Learning Outcomes of CPIM Part-1


The participants of the Certified in Production and Inventory Management Part-1 are expected to develop a strong understanding on the following areas and will be able to apply those principles in their day-to-day work.


Section A - Introduction to Supply Chain Management
1. The Manufacturing Supply Chain – The Supply Chain Management Environment – Forming a
Supply Chain
2. Introduction to Manufacturing – Role of Manufacturing and Materials Management –
Business Environment – Strategy and the Role of Metrics – Manufacturing Business Model


Section B - Manufacturing Design, Planning and Control
1. Manufacturing Environments and Process choices – Manufacturing Environments -
Manufacturing Process Types – Manufacturing Process Layouts
2. Manufacturing Planning and Control - Overview of Components of MPC – How MPC
Components Fit into the Business Hierarchy – Evolution to Current Use of Enterprise Resource
Planning for MPC


Section C - Quality and Continuous Improvement
1. Total Quality Management and Other Quality Tools – Quality – Cost of Poor Quality –
Objectives of TQM – Core Concepts of TQM – Quality Function Deployment – Basic Seven
Tools of Quality (B7) – Root Cause Analysis – Benchmarking
2. Six Sigma – Objectives of Six Sigma – Six Sigma Methodology – DMAIC
3. Continuous Improvements of Products and Processes – Continuous Improvement Objectives
– Continuous Product Improvement – Continuous Process Improvement – Commonalities
among Continuous Improvement Methodologies


Section D - Lean
1. Lean – Pull Rather than Push – House of Lean
2. Lean for Continuous Improvement – Implementing Continuous Improvement Using Lean
Methodologies – Lean Tools and Techniques


Section E - Demand Management
1. Demand Management Processes – Marketing Management – Customer Relationship
Management (CRM) – Demand Planning
2. Characteristics of Demand – Independent Versus Dependent Demand – Demand Patterns
3. Forecasting – Forecast Horizon and Purpose – Forecasting Principles – Forecasting Process –
Forecasting Techniques
4. Tracking the Forecast – Bias Versus Random Variation – Deviation Versus Forecast Error –
Mean Absolute Deviation (MAD) – Tracking Signal – Other Uses of Forecasting and Error
Tracking – Moving Towards Less and Need for Forecasting


Section F - Master Planning
1. S & OP and Production planning – Sales and Operations Planning – Production Planning –
Resource Planning – Sales and Operations Planning and Production Planning in Lean
2. Master Scheduling and the Master Production Schedule (MPS) – Objectives of Master
Scheduling – Master Scheduling Inputs, Processes and Outputs – Master Scheduling Steps - Determining the Planning Horizon – Controlling the Master Schedule: Time Fences and Zones
– How Lean Approaches Master Scheduling
3. Master Scheduling and Sales – Calculating Available-to-Promise – Capable-to-Promise

Section G - Material Requirements Planning
1. The MRP Environment – Objectives of MRP – Inputs, Process and Outputs
2. Bill of Materials- Bill of Material Concepts – Types of BOMs – Where-Used and Pegging Data
3. MRP Logic – Exploding and Offsetting – Gross to Net Requirements – Bucket less MRP – MRP
in Lean – Capacity Requirements Planning (CRP)
4. Using and Managing the Priority Plan – MRP Planning Software – Order Control


Section H - Capacity Management
1. Capacity Management Overview – Capacity Planning Hierarchy – Capacity Available Versus
Capacity Required – Capacity Measurement Systems – Iterative Capacity Planning Process
2. Capacity Requirements Planning – Inputs to CRP – Calculating Capacity Available – Calculating
Load (Capacity Required) and Differences – Resolving Differences – Capacity Requirements
Planning in Lean


Section I - Purchasing
1. Purchasing Participants and Objectives – Types of Purchases – Value-Added Role of Purchasing
and Other Participants – Objectives
2. Purchasing Process – Basic Purchasing Process – Planning Purchasing – Executing Purchasing
– Monitoring and Controlling Purchasing


Section J - Aggregate Inventory Management
1. Aggregate Inventory Management Overview – Objectives of Aggregate Inventory
Management – Types of Inventory – Functions of Inventory
2. Inventory Costs – Item Costs – Carrying Costs – Ordering Costs – Stockout Costs – Capacity-
Related Costs
3. Financial Statement and Inventory – Balance Sheet – Income Statement – Statement of Cash
Flows – Financial Inventory Performance Measures – Financial Statement Inventory Valuation
4. Inventory Policies – Inventory Policies to Protect Against Uncertainty


Section K - Item Inventory Management
1. Inventory Controls – ABC Inventory Control
2. Order Quantities – Objectives of Order Quantity Systems – Lot-Size Decision Rules – Economic
Order Quantity (EOQ)
3. Independent Demand Ordering Systems – Order Point Systems – Periodic Review Systems –
Lean-One Piece Flow
4. Auditing Inventory Records – Periodic Inventory Audit – Cycle Counting


Section L - Execution and Control
1. Theory of Constraints – Types of Constraints – Principles of Bottleneck Management – Drum-
Buffer-Rope, Five Focusing Steps

Section M - Physical Distribution
1. Physical Distribution Overview - Distribution Inventory - Transpiration - Warehousing 


Written by Bharath Ravi

Business Consultant whose qualification includes a Bachelor’s degree in the field of Mechanical specialized in Automobile & Manufacturing; Trained in Certified Supply Chain Professional (CSCP) Certification, Hands on Foundation Certificate in Business Analysis, BCS (UK) and Certified Professional for Requirements Engineering (CPRE-FL).

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