CTSC Certified in Transformation for Supply Chain (CTSC) Questions and Answers

According to the CTSC Exam Content Manual, an agile chain is a supply chain model that can handle high demand during peak season and quickly adjust to a lean period with low demand1.An agile chain is characterized by high responsiveness, flexibility, and adaptability to changing customer needs and market conditions1.An agile chain can also cope with high levels of uncertainty and variability in demand and supply1. The other options are not the best supply chain model for this scenario, as they have different characteristics and trade-offs.A custom-configured chain is a supply chain model that delivers customized products or services to customers through modularization and postponement strategies1.A custom-configured chain is suitable for high variety and low volume markets, but it may not be able to handle high demand peaks efficiently2.An efficient chain is a supply chain model that focuses on minimizing costs and maximizing asset utilization through economies of scale and scope1.An efficient chain is suitable for low variety and high volume markets, but it may not be able to adjust quickly to demand fluctuations or customer preferences2.A flexible chain is a supply chain model that can handle moderate changes in demand and supply by adjusting production capacity and inventory levels1.A flexible chain is suitable for medium variety and medium volume markets, but it may not be able to handle extreme demand peaks or lean periods without compromising service levels or costs2.

According to the ASCM, the balanced scorecard in the supply chain measures the performance of the supply chain against eight attributes: reliability, responsiveness, agility, cost, profit, assets, environmental, and social.These attributes reflect the efficiency, effectiveness, and sustainability of the supply chain, as well as its alignment with the customer and stakeholder expectations1.

According to the ASCM CTSC Exam Content Manual, when designing a new demand-driven supply chain, technologies should be evaluated after the supply chain is designed.This is because the supply chain design should be based on the customer needs, the business strategy, and the supply chain capabilities, not on the available technologies1.The technologies should be selected to support and enable the supply chain processes, not to dictate or constrain them1.Evaluating technologies after the supply chain is designed can help to avoid unnecessary costs, complexity, and risks, and to ensure alignment and integration across the supply chain network1.

1: ASCM CTSC Exam Content Manual, page 8.

the perfect order fulfillment is a percentage that measures how many orders meet all the criteria for a perfect order, such as delivery location, product condition, documentation, etc. The formula for calculating the perfect order fulfillment is to multiply the individual performance metrics for each criterion and then multiply by 100. However, the question asks for the formula to calculate the perfect order rate, which is a slightly different metric that measures how many order lines (or items) meet all the criteria for a perfect order. The formula for calculating the perfect order rate is to divide the total number of perfect order lines by the total number of order lines and then multiply by 100.

According to the ASCM, the first step in setting improvement priorities for supply chain transformation is to create a business case for change1.This involves highlighting how improvements in the supply chain processes will enable the organization to achieve its strategic goals, such as increasing customer satisfaction, reducing costs, enhancing sustainability, and gaining competitive advantage1.The business case for change should also calculate the improvement potential by using quantifiable business and supply chain metrics, such as revenue, profitability, service level, inventory, and carbon footprint1.Moreover, the business case for change should guarantee cross-functional engagement by involving key stakeholders from different functions and levels of the organization, such as sales, marketing, finance, operations, and senior management1.By creating a solid business case for change, the organization can justify the need for supply chain transformation, secure the necessary resources and support, and align the improvement priorities with the business objectives1.

According to the CTSC Exam Content Manual, a good supply chain strategy should be tailored to the right level of complexity, which means balancing the trade-offs between efficiency and responsiveness, standardization and customization, centralization and decentralization, and integration and differentiation1.A good supply chain strategy should also align with the business strategy, customer expectations, and market conditions1. The other options are not necessarily wrong, but they are not the main criteria for a good supply chain strategy.

According to the ASCM CTSC Exam Content Manual, developing an organizational mapping is one of the steps in transforming management.An organizational mapping is defined as "a tool that helps to identify the current and future state of the organization’s structure, roles, responsibilities, and reporting relationships"1. An organizationalmapping can help to ensure alignment and consistency across different regions, functions, and processes, and to identify and resolve any gaps or conflicts that may arise during the transformation. By omitting this step, the company failed to recognize and address the difference in the product hierarchy among the regions, which could lead to problems in data integration, reporting, and analysis in the new ERP system.

Ac-cording to the CTSC Exam Content Manual1, one of the required key management capabilities for implementing new supply chain capabilities is inspiring and influential leadership. This means having the ability to communicate the vision and goals of the transformation, motivate and empower the team, and foster a culture of innovation and collaboration.

According to the ASCM CTSC Exam Content Manual, one of the factors that influences the risk exposure of a supply chain segment is the availability of alternative sources of supply (p. 20). If there is only one available supplier for an important product, the supply chain segment is more vulnerable to disruptions and uncertainties, such as supplier failure, quality issues, price fluctuations, or geopolitical events. Therefore, this product category should have the most complete and thorough risk mitigation plans, which may include strategies such as developing backup suppliers, increasing inventory buffers, diversifying sourcing locations, or implementing contractual agreements.

According to the ASCM CTSC Exam Content Manual, the SCOR framework consists of five phases: analyze, configure, optimize, implement, and evaluate.In the analyze phase, the key outputs are an as-is Level 3 process diagram, a scorecard, and competitive requirements1.The as-is Level 3 process diagram shows the current state of the supply chain processes in detail, using the SCOR standard definitions and symbols2.The scorecard measures the performance of the supply chain processes against the SCOR metrics and benchmarks3.The competitive requirements define the target performance levels for the supply chain processes based on the customer and market expectations4.

1: ASCM CTSC Exam Content Manual, page 13.2:SCOR Quick Reference Guide - APICS3:SCOR Digital Standard | ASCM4:Unlock Supply Chain Mgmt: Introducing SCOR Model | IIENSTITU

According to the ASCM, one of the key steps in supply chain transformation is to define the organizational roles and responsibilities for each supply chain activity, and to ensure that they are aligned with the business strategy and customer expectations1.The ASCM also suggests that the supply chain activities can be grouped into three main categories: sales, operations, and logistics2.These categories reflect the core functions of the supply chain, from planning and executing the demand and supply, to delivering the products and services to the customers2. Therefore, organizational roles and responsibilities should focus on these three areas to clarify who is responsible and accountable for each supply chain activity after the transformation initiative is complete. Some examples of the roles and responsibilities in each area are:

• Sales: Responsible for generating and managing the customer demand, forecasting the sales volume, and ensuring customer satisfaction and loyalty.Examples of roles are sales manager, account manager, customer service representative, and demand planner2.
• Operations: Responsible for producing and sourcing the products and services, managing the inventory and quality, and optimizing the cost and efficiency.Examples of roles are operations manager, production manager, procurement manager, and quality manager2.
• Logistics: Responsible for transporting and distributing the products and services, coordinating with the suppliers and carriers, and ensuring the delivery speed andreliability.Examples of roles are logistics manager, warehouse manager, transportation manager, and distribution manager2.

According to the ASCM CTSC Exam Content Manual, the frozen time fence is defined as “a point in time within the planning horizon of the master scheduling process that marks a boundary inside of which no changes can be made to the schedule without senior management approval” (p. 18). The frozen time fence helps to protect the production plan from disruptions and uncertainties, and to ensure the stability and reliability of the supply chain. The frozen time fence is usually set at the cumulative lead time of the product, or the time required to procure or produce the product from scratch. The other options are not related to the concept of the frozen time fence.

According to the ASCM CTSC Exam Content Manual, one of the benefits of a mature S&OP process is to enable the alignment of supply and demand plans with the strategic objectives of the organization1.This can help to optimize the use of resources, reduce costs, improve customer service, and increase profitability. Therefore, evaluating the current S&OP process can help an organization to identify the gaps and opportunities for improvement in a supply chain transformation initiative.

1: ASCM CTSC Exam Content Manual, page 14.

According to the CTSC Enterprise and Supply Chain Management (ESCM) manual, human capital and talent is one of the most critical non-technological factors to execute a digital supply chain transformation1.Human capital and talent refers to the skills, knowledge, abilities, and attitudes of the people who work in the supply chain, as well as the processes and practices to attract, develop, and retain them1.A successful digital supply chain transformation requires a workforce that is capable of using and adapting to digital technologies, such as cloud computing, artificial intelligence, big data, and robotics1.It also requires a culture that fosters innovation, collaboration, and continuous learning1.Therefore, human capital and talent is essential for enabling and sustaining a digital supply chain transformation1.

1: https://www.ascm.org/ctsc-ecm/

According to the ASCM CTSC Exam Content Manual, the formula for raw material inventory days of supply is the value of raw materials inventory divided by the “value of transfers divided by 365 days” 1. The value of transfers is the same as the cost of goods sold, which is the total cost of producing and delivering the prod-ucts to the customers 2. Therefore, the formula can be simplified as the value of raw materials divided by the cost of goods sold per day, which is the same as option A. The other options are incorrect because they either use the wrong numerator or denominator, or invert the ratio.

1:12:2

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According to the ASCM CTSC Exam Content Manual, an order line is defined as "a commitment on a sales order that always references a product and promise delivery date.An order line may also reference a quantity, a price, and a customer location."1This definition is consistent with the concept of perfect order fulfillment, which measures how well a company delivers its orders according to the customer’s specifications and expectations.

1: ASCM CTSC Exam Content Manual, page 10.

Just-in-time (JIT) manufacturing is a production strategy that produces goods based on customer orders and reduces inventory levels by ordering materials only as they are needed for production1. This minimizes the waste of overproduction and inventory, which are the most common and costly forms of waste in manufacturing2. By eliminating excess inventory, JIT manufacturing also reduces the waste of waiting, movement, defects, and overprocessing that are associated with inventory management3.

According to the CTSC exam content manual1, the most important driver to determine a metrics tracking cycle is the change frequency, which is the rate at which the metric value changes over time. The change frequency affects how often the metric should be measured and reported, as well as the level of detail and aggregation required. A metric with a high change frequency should be tracked more frequently and with more granularity than a metric with a low change frequency.

An external motivator for executing a supply chain transformation is a factor that originates outside the organization and influences its decision to change its supply chain strategy, processes, or capabilities. Examples of external motivators include customer demands, market opportunities, competitive pressures, regulatory requirements, and environmental concerns1. In this case, the national customer’s request to sell to its international subsidiaries is an external motivator because it comes from a keystakeholder in the supply chain and requires the company to adapt to new markets, regulations, and logistics.

According to the CTSC Exam Content Manual1, one of the key steps in the planning process of the transformation is to verify the alignment of the supply chain with the business strategy. This ensures that the supply chain transformation supports the organization’s vision, mission, goals and objectives. Misalignments can result in suboptimal performance, wasted resources, and missed opportunities.

an acceptable quality level (AQL) is defined in ISO 2859-1 as the “quality level that is the worst tolerable”1.This means that the AQL is the limit of defective units that can be accepted in a continuing series of lots during random sampling quality inspections1.The AQL is usually expressed as a percentage or ratio of the number of defects compared to the total quantity1.The AQL helps to induce the supplier to maintain a process average at least as good as the specified limit, while providing an upper limit for the risk to the consumer of accepting the occasional poor lot1.

1:Acceptable Quality Level (AQL): Definition and How It Works - Investopedia

According to the ASCM CTSC Exam Content Manual, the two approaches for applying selected supply chain processes across the organization, and determining the degree to which processes are consistent across the businesses, product lines, and geographic locations are standardization and harmonization1.Standardization is defined as "the process of ensuring that all processes are executed in the same way, using the same inputs and outputs, and producing the same results"1.Harmonization is defined as "the process of ensuring that all processes are aligned and integrated across the organization, and that they support the organization’s strategy, goals, and objectives"1.Bothapproaches aim to improve the efficiency, effectiveness, and agility of the supply chain, and to reduce the complexity, variability, and duplication of processes1.

1: ASCM CTSC Exam Content Manual, page 8.

According to the CTSC Exam Content Manual1, corporate strategy is the highest level of strategy in the strategy hierarchy. It involves defining the overall purpose, scope, and direction of the organization, as well as allocating resources and setting performancegoals for the entire organization. Corporate strategy also harmonizes plans to improve competencies of an organization as a whole, such as innovation, sustainability, digital transformation, and social responsibility. Option A, business strategy, is the level of strategy that focuses on how a business unit or division competes in a specific market or industry. Option C, functional area strategy, is the level of strategy that focuses on how a functional department or team supports the business strategy and the corporate strategy. Option D, operating strategy, is the level of strategy that focuses on how the daily operations and processes are executed and optimized.

According to the ASCM, one of the challenges of the product life cycle is the shrinking time span between the introduction and decline stages, due to the rapid changes in technology, customer preferences, and competition1.To cope with this challenge, the ASCM recommends that companies adopt a strategy of accelerating the speed to market, which means reducing the time it takes to develop, launch, and deliver new products to customers1.By doing so, companies can gain a competitive advantage, increase customer satisfaction, and capture more market share before the product becomes obsolete1. Some of the ways to accelerate the speed to market are:

• Implementing agile and lean product development methods1
• Collaborating with suppliers, customers, and other stakeholders in the product design and launch process1
• Using digital technologies and platforms to enable faster and more efficient product testing, validation, and feedback1
• Optimizing the supply chain network and logistics to ensure timely and reliable product delivery1

According to the CTSC Enterprise and Supply Chain Management (ESCM) manual, a staple yourself interview is a technique for performing a review of a SCOR level 3 process from beginning to end1.It involves following the process as if you were the product or service being delivered, and asking questions such as: Who is involved in this process? What are they doing? Why are they doing it? How are they doing it? How long does it take? How much does it cost? What are the inputs and outputs of each activity? What are the risks and opportunities for improvement?1This technique helps to identify the gaps, inefficiencies, and best practices in the process, and to generate insights and recommendations for improvement1.

1: https://www.ascm.org/ctsc-ecm/

According to the ASCM SCOR Digital Standard, the SCOR model uses the term optimized to indicate the highest level of performance for a given metric. Optimized metrics are those that are prioritized by the organization and have a target performance level that is based on the best-in-class benchmark or the desired competitive advantage. The SCOR model defines six levels of performance for each metric: inferior, poor, nominal, competitive, advantage, and optimized (p.17)1. The other options are not used in the SCOR model to prioritize metrics and estimate target performance level.

According to the ASCM SCOR Digital Standard, supply chain performance attributes are the characteristics that define the performance of a supply chain. There are six performance attributes: reliability, responsiveness, agility, costs, asset management efficiency, and sustainability.Among these, flexibility, delivery reliability, and responsiveness are customer related, as they measure how well the supply chain meets the customer needs and expectations in terms of product availability, delivery time, and order fulfillment1. Flexibility is the ability to accommodate changes in demand or supply, delivery reliability is the ability to deliver products on time and in full, and responsiveness is the ability to react quickly to customer requests or market changes. The other options are not customer related, as they measure the internal efficiency or effectiveness of the supply chain.

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According to the ASCM CTSC Exam Content Manual, one of the best practices for communicating a supply chain transformation is to "use a variety of communication channels and methods to reach different audiences and reinforce key messages"1.This includes holding breakout group sessions with each group involving employees from different departments, as this can help to explain the specifics of the transformation, address any concerns or questions, and foster collaboration and buy-in across theorganization23.Distributing one common document by company email, requiring the topic be covered in each department’s monthly meeting, or conducting a one-time, all-company meeting with presentations by leadership may not be sufficient or effective to communicate the details and benefits of the transformation, as they may not cater to the different needs and preferences of the stakeholders, or allow for sufficient feedback and engagement23.

1: ASCM CTSC Exam Content Manual, page 14.2:Supply Chain Communication: 4 Effective Strategies for Better Supplier …3:10 Best Practices For Improving Supply Chain Management - IIENSTITU

According to the CTSC Exam Content Manual, one of the ways to accelerate the change and track the progress of a new technology implementation is to create visibility1.Creating visibility means sharing the information and data about the change process, such as the objectives, benefits, milestones, challenges, and results, with the relevant stakeholders, such as the employees, managers, customers, and suppliers1.Creating visibility can help to increase the awareness, understanding, and acceptance of the change, as well as to identify and address the issues and risks that may arise during the change1.Creating visibility can also help to monitor and evaluate the performance and impact of the new technology, and to provide feedback and recognition to the change agents and participants1. The other options are not the best ways to accelerate the change and track the progress of a new technology implementation, as they are more related to other aspects of the supply chain or the change management.Utilizing a push-pull system is a way to balance the demand and supply in the supply chain, but it does not directly affect the speed or the measurement of the change2.Adopting define-test-deploy is a way to implement a new technology in a phased manner, but it does not necessarily accelerate the change or track the progress, unless it is combined with other methods, such as agile or lean3. Identifying current performance drivers is a way to understand the factors that influence the supply chain performance, but it does not help to implement a new technology, unless it is followed by a gap analysis and a solution design.

According to the CTSC Exam Content Manual, avoidance cost is one of the metrics used to measure the value created by the procurement function1.Avoidance cost is defined as the value created by reducing or eliminating cost increases sought by suppliers over and above prevailing baseline cost1.Avoidance cost is also known as cost avoidance, which is a proactive measure to prevent unnecessary expenses or losses2.Avoidance cost is different from cost savings, which is the value created by reducing the actual cost paid to suppliers below the prevailing baseline cost1.Cost savings is also known as hard cost savings, which is actualized, quantifiable and verifiable3.

voice of the customer (VOC) is the process of gathering and implementing information about your customers’ expectations, needs and hopes2.Businesses use VOC programs to efficiently collect detailed market research about their customers and to improve their products or services based on the customer feedback2. This is an example of the successful use of VOC, as the company distributed surveys to understand what customers wanted, added online status information capability to their website to meet the customer demand, and sent a customer satisfaction survey to measure the impact of the improvement. This addition helped increase their customer base and repeat business, which shows the value of listening to the voice of the customer.

1:Voice of the Customer: Definition, Benefits and How-To Guide | Indeed.com2:What is the Voice of the Customer (VoC)? - Qualtrics