Bar Coding/Asset Tracking Implementation New Jersey Natural Gas Bar Coding/Asset Tracking Implementation AGA Best Practices Conference June 6, 2012 Scott Edgerton, Manager – Energy Delivery Support

NJNG Overview Just under 500,000 customers and about 10,000 miles of distribution mains and services NJNG Storeroom One centralized storeroom with four divisional storerooms and four contractor storerooms Just under 25,000 inventory transactions a year Current Inventory balance as of 4/30/12 is 6.8 million Turn over ratio of 2.96 goal is 3 NJNG Database Utilize JD Edwards software to capture all inventory transactions and balances 1

Overview NJNG is in the process of implementing a bar coding system to comply with DIMP regulations Track all gas carrying material from receipt to retirement Investigate other processes where bar coding could be utilized Team comprised of members of our Operations, Engineering, Stores, Purchasing and Quality departments

Vendor Selection Established team to select bar coding vendor Looked at three vendors: DSI, RF Smart and Barcoding Inc. Two vendors were brought in for product demonstration Integration with JD Edwards software was a key point Turnkey system implementation Selected vendor Meetings established to design scripts Disconnect identified regarding project scope

Process Mapping Internal Team established to map storeroom transaction processes and identify required script Currently mapping processes Mapping each construction process to ensure that we have the appropriate steps to track the asset (i.e. main retirement, emergency main renewal, schedule leak repair) The team visited Purchasing, Stores and Engineering to view detailed presentations on purchase orders and the purchasing process, the stores process, the work order creation process and GIS

Issued Identified What material needs to be tracked How will the 16 digit ATSM approved standard fit to our application? Do we need information in addition What is the best arrangement of storerooms? Mixed lots vs. separate by lot (more space) Some materials are bulked out directly to contractor storerooms For critical materials that must be GPS’d, what is the required level of accuracy

Other Bar Coding Capabilities Utilization in parts tracking for vehicle maintenance Improve accuracy and productivity in storeroom transactions GIS upload of material assets

Next Steps Complete process maps of storeroom transaction JD Edwards modifications Turn on lot control Add or modify user defined codes or fields Data transfer to GIS Field changes to accommodate asset tracking

QUESTIONS??