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

According to the ASCM, the balanced scorecard in the supply chain measures the performance of the supply chain against eight attributes: reliability, responsiveness, agility, cost, profit, assets, environmental, and social.These attributes reflect the efficiency, effectiveness, and sustainability of the supply chain, as well as its alignment with the customer and stakeholder expectations1.

According to the 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.

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.

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

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

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

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

According to the CTSC Exam Content Manual1, 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.

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.

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.

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

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

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

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

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

According to the CTSC exam content manual1, the 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 ASCM CTSC Exam Content Manual, a supply chain strategy that is more focused on creating value is based on the principle of customer-centricity1.This means that the supply chain strategy should align with the value proposition and expectations of the target customers, and deliver superior value to them in terms of quality, cost, service, and innovation12.Therefore, the most important step for this company to take is to design its internal operations to meet customers’ requirements, such as product specifications, delivery time, customization options, and after-sales support13.This will help the company to differentiate itself from competitors, increase customer satisfaction and loyalty, and enhance its profitability and market share12.

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

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

According to the ASCM CTSC Exam Content Manual, the SCOR framework consists of five phases: analyze, configure, optimize, implement, and evaluate.In the analyze phase, the key outputs are an as-is Level 3 process diagram, a scorecard, and competitive requirements1.The as-is Level 3 process diagram shows the current state of the supply chain processes in detail, using the SCOR standard definitions and symbols2.The scorecard measures the performance of the supply chain processes against the SCOR metrics and benchmarks3.The competitive requirements define the target performance levels for the supply chain processes based on the customer and market expectations4.

1: ASCM CTSC Exam Content Manual, page 13.2:SCOR Quick Reference Guide - APICS3:SCOR Digital Standard | ASCM4:Unlock Supply Chain Mgmt: Introducing SCOR Model | IIENSTITU

According to the 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

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.

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.

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

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

 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, 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 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 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.

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.

According to the CTSC Exam Content Manual, avoidance cost is one of the metrics used to measure the value created by the procurement function1.Avoidance cost is defined as the value created by reducing or eliminating cost increases sought by suppliers over and above prevailing baseline cost1.Avoidance cost is also known as cost avoidance, which is a proactive measure to prevent unnecessary expenses or losses2.Avoidance cost is different from cost savings, which is the value created by reducing the actual cost paid to suppliers below the prevailing baseline cost1.Cost savings is also known as hard cost savings, which is actualized, quantifiable and verifiable3.

According to the CTSC Exam Content Manual1, one of the characteristics of digital supply chain integration is that it “enables end-to-end visibility, collaboration, and optimization across the supply chain network”. This means that digital supply chain integration aims to achieve efficiency and effectiveness across all the processes involved in planning, sourcing, transforming, and fulfilling products, rather than focusing on each process in isolation. Therefore, the best approach to support a digital supply chain for an apparel company is to emphasize integrated efficiency goals across all four processes, as this would enable the company to optimize its resources, reduce costs, improve quality, and meet customer expectations. Option A, C and D are examples of approaches that do not support digital supply chain integration, as they either focus on standalone goals for each process or prioritize revenue over efficiency.

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, 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/

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

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

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

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

According to the CTSC Exam Content 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.

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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 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 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/

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.

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