A manufacturing company has identified a bottleneck in the production process that is affecting product quality and customer satisfaction.
Which of the following total quality management (TQM) principles would be most relevant to address this issue?
- A . Employee involvement
- B . Continuous improvement
- C . Process management
- D . Leadership
B
Explanation:
Continuous improvement is a TQM principle that involves constantly seeking ways to enhance the quality of products, services, and processes by reducing waste, errors, and defects. A bottleneck in the production process is a sign of inefficiency and poor quality that can be improved by applying various tools and techniques such as lean, Six Sigma, Kaizen, or PDCA.
Designing the supply chain to enable the overall business strategy can also mean:
- A . viewing the organization’s supply chain as a strategic asset.
- B . developing an end-to-end process architecture.
- C . designing the organization for performance.
- D . building the right collaborative model.
A
Explanation:
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.
Which of the following trends is a driver for change in agile operations execution?
- A . Research and development (R&D) cycles are fast and inexpensive.
- B . Products are becoming less complex and using less raw materials.
- C . Product labeling is becoming more enhanced, including translation into additional languages.
- D . The requirements for transaction documentation, including use of blockchain, are decreasing.
One main goal of pursuing a digital supply chain transformation is:
- A . achieving perfect order fulfillment across all sales channels using technology.
- B . building sustainable competitive advantage through integrated capabilities.
- C . integrating all supply chain tools and technologies to increase operational efficiencies.
- D . maximizing sales through the e-commerce channel.
B
Explanation:
According to the ASCM site, the goal of the CTSC certification is to help supply chain professionals develop the skills and knowledge to lead a successful digital transformation that creates value and competitive advantage. The certification covers topics such as digital strategy, business model innovation, customer-centricity, and integrated capabilities. Therefore, option B best reflects the main goal of pursuing a digital supply chain transformation.12
Which of the following formulas is utilized to calculate perfect order fulfillment?
- A . Total perfect orders / Total number of orders
- B . Total perfect orders / Total number of order lines
- C . Total perfect order lines / Total number of orders
- D . Total perfect order lines / Total number of order lines
D
Explanation:
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.
Which of the following roles does a change agent involved in supply chain transformation most likely play?
- A . Supports change
- B . Manages change
- C . Initiates change
- D . Facilitates change
D
Explanation:
a change agent is someone who initiates, promotes, and supports the change process in an organization. A change agent can be an internal or external consultant, a leader, or a team member who helps to define the vision, strategy, and goals of the change, and also facilitates the communication, collaboration, and implementation of the change. Therefore, option D best describes the role of a change agent involved in supply chain transformation.123
Why is over-processing considered a type of waste in lean manufacturing?
- A . Taking extra time to over-produce makes it a type of waste.
- B . Manufacturing to a higher quality than is required takes more natural resources, time, and energy without adding value.
- C . Over-producing could add features that narrow the marketability of the item and reduce revenue.
- D . Due to being over-engineered, the price will become out of balance with the market.
Which type of scorecard gap analysis is used to calculate the competitive gap by subtracting the actual performance from the parity or competitive benchmark?
- A . Bottom-up process
- B . Pareto analysis
- C . SWOT analysis
- D . Top-down process
What is the last phase of the transformation project?
- A . Analyze performance
- B . Define project scope
- C . Build organizational support
- D . Develop project portfolio
A
Explanation:
According to the CTSC exam content manual1, the last phase of the transformation project is to analyze performance, which involves measuring and evaluating the outcomes of the transformation, identifying gaps and opportunities for improvement, and communicating the results and lessons learned to stakeholders.
In addition to creating an internal and external profile of the organization, which of the following items is needed to define the scope of the supply chain transformation project?
- A . Business description
- B . Strategic background
- C . Value proposition statement
- D . SWOT analysis
B
Explanation:
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 includes the vision, mission, values, goals, and objectives of the organization, as well as the drivers and enablers of the transformation.
The first step in performing a root cause analysis using the SCOR model involves:
- A . identifying sources of deviation.
- B . linking processes to metric hierarchy.
- C . decomposing performance attributes.
- D . establishing process benchmarks.
B
Explanation:
According to the CTSC exam content manual1, the first step in performing a root cause analysis using the SCOR model involves linking processes to metric hierarchy, which means mapping the SCOR processes to the SCOR metrics and identifying the relevant performance attributes and levels. This step helps to establish the scope and boundaries of the analysis and to align the processes with the strategic objectives of the organization.
What is the most important driver to determine a metrics tracking cycle?
- A . Tracking progress
- B . Level of metrics
- C . Type of data
- D . Change frequency
D
Explanation:
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.
Which of the following characteristics best describes a competitive supply chain?
- A . Optimized to attain maximum profitability
- B . Fully integrated to maximize cost effectiveness and efficiency
- C . Delivers a customer value proposition superior to competitors
- D . Designed to offer a fast-selling option to customers
C
Explanation:
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 it provides 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.
Implementing electronic data interchange (EDI) can provide benefit in establishing business relationships with suppliers by:
- A . synchronizing.
- B . building trust.
- C . gainsharing.
- D . reducing security risk.
B
Explanation:
According to the CTSC exam content manual1, implementing electronic data interchange (EDI) can provide benefit in establishing business relationships with suppliers by building trust, which is one of the key elements of supplier relationship management. EDI can help to build trust by enabling faster, more accurate, and more secure data exchange, reducing errors and disputes, improving communication and collaboration, and enhancing customer satisfaction.
Where are Transform and Return costs often captured in the supply chain, respectively?
- A . Supply chain fixed assets and accounts receivable
- B . Cost of goods sold (COGS) and claims
- C . Supply chain fixed assets and accounts payable
- D . Cost of goods sold (COGS) and warranty
B
Explanation:
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.
When sharing performance metrics with customers, management needs to:
- A . avoid too many metrics in the report.
- B . consider any discrepancies within the survey feedback.
- C . provide a balanced and comprehensive set of metrics.
- D . ensure metrics are linked to business strategy.
C
Explanation:
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.
The main objective of the ASCM Digital Capabilities Model (DCM) is to:
- A . transform linear supply chains into a set of static networks.
- B . prioritize areas that drive the lowest value in the supply network.
- C . guide the development of digital supply networks.
- D . help organizations understand their existing digitally-enabled capabilities.
What is the definition of an order line in the context of perfect order fulfillment?
- A . A request to deliver specified quantities of goods or services
- B . A collection of one or more order lines representing a request to deliver specified quantities of goods or services
- C . A commitment on a sales order that always references a product and promise delivery date
- D . A range of values for quantity or date specified on a sales order
C
Explanation:
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."1 This 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.
Which of the following metrics is the most appropriate to use in order to measure the total end-to-end supply chain cost in fulfilling an order?
- A . Cash-to-cash cycle time
- B . Order fulfillment cost
- C . Return on assets
- D . Total cost to serve
D
Explanation:
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 | Gartner 2: Top 25 Supply Chain Metrics & KPIs
For Your Dashboards – datapine 3: A Comprehensive Guide to Supply Chain Metrics & KPIs
A company looking to enter the airline industry has determined that the threat of new entrants is low and the bargaining power of suppliers and buyers is high. There is a highly competitive landscape with numerous substitutions available.
What tool has the company used for its industry analysis?
- A . STEEPLED analysis
- B . SWOT analysis
- C . Segmentation
- D . Porter’s Five Forces
D
Explanation:
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.
A company with a global presence is expanding its operations in emerging markets.
Given the scale of operations, which of the following organizational competencies can best help it manage risks and respond to disruptions?
- A . Investing in redundancy
- B . Building resilience
- C . Leveraging technology
- D . Business continuity planning
B
Explanation:
According to the ASCM CTSC Exam Content Manual, building resilience is one of the organizational competencies for risk management and disruption response. It is defined as "the ability to recover quickly from difficulties and adapt to changing conditions"1. Building resilience can help a company with a global presence to cope with the uncertainties and complexities of operating in emerging markets, where risks and disruptions may be more frequent and severe. Some of the elements of building resilience include developing a risk-aware culture, implementing agile processes, fostering collaboration and innovation, and enhancing learning and feedback loops23.
1: ASCM CTSC Exam Content Manual, page 7.
2: From risk management to strategic resilience | McKinsey
3: Risk Management Magazine – Dealing with Disruption
Creating a diagram of the workflow of a production or service that includes standardized symbols, inputs, and outputs is called:
- A . process flow scheduling.
- B . process organization structure.
- C . process planning.
- D . process mapping.
D
Explanation:
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.
The key outputs of analyzing performance within the SCOR framework are:
- A . scorecard, business canvass, and SWOT analysis.
- B . as-is Level 3 process diagram, competitive analysis, and SWOT analysis.
- C . scorecard, SWOT analysis and competitive parities.
- D . as-is Level 3 process diagram, scorecard, and competitive requirements.
D
Explanation:
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 – APICS
3: SCOR Digital Standard | ASCM
4: Unlock Supply Chain Mgmt: Introducing SCOR Model | IIENSTITU
A company is developing a supply chain strategy that is more focused on creating value.
Based on this approach, which of the following steps is the most important for this company to take?
- A . Assess suppliers’ capabilities.
- B . Analyze the inbound flow to the company’s facility.
- C . Design internal operations to meet customers’ requirements.
- D . Study and benchmark the company’s operations.
C
Explanation:
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 | McKinsey
3: Strategic Value Creation in a Supply Chain – IGI Global
The most effective way to communicate the specifics of a planned supply chain transformation includes which of the following activities?
- A . Distribute one common document by company email.
- B . Hold breakout group sessions with each group involving employees from different departments.
- C . Require the topic be covered in each department’s monthly meeting.
- D . Conduct a one-time, all-company meeting with presentations by leadership.
B
Explanation:
Explore
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 the organization23. 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
Which of the following collaboration mechanisms involves the establishment of long-term relationships with partners to improve the overall efficiency and effectiveness of the supply chain?
- A . Total quality management (TQM)
- B . Collaborative planning, forecasting, and replenishment (CPFR)
- C . Supplier relationship management (SRM)
- D . Distribution resource planning (DRP II)
B
Explanation:
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 | McKinsey
3: Supply Chain Collaboration: Meaning, Importance, Features & Impact | GEP Blog
A firm creating a digital supply chain transformation team wants to ensure the data feeds to be used are of high quality and free of errors.
Which key role within the transformation team should be responsible for the quality and accuracy of the data feeds?
- A . Data engineer
- B . Data steward
- C . Data modeler
- D . Data scientist
B
Explanation:
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
Creating a replica of a real process, product, or service in order to create a virtual representation is called a digital:
- A . twin.
- B . media.
- C . content.
- D . product.
A
Explanation:
a digital twin is a virtual representation of a real-world object or system. These virtual models are used to digitally represent performance, identify inefficiencies, and design solutions to improve their physical counterparts. A digital twin is a digital model designed to accurately reflect a physical object. The object being studied―for example, a wind turbine―is outfitted with various sensors related to vital areas of functionality. These sensors produce data about different aspects of the physical object’s performance, such as energy output, temperature, weather conditions and more. This data is then relayed to a processing system and applied to the digital copy. Once informed with such data, the virtual model can be used to run simulations, study performance issues and generate possible improvements, all with the goal of generating valuable insights―which can then be applied back to the original physical object. A digital twin is a digital representation of a real-world entity or system. The implementation of a digital twin is an encapsulated software object or model that mirrors a unique physical object, process, organization, person or other abstraction.
An organization studying its strategic environment for establishing the scope of its supply chain transformation project must first create a:
- A . SWOT analysis.
- B . business plan.
- C . value proposition.
- D . business issue repository.
D
Explanation:
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.
The most prominent characteristic of a digital supply chain is:
- A . orientation towards perfect order fulfillment.
- B . focus on demand simulation while managing costs.
- C . optimal lot-sizing during replenishment.
- D . access to latest point-of-sale (POS) data across the network.
D
Explanation:
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.
A firm sells its products to retailers who then sell these products to customers. The firm wishes to obtain retail sales data for these products in near real time to improve its demand planning.
Which of the following actions should the firm undertake first?
- A . Develop and select from negotiation options.
- B . Anticipate data negotiation agreement frameworks.
- C . Review data needs and potential trading options.
- D . Informally discuss potential data exchanges without committing.
C
Explanation:
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
Which of the following roles is generally defined as a sponsor of an improvement effort?
- A . Manager
- B . Champion
- C . Steward
- D . High performer
B
Explanation:
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.
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:
- A . standardization and unification.
- B . inclusion and unification.
- C . standardization and harmonization.
- D . unification and harmonization.
C
Explanation:
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. Both approaches 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.
In a gap analysis, one of the most frequently used approaches in measuring operating income is:
- A . the Lost Opportunity.
- B . the Profitability Increase.
- C . the Order to Shipment Time.
- D . the Won Opportunity.
B
Explanation:
According to the ASCM CTSC Exam Content Manual, one of the most frequently used approaches in measuring operating income in a gap analysis is the profitability increase. The profitability increase is defined as "the difference between the current operating income and the potential operating income that could be achieved by implementing the best practices identified in the gap analysis"1. The profitability increase reflects the potential improvement in the organization’s financial performance by closing the gaps in its supply chain processes. The profitability increase can be calculated by multiplying the gap percentage by the current operating income1.
1: ASCM CTSC Exam Content Manual, page 15.
A company implements a new enterprise resource planning (ERP) system in 5 different regions globally. During ERP deployment, the company realizes that one region structures the product hierarchy significantly differently than the other four regions.
What step did this company omit in transforming management?
- A . Identifying the drivers of current performance
- B . Developing an organizational mapping
- C . Understanding the relationship between actions
- D . Deploying the five core supply chain management disciplines
B
Explanation:
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 organizational mapping 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.
What is an acceptable quality level (AQL) in the context of sampling inspection?
- A . The average quality level of a satisfactory process
- B . The minimum allowable number of defects in a sample
- C . The minimum acceptable level of product quality
- D . The limit of defective units acceptable in a continuing series of lots
D
Explanation:
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
As an organization transforms its processes to be more sustainable, it should evaluate its practices in which three major categories?
- A . Suppliers, Governance, and Environment
- B . Technology, Workforce, and Strategy
- C . Ecological, Ethical, and Economic
- D . Plan, Source, and Fulfill
C
Explanation:
According to the ASCM CTSC Exam Content Manual, ecological, ethical, and economic are the three major categories of practices that an organization should evaluate as it transforms its processes to be more sustainable. These categories are also known as the triple bottom line of sustainability, which measures the social, environmental, and financial impacts of an organization’s activities1. Ecological practices refer to the environmental aspects of sustainability, such as reducing greenhouse gas emissions, waste, and resource consumption, and enhancing biodiversity and ecosystem services12. Ethical practices refer to the social aspects of sustainability, such as respecting human rights, labor standards, and diversity, and promoting health, safety, and well-being of employees and communities13. Economic practices refer to the financial aspects of sustainability, such as creating value for stakeholders, ensuring fair and transparent transactions, and investing in innovation and development14.
1: ASCM CTSC Exam Content Manual, page 9.
2: Environmental Sustainability: Definition and Importance – Investopedia
3: Social Sustainability: Definition, Importance, and Examples – Investopedia
4: Economic Sustainability: Definition, Importance, and Examples – Investopedia
When designing a new demand-driven supply chain, at what point should available technologies be evaluated?
- A . Technologies should be selected first, and then the supply chain should be designed around the technologies.
- B . Technology selection and supply chain design should occur over the same time period.
- C . Technologies should be evaluated after the supply chain is designed.
- D . Technology selection is not part of the new demand-driven supply chain process.
C
Explanation:
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 SCOR level 1 metrics for the performance attribute of Cost are:
- A . total supply chain management and cost of goods sold (COGS).
- B . total supply chain management, COGS, and cash-to-cash cycle time.
- C . earnings before interest and taxes (EBIT) as a percent of revenue and COGS.
- D . total supply chain management and cash-to-cash cycle time.
A
Explanation:
the SCOR level 1 metrics for the performance attribute of Cost are total supply chain management and cost of goods sold (COGS). Cost is defined as "the costs associated with operating the supply chain, including labor, material, and transportation"2. Total supply chain management cost (TSCM/CO.1.1) is "the sum of the costs associated with the SCOR Level 2 processes to Plan, Source, Deliver, and Return"2. Cost of goods sold (COGS/CO.1.2) is "the direct costs attributable to the production of the goods sold by a company"3. These metrics measure the financial efficiency and effectiveness of the supply chain processes and activities14.
1: Supply Chain Operations Reference Model Revision 11 4: SCOR Metrics – scpiteam.com
2: CLL037 DoD Supply Chain Fundamentals – Defense Acquisition University
3: Cost of Goods Sold C COGS Definition – Investopedia
Which of the following entry criteria must be met before initiating a supply chain transformation
project?
- A . Network configuration modifications
- B . An implementation roadmap
- C . Information technology (IT) adjustment
- D . Skills and resources changes
B
Explanation:
According to the CTSC Exam Content Manual, one of the entry criteria that must be met before initiating a supply chain transformation project is an implementation roadmap1. An implementation roadmap is a document that outlines the scope, objectives, activities, deliverables, milestones, resources, and risks of the transformation project1. An implementation roadmap helps to guide and monitor the execution of the project, as well as to communicate and align the expectations and responsibilities of the stakeholders1. The other options are not entry criteria that must be met before initiating a supply chain transformation project, as they are more related to the outcomes or the actions of the project. Network configuration modifications, information technology (IT) adjustment, and skills and resources changes are examples of the changes that may result from the supply chain transformation project, but they are not prerequisites for starting the project2.
During the digital transformation planning process, a company distributed surveys and found that customers wanted a more detailed order status process. The company added online status information capability to their website and sent a customer satisfaction survey to customers after they received the product. This addition helped increase their customer base and repeat business.
This is an example of the successful use of:
- A . data mining.
- B . voice of the customer (VOC).
- C . balanced scorecard.
- D . customer service.
B
Explanation:
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.com
2: What is the Voice of the Customer (VoC)? – Qualtrics
In new product development, which concurrent engineering technique helps ensure efficient production process to meet customer requirements?
- A . Failure mode effects analysis (FMEA)
- B . Early supplier involvement (ESI)
- C . Quality function deployment (QFD)
- D . Statistical process control (SPC)
C
Explanation:
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 Management 2: Quality Function
Deployment (QFD) and House of Quality – ASQ 3: Quality Function Deployment (QFD) – What is Six
Sigma 4: Quality Function Deployment (QFD) – an overview | ScienceDirect Topics
What is the purpose of using value at risk (VAR) in supply chain risk management?
- A . To establish a common language to quantify supply chain risk in terms of currency
- B . To prioritize supply chain risks based on their likelihood of occurrence
- C . To assess the financial impacts of supply chain risks
- D . To measure the effectiveness of supply chain mitigation efforts
A
Explanation:
Explore
the purpose of using value at risk (VAR) in supply chain risk management is to establish a common language to quantify supply chain risk in terms of currency. VAR is defined as "a statistical technique used to measure and quantify the level of financial risk within a firm or investment portfolio over a specific time frame"2. VAR can help to estimate the potential loss that a supply chain may face due to various sources of disruption, such as demand fluctuations, supplier failures, natural disasters, or cyberattacks13. By expressing supply chain risk in monetary terms, VAR can help to communicate the risk exposure to different stakeholders, compare the risk profiles of different supply chain scenarios, and allocate resources for risk mitigation13. VAR can also help to link supply chain risk management with corporate financial performance and strategy14.
Which organizational structure would be most appropriate for a small start-up company?
- A . Centralized structure
- B . Decentralized structure
- C . Matrix structure
- D . Flat structure
D
Explanation:
a flat structure is the most appropriate organizational structure for a small start-up company. A flat structure is defined as "a type of organizational structure that has few or no levels of middle management between the employees and the executives"1. A flat structure allows for more direct communication, collaboration, and decision-making among the employees and the leaders, which can enhance innovation, agility, and responsiveness in a start-up environment12. A flat structure also reduces bureaucracy, hierarchy, and overhead costs, and empowers the employees to take more ownership and initiative in their work12. A flat structure is suitable for a small start-up company that has a simple and flexible business model, a lean and cross-functional team, and a customer-centric and value-driven culture12.
A customer is purchasing a new cell phone, and the sales representative convinces the customer to buy a case to protect the phone.
The customer representative has engaged in:
- A . cross-selling.
- B . suggestive selling.
- C . ad-hoc selling.
- D . up-selling.
A
Explanation:
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.com
2: What Is Cross-Selling? – Investopedia
Which of the following tools offers visualization to understand how effective processes are operating within the strategic plan by providing end-to-end supply chain transparency beyond conventional accounting measures?
- A . Supply chain control towers
- B . Balanced scorecard
- C . Benchmarking
- D . Gemba walk
B
Explanation:
a balanced scorecard is a tool that offers visualization to understand how effective processes are operating within the strategic plan by providing end-to-end supply chain transparency beyond conventional accounting measures. A balanced scorecard is defined as "a strategic planning and management system that is used extensively in business and industry, government, and nonprofit organizations worldwide to align business activities to the vision and strategy of the organization, improve internal and external communications, and monitor organization performance against strategic goals"2. A balanced scorecard typically includes four perspectives: financial, customer, internal process, and learning and growth2. A balanced scorecard helps to translate the organization’s vision and strategy into a coherent set of performance measures, and to monitor and manage the supply chain performance across multiple dimensions3.
1: Balanced Scorecard – an overview | ScienceDirect Topics
2: Balanced Scorecard Basics – Balanced Scorecard Institute
3: Balanced Scorecard for Supply Chain Management | Smartsheet: [Supply Chain Balanced Scorecard – SlideShare]
On which type of waste does just-in-time (JIT) manufacturing have the largest impact?
- A . Movement
- B . Waiting/Time
- C . Defects
- D . Overproduction/Inventory
D
Explanation:
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.
Which of the following drawbacks would result for an organization if it were to select transformation projects for implementation purely based on stand-alone benefits?
- A . Inaccuracies in measuring and analyzing targeted improvements
- B . Inefficiencies resulting from a lack of holistic visibility
- C . Inability to get quick buy-in from top management
- D . Compromising one of the competing priorities of cost and working capital
B
Explanation:
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’s strategic 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.
The best way to identify misalignments during the planning process of the transformation is to verify the alignment of the supply chain with the:
- A . overall information technology (IT) capabilities.
- B . business strategy.
- C . expected gross margin.
- D . minimally acceptable customer service fill rate.
B
Explanation:
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.
When implementing new supply chain capabilities identified by the business strategy, key management capabilities will be required.
Which of the following options corresponds to one of the required key management capabilities?
- A . Internal and external orientation
- B . Inspiring and influential leadership
- C . Management rotational program across markets
- D . Robust executive continuing education
B
Explanation:
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.
A company planning to minimize the impact of risk is engaging in what strategy?
- A . Risk acceptance
- B . Risk avoidance
- C . Risk transfer
- D . Risk mitigation
D
Explanation:
Very Short Explanation According to the CTSC Exam Content Manual1, risk mitigation is one of the four main risk response strategies, along with risk acceptance, risk avoidance, and risk transfer. Risk mitigation aims to reduce the probability and/or impact of a risk by implementing actions such as contingency planning, alternative sourcing, quality improvement, etc. Risk mitigation is different from risk acceptance, which means accepting the consequences of a risk without taking any action; risk avoidance, which means eliminating the risk by changing the plan or scope; and risk transfer, which means shifting the risk to a third party such as a supplier, insurer, or partner.
1: https://www.ascm.org/ctsc-ecm/
The external boundary conditions that impact an organization’s core strategic vision include market size, customer requirements, legal and regulatory landscape, and:
- A . core competencies.
- B . key business policies.
- C . financial goals.
- D . competitive situation.
D
Explanation:
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/
A company wishes to extend its responsive demand-supply matching (RDSM) capabilities to include predictive maintenance of its delivery trucks.
This indicates additional focus on which digital discipline?
- A . Sense
- B . Collaborate
- C . Optimize
- D . Respond
C
Explanation:
According to the CTSC Exam Content Manual1, the optimize digital discipline focuses on using data and analytics to improve operational efficiency and effectiveness, such as predictive maintenance, asset utilization, and resource allocation. Responsive demand-supply matching (RDSM) is a capability that falls under the optimize discipline, as it aims to balance supply and demand in real time using data-driven insights and actions. Extending RDSM to include predictive maintenance of delivery trucks would indicate additional focus on the optimize discipline, as it would help reduce downtime, costs, and risks associated with truck breakdowns.
1: https://www.ascm.org/ctsc-ecm/
Best-in-class companies consistently and significantly do better than their competitors because they:
- A . remove industry bias and generate graphical and analytical summaries.
- B . utilize benchmark supply chain metrics to gauge performance.
- C . use more cutting edge technology compared to their peers.
- D . streamline supply chain practices for delivering products and services.
B
Explanation:
According to the CTSC Exam Content Manual1, best-in-class companies consistently and significantly do better than their competitors because they utilize benchmark supply chain metrics to gauge performance. Benchmarking is the process of comparing one’s own performance with that of other organizations or industry standards, and identifying the best practices and gaps for improvement. Benchmarking helps best-in-class companies to set realistic and achievable goals, monitor progress, and drive continuous improvement.
1: https://www.ascm.org/ctsc-ecm/
Which of the following models explains how accidents happen in complex systems?
- A . Continuous flow
- B . Fast chain
- C . Herringbone
- D . Swiss cheese
D
Explanation:
According to the CTSC Ex-am Content Manual1, the Swiss cheese model is one of the accident models that explains how accidents happen in complex systems. The model compares the system to a stack of slices of Swiss cheese, where each slice represents a layer of defense or protection against hazards. The holes in the cheese represent weaknesses or failures in each layer. Normally, the holes do not align and the system is safe. However, when the holes align, a hazard can penetrate through the layers and cause an accident. The model illustrates how multiple factors and conditions can combine to create a pathway for an accident.
1: https://www.ascm.org/ctsc-ecm/
Functional products would be best suited for what type of supply chain?
- A . Responsive
- B . Efficient
- C . Customer-focused
- D . Agile
B
Explanation:
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/
A company has completed the forecasting portion of its digital transformation. It is now forecasting a probabilistic range of possible outcomes for each item versus a one-number forecast for each item.
How should it assess this outcome?
- A . This is a negative and expected result.
- B . This is a negative and unexpected result.
- C . This is a positive and expected result.
- D . This is a positive and unexpected result.
C
Explanation:
According to the CTSC Exam Content Manual1, probabilistic forecasting is one of the key capabilities of the sense digital discipline, which aims to capture and analyze data from various sources to generate insights and foresights for decision making. Probabilistic forecasting provides a range of possible outcomes for each item, along with the associated probabilities, rather than a single point estimate. This allows the company to better understand the uncertainty and variability of the demand and supply, and to plan accordingly. Probabilistic forecasting is a positive and expected result of the digital transformation, as it enhances the accuracy and reliability of the forecasts, and enables more effective risk management and scenario analysis.
1: https://www.ascm.org/ctsc-ecm/
When developing supply chain performance objectives and aligning the performance drivers to the strategic plan, the initial steps in the workflow include:
- A . conducting a strategic supply chain analysis, performing benchmarking, and gathering insights.
- B . executing the strategic plan and meeting the performance objectives.
- C . comparing and validating completeness against the SCOR model.
- D . performing a gap analysis between performance objectives and current performance.
A
Explanation:
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/
Which of the following actions is considered one of the SCORmark benchmarking steps?
- A . Compare the four balanced business perspectives.
- B . Set up industry benchmarks for returns processes.
- C . Conduct supply chain risk assessment and evaluate supply chain resilience.
- D . Develop company-specific roadmaps for improving supply chain performance.
C
Explanation:
According to the CTSC Exam Content Manual1, conducting supply chain risk assessment and evaluating supply chain resilience is one of the SCORmark benchmarking steps. This step involves identifying and analyzing the potential risks and vulnerabilities that could affect the supply chain performance, and measuring the supply chain’s ability to recover from disruptions and adapt to changing conditions. This step helps to improve the supply chain’s robustness and agility, and to mitigate the impact of uncertainties and shocks.
1: https://www.ascm.org/ctsc-ecm/
What operational framework references a pull system that includes visual cards to represent a work item?
- A . Agile
- B . Crystal
- C . Scrum
- D . Kanban
D
Explanation:
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/