

Reading and writing for comprehension• Understand what has been read; gather information from

a text.• Demonstrate an understanding of material read by

orming opinions and sharing personal experiences.• Apply the strategies of self-questioning, retelling, writing, summarizing, predicting and veriying,story mapping, role play, and responsiveness.

Applied science and technology • Demonstrate an understanding of the factors that are

considered important to the branch o knowledge ortechnology.

• Understand the use of technology and itsinterrelation with lie, society, and the environment,drawing upon such subjects as industrial arts,engineering, applied science, and pure science.

• Develop knowledge of specic tools and how they afect a person’s ability to adapt to and control hisor her environment.

• Demonstrate an ability to gain knowledge orunderstanding to meet a specic, recognized need.

• Possess knowledge that is suciently general,clearly conceptualized, careully reasoned,systematically organized, critically examined,and empirically tested with regard to the specicscience or technology.

Supply chain fundamentals• Understand that supply and logistics is a system

o organizations, people, technology, activities,inormation, and resources involved in moving aproduct or service rom supplier to customer.

• Possess basic knowledge of supply chainactivities, including transormation o naturalresources, raw materials, and components intoa nished product that is delivered to the endcustomer.

• Recognize the ways that supply chain link valuechains.

Foundations of business management• Understand all management activities carried out in the

course o running an organization, including controlling,

leading, monitoring, adjusting, organizing, and planning.• Analyze nancial statements and explain the

implications o standard nancial ratios and allcomponents o the balance sheet and incomestatement.

• Create interactive decision support models thatdemonstrate the sensitivity o outcome to multipleindependent variables.

• Calculate project and organizational cash ow orecasts; present value investment comparisonsand risk-adjusted return calculations.

• Demonstrate knowledge of visual presentationtechniques including charting, histograms,and ow sheets, as well as oral and writtenpresentation techniques.

• Practice basic business communications.• Understand fundamental organizational behavior.





Materials management fundamentals• Demonstrate knowledge of the operations management

structure o the modern manuacturing and distributioncompany.

• Understand methods of converting and communicating

demand requirements or products and services intodetailed plans and schedules or inventory acquisition.• Calculate key inventory performance metrics such as

turnover ratios, cost-benet trade-ofs, days o inventory on hand, labor productivity, and inventory valuation.

• Apply the various costing and valuation methods toinventory management.

• Demonstrate detailed knowledge of manufacturingplanning, master production scheduling, productdenition, inventory control, materials requirementsplanning, capacity requirements planning, shop oor

control, warehousing, transportation, and purchasingbusiness unctions.• Understand standard enterprise resources planning and

supply chain management system technologies.• Understand management methods and techniques

involved in lean/Just-in-ime management.• Understand performance of human resource management

unctions.• Demonstrate ability to participate in strategic planning

and control development with senior management.• Understand basic principles of sustainability, including

reverse logistics, reworking product lines, and cuttingoperational energy costs.

Operations and enterprise economics• Understand the importance of and demonstrate ability

in the process o taking raw materials or knowledge andconverting it into a product or service that has more valueto the customer than the original material or data.

• Determine the success or failure rate of a business usingnancial accounting, incorporating terms and techniquesincluding: income, expense, cost o goods sold, grossmargin, balance sheet, return on assets, inventory turns,capital asset management, and cash management.

• Employ the technique of break-even analysis, which ndsthe break-even point—the volume at which revenuesexceed total costs.

• Find the best operating level—the level of capacity for which a process was designed. Tis is also the volume o output at which average unit cost is minimized.

• Use cost accounting systems to keep track of all costso building products, labor, material, overhead, andvariances. Tese systems include activity-based costingand cost analysis and control.





Workplace and Leadership

Competencies (Tier 3) Workplace competencies represent those skills andabilities that allow individuals to unction in anorganizational setting.

Problem solving and decision making• Practice goal-directed thinking and action in situations

or which no routine solutions exist.• Understand a problem situation and its step-by-step

transormation based on planning and reasoning.• Demonstrate ability in choosing between alternative

courses o action using cognitive processes such asmemory, thinking, and evaluation.

• Demonstrate ability to map processes of likely

consequences o decisions, to work out the importanceo individual actors, and to choose the best course o action.

Teamwork/collaboration• Demonstrate a commitment to the mission andmotivation to combine the team’s energy and expertiseto achieve a common objective.• Understand the dynamics of eective teamwork inorder to attain higher levels o team perormance.• Demonstrate ability to work as part of a tight-knit and

competent group o people.• Demonstrate a commitment to engage teams in otherdepartments or and divisions o the organization.

Accountability and responsibility • Demonstrate a willingness to accept responsibility or

and accountability or one’s actions.• Exhibit a moral, legal, or mental accountability in areas

or which on is responsible.• Understand that these two workplace competencies are

intertwined, and that both abilities must be present inorder to succeed.

Customer ocus (internal & external)• Understand this is an organizational orientation

toward satisying the needs o potential and actualcustomers.

• Ensure that the whole organization, and not justrontline service staf, puts its customers rst.

• Ensure all activities, from the planning of a new product to its production, marketing, and ater-sales

care, are built around the customer.• Understand that every department and every employee

should share the same customer-ocused vision.• Practice good customer relations management and

maintain a customer relations program.

• Demonstrate ability to balance the needs of theorganization and the needs o the customer.

Planning and organizing• Eectively plan what is to be achieved and involve all

relevant staf members.• Anticipate important of critical events, identifying

resource requirements and assigning responsibility orspecic work, including deadlines and perormanceexpectations.

• Demonstrate the use of information-gathering

techniques, analyzing situation and identiyingimplications in order to make correct decisions.

• Demonstrate ability to monitor progress and to makechanges as required.

• Ensure that sta is aware they will be accountable forachieving the desired results through planned programevaluation and individual perormance appraisal.

• Ensure that sta is provided with the necessary tools tosucceed.

Confict management• Demonstrate ability to manage conict by identifying

and handling conicts in a sensible, fair, and ecientmanner.

• Demonstrate skill in eective communicating, problemsolving, and negotiating with a ocus on party interests.

Supporting and training sta • Understand the importance of facilitating ongoing

proessional development opportunities or staf.• Assess training needs and identify means to ll skill

gaps, such as classes, mentoring, and written materials.• Provide opportunities for sta to demonstrate

leadership skills.• Provide clear and meaningful performance evaluation.• Encourage the development of skills that increase

personal and departmental productivities.





Operations Management Technical

Competencies (Tier 4)Operations management technical competenciesrepresent the knowledge, skills and abilities needed by alloccupations within operations management, includingmaterials managers.

Operations strategy • Ensure the alignment of the materials management

strategy with the business strategies driving sales,marketing, inance, and manuacturing.

• Develop inventory and plant assetmanagement strategy supportive o company investment and capital management plans.

• Demonstrate ability to consistently deliver products and services to meet the

customer’s needs.• Develop strategic objectives that focus on

areas o quality, cost, lexibility, productivity,and speed.

• Consistently search for methods to developan agile and committed departmental

workorce.

Manufacturing process environments• Demonstrate practical knowledge of company’s

manuacturing processes and equipment

capabilities.• Encourage a close working relationship

between manuacturing and materialsmanagement personnel.

• Develop materials storage and delivery processes supportive o manuacturingoperations.

• Assist manufacturing with processimprovement and lean initiatives.

• Assist manufacturing management in thedevelopment o meaningul productivity and

perormance measurements.• Understand the influence of demand on

manuacturing process design.• Ensure processes conform to both the needs

o the customer base and the characteristico the product.

• Ensure the continuous availability of quality materials and inished components.

• Understand output of master resources planning,capacity management, and advanced planningsystem technologies.

Standards (time measurement)• Assist manufacturing engineering in the

development o process productivity standards.• Understand calculations for efficiency,

utilization, and productivity • Demonstrate ability to calculate nominal and

demonstrated productive capacities.

Supply chain management• Demonstrate ability to manage the network of

interconnected businesses involved in the ultimateprovision o product and service packages requiredby end customers.

• Understand that supply chain managementspans all movement and storage o raw materials, work-in-process inventory, andinished goods rom point-o-origin to point-o-consumption.

Process improvement/six sigma• Understand the systematic approach to closing

o process or system perormance gaps throughstreamlining and cycle time reduction, and identiy and eliminate causes o quality below speciications,

process variation, and non-value-adding activities.• Maintain company processes that afford

optimum operation and enhance thecompany’s quality management system.

• Demonstrate ability to visualize the totalprocess and aid in locating problem areasusing process mapping, quality improvement,and visualization tools to locate, quantiy, andcorrect root causes o problems.

• Perform periodic evaluations to maintain processesby gathering pertinent inormation—such as

symptoms rom knowledgeable sources—andcarrying through to the potential and root causes othe problem.

• Hold gains in process improvements by establishingkey perormance measurements, benchmarkingmetrics, and continuous process improvementinitiatives to improve process quality on continualbasis.

PROFESSION-RELATED COMPETENCIES




Execution Planning, Scheduling, and Control• Determine the need for material and capacity to

address expected demand, execute the resultingplans, and update planning and inancialinormation to relect the results o execution.

• Plan the management function by defininggoals on the tasks and resources need toattain those goals.

• Schedule a timetable of events and decide when and where certain events will occur.

• Control and check errors, taking any corrective action so that deviations romstandards are minimized and that statedgoals o the organization are achieved in adesired manner.

Lean management• Identify and reduce or eliminate waste in all areas of

a supply chain.• Calculate the total system cost of delivering a

product or service to the customer.• Develop systems that allow employees to

produce perect results by: educating suppliers to create value or customers

by streamlining processes in the value chain. using suppliers whose methods and core

competencies will align with lean requirements

and developing long-term relationships withthem. reducing or entirely eliminating the cost o

changing rom one product or service to another.

Sustainability • Understand current industry and government

regulations governing sustainability.• Calculate carbon ootprint o business processes.• Develop processes that strive to eliminate

waste.• Incorporate renewable raw materials.• Assemble an eective reverse logistics

program.• Pursue transportation alternatives to reduce energy

and emissions.• Use sae and reusable containerization.• Pursue paperless documentation.• Convert outputs to inputs and recycle end products

and components when possible.• Convert outputs to inputs; recycle end-

products and components when possible.

Enabling technology application• Recognize that continuous process improvement

is an accepted way o lie in business and that ew companies lack a continuing quality or processimprovement eort.

• Implement improvement methods, such as businessprocess reengineering, total quality management,six sigma, lean manuacturing, and theory o constraints.

• Understand that technology and processunctionality has an interconnectedrelationship and that each helps transormthe other.

• Initiate process improvements that areenabled and supported by technology.





Materials Manager Knowledge

Areas (Tier 5)Materials manager knowledge areas are broad knowledgeareas that can be used as a basis or speciying moredetailed knowledge areas required or work as a materialsmanager.

Transportation, distribution, and logistics• Manage transportation operations.• Maximize freight loads while minimizing freight costs.• Ensure ecient use of transportation resources while meeting

the needs o the customer.• Move material, usually one organization’s nished

goods or service parts, rom the manuacturer ordistributor downstream to the customer.

• Transfer goods and services from the raw materials

suppliers and producers to the end users orconsumers.

• Apply the cross-docking technique when bringingitems into a distribution center or immediate dispatch.

• Divide truckloads of homogeneous items into smaller,more appropriate quantities or use by breakbulk handling.

• Practice consolidating several items into larger units for fewerhandlings; or example, placing items in boxes loaded and wrapped as a pallet by unitization packaging.

• Apply logistics with the movement of personnel, as well as the design and development, acquisition,storage, movement, distribution, maintenance,evacuation, and disposition o material.

• Develop and implement a formal logistics strategy.• Develop and implement a reverse logistics plan.

Warehousing• Receive, store, and ship materials to and from

production or distribution locations by incorporating warehousing activities.

• Congure warehouses to have formal storage

locations that identiy the row, rack section,level, and shel location, typically with analphanumeric location bar code or label.

• Place high-turn items closest to packing and shippingareas, which reduces picking, put-away times, andtransportation within the warehouse.

• Select random locations when travel distance is arenot an important consideration and when overallutilization o warehouse space is important.

Inventory management• Determine departmental inventory management strategies and

objectives.• Demonstrate knowledge of setting up an eective inventory

control department.

• Demonstrate knowledge of applying trade-o analysis tobalance requirements o demand and supply.

• Understand the dierent classes of inventory, including raw materials; work in process; nished goods; maintenance, repair,and operating supplies; service parts; damaged; and obsolete.

• Understand the dierence between independent anddependent demand inventory.

• Dene the ve functions of inventory: cycle inventory, safety inventory, anticipation inventory, transportation inventory, andhedge inventory.

• Determine the elements of inventory decision costs, such as

xed, variable, direct, and overhead.• Demonstrate knowledge of calculating inventory carrying costs

and manuacturing and purchasing costs.• Eectively manage surplus and obsolete inventories.• Understand the methods of valuing inventory, such as

standard; rst in, rst out; last in, rst out; average; and actualcost.

• Understand the dierence between continuous and periodicreview systems o inventory control.

• Eectively calculate inventory required to restock products or

parts with inventory models including visual review, two-binsystem, periodic review, order point, time-phased order point,and Just-in-ime.

• Eectively calculate safety stock for independent demanditems.

• Demonstrate ability to calculate order quantity through theeconomic order quantity model.

• Maintain high inventory accuracy through varioustechniques including inventory audits, annual physicalinventory, and cycle counting.

• Generate reporting detailing inventory nancial

statements, turnover ratios, ABC analysis, andinventory perormance.

• Demonstrate knowledge in the latest electronic data collectiontechnologies.

• Understand lean/Just-in-Time concepts and practices.• Demonstrate ability to run a pull system of inventory control.• Eectively calculate kanban card requirements.• Develop kaizen event teams to remove inventory and process wastes and speed inventory throughput.





Production planning• Demonstrate ability to establish a manufacturing

planning department consisting o master scheduling,production planning, and open-manuacturing ordermanagement.

• Understand the sales and operations planning(S&OP) process.

• Understand the relationships between theproduction plan, sales plan, and overall businessplan.

• Identify current planned level of demand andcreate tactical production plans to meet theidentied customer demand.

• Demonstrate knowledge of the various methods toestablish and work with bills o material (BOMs).

• Calculate production lead times.

• Understand scheduling techniques using forwardscheduling and backward scheduling.

• Demonstrate knowledge of techniques to manage inniteloading and nite loading.

• Understand how to manage load leveling and bottleneck scheduling.

• Demonstrate knowledge of theory of constraints (TOC)and drum-bufer-rope scheduling methods.

• Analyze production oor status through input/output control reporting.

• Eectively analyze if inventories need to bemaintained, raised or lowered.• Coordinate information with other functional sta,

including, sales, engineering, accounting, nance,marketing, and human resources.

• Establish reporting to determine labor and productivity perormance statistics.

Queuing and simulation• Initiate simulations to evaluate planned operational

changes.

• Analyze impacts of varying queue lengths with queuingmodels and simulation sotware.

• Eectively analyze simulation output to determinethe best operational rules and structural changesto enact.

Planning processes• Demonstrate detailed knowledge of integrating

production and materials planning with the businessplan.

• Fully understand modern planning concepts and

practices.• Demonstrate ability to use spreadsheet and enterprise

resources planning sotware in managing the planningprocess.

• Understand the discipline of planning, organizing,and managing resources to bring about thesuccessul completion o specic project goalsand objectives.

• Demonstrate ability to dene an eective project plan.• Dene the project resources, such as money,

people, materials, and space, the milestones, and

specic outcomes.

Risk management• Accurately identify risks aecting supply, transformation,

delivery, and customer demand.• Develop strategies such as dual sourcing, buering,

and orward buying that minimize nancial impactuncertainties such as yields, timing, pricing, andcatastrophic events.

• Eectively analyze the probability, control, and

impact o risks identied.





Materials Manager Technical

Competencies (Tier 6)Materials manager technical competencies are specic tothe role o materials manager.

Enterprise resources planning (ERP)/ manuacturing resource planning (MRP II)/ material requirements planning (MRP)• Demonstrate ability to dene ERP/MRP II software

systems.• Demonstrate ability to explain the components of a

modern ERP system.• Demonstrate knowledge of the foundations of ERP

systems.• Understand the basic principles and operations of ERP

systems.• Understand the integration of company functionsprovided by an ERP system.

• Establish ERP planning procedures.• Explain MRP time-phased planning logic.• Understand the role of the bill of material in ERP.• Describe how safety stock is managed in MRP.• Understand the various types of order policies available in

MRP order generation.• Apply the application of independent and dependent

demand to ERP.

• Calculate scrap and shrinkage factors into the MRPgeneration.

• Understand the MRP gross-to-net explosion process.• Evaluate the contents and calculations on the MRP grid

display/report.• Demonstrate knowledge of planning utilizing action

messaging.• Demonstrate knowledge of planning time fences in MRP.• Understand the types of replenishment orders found in

the MRP grid.

• Demonstrate ability to work with pegged requirements inMRP.• Understand how to perform order rescheduling in MRP.• Understand the various MRP output reports.• Establish when MRP is to be generated.• Demonstrate knowledge of capacity requirements

planning (CRP).

• Demonstrate detailed knowledge of the componentsnecessary to run CRP: work centers, labor/machines,routings, setup times, run, standards, and move times.

• Demonstrate knowledge of increasing and decreasingcapacity.

• Demonstrate ability to use CRP to reschedule open andMRP-generated orders.• Understand load versus capacity output reporting.• Collaborate with functional departments to discuss and

react to changes in demand.• Understand ERP support for advanced planning systems.

Distribution requirements planning (DRP)• Understand the denition of DRP.• Establish DRP planning procedures.

• Understanding of the components of the DRP planningsystem.

• Build a bill of distribution (BOD) for the DRPexplosion.

• Demonstrate knowledge of the links between MRP andDRP.

• Understand the sources of distribution demand in a DRPsystem.

• Describe DRP order policies for planned ordergeneration.

• Describe how safety stock is used in DRP planning.• Understand the DRP gross-to-net calculation.• Use the DRP output grid to describe planning

requirements.• Use exception reporting to determine order action.• Describe the types of planned orders generated by DRP.• Describe the meaning of DRP action messages• Use pegged requirements for DRP scheduling and

rescheduling actions.• Demonstrate knowledge of DRP for nancial estimating,

transportation planning, warehousing, and labor and

equipment capacity planning.• Understand the integration of DRP with supply chain

management and supply chain event-managementsotware suites.





Sales and operations planning(S&OP)• Understand the denition of S&OP.• Eectively communicate the operational perspective in

cross-unctional meetings.• Demonstrate knowledge of the structure and logic of the

S&OP process.• Understand the components of the S&OP process.• Demonstrate ability to establish an S&OP program,

dene operating procedures, and establish a S&OPplanning team rom the diferent parts o anorganization.

• Demonstrate ability to work eectively with othermembers of the S&OP team.

• Demonstrate ability to assemble the data necessary to runthe S&OP process.

• Understand how to calculate the S&OP plan output.

• Evaluate output and propose changes to the S&OP plan.• Demonstrate ability to work with S&OP in dierent

manuacturing environments.• Integrate S&OP with nancial output.• Communicate plan changes to production and inventory

planning.

Demand management and orecasting• Understand the principles and applications of demand

orecasting.• Demonstrate knowledge of the critical requirementsor efective orecasting: establishing time horizons,determining the level o orecasting detail, anddetermining the orecastable database.

• Demonstrate ability to establish policies and proceduresto ensure orecast control.

• Demonstrate knowledge of the three forecastingtechniques: judgmental (qualitative) orecasts,quantitative (time-series) orecasts, and causal (extrinsic)orecasting.

• Demonstrate ability to discuss and work with time-seriesanalysis in orecast data preparation.

• Demonstrate ability to apply time-series methods to work with horizontal, random, seasonal, trend, andcyclical demand.

• Understand subjective, causal, and time-series forecastingmethods, including: averages time series (exponential smoothing) trend

seasonality regression models ocus orecasting

• Establish key performance indicators of forecast accuracy.• Dene the purpose of the forecast.• Prepare the statistical components of a forecast.• Demonstrate ability to determine forecast error.• Ensure the interaction of the rm’s functional managers,

and track and maintain the orecast through timely andaccurate eedback.

Master planning• Demonstrate ability to translate the production plan into

a time-phased build schedule.• Understand how to work with planning bills of material.• Understand the planning requirements for managing

make-to-stock, make-to-order, assemble-to-order, andengineer-to-order manuacturing environments.

• Understand the concept of forecast consumption by actual sales orders.

• Establish the demand and planning time fences.• Establish policies for time fence management.• Demonstrate knowledge of performing cumulative lead

time analysis.• Understand the mechanics of the master schedule

calculation logic.• Understand the tasks in managing the available-to-

promise and capable-to-promise portion o the masterschedule.

• Demonstrate ability to schedule demand based on theproduct mix.

• Understand the role of managing safety stock in the

master schedule.• Manage schedule changes through system generated

action messages.• Demonstrate ability to use the rough-cut capacity plan.• Assemble master schedule reporting regarding

perormance to the business plan, the shipment plan, theinventory plan, and the production plan.





Warehouse management systems (WMS)• Demonstrate knowledge of the applications available in a WMS.

• Demonstrate knowledge of the necessary steps tointegrate WMS and ERP systems.

• Develop standardized processes, instructions, rules, andparameters or warehouse management in the initialsotware implementation.

• Demonstrate knowledge of performing warehousingplanning in a WMS.

• Input receiving, storing, bin selecting, picking, andshipping tasks ofered by WMS application unctionality.

Security and hazardous materials regulations• Comply with security regulations established by the U.S.

Department of Homeland Security.

• Demonstrate knowledge of various trade agreements,such as the North American Free rade Agreement andthose o the European Union.

• Demonstrate knowledge of the key hazardous materialshandling laws established by the U.S. EnvironmentalProtection Agency.

• Identify and implement proper packing and labelingmethods or transportation o hazardous materials.

• Ensure all sta handling hazardous materials receivestraining on saety and compliance regulations.

• Create lean and green programs for energy and materialsuse reduction.• Establish ecient reverse logistics and recycling

programs.• Determine most eective ways of disposing of hazardous wastes.

• Work with purchasing and manufacturing to target wasteand hazardous materials reduction.

Supply chain synchronization• Balance supply with demand, considering both lead time

and demand variability created by supply patterns notmatching demand patterns.

• Eectively collaborate and communicate with supply chain members.

• Integrate activities across organizations on the supply chain by ensuring inormation visibility in inventory levels, anticipated productions, and material-in-transit.

• Mitigate the bullwhip eect.

Strategic sourcing and purchasing• Eectively locate and source key materials suppliers, while analyzing the total cost associated with procuringan item or service.

• Focus on developing and maintaining long-term

relationships with trading partners who can help thepurchaser meet protability and customer satisactiongoals.

• Integrate automation of request for quote (RFQ), requestfor proposal (RFP), electronic auctioning, business-to-business commerce (B2B), and contract managementprocesses when using a strategic sourcing approach

• Establish methods of meeting customer satisfaction goals.

Vendor-managed inventory (VMI)• Demonstrate knowledge of establishing an onsite

customer inventory management program.• Establish objectives of the VMI program.• Establish performance reporting to ensure quality and

protability.• Integrate the customer requirements into the business

planning system.• Demonstrate ability to manage remote sta.





Materials Manager Specifc

Requirements (Tier 7)Materials manager specic requirements such ascertication, licensure, and specialized educationaldegrees, or physical and training requirements ormaterials managers.

Post Secondary Education• e majority of materials management professionals

hold post secondary degrees – a Bachelor’s orequivalent.

• While a number of materials managementproessionals have degrees related to supply chain oroperations management, the majority hold degrees inother elds including, but not limited to, business,

economics, engineering, or liberal arts studies.

Association Membership• Professional association membership ensures that

materials management proessionals can link intoa network o practitioners to share best practices,develop their careers, and continue their proessionaleducations. Tere are a number o supply chainassociations related to specic industries, including butnot limited to: APICS Te Association or Operations

Management (APICS) Institute o Supply Management (ISM) Supply Chain Council (SCC) Council o Supply Chain Management Proessionals

(CSCMP)

Certications• Once the professional is in the workplace, it is desirable

to obtain a materials management specic certication. While there are a number o materials managementcertications related to specic industries, general

certications include: Certied in Production and Inventory Management

(CPIM)—APICS Te Association or OperationsManagement

Certied Supply Chain Proessional (CSCP)— APICS Te Association or OperationsManagement

Certied Proessional in Supply Management(CPSM)—Institute o Supply Management.

OCCUPATION-RELATED COMPETENCIES




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APICS Te Association or Operations Management is the global leader and premier

source o the body o knowledge in operations management, serving nearly 40,000members globally. APICS education and certication programs are recognized worldwideas the standard o proessional competence in production and inventory management,operations management, and supply chain management.

Join APICS to access local APICS chapters, networking opportunities, exclusive researchreports, publications, and educational programs and products that create avenues orincreased proessional development and career growth, helping you meet the ast-changingdemands o the workplace. Join now at apics.org/join.

APICS OperationsManagement Employment Outlook Learn about the latest

trends and inormationin hiring, salaries, andeducation in the operationsmanagement eld.apics.org/research

APICS Certied Supply Chain ProessionalCertication Find out how you can

improve perormanceacross your supply chain by supporting your employees’participation in the APICSCSCP program.

apics.org/cscp

APICS Career CenterNow that you know what you’re looking orin a candidate, post job

opportunities or search jobcandidate resumes today.apicscareercenter.org

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