2013 NPMA Fall Conference Value Through Professional Asset Management ASTM Use and Application Cinda Brockman, A2B Tracking, CPPM, CF Tamra Zahn, Boeing,

2013 NPMA Fall ConferenceValue Through Professional Asset Management

ASTM Use and Application

Cinda Brockman, A2B Tracking, CPPM, CF

Tamra Zahn, Boeing, CPPA


The History of ASTM Committee E53

•The idea of property Standards took hold, major breakthrough at NES in Santa Fe, New Mexico

• A dedicated group researched how the process should work

•Chose ASTM, founded in 1898, as the organization to manage the process of creating voluntary consensus standard

•ASTM Committee E53 Property Management Systems was formed

20011999 20001998

•The first two standard s were issued


E53 Committee - The Present

Scope• The development,

maintenance and dissemination of standard practices and performance standards for asset management systems and the lifecycle management of personal property assets.

E-53 “Committee on

Asset Management”

E53.20

E53.02

E53.04

E53.05

E53.06

E53.10

E53.03E53.07


Subcommittees

E53.01 Process Management E53.02 Data Management E53.03 Financial Management E53.04 Reutilization and Disposal E53.05 Property Management Maturity E53.06 Terminology E53.07 Sustainable Property Management E53.10 Asset Management Activity E53.20 United States Government Contract Property Management


E53 Executive Board

Chairman: Bill Franklin, Noblis Inc.

Vice Chairman: Cinda Brockman, A2B Tracking

Secretary: Rick Shultz, John Hopkins Univ/APL

Membership Secretary: Kim Doner, SRA

Member at Large: Amber Propert, US Office of Under Secretary of Defense Acq. Tech. and Logistics

Member at Large: Richard Culbertson, Retired

Member at Large: Mike Showers, NASA

Member at Large: Tamra Zahn, Boeing

Past Chairman: Bob Holcombe, GSA

Staff Manager: Katerina Kaperna, ASTM


NPMA and ASTM – The Relationship

ASTMDevelops & Publishes

Standards

NPMADevelops and Presents

Educational

& Certification Material

Director of Standards and Utilization


Audience Participation

How many of you have incorporated E53 Standards in your policies and processes?

For those who did not raise your hand why haven’t you incorporated them?

How many of you have been audited (internally or externally) to the standards in your policies and processes?


Utilization Survey – One of E53’s Completed Goals

Survey Details:• Utilization survey results to guide development of future

standards ASTM Sponsored Survey Sent to 96 of companies 26 Standards were selected 53 Responses received 79.60 % of the standards were reported as being used

according to 49 of the respondents


ASTM E53 Standards Usage SurveyResponse Summary

Do you currently use ASTM E53 standards within your property plan and/or procedure, if Yes please complete the survey, if No please continue to question 8?

Response % Response Count

Yes 79.6% 39

No 20.4% 10

Answered question 49

Skipped question 4


Survey Results

Percentage # of RespondentsE2676-09 0% 0E2674-09 10.50% 2E2497-11 12.80% 5E2606-08 12.80% 5E2631-09 12.80% 5E2672-09 12.80% 5E2378-05 20.00% 2E2811-11 20.50% 8E2379-04 22.70% 5E2671-10 23.10% 9E2858-12 25.00% 8E2499-11 25.60% 10E2495-07 27.30% 6E2715-09 28.20% 11

Of the Standards listed, which do you use?


Survey Results

Percentage # of Respondents

E2452-10 31.80% 7E2607-06 34.40% 11E2675-09 36% 8E2812-11 36.80% 7E2608-08 40.90% 9E2305-11 59.40% 19E2279-09 61.50% 24E2605-8 64.10% 25E2132-11 66.70% 26E2604-09 78.90% 15E2453-05 90.00% 9E2131-09 90.60% 29

Of the Standards listed, which do you use?


Hot StandardsE2279 Standard Practice for Establishing the Guiding

Principles of Property Management

E2605-8 Standard Practice for Receiving of Assets

E2132-11 Standard Practice for Inventory Verification: Electronic and Physical Inventory of Assets

E2604-9 Standard Practice for Data Characteristics of Equipment Records

E2453-05 Standard Practice for Determining the Life-Cycle Cost of Ownership of Personal Property

E2131-09 Standard Practice for Addressing and Reporting Loss, Damage, or Destruction of Tangible Property


Not So Hot….

E2676-09 Standard Practice for Tangible Property Mobility (MI) E2674-09 Standard Practice for Assessment of Impact of Mobile Data

Storage Device (MDSD) Loss E2497-11 Standard Practice for Calculation of Asset Movement Velocity

(AMV) E2606-08 Standard Practice for Receipt Notification as a Result of Tangible

Property Movement E2631-09 Standard Practice for Physical Placement of an Entity-Controlled

Supplemental Identification Label E2672-09 Standard Practice for Identification and Categorization of Tooling



If your system is audited, does the auditing agency (internal or external) confirm your compliance with the referenced standards in your plans and procedures?

Response % Response Count

Yes 51.2% 21

No 22.0% 9

N/A 26.8% 11


Skipped question 12



What subject within Asset/Property Management would you want to see developed into a new standard?

Response Count

27


Skipped question 26


On What Topics Would You Like to See a Standard Written?

Standard that is solely related to Item Unique Identification (IUID) as required by DFARS

Material control guidelines and the practice of ABC inventory methods.

Management of Government Furnished Information Subcontract control Transfer of US Government property to foreign countries Internal Self Assessments and Audit of Property

Management Functional Elements


Incorporating Standards into your Procedures

In whole In part OMB Circular A119

• This Circular establishes policies to improve the internal management of the Executive Branch. Consistent with Section 12(d) of P.L. 104-113, the "National Technology Transfer and Advancement Act of 1995" (hereinafter "the Act"), this Circular directs agencies to use voluntary consensus standards in lieu of government-unique standards except where inconsistent with law or otherwise impractical. It also provides guidance for agencies participating in voluntary consensus standards bodies and describes procedures for satisfying the reporting requirements in the Act. The policies in this Circular are intended to reduce to a minimum the reliance by agencies on government-unique standards. These policies do not create the bases for discrimination in agency procurement or regulatory activities among standards developed in the private sector, whether or not they are developed by voluntary consensus standards bodies. Consistent with Section 12(b) of the Act, this Circular directs the Secretary of Commerce to issue guidance to the agencies in order to coordinate conformity assessment activities. This Circular replaces OMB Circular No. A-119, dated October 20, 1993. Example: E2221 The Standard Practice for Administrative Control of Property

http://www.whitehouse.gov/omb/circulars_a119/



OMB Circular A119 Section 6 a. Your agency must use voluntary consensus standards, both domestic and international, in its

regulatory and procurement activities in lieu of government-unique standards, unless use of such standards would be inconsistent with applicable law or otherwise impractical. In all cases, your agency has the discretion to decline to use existing voluntary consensus standards if your agency determines that such standards are inconsistent with applicable law or otherwise impractical.

(1) "Use" means incorporation of a standard in whole, in part, or by reference for procurement purposes, and the inclusion of a standard in whole, in part, or by reference in regulation(s).

(2) "Impractical" includes circumstances in which such use would fail to serve the agency's program needs; would be infeasible; would be inadequate, ineffectual, inefficient, or inconsistent with agency mission; or would impose more burdens, or would be less useful, than the use of another standard.

http://www.whitehouse.gov/omb/circulars_a119/


In Part-ExampleE2221 Administrative Control of

PropertyIncorporate• All property should have been

entered into the formal accountable records and inventories are to be performed in accordance with the administrative control thresholds of the

organization.• Inventories should be performed by

personnel other than the custodians of the property and inventory results should be independently verified.

• The results of the inventory should be analyzed and discrepancies reconciled with the property records and the financial control records.

Not Incorporate• Acceptable Thresholds for

Administrative Control• Organizations that have inventory

variances of 5 % or greater are defined as “high risk” under Practice E 2131 and should set their control threshold at $500.00.

• Organizations that have inventory variances of between 2 % and 5 % are defined as “medium risk” under Practice E 2131 and should set their control threshold at $5000.00.





Inventories should be performed by personnel identified in the PI Plan and inventory results should be independently verified unless otherwise agreed upon and documented in the PI plan. (Ref. ASTM E2221-02)


In Part-ExampleE2605-08 Standard Practice for Receiving Property

Incorporate• 5.5-5.7. Locate the incoming documentation. In

most cases, incoming documentation will accompany the shipment (that is, packing slip, shipping document, and invoice). If no documentation is present, the receiving entity shall either contact the shipping entity requesting documentation or generate a document listing the following information:

• 5.5.1 through 5.6.7• 5.7 Note any damage or discrepancies, or both, on

the incoming documentation.• 5.11 Receiving tangible property against a purchase

order could involve other functions within your organization. The receipt of tangible property will differ depending on your organizational structure for acquiring and issuance of payment for property received.

• 5.12 An organization should establish a standard processing time for tangible property being received and delivered. Needs, types of property and its characteristics , requirements, and capabilities should be considered before setting this time frame. This time frame may vary based upon the type of property and its characteristics.

Incorporate• 5.8 Ensure what was shipped was ordered and

what was ordered was received. Reconcile the incoming documentation against the authorizing document. This information shall be accessible to receiving personnel at the point of receipt.

• 5.8.1 Damage or discrepancies, or both, shall be reported immediately to the appropriate organization within your organization for resolution.

• 5.9 The receiving of sensitive or hazardous materials , or both, may require special handling and safety precautions.

• 5.10 Ensure the tangible property is inspected in accordance with the quality requirements of the contract or customer, if required.

Not Incorporate• 5. Procedure for Receiving Incoming Tangible

Property , 5.1 through 5.4.1• 6. Reports


In Part-ExampleE2132-01 Standard Practice for Physical Inventory

of Durable, Moveable Property

Incorporate• 3.1.1 A physical inventory is an assessment

or audit. An effective physical inventory provides information of value that equals or exceeds the cost of the activity. For the results to be valid and useful, complete the physical inventory by consistently applying written procedures. As physical inventories generally measure performance over a period of months or years and results are often trended, it is desirable to repeat past inventory practices in order to make results comparable..

• 3.4 Population• 3.7 Validation techniques – determine the

validation and data gathering techniques permissible for the inventory. Validation techniques may include: barcode scanning, radio transmission, owner validation, validation by an independent individual, two-signature validation…

• 4. Procedure

Not Incorporate• 2. Significance and Use• 3.1.2 As physical inventories are

generally efforts involving significant time, resources, complexity, and personnel, appropriate project management techniques should be employed. Address 3.2 through 3.13 when planning.

• 5. Results• 6. Interpreting Physical Inventory

Results


Examples of Whole Standards Being Used

E2604-09 Standard Practice for Data Characteristics of Equipment RecordsQuestion: Why is this one an easy one to incorporate into your processes?

Answer: Because under Data Elements there are only 5 essential data elements that shall be used in equipment records:

1. Identification number (unique or equivalent),

2. Description,

3. Receipt date,

4. Unit acquisition cost, and

5. Location


Examples of Whole Standards Being Used

E2135 Standard Terminology for Property and Asset Management

Question: Why is this one an easy one to incorporate into your processes?

Answer: Because it would be a lot easier if all of your terminology throughout your processes and procedures were the same as what is defined in E2135. Being consistent is a good thing!


Audience Participation

What hesitation if any, do you have with incorporating standards into your procedures?

What benefits have you reaped from incorporating standards?

Questions?

Documents

2013 NPMA Fall Conference Value Through Professional Asset Management ASTM Use and Application Cinda Brockman, A2B Tracking, CPPM, CF Tamra Zahn, Boeing,