APICS CTSC Certified in Transformation for Supply Chain (CTSC) Exam Practice Test

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

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

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.

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/

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

According to the CTSC Exam Content Manual1,SCOR metrics for the Sustainability performance attribute are closely aligned with the Global Reporting Initiative (GRI) Standards, which are the most widely used standards for corporate sustainability reporting. The GRI Standards provide a framework and guidance for disclosing information on the economic, environmental, and social impacts of an organization’s activities, products, and services. The SCOR metrics for Sustainability include indicators such as greenhouse gas emissions, energy consumption, water consumption, waste generation, and social responsibility.

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

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

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

According to the ASCM 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

According to the CTSC Exam Content Manual1, Six Sigma is a methodology that aims to improve the quality and performance of processes by reducing variability and defects. Six Sigma uses various tools and techniques to measure, analyze, and control the variation of the forecast and the demand over time for products and services. Some of these tools include control charts, histograms, Pareto charts, scatter plots, and regression analysis. Therefore, Six Sigma is the best tool to use for this analysis. Option A, Lean, is a methodology that aims to eliminate waste and increase value in processes by applying principles such as pull, flow, and continuous improvement. Lean does not focus on measuring and reducing variability of the forecast and the demand. Option C, TOC, is a methodology that aims to optimize the performance of a system by identifying and eliminating the constraints or bottlenecks that limit its throughput. TOC does not focus on measuring and reducing variability of the forecast and the demand. Option D, TQM, is a methodology that aims to achieve customer satisfaction and organizational excellence by involving all stakeholders in the continuous improvement of processes and products. TQM does not focus on measuring and reducing variability of the forecast and the demand.

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.

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

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

According to the ASCM, the SCOR model provides a framework for measuring the performance of the supply chain across five core processes: Plan, Source, Make, Deliver, and Return. The model defines three levels of metrics: Level 1, Level 2, and Level 3. Level 1 metrics are strategic metrics that reflect the overall performance of the supply chain, such as customer satisfaction, total cost, and return on assets. Level 2 metrics are diagnostic metrics that measure the performance of each core process, such as reliability, responsiveness, agility, cost, and asset management.Level 3 metrics are operational metrics that measure the performance of specific activities within each core process, such as order fulfillment cycle time, production yield, and inventory turns1.

The ASCM recommends that organizations use Level 2 metrics as their KPIs, because they provide a balanced view of the supply chain performance across the five core processes and the attributes of reliability, responsiveness, agility, cost, and asset management.Level 2 metrics also enable benchmarking and best practice identification, as well as alignment with the customer and stakeholder expectations1.Level 1 metrics are too high-level and may not reflect the specific performance of each core process, while Level 3 metrics are too detailed and may not capture the overall performance of the supply chain1. Therefore, Level 2 metrics are the most suitable for establishing KPIs.

According to the CTSC Enterprise and Supply Chain Management (ESCM) manual, one of the most important steps that leadership can take in developing talent for a digital supply chain transformation process is to invest in building data-centric supply chain communities with relevant skills1.Data-centric supply chain communities are groups of people who share a common interest and passion for using data and analytics to improve supply chain performance1.They can foster a culture of learning, innovation, and collaboration among supply chain professionals, and help them acquire and apply the necessary digital skills, such as data science, data engineering, data visualization, and data storytelling1.By investing in building data-centric supply chain communities, leadership can create a talent pipeline for the digital supply chain transformation, and empower the employees to leverage data and technology to achieve the strategic objectives1.

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

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

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

1: ASCM CTSC Exam Content Manual, page 14.

According to the CTSC 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/

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, the supply chain information system infrastructure consists of four main elements: hardware, software, data warehouse, and the internet1.These elements enable the collection, storage, processing, and transmission of data and information across the supply chain, and support the decision making and execution of supply chain activities1.The ASCM also states that the supply chain information system infrastructure is a key enabler of supply chain transformation, which is the process of changing the supply chain to achieve higher performance, efficiency, and sustainability1.By having a robust and reliable infrastructure, a company can leverage the power of data and analytics, improve the visibility and collaboration across the supply chain, and adopt new technologies and innovations that can enhance the supply chain capabilities and outcomes1. Therefore, hardware, software, data warehouse, and the internet are the infrastructure elements that have a significant impact on supply chain transformation.

According to the CTSC Enterprise and Supply Chain Management (ESCM) manual, external benchmarking against similar supply chains is recommended in the development of a balanced scorecard because it helps the company to understand how it is strategically aligning its supply chain performance and how its performance compares to thebest-in-class or industry standards1.External benchmarking can also help the company to identify the gaps and opportunities for improvement in its supply chain processes, practices, and capabilities1.A balanced scorecard is a performance measurement tool that assesses an organization and its supply chain from four different perspectives: customer, internal process, learning and growth, and financial1.By using external benchmarking, the company can set realistic and relevant targets and goals for each perspective, and monitor and evaluate its progress and performance1.

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

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/

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 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 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.

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.

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,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/

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

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

 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 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 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 ASCM CTSC Exam Content Manual, change control is defined as “the process of determining, approving, or rejecting alterations to a plan baseline” (p. 18). Change control ensures that changes are properly evaluated, documented, and implemented in a controlled manner. Change control is part of the broader change management process, which also includes change identification, change evaluation, change approval, change implementation, and change verification.

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.

responsive supply-demand matching (RDSM) is the ability to sense demand exceptions, target revenue opportunities and resolve supply challenges through planning of constrained resources and allocation of supply across the network to best meet demand according to the business strategy1.One of the benefits of RDSM is to improve the customer service level by fulfilling the demand on time and in full1.Therefore, one of the supply chain metrics that should be included on the RDSM dashboard is on-time, in-full, which measures the percentage of orders that are delivered to the customers within the agreed time window and with the correct quantity and quality2.

The other options are not suitable for the RDSM dashboard, as they are not directly related to the RDSM objectives or outcomes.Inventory quality ratio is a metric that measures the percentage of inventory that is in good condition and can be sold to the customers3.This metric is more relevant for the inventory optimization phase of the digital transformation, which aims to reduce the inventory costs and risks4.Customer backorder rate is a metric that measures the percentage of orders that are not fulfilled on time due to the lack of inventory5.This metric is more relevant for the demand sensingand shaping phase of the digital transformation, which aims to improve the demand forecasting accuracy and responsiveness6. Sell-through rate is a metric that measures the percentage of inventory that is sold within a given period of time. This metric is more relevant for the omni-channel fulfillment phase of the digital transformation, which aims to optimize the order fulfillment across different channels and locations.

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 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.

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 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/