IUID in the Supply Chain

Physical Inventory by UII

March 24, 2009

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Agenda

Background

Goals for the Workshop

Tracking/Managing Controlled Items by IUID UII requires additional business process steps

- Receipt & Discrepancy Reporting (March 18 workshop)

- Issue (March 19 workshop)

- Inventory (today’s focus)

Tracking/Managing Controlled Items by UII requires additional business system changes

Way Ahead

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Goals for Workshop

Understand the UID requirement for Controlled Items in Supply Policy

General understanding of the additional business process steps required for physical inventory by IUID UII

Agreement to work together to advance this requirement in a standard, collaborative fashion and move forward to produce an Approved DLMS Change.

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Background on Item Unique Identification (IUID)

IUID definition: a globally unique, unambiguous data set to identify tangible assets to ensure data integrity and quality throughout the life of the product

- Construct #1 (serialization within company)- Construct #2 (serialization within Part/Lot/Batch)

IUID requirement: - Assigning a unique identifier (UII) for an item (each individual item, not at the NSN level)- Marking the item with a permanent machine-readable mark (2D-data matrix) which contains the UII

Emerging Policy on UID in the Supply Chain (DoD 4140.1-R):- Classified & Sensitive Items (Items with Classified and Sensitive Controlled Inventory Item Codes (CIIC))

• Small Arms, Conventional Weapons – included under Classified and Sensitive CIIC• Nuclear Weapon-Related Materiel (NWRM) - included under Classified and Sensitive CIIC

- Serially Managed Critical Safety Items (regardless of CIIC)- Hereafter collectively referred to as “Controlled Items”

Baseline Assumptions- DLMS compliance- Standard FLIS identification code will be developed for IUID controlled items- Current Serially-Managed Items will be migrated to use the IUID UII- WAWF deployment at all required sites for new procurements

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Controlled UID Items – Additional Physical Inventory Requirements for NWRM, Classified, Sensitive & CSI

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Physical Inventory Requirements: NWRM (Proposed Policy):

- Unit level shall do a 100% monthly physical count by UII. - Installation (post, camp, base, station) level shall do a 100% semiannual physical count

by UII.- Depot level shall do a 100% semiannual physical count by UII

Classified, Sensitive and Serially Managed CSI Items (Proposed Policy): - Unit level shall do a 100% monthly physical count by UII. - Installation (post, camp, base, station) level shall do a 100% semiannual physical count

by UII.- Depot level shall do a 100% annual physical count by UII.

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Controlled UID Items – Additional Physical Inventory Requirements for Conventional Arms, Ammo and Non-nuclear Missiles and Rockets

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Physical Inventory Requirements: : Category I, II, III, IV Arms, Ammo and Explosives:

- Unit level shall do a 100% monthly physical count by UII.- Installation (post, camp, base, station) level shall do a 100% semiannual physical count

by UII.- Depot level shall do a 100% annual physical inventory

Category II, III Non-nuclear Missiles and Rockets:- Unit level shall do a 100% quarterly physical count by UII.- Installation (post, camp, base, station) level shall do a 100% semiannual physical count

by UII.- Depot level shall do a 100% annual physical inventory.

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Inventorying Controlled UID Items – Additional Business Process Requirements

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1. When prompted, collect UII(s) using AIT from outside of unit packaging via PDF 417 to update/confirm inventory record.

2. If UII(s) are not available on the exterior packaging or if user finds UII mismatches, causative research will be pursued.

3. If evidence of tampering/damage, package will be opened and 100% physical count taken of contents.

Causative research is required on all discrepancies found as a result of the inventory. Adjustments to the accountable record as a result of the causative research must be approved at the Flag Officer/Senior Executive Service level regardless of dollar value.

Repackage and re-label exterior packaging, as required.

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1. Owner/Manager initiates scheduled and special physical inventories using the Physical Inventory Request (846P) which is sent to the depot. (The new FLIS IUID designator for the NSN serves as the Key to indicate physical inventory by UII required)

2. Depots initiate scheduled, special, and spot physical inventories. (The new FLIS IUID designator will indicate to the owner/manager that the inventory will be conducted by UII.)- Spot Inventory initiated due to a total or partial denial.

- Special inventory initiated owner/manager or depot as a result of location survey, location reconciliation, unresolved mismatches, etc.

3. Depot must verify, by physical location, all UIIs by condition code against the accountable record.a. Results of UII differences are reported to the owner/manager via 947I. Details for reporting

UII differences to the owner/manager must be determined (e.g., when only UII has mismatches - no quantity or condition change)

b. Mismatches on UII-- Causative research is required on any discrepancies found as a result of the inventory.

4. Owner/Manager must verify reported UII and condition code against their recorda. Mismatches require new reporting procedures of UIIs and/or condition code of items with

depot accountable record.

5. Owner/manager requests a transaction history via a 846P and the depot responds with the historical balance affecting transactions (527R 867I, 945A, and 947I all with the UII included. (Controlled UII Item Inventory line item will be defined as stock number + supply condition code +

UII.) [1] The physical inventory interface transaction between the owner/manager and the depot will not be required

with the establishment of single shared-asset balance.

Physical Inventory Control Program/Physical Inventory for Controlled UII Items (Depot) - Additional System Requirements

DAAS

947I

Distribution Depots

846P

Owner/ Manager (ICP)

846P 947I

ERP

DSS

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1. Owner/Manager initiates scheduled and special physical inventories using the Physical Inventory Request (846P) which is sent to the depot. (The new FLIS IUID designator for the NSN serves as the Key to indicate physical inventory by UII required)

2. Retail sites initiate scheduled, special, and spot physical inventories. (The new FLIS IUID designator will indicate to the owner/manager that the inventory will be conducted by UII.)- Spot Inventory initiated due to a total or partial denial.

- Special inventory initiated owner/manager or depot as a result of location survey, location reconciliation, unresolved mismatches, etc.

3. Retail sites must verify, by physical location, all UIIs by condition code against the accountable record.a. Results of UII differences are reported to the owner/manager via 947I. Details for reporting

UII differences to the owner/manager must be determined (e.g., when only UII has mismatches - no quantity or condition change)

b. Mismatches on UII-- Causative research is required on any discrepancies found as a result of the inventory.

4. Owner/Manager must verify reported UII and condition code against their recorda. Mismatches require new reporting procedures of UIIs and/or condition code of items with

depot accountable record.

5. Owner/manager requests a transaction history via a 846P and the depot responds with the historical balance affecting transactions (527R 867I, 945A, and 947I all with the UII included. (Controlled UII Item Inventory line item will be defined as stock number + supply condition code +

UII) [1] The physical inventory interface transaction between the owner/manager and the retail site will not be

required with the establishment of single shared-asset balance.

Physical Inventory Control Program/Physical Inventory for Controlled UII Items (Retail) - Additional System Requirements

DAAS

947I

Customer Storage Site

846P

Owner/ Manager (ICP)

846P 947I

ERP

WMS

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• Record Reconciliation Program. Each DoD Component shall implement a record reconciliation program that shall consist of both a location survey and a location reconciliation.[1]

Location Reconciliation. Location reconciliation requires a match between depot records and owner/manager records, in order to identify and to correct situations when there is: (1) an owner/manager record with no corresponding depot record, (2) a depot record with no corresponding owner/manager record, (3) common elements of data that do not match, and (4) quantity discrepancies. Mismatches shall be researched and special inventories conducted when required to effect corrective action. Recommend depots be required to conduct location reconciliations (annual

and end of day) with the owner/manager by UII There is a systems impact but not an operational impact to include UII. UII records mismatch logic must be determined.

If UII is not included in the location reconciliation there is no way to be assured that both the owner/manager and depot have the same UIIs on their respective records; even if the quantities match.

Location Survey. Location survey requires a physical verification, other than actual count, between assets and recorded location data to ensure all assets are properly recorded. When a discrepancy is identified during the location survey program, the depot shall conduct prompt research and determine need for a special inventory .

Depot will not conduct location surveys by UII – Process does not require quantity verification.

[1] The location reconciliation process will not be required with the establishment of single shared-asset balance

Physical Inventory Control Program/Record Reconciliation Program for Controlled UII Items - Additional System Requirements

DAAS

Distribution Depots

Owner/ Manager (ICP)

846RRequest

ERP

DSS

846RResponse

846RRequest

846RResponse

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Way Ahead

Schedule follow-on workshops to discuss levels of intensive management and parking lot issues

Publish proposed policy with transition period direction

Document detailed business rules to enable new processes through iterative, collaborative Process Review Committee/DLMS Change process

Identify champions to document specific requirements to submit as Proposed DLMS Changes (PDC)

Participate actively in the development, coordination and approval process

Develop system requirements

• Requires coordination to leverage good ideas on systems changes/methodologies

• Use ERP working groups

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Goals for Workshop – Did we accomplish our goals?

Understand the UID requirement for Controlled Items in Supply Policy

General understanding of the additional business process steps required for physical inventory by IUID UII

Agreement to work together to advance this requirement in a standard, collaborative fashion and move forward to produce an Approved DLMS Change.

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BACK UP SLIDES

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DLMS 846P Physical Inventory/Transaction History

• 846P Physical Inventory Request is a multipurpose transaction that serves 5 functions determined by Report Type codes in the beginning segment of the transaction as follows (the corresponding MILSTRAP Document Identifier (DI) Code is shown for information in parentheses):

• Physical Inventory Request Transaction (identified by Report Type Code TC – Physical Inventory Request). The owner/manager uses this transaction to initiate, follow up on, or cancel a physical inventory. The depot uses to initiate or cancel a physical inventory. (MILSTRAP DI Code DJA functionality, except as noted below for Report Type Code DD below.)

• Response to Physical Inventory Request Transaction (identified by Report Type Code DD –Distributor Inventory Report). This is used by the depot to respond to a Physical Inventory Request Transaction from the owner/manager, when response does not include asset balances. Use as a response relates to use with physical inventory transaction Management Code R (no record of stock number or no record of ownership); S (physical inventory in workload bank or in process), or Y (response to follow-up when inventory already complete). (MILSTRAP DI Code DJA functionality when DJA is used as a response with Management Codes R, S, or Y.)

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DLMS 846P Physical Inventory/Transaction History

• 846P Physical Inventory/Transaction History serves 5 functions (continued)

• Transaction History Request Transaction (identified by Report Type Code TF – Transaction History Request). Owner/Manager uses to request transaction history from the depot. (MILSTRAP DI Code DZJ functionality.)

• Response to Transaction History Request (No History Available) (identified by Report Type Code AD – Agent/Distributor Inventory Report). Depot use to respond to Transaction History Request when no history is available. (MILSTRAP DI Code DZK functionality when DZK record position 30-43 is 8-filled or 9-filled.)

• End of Day Transaction Count (identified by Report Type Code B1 – Batch Report). This transaction is sent by depot to the owner/manager to advise owner/manager of the number of accountable (balance affecting) transactions that were forwarded during the daily course of business. (MILSTRAP DI Code DZM functionality.)

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846R Location Reconciliation Transaction

• 846R Location Reconciliation is a multipurpose transaction that serves 3 functions determined by Report Type codes in the beginning segment of the transaction as follows (the corresponding MILSTRAP DI Code is shown for information in parentheses):

• Location Reconciliation Request Transaction (identified by Report Type Code LC –Location Inventory Report). The depot sends to the owner/manager to reconcile depot and owner/ manger records. (MILSTRAP DI Code DZH functionality.)

• Location Reconciliation Notification Transaction (identified by Report Type Code X4 – Summary Report). The depot sends to the owner/manager to advise of the number of Location Reconciliation Request transactions being forwarded. (MILSTRAP DI Code DZN functionality.)

• Location Reconciliation History Notification Transaction (identified by Report Type Code ZZ –Mutually Defined). [An ASC X12 data maintenance was approved in version 5030 for DS 846R Report Type Code LN-Location Reconciliation History Notification.] The depot sends to the owner/manager to advise of the number of transaction history transactions are being forwarded. (MILSTRAP DI Code DZP functionality.)

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A compliant IUID Mark – Syntax & Semantics

IUID Basic Tenets - Marking

Formats:

ATA: Text Element Identifiers (TEIs)

[)>RS12G

SMFR 0CVA5GSSER 674A36458R

SEoT

GS1: Application Identifiers (AIs)

[)>RS05G

S800406141411A0B9C3D6RSEoT

MH 10.8.2: Data Identifiers (DIs)

[)>RS06G

S17V0CVA5GS1P1234G

SS786950RSEoT

• Using the syntax of ISO/IEC 15434, either of the threeformats (TEIs, AIs, or DIs) can be used and Construct #1 (serialization within company), Construct #2 (serialization within Part/Lot/Batch) or DoD accepted equivalent are acceptable.

• This interoperability of formats permits enterprises to use their prevailing machine-readable marking processes

• Resulting Unique Item Identifier (UII) is globally unique

serial number

Imaging Device