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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:

  1. standardization and unification.
  2. inclusion and unification.
  3. standardization and harmonization.
  4. unification and harmonization.

Answer(s): 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:

  1. the Lost Opportunity.
  2. the Profitability Increase.
  3. the Order to Shipment Time.
  4. the Won Opportunity.

Answer(s): 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?

  1. Identifying the drivers of current performance
  2. Developing an organizational mapping
  3. Understanding the relationship between actions
  4. Deploying the five core supply chain management disciplines

Answer(s): 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?

  1. The average quality level of a satisfactory process
  2. The minimum allowable number of defects in a sample
  3. The minimum acceptable level of product quality
  4. The limit of defective units acceptable in a continuing series of lots

Answer(s): 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






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