Monday, July 3, 2006
   


Institute for Supply Management

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ISM's 92nd Annual International Supply Management Conference

Just in ETime -- Pass It On

In This Issue ...
  • June Manufacturing ISM Report On Business®: PMI at 53.8%.  Read more.
  • How are the Certification Exams Scored? What is Passing?  Read more.
  • The June Issue of Supply Line 2055 is Now Available.  Read more.
  • R. Gene Richter Awards Accepting Entries From Innovative Supply Management Departments.  Read more.
  • Web Site of Interest.  Read more.
  • Term of the Day.  Read more.
  • Are You Receiving Second-Hand News?  Read more.
  • Contact Us.  Read more.


June Manufacturing ISM Report On Business®:
PMI at 53.8%

Economic activity in the manufacturing sector grew in June for the 37th consecutive month, while the overall economy grew for the 56th consecutive month, say the nation's supply executives in the latest Manufacturing ISM Report On Business®.

The report was issued today by Norbert J. Ore, C.P.M., chair of the Institute for Supply Management™ Manufacturing Business Survey Committee. "Manufacturing growth continued in June, and although the rate of growth slowed slightly, renewed strength in June's New Orders Index provides encouragement for the third quarter. The sector is benefiting from the weaker dollar and business investment. While energy and raw material prices are still a concern, our members indicate that they are coping with the challenges, and generally see their businesses in a continuing growth mode."

To read the entire report click here.

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How are the Certification Exams Scored? What is Passing?

Each candidate must pass the required Exam modules with a minimum scaled score of 55 regardless of the number of questions in that module of the Exam. ISM maintains multiple versions, or forms, of the exam. While the content of the exam remains constant, the actual questions used in the exam will change. Because different forms of the exam use different questions, the level of difficulty will vary slightly from test to test. To compensate for these variations, a statistical procedure known as equating is used to account for differences in test difficulty. The passing score is not calculated based upon percentages.

For example, let's suppose we have two test forms of Module 4 — Test A and Test B. Now suppose it is established that in order to pass Test A, a person must answer 32 out of 60 questions correct. Furthermore, suppose that Test B is somewhat easier than Test A. To compensate for this difference, the passing score for Test B is adjusted to prevent any "bonus" being given to the candidates taking Test B. Thus, it may be established that a candidate must get a score of 34 out of 60 on Test B in order to pass. This is test equating. It holds candidates to the same standard in terms of difficulty, regardless of which version is taken.

Due to this method of equating the percentage of correct answers varies from exam to exam. Then, to maintain consistency in scoring, a second statistical procedure called scaling is used. Scaling converts all scores to a scale ranging from 25 to 75, with a passing score set at 55. Thus, the scores you receive from ISM are actually scaled scores. If the scaled score on any particular module ranges from 25 to 54, this means you failed that module. If the scaled score is in the range of 55 to 75, you passed that module.

NOTE: This question and its answer was taken from ISM's Certification - Frequently Asked Questions (FAQs) area. To review the other Certification FAQs click here.

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The June Issue of Supply Line 2055 is Now Available

The June issue of Supply Line 2055: Certification Update is now available on the ISM Web site. Highlights covered in the June issue include:

  • The 45,000th C.P.M. — and Proud of it!
  • Education Level Survey Indicates High Interest in the CPSM
  • ISM Salary Survey Highlights
  • CPSM Seminars Build Understanding During Credentialing Changes
  • ISM Updates CPSM Frequently Asked Questions (FAQs)
  • Onsite C.P.M. Exam Testing Increases in Popularity
  • The New Supply Management Handbook Available Soon!

To access the June issue of Supply Line 2055: Certification Update newsletter click here.

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R. Gene Richter Awards Accepting Entries From Innovative Supply Management Departments

ISM announces its call for entries for the second annual R. Gene Richter Awards for Leadership and Innovation in Supply Management. ISM's Richter Awards are open to supply management departments of all sizes and geographic locations, both domestic and international. Entries should address big challenges for which new solutions have had wide organizational and/or supply chain impact.

ISM will accept entries through an online submission process from July 3 - September 29, 2006. Multiple entries are welcome in four award categories, including process, organization/structure, people and technology. Winners will be notified in January 2007, and award recipients will be publicly announced and honored at an awards dinner on Monday, May 7, 2007 at ISM's 92nd Annual International Supply Management Conference and Educational Exhibit in Las Vegas. Winners agree to present at ISM Conference sessions the Tuesday afternoon following the awards dinner.

For more information on the R. Gene Richter Awards click here.

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Web Site of Interest

This month's Web Site of Interest is: A.T. KEARNEY

Check out the Thought Leadership section of the A.T. Kearney Web site. Here you'll find articles, research briefs, and a business book list. The Thought Leadership area can be browsed by topic, industry or keyword search.

To access this Web site click here.

Please note: This external Internet address contains information created, published, maintained, or otherwise posted by institutions or organizations independent of ISM. Links from this Web site, or any other Web site(s) accessible from this Web site, to any product, entity, service, or information, do not constitute a recommendation by ISM. ISM is not responsible for the contents of any other Web site.

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Term of the Day

Today's ISM Term of the Day is: FIXED COSTS.

Definition: Costs that tend to remain constant, regardless of the volume of operating activity. Examples include rent, depreciation, and property taxes.

A different Term of the Day is posted on the ISM Home Page (www.ism.ws) each day -- 7 days a week. The Term of the Day is taken from the Glossary of Key Supply Management Terms.

ISM members can access the online Members Only Glossary of Key Supply Management Terms which includes terms from the private, public, and various industry sectors, and from a wide variety of sources. The Glossary can be browsed alphabetically, or searched by keyword.

To access the Glossary click here.

If you are not a member but would like membership information click here.

Help us update this Glossary! If you don't find the term or definition that you are looking for let us know. We will be updating the ISM Glossary in the coming months, and your input will be useful for the new edition. To contact us regarding the Glossary, e-mail: mpeck@ism.ws

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Are You Receiving Second-Hand News?

Do you receive copies of a co-worker's Just in ETime newsletter? Are you waiting for someone else to forward that e-mail newsletter to you? Get your OWN news — you don't have to share!

The Just in ETime e-mail newsletter delivers ISM- and purchasing/supply-related news and updates to subscribers' desktop every other week. You'll receive breaking news, such as the ISM Report On Business®, information on upcoming seminars and programs, changes to certification rules/requirements, as well as Web sites of interest to supply/procurement professionals. And best of all — there's no charge to subscribe!

To subscribe click here.

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Contact Us

Questions/Comments? Contact RaeAnn Slaybaugh.

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