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

Kanban

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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/

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, the strategic background is one of the items needed to define the scope of the supply chain transformation project, along with the internal and external profile of the organization. The strategic background includesthe vision, mission, values, goals, and objectives of the organization, as well as the drivers and enablers of the transformation.

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 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 manual1, when sharing performance metrics with customers, management needs to provide a balanced and comprehensive set of metrics, which means that the metrics should cover all aspects of the customer value proposition, such as quality, cost, delivery, flexibility, and innovation. The metrics should also be aligned with the customer’s expectations and objectives, and reflect the customer’s perspective and feedback. Providing a balanced and comprehensive set of metrics can help to build trust, transparency, and collaboration with customers, as well as to identify areas of improvement and opportunity.

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 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 Manual1,design for quality is a supply chain process that focuses on ensuring that the products and services meet or exceed the customer requirements and expectations, and comply with the relevant standards and regulations. Design for quality involves applying quality management principles and tools throughout the product life cycle, from design and development to production and delivery. Automation and robotics are supply chain technologies that can help improve the quality of products and services, especially in applications that require high precision, accuracy, and consistency, such as aerospace. Automation and robotics canreduce human errors, increase efficiency and productivity, and enhance safety and reliability.

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 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 Exam Content Manual1, one of the key enablers of digital supply chain transformation is “people and culture”. This includes developing the skills and capabilities of the workforce, aligning the organizational structure and culture with the transformation vision and goals, and fostering a collaborative and innovative environment. Therefore, employee talent development and organizational alignment are critical factors for high performance of digital supply chains, aside from investments in appropriate digital technologies. Option A, C and D are examples of metrics that can be used to measure digital supply chain performance, but they are not factors that enable or enhance it.

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 ASCM, the Connected Customer Capability allows companies to augment traditional transactional interactions to achieve effective and integrated customer engagement throughout the customer, product and service life cycles, from acquisition to service1.One of the benefits of this capability is to increase the awareness of the customers about the company’s products, services, and value proposition, as well as to generate more leads and referrals1.Awareness is the first stage of the customer journey, where the customer becomes aware of the company and its offerings, and decides whether to engage with the company or not1.By improving the connected customer capability, a company can use various channels and technologies to reach out to potential customers, provide relevant and personalized information, and create a positive impression that attracts and retains customers1. Therefore, awareness is the most likely outcome of enhancing the connected customer capability.

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, 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.

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 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 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 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 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/

Sustainability

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one of the components of the Enterprise Standards for Sustainability is ethics. Ethics refers to the principles and values that guide the behavior and decisions of an organization and its stakeholders. Ethics is important for fostering mutually beneficial relationships with stakeholders, as it involves respecting human rights, ensuring fair trade, preventing corruption, and promoting transparency and accountability. Therefore, a firm seeking to use the pillars of sustainability should consider ecology, economics, and ethics. Option A, leadership, is not a pillar of sustainability, but rather a skill or quality that can help achieve sustainability. Option C, risk, is not a pillar of sustainability, but rather a factor that can affect or be affected by sustainability. Option D, culture, is not a pillar of sustainability, but rather an aspect of social sustainability that relates to the beliefs, norms, and values of a society.

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 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.

 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.

Process mapping is the term used to describe the creation of a diagram of the workflow of a production or service that includes standardized symbols, inputs, and outputs.Process mapping is a tool of management that visually depicts the flow of work and the steps and people involved in a business process3.Process mapping can help communicate how a process works in a concise and straightforward way, identify inefficiencies or areas of improvement, and document or train the process12.Process mapping uses visual representations, such as basic symbols, to describe each element in the process, such as rectangles for activities, arrows for direction of flow, diamonds for decisions, and ovals for start and end points24.

According to the CTSC Enterprise and Supply Chain Management (ESCM) manual, perfect order fulfillment is a key performance indicator (KPI) that measures the percentage of orders that meet all the criteria for a perfect order, such as delivery time, quantity, quality, documentation, and invoice1.To calculate the perfect order fulfillment, we need to multiply the percentage of orders that meet each criterion, and then divide by 1001. In this case, the percentage of orders that meet each criterion are:

• Delivery time: 94/200 = 47%
• Quantity: 100/200 = 50%
• Quality: (200-34)/200 = 83%
• Documentation and invoice: 48/200 = 24%

Therefore, the perfect order fulfillment is:

47% x 50% x 83% x 24% / 100 = 4.7% x 24% = 1.13%

To express this as a percentage, we need to multiply by 100, so the final answer is:

1.13% x 100 = 113%

Therefore, the perfect order fulfillment for a total of 200 orders is 113%.

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

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.

Order fulfillment

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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.