ASTM Use and Application

Cinda Brockman, A2B Tracking, CPPM, CFTamra 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 BoardChairman: Bill Franklin, Noblis Inc.Vice Chairman: Cinda Brockman, A2B TrackingSecretary: Rick Shultz, John Hopkins Univ/APLMembership Secretary: Kim Doner, SRAMember at Large: Amber Propert, US Office of Under

Secretary of Defense Acq. Tech. and Logistics

Member at Large: Richard Culbertson, RetiredMember at Large: Mike Showers, NASAMember at Large: Tamra Zahn, BoeingPast Chairman: Bob Holcombe, GSAStaff Manager: Katerina Kaperna, ASTM

NPMA and ASTM – The Relationship

ASTMDevelops & Publishes Standards

NPMADevelops and Presents

Educational& Certification Material

“Director of

Standardsand

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 49Skipped 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 (continued)

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 Standards

E2279 Standard Practice for Establishing the Guiding Principles of Property Management

E2605-8 Standard Practice for Receiving of AssetsE2132-11 Standard Practice for Inventory Verification: Electronic and

Physical Inventory of AssetsE2604-9 Standard Practice for Data Characteristics of Equipment

RecordsE2453-05 Standard Practice for Determining the Life-Cycle Cost of

Ownership of Personal PropertyE2131-09 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) LossE2497-11 Standard Practice for Calculation of Asset Movement Velocity (AMV)E2606-08 Standard Practice for Receipt Notification as a Result of Tangible Property MovementE2631-09 Standard Practice for Physical Placement of an Entity-Controlled Supplemental Identification LabelE2672-09 Standard Practice for Identification and Categorization of Tooling

ASTM E53 Standards Usage SurveyResponse Summary

• 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

Answered question 41Skipped question 12

ASTM E53 Standards Usage SurveyResponse Summary

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

Response Count 27

Answered question 27Skipped 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

Incorporating Standards into your Procedures

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.

In Part-ExampleE2221 Administrative Control of Property

Incorporate• 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.

Incorporating Standards into your Procedures

Incorporating Standards into your Procedures (continued)

• 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-Example E2605-08 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-Example E2132-01 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, and5. Location

Examples of Whole Standards Being Used (continued)

E2135 Standard Terminology for Property and Asset ManagementQuestion: 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?