CTSC Practice Exam Questions with Answers Certified in Transformation for Supply Chain (CTSC) Certification

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 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.

ETO is an operating model that involves designing and producing customized products or services based on the specific requirements of each customer1.ETO is suitable for customized offerings with infrequent demand, as it allows the organization to create unique and differentiated value propositions for each customer, and to avoid holdingexcess inventory of products that may not sell well2.ETO also enables the organization to leverage its engineering and innovation capabilities, and to charge a premium price for its customized solutions3.

The other options are not suitable for customized offerings with infrequent demand, as they involve standardizing some or all of the production process, which reduces the degree of customization and differentiation.MTS is an operating model that involves producing products in advance based on forecasted demand, and then selling them from stock1.MTO is an operating model that involves producing products only after receiving a customer order, but using standardized components and processes1.CTO is an operating model that involves producing products based on a customer order, but using a predefined set of options and configurations1.

1:32:23:1

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

 Designing the supply chain to enable the overall business strategy can also mean viewing the organization’s supply chain as a strategic asset, because this implies that the supply chain is not just a cost center, but a source of competitive advantage and value creation for the organization and its customers. A strategic asset is something that is rare, valuable, difficult to imitate, and hard to substitute, and that contributes to the organization’s performance and goals. By viewing the supply chain as a strategic asset, the organization can leverage its supply chain capabilities to differentiate itself from competitors, meet customer needs and expectations, and achieve operational excellence and innovation.

According to the CTSC Exam Content Manual, one of the steps in the digital supply chain transformation process is to identify and prioritize the strategic assets of the organization, which are the resources and capabilities that provide a competitive advantage and enable value creation1.One of the strategic assets that leadership should have its team of stakeholders prioritize is the internal and external data sources making up the supply chain, as data is the foundation of digital transformation and the key to unlocking insights, innovation, and efficiency2.Data sources can include operational data, customer data, supplier data, market data, and environmental data, among others2. The other options are not necessarily strategic assets, as they may not provide a distinctive edge or value proposition for the organization.Hardware and machinery, truck fleet and warehouses, and free cash flow are examples of tangible assets that can be easily replicated or substituted by competitors3.

According to the CTSC Exam Content Manual, one of the steps that should be completed before determining training needs is to assess key performance indicators (KPIs)1.KPIs are the metrics that measure the performance and progress of the supply chain transformation objectives and outcomes1.Assessing KPIs can help to identify the gaps and opportunities for improvement in the supply chain processes, functions, and roles, and to determine the training needs and priorities for the workforce2. The other options are not the steps that should be completed before determining training needs, as they are more related to the implementation and evaluation of the training plan.Developing an action plan is a step that follows the determination of training needs, as it outlines the specific actions, resources, and timelines for delivering the training3. Developing a training plan is a step that involves designing the training content, methods, and materials based on the training needs and objectives. Assessing performance management is a step that involves monitoring and reviewing the performance of the trainees and the training program, and providing feedback and recognition.

According to the CTSC Ex-am Content Manual1,the initial steps in the workflow for developing supply chain performance objectives and aligning the performance drivers to the strategic plan are: conducting a strategic supply chain analysis, performing benchmarking, and gathering insights. These steps help to identify the current state of the supply chain, the gaps and opportunities for improvement, and the best practices and benchmarks from the industry and competitors. They also help to align the supply chain objectives with the business strategy and the customer needs.

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

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 CTSC Enterprise and Supply Chain Management (ESCM) manual, one major performance outcome of a digital supply chain transformation is fewer trade-offs between costs and customer satisfaction1.A digital supply chain transformation is the use of digital technology and digital content to improve supply chain performance2.It enables a flexible matrix of supply chain partners, instead of one upstream and one downstream echelon2.It also enhances information sharing, visibility, decision making, and responsiveness2.By leveraging digital capabilities, a supply chain can achieve higher levels of efficiency, agility, and innovation, while meeting or exceeding customer expectations1.This reduces the need to compromise on either costs or customer satisfaction, and creates a competitive advantage for the supply chain1.

1: https://www.ascm.org/ctsc-ecm/ 2: https://www.hclspdev.com/cdn/ascm2023/files/ctsc_slides/ASCM_CTSC_2023_1.pdf

According to the CTSC Enterprise and Supply Chain Management (ESCM) manual, the greater value chain is the network of organizations that collaborate to create and deliver value to the end customer1.It includes not only the supply chain, but also other stakeholders such as distributors, retailers, service providers, and even competitors1.To extend the supply chain initiative to the greater value chain, the core team should first define the scope of the greater value chain, which means identifying the key players, processes, and flows that are involved in creating and delivering value1.This will help the core team to understand the current state of the greater value chain, the opportunities and challenges for improvement, and the potential impact of the initiative on the overall value creation1.

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

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 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 CTSC exam content manual1, a competitive supply chain is one that delivers a customer value proposition superior to competitors, which means that itprovides a unique combination of benefits that customers value and are willing to pay for. A competitive supply chain also aligns its capabilities and resources with the customer value proposition, and continuously monitors and improves its performance.

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, 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.

Kanban

A screenshot of a board Description automatically generated

Explore

According to the CTSC Exam Content Manual, Kanban is an operational framework that references a pull system that includes visual cards to represent a work item. Kanban cards are used to signal the demand and supply of work, and to limit the work in progress. Kanban cards are typically displayed on a Kanban board, which shows the stages of the workflow and the status of each work item. Kanban is a method to optimize the flow of value and improve efficiency and agility in a process.

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

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 CTSC Exam Content Manual, a champion is generally defined as a sponsor of an improvement effort.A champion is "a senior leader who provides direction and support for a strategic initiative and ensures alignment with the organization’s vision, mission, and goals"1.A champion is also responsible for securing resources, removing barriers, and empowering the improvement team to achieve the desired outcomes1.A champion acts as a role model, a mentor, and a spokesperson for the improvement effort and helps to communicate its value and benefits to the stakeholders1.

1: ASCM CTSC Exam Content Manual, page 9.

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.

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/

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 theory of constraints (TOC), a service company that is experiencing long wait times for customer service should identify and address the bottleneck in the customer service process1.A bottleneck is the activity or resource that limits the throughput or output of the entire system2.TOC provides a five-step process for improving any system by focusing on the bottleneck3. The steps are:

• Identify the system’s constraint: find the activity or resource that has the least capacity or the longest cycle time in the customer service process.
• Exploit the system’s constraint: make the most of the available capacity or time of the bottleneck, such as reducing idle time, errors, or rework.
• Subordinate everything else to the system’s constraint: align the other activities or resources in the customer service process to the pace and priority of the bottleneck, such as balancing the workload, synchronizing the flow, or eliminating waste.
• Elevate the system’s constraint: increase the capacity or reduce the cycle time of the bottleneck, such as adding more staff, equipment, or technology, or redesigning the process.
• Repeat the process: monitor the performance of the customer service process and identify and address the next constraint.

The other options are not the best steps to address the issue of long wait times for customer service, according to TOC.Increasing the number of staff members available before the bottleneck will not solve the problem, as it will only create more work-in-process inventory and increase the operational expense4.Implementing a more efficient customer service system may or may not help, depending on whether it addresses the root cause of the bottleneck or not5. Increasing the resources available to the customer service department may also be ineffective or inefficient, as it may not target the specific bottleneck or may create excess capacity or waste.

According to the CTSC Exam Content Manual, one of the ways to reduce the costs of poor quality in the supply base is to establish education and quality training for the suppliers, as this can help them improve their quality performance, reduce defects, and prevent problems1.Education and quality training can also enhance the collaboration and communication between the buyers and the suppliers, and foster a culture of continuous improvement2. The other options are not the best approach to reduce the costs of poor quality in the supply base, as they are more reactive than proactive, and they do not address the root causes of the poor quality.Conducting supplier appraisals, tracking costs of returns, and inspecting all received products are examples of appraisal costs, which are part of the costs of poor quality, not the solution3.

According to the ASCM CTSC Exam Content Manual, a data-driven collaborative approach is one of the key enablers of digital supply chain transformation. It involves sharing dataacross the supply chain network, using advanced analytics to generate insights, and aligning processes and decisions based on data1. This can help reduce reaction time by improving visibility, agility, and efficiency in the supply chain.

According to the CTSC Exam Content Manual1, Kanban is a lean manufacturing tool that uses visual signals to indicate the need for a component or material in a production process. Kanban is linked to consumer demand, as it triggers the replenishment of inventory only when there is actual consumption. Kanban helps to reduce waste and labor by minimizing overproduction, inventory, and waiting time. Option B, JIT purchasing, is a related concept that involves buying materials or components just before they are needed in the production process, but it does not necessarily use visual signals. Option C, Kaizen, is a lean manufacturing tool that involves continuous improvement of processes and activities, but it is not specific to reducing waste and labor in the manufacturing process. Option D, TOC, is a management philosophy that focuses on identifying and eliminating the constraints or bottlenecks that limit the performance of a system, but it does not use visual signals to indicate the need for a component.

Order fulfillment

Explore

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.

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.

Supply chain

Explore

Total cost to serve is a supply chain metric that measures the total end-to-end supply chain cost of fulfilling an order for a specific customer or segment1.It includes all the costs incurred from sourcing, manufacturing, warehousing, transportation, and delivery of the product or service2.Total cost to serve helps to identify the profitability and value of different customers or segments, and to optimize the supply chain processes and resources accordingly3.

1:Top Supply Chain Metrics & KPIs Benchmarking | Gartner2:Top 25 Supply Chain Metrics & KPIs For Your Dashboards - datapine3:A Comprehensive Guide to Supply Chain Metrics & KPIs

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, a digital supply chain integrator is a role that involves connecting the digital and physical supply chain elements, and enabling the flow of data and information across the end-to-end supply chain1. This requires reaching across functional and technological boundaries to seek information and understand-ing, and to collaborate with internal and external partners to optimize the supply chain performance2. The other options are not specific to the digital supply chain in-tegrator role, as they are common behaviors for any supply chain professional.1: ASCM CTSC Exam Content Manual, page 9.2:3

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, 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