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

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 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 CTSC Exam Content Manual, metrics decomposition is the analysis of indicators of supply chain performance from level 1 through 3 in the SCOR model1.Metrics decomposition helps to identify the root causes of performance gaps, prioritize improvement opportunities, and align metrics across different levels and processes1.The SCOR model defines four levels of metrics: level 1 metrics are strategic, cross-functional, and end-to-end; level 2 metrics are tactical and process-specific; level 3 metrics are operational and sub-process-specific; and level 4 metrics are transactional and implementation-specific2.Metrics decomposition is different from metrics attribution, which is the assignment of metrics to the responsible parties or processes1.Metrics decomposition is also different from performance cascading, which is the translation of strategic objectives into operational goals and metrics1. Performance classification is not a term used in the SCOR model.

a differentiation strategy is the approach businesses use to attract and keep customers by giving them a unique product or service123.The main goal of this strategy is to attain a competitive advantage by offering something that is different and distinct from the competitors in the same market123.A differentiation strategy can help a company to reduce price competition, increase customer loyalty, and improve profit margins1.Some examples of companies that use a differentiation strategy are Apple, Starbucks, and Tesla23. Therefore, a differentiation strategy would help the company to stand out in the market by offering unique products or services.

According to the CTSC Exam Content Manual1, functional products are products that have stable and predictable demand, low product variety, long life cycles, and low profit margins. They would be best suited for an efficient supply chain, which focuses on minimizing costs, maximizing asset utilization, and optimizing processes. An efficient supply chain would have high capacity utilization, low inventory levels, long production runs, and standardized products and services.

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

According to the ASCM, a RACI analysis is a tool that clarifies the roles and responsibilities of different stakeholders in a business process or activity1.RACI is an acronym for Responsible, Accountable, Consulted, and Informed, which are the four types of participation that a stakeholder can have in a task2.A RACI analysis can help identify the gaps and overlaps in the assignment of tasks, and ensure that everyone knows what they are expected to do and who they need to communicate with1. In the case of the company that receives customer complaints, a RACI analysis can help them understand why their inquiries are being forwarded multiple times to different departments, and who is the right person or department to resolve them.A RACI analysis can also help them improve their customer service process and avoid confusion and frustration among customers and employees1. Therefore, performing a RACI analysis is the most appropriate activity to identify the gap.

It is part of the ISO 14000 family of standards that are developed by ISO Technical Committee ISO/TC 207 and its various subcommittees, and that cover different aspects of environmental management2.

quality function deployment (QFD) is a concurrent engineering technique that helps ensure efficient production process to meet customer requirements.QFD is defined as "a method to transform user demands into design quality, to deploy the functions forming quality, and to deploy methods for achieving the design quality into subsystems and component parts, and ultimately to specific elements of the manufacturing process"2.QFD uses a matrix called the House of Quality to translate customer needs into technical specifications, prioritize design features, and identify potential trade-offs3.QFD helps to reduce development time and cost, improve product quality and performance, and enhance customer satisfaction4.

1:Concurrent Engineering - Product Development - Grist Project Management2:Quality Function Deployment (QFD) and House of Quality - ASQ3:Quality FunctionDeployment (QFD) - What is Six Sigma4:Quality Function Deployment (QFD) - an overview | ScienceDirect Topics

According to the CTSC Exam Content Manual1, the external boundary conditions that impact an organization’s core strategic vision include market size, customer requirements, legal and regulatory landscape, and competitive situation. These are the factors that define the external environment in which the organization operates and competes. They influence the organization’s strategic choices and capabilities.

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

According to the ASCM CTSC Exam Content Manual, one of the first steps in developing a transformational supply chain strategy is to “determine the current and future needs and expectations of the customers, and align the supply chain strategy with the business strategy and customer value proposition” (p. 16) 1. This helps to ensure that the supply chain transformation is customer-centric and focused on delivering value to the end users. The other options are also important, but they should be done after the initial determination of the customers’ needs.

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.

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

air transport is generally more expensive than ocean transport, but also faster and more reliable1. Therefore, by acquiring more dedicated space on a cargo airline, the manufacturer can expect its transportation costs to increase, but also reduce its need for expedited delivery upgrades, which are usually costly and inefficient2.The other options are not likely to occur, as air transport does not necessarily increase the network path touches or decrease the demand volume growth.

1:22:3

According to the ASCM CTSC Exam Content Manual, a business issue repository is a tool that helps an organization to study its strategic environment for establishing the scope of its supply chain transformation project.A business issue repository is defined as "a collection of business issues that are identified and prioritized by the organization’s leadership team and other key stakeholders"1.A business issue repository helps to align the supply chain transformation objectives with the organization’s vision, mission, and strategy, and to identify the gaps and opportunities for improvement in the current supply chain performance1.A business issue repository also helps to communicate the rationale and benefits of the transformation to the internal and external stakeholders, and to monitor and measure the progress and outcomes of the transformation1.

1: ASCM CTSC Exam Content Manual, page 14.

According to the CTSC Learning System, one of the factors that affects the distribution costs is the cost of implementing the new materials flow network, which includes the costs of designing, building, and operating the network of warehouses, distribution centers, and transportation modes1.The cost of implementing the new materials flow network can be significant and should be included in the calculation of the total cost of ownership (TCO) of the distribution system1.The other factors listed in the question are not directly related to the distribution costs, but rather to the inventory costs, which are a separate component of the TCO1.

cross-selling is the practice of offering customers additional items that complement or enhance their main purchase12. In this case, the sales representative has engaged in cross-selling by offering the customer a case to protect the phone, which is a related and useful product for the customer’s main purchase of a new cell phone.Cross-selling can help to increase customer satisfaction, loyalty, and revenue12.

1:Cross-Selling vs. Upselling: Definitions and Differences | Indeed.com2:What Is Cross-Selling? - Investopedia

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.

Nearshoring is the practice of relocating business processes or services to a nearby country, usually one that shares a border or is in the same region1. Nearshoring can help companies reduce costs, improve quality, and increase responsiveness to customer needs.Nearshoring is different from offshoring, which is moving business processes or services to a distant country, usually to take advantage of lower labor costs or favorable tax regimes2.Nearshoring is also different from insourcing, which is performing business processes or services internally within the company3. Nearshoring is also different from outsourcing, which is contracting out business processes or services to a third-party provider, regardless of the location.

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/

Porter’s Five Forces is a model that identifies and analyzes five competitive forces that shape every industry and helps determine an industry’s weaknesses and strengths1.The five forces are: competition in the industry, potential of new entrants, power of suppliers, power of customers, and threat of substitute products1. The company has used this tool to assess the attractiveness and profitability of the airline industry by evaluating the intensity of each force.

According to the ASCM CTSC Exam Content Manual, the implement phase of a supply chain transformation project involves defining the process control measures that will monitor the performance of the new or improved processes and ensure that they are aligned with the desired outcomes1.The other options are outputs of the assess phase (A and C) or the design phase (D) of a supply chain transformation project1.

1: ASCM CTSC Exam Content Manual, page 14.

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 CTSC Enterprise and Supply Chain Management (ESCM) manual, a thread diagram is a process view of the geographic map that illustrates the material flow, material strategy, and the planning process relationship1.A thread diagram shows the sequence of activities and decisions that are involved in transforming raw materials intofinished products and delivering them to customers1.It also shows the locations of the facilities, the transportation modes, the inventory policies, and the planning horizons1.A thread diagram helps to identify the key drivers and constraints of the supply chain performance, and to evaluate the trade-offs and synergies among different supply chain components1.

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

According to the ASCM CTSC Exam Content Manual, a data steward is a key role within a digital supply chain transformation team that is responsible for the quality and accuracy of the data feeds.A data steward is defined as "an oversight or data governance role within an organization, and is responsible for ensuring the quality and fitness for purpose of the organization’s data assets, including the metadata for those data assets"1.A data steward may share some responsibilities with a data custodian, such as the awareness, accessibility, release, appropriate use, security and management of data1. A data steward would also participate in the development and implementation of data assets.A data steward may seek to improve the quality and fitness for purpose of other data assets their organization depends upon but is not responsible for1.Data stewards have a specialist role that utilizes an organization’s data governance processes, policies, guidelines and responsibilities for administering an organizations’ entire data in compliance with policy and/or regulatory obligations1.The overall objective of a data steward is the data quality of the data assets, datasets, data records and data elements1.This includes documenting metainformation for the data, such as definitions, related rules/governance, physical manifestation, and related data models (most of these properties being specific to an attribute/concept relationship), identifying owners/custodian’s various responsibilities, relations insight [definition needed] pertaining to attribute quality, aiding with project requirement data facilitation and documentation of capture rules1.Data stewards begin the stewarding process with the identification of the data assets and elements which they will steward, with the ultimate result being standards, controls and data entry1.The steward works closely with business glossary standards analysts (for standards), with data architect / modelers (for standards), with DQ analysts (for controls) and with operations team members (good-quality data going in per business rules) while entering data1.Data stewardship roles are common when organizations attempt to exchange data precisely and consistently between computer systems and to reuse data-related resources1. Master data management often [quantify] makes references to the need for data stewardship for its implementation to succeed.Data stewardship must have precise purpose, fit for purpose or fitness1.

1:Data steward - Wikipedia

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 CTSC Exam Content Manual1, statistical process control (SPC) is a key component of a total quality management (TQM) program. SPC is a technique that uses statistical methods and tools to monitor and control the variation and performance of a process. SPC helps to ensure that the process is stable, capable, and predictable, and that the output meets the customer specifications and expectations. SPC also helps to identify and eliminate the causes of defects and errors, and to improve the quality and efficiency of the process. Option B, JIT inventory, is a component of lean manufacturing, not TQM. JIT inventory aims to reduce inventory levels and costs by delivering materials or components just before they are needed in the production process. Option C, autonomous maintenance, is a component of total productive maintenance (TPM), not TQM. Autonomous maintenance involves empowering the operators to perform basic maintenance tasks on their own equipment, such as cleaning, lubricating, inspecting, and adjusting. Option D, SCO, is a component of supply chain management, not TQM. SCO involves optimizing the flow of materials, information, and money across the supply chain network, from the suppliers to the customers.

According to the CTSC Enterprise and Supply Chain Management (ESCM) manual, the next step after setting improvement priorities on the basis of strategic objectives is to design the transformation road map1.The transformation road map is a document that outlines the vision, goals, scope, timeline, milestones, deliverables, resources, risks, and dependencies of the supply chain transformation project1.It also defines the roles and responsibilities of the project team and the stakeholders, and the communication and governance mechanisms1.The transformation road map helps to guide the execution of theproject, monitor the progress and performance, and ensure alignment and collaboration among the project participants1.

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

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 CTSC Exam Content Manual, one of the key steps in the project selection process is to create a portfolio of projects that aligns with the organization’sstrategic objectives and balances the available resources. Selecting projects based on stand-alone benefits would ignore the interdependencies and trade-offs among different projects and lead to inefficiencies resulting from a lack of holistic visibility.

Ac-cording to the CTSC Exam Content Manual, developing a supply chain leadership mindset involves creating a culture of innovation, learning, and collaboration across the organization. A supply chain leader should encourage cross-team collaboration to leverage the diverse skills, perspectives, and experiences of different stakeholders, and to foster trust, communication, and alignment of goals and objectives. Cross-team collaboration can help the organization to identify and solve problems, generate and implement new ideas, and improve performance and customer satisfaction.

According to the CTSC Exam Content Manual1, one of the key capabilities for supply chain resilience is agility, which is the ability to respond quickly and effectively to unanticipated disruptions. Agility enables supply chain professionals to adapt to changing customer needs, market conditions, and operational challenges. Another keycapability for supply chain resilience is velocity, which is the speed at which products and information flow through the supply chain. Velocity enables supply chain professionals to reduce lead times, improve service levels, and increase customer satisfaction. Therefore, increasing levels of agility and velocity is a measure that should be adopted for supply chains to become more resilient to unanticipated disruptions. Option A, implementing internal standards of risk awareness and response, is a measure that can help mitigate the impact of disruptions, but it does not necessarily increase the resilience of the supply chain. Option B, ensuring that there is clear responsibility for identifying risk, is a measure that can help prevent or reduce the likelihood of disruptions, but it does not necessarily increase the resilience of the supply chain. Option C, decreasing inventory levels to the minimum level possible, is a measure that can reduce costs and waste, but it can also increase the vulnerability of the supply chain to disruptions.

According to the ASCM CTSC Exam Content Manual, one of the key steps in forming teams for a digital supply chain transformation is to “create cross-functional teams that include members from different departments and levels of the organization, as well as external partners, to foster collaboration and innovation” (p. 16). This helps to ensure that the teams have diverse perspectives, skills, and knowledge to address the challenges and opportunities of the digital transformation.

one of the most prominent characteristics of a digital supply chain is the access to latest point-of-sale (POS) data across the network.POS data refers to the information collected by retailers at the point of purchase, such as the product, quantity, price, date, time, and location of the transaction3.Access to this data enables digital supply chains to have real-time visibility of customer demand, inventory levels, and market trends, and to use advanced analytics and artificial intelligence to optimize planning, forecasting, replenishment, and delivery12.Access to POS data also helps digital supply chains to improve customer satisfaction, reduce costs, increase sales, and enhance collaboration among supply chain partners12.

According to the CTSC Exam Content Manual, one of the benefits of sharing the visibility on change management progress by team is to allocate resources to the most in need of support1. Sharing the visibility on change management progress by team can help the enterprise to identify the teams that are lagging behind, facing challenges, or requiring assistance in the transformation process, and provide them with the necessary resources, guidance, or coaching to overcome the barriers and achieve the desired outcomes1. The other options are not the main benefits of sharing the visibility on change management progress by team, as they are more related to other aspects of the transformation process. Measuring transformation outcomes in meeting strategy is a benefit of establishing a metrics program that tracks and evaluates the performance and impact of the transformation initiatives2. Demonstrating the transformation milestones is a benefit of creating a communication plan that informs and engages the stakeholders and showcases the achievements and successes of the transformation efforts3. Ensuring an effective metrics program in practice is a benefit of aligning the metrics with the strategic objectives, collecting and analyzing the relevant data, and reporting and acting on the results2.

According to the CTSC exam content manual1, transform and return costs are two of the five cost categories in the SCOR model. Transform costs are the costs associated with converting raw materials into finished products, such as labor, materials, energy, depreciation, etc. Return costs are the costs associated with handling and disposing of defective or excess products, such as transportation, inspection, rework, recycling, etc. Transform costs are often captured in the cost of goods sold (COGS), which is the direct cost of producing the goods sold by a company. Return costs are often captured in claims, which are the expenses incurred by a company when customers return defective or unsatisfactory products.

According to the CTSC Exam Content Manual1, the Measure phase of the Six Sigma DMAIC methodology involves collecting data on current performance and issues. The Measure phase aims to establish a baseline for the process and quantify the gap between the current state and the desired state. The Measure phase also involves validating the measurement system, defining the process metrics, and calculating the process capability and sigma level. Option A, Control, is the phase that involves implementing and sustaining the improvements. Option B, Improve, is the phase that involves identifying and testing the solutions. Option C, Analyze, is the phase that involves analyzing the data and identifying the root causes.

According to the ASCM CTSC Exam Content Manual, a supply chain strategy that is more focused on creating value is based on the principle of customer-centricity1.This means that the supply chain strategy should align with the value proposition and expectations of the target customers, and deliver superior value to them in terms of quality, cost, service, and innovation12.Therefore, the most important step for this company to take is to design its internal operations to meet customers’ requirements, such as product specifications, delivery time, customization options, and after-sales support13.This will help the company to differentiate itself from competitors, increase customer satisfaction and loyalty, and enhance its profitability and market share12.

1: ASCM CTSC Exam Content Manual, page 12.2:A new era for procurement: Value creation across the supply chain | McKinsey3:Strategic Value Creation in a Supply Chain - IGI Global

According to the ASCM CTSC Exam Content Manual, CPFR is a collaboration mechanism that involves the establishment of long-term relationships with partners to improve the overall efficiency and effectiveness of the supply chain.CPFR is defined as "a business practice that combines the intelligence of multiple trading partners in the planning and fulfillment of customer demand"1.CPFR enables partners to share information, align plans, and synchronize activities across the supply chain, resulting in reduced inventories, improved service levels, and increased sales23.

1: ASCM CTSC Exam Content Manual, page 8.2:Six steps to successful supply chain collaboration | McKinsey3:Supply Chain Collaboration: Meaning, Importance, Features & Impact | GEP Blog

Before the firm can negotiate or discuss data exchanges with the retailers, it should first review its own data needs and potential trading options. This means that the firm should identify what kind of retail sales data it requires, how frequently, and for what purpose. It should also assess the value and quality of the data, and the costs and benefits of obtaining it. Moreover, the firm should explore what kind of data it can offer in return to the retailers, and how it can create a mutually beneficial data exchange relationship. By reviewing its data needs and potential trading options, the firm can prepare a clear and realistic data exchange proposal that can facilitate the subsequent negotiation or discussion process.

1:Data Processing Agreements: Coordination, Drafting, and Negotiation

According to the ASCM, a comprehensive supply chain transformation action plan is a roadmap that guides the organization to align its supply chain strategy with its business strategy, and to achieve higher performance, efficiency, and sustainability in its supply chain operations1.The main outcome of such a plan is to enable the organization to deliver better value to its customers and stakeholders, and to improve its top and bottom line results1. Some of the steps involved in creating a supply chain transformation action plan are:

• Assessing the current state of the supply chain and identifying the gaps and opportunities for improvement
• Defining the future state of the supply chain and setting the vision, goals, and objectives
• Developing the business case for change and securing the buy-in and support from the senior management and cross-functional teams
• Selecting the best practices, methodologies, and technologies to implement the change and optimize the supply chain processes
• Executing the change and monitoring the progress and results1

The other options are not the main focus of a comprehensive supply chain transformation action plan, but rather some of the aspects or outcomes of the plan.For example, traditional metrics around supply chain performance are important to measure the current state and the improvement potential, but they may not capture the strategic value and impact of the supply chain transformation2.Perfect order targets and inventory levels are some of the operational goals that the plan may aim to achieve, but they are not the ultimate outcome of the plan3.Best practices around Plan, Source, Transform, and Fulfill processes are some of the tools and methods that the plan may use to optimize the supply chain operations, but they are not the purpose of the plan4. Therefore, the most accurate answer is A.

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.