How to Conduct Your Own Logistics Assist Visit (LAV) CDR Alex Dagnachew LCDR Tim Henning

FOR OFFICIAL USE ONLY 2 How to Conduct Your Own LAV  By conducting your own LAV you are planning for success. Treat your self assessment as if it is an inspection. MEDIG & LAV Check Lists are your tools to conduct a self assessment.  Team should consist of Materiel Manager and the MMD Division Officers. Conduct a self assessment at least annually, document your assessment, and continue to monitor your findings.  Review last MEDIG/JCAHO/PPMAP Audits/LAV Reports and prepare for any that may be upcoming.  Assist Logisticians to achieve and improve internal management control of accountable assets and improve business processes.  Evaluate the effectiveness of Equipment Management processes from materiel procurement planning to eventual property disposal.  Evaluate the effectiveness of the Purchasing Management, Acquisition Planning Requirements Development, and Contracting Officer’s Representative (COR) Programs.

LAV Assessment Elements  Evaluate synchronization of business practices, policies and systems  Review current policies  Analyze data; focus on trends  Evaluate site’s business practice  Evaluate site’s appropriate use of business systems  Identify processes requiring BUMED-wide standardization  Identify change requirements to the logistics information systems  Identify change requirements to the policies FOR OFFICIAL USE ONLY 3

LAV Assessment Elements Continued  Receipt Control  Inventory Management  Five Year Equipment Replacement Plan  Device Code Assignment  Property/Item Decrease/Loss  Maintenance Plan and Procedures  Service Contracts  Material Due-ins  Emergency Management Plan/CBRNE/IPP  COR Appointment, Training and Management  ECAT Orders  Purchase Card Management FOR OFFICIAL USE ONLY 4

Spotlight Metrics  M8 Portal / Quick links / Financial Spotlight Review:  Naval Medical Logistics Command  Report Categories:  Appropriate Use of Acquisition Priorities  Undelivered Orders  Inappropriate Use of Purchase Card  Purchase Card Usage Reduction  Unable to Locate Equipment  Equipment Maintenance  Use to Gauge command performance  Used by BUMED to monitor commands  Coordinate with Comptroller FOR OFFICIAL USE ONLY 5

Spotlight Metrics FOR OFFICIAL USE ONLY 6 Logistics "7" Spotlight Metrics Metric Goal Personal Service Contract Fill Rate > 95% Appropriate Assignment of Acquisition of Priorities Priority 3 < 10% Priority 6 < 20% Preventive Maintenance Medical Equipment Risk Level 1 100% Risk Level 2 &3 > 96% Unable to Locate Equipment < 2% Undelivered Orders (Due-Ins) ECAT < 15 days (20 days OCONUS) MILSTRIP < 20 days PRIME Vendor (USE&JIT) < 7 days(15 days OCONUS) PRIME Vendor (NUS&Other) < 15 days(20 days OCONUS) Open Market < 20 days Purchase Card < 30 days Government Purchase Card Usage Rate < ## & $$ Same Month Previous Year Inappropriate use of Government Purchase Card <.004

BUMED Standard Operating Procedures   Contract Closeout  Electronic Catalog  Equipment Contract Establishment  MEDSURG Prime Vendor Management  Personal Property  Purchase Card  Contracting Officer’s Representative (COR) SOPs = Standard Business Processes required since 1 Oct 2009 SOP compliance helps with audit readiness Surgeon General Memorandum on Internal Controls in Navy Medicine FOR OFFICIAL USE ONLY 7

NMLC Guidance Guidance On:  Recurring and Split Requirements Prevention  Log Inventory Level Setting  Standard Recommended Monthly BO Reports  Purchase Card Use Reduction to Prime Vendor  Assumption of Duties FOR OFFICIAL USE ONLY 8

Other Things to Look For/Use  Delegation/Appointment Letters and Warrants  MEDSURG and Pharmacy PV Credit Reports  MED IG Checklist  DMLSS Reports for Due-Ins and Equipment Management  Equipment Program and Review Committee  Command Ethics and Standards of Conduct  Unauthorized Commitments FOR OFFICIAL USE ONLY 9

Equipment Program Review Committee (EPRC)  Role  Plan, Budget, Approve, and Prioritize equipment acquisitions  Membership  Chairman, appointed by CO  Directors (DFS, DSS, DAS, DMS, DNS)  Comptroller  Equipment Manager  Head, MMD  Staff CEC or Facilities Manager  Maintenance Manager/BMET  Chief Information Officer (CIO)  Safety Officer FOR OFFICIAL USE ONLY 10

EPRC Continued  Responsibilities  Semi-annually (at minimum) prioritize O&M using Expense Equipment Request Form  Annually (at minimum) review the equipment management program including instructions, etc.  Annually (at minimum) establish OP priorities  Annually (at minimum) monitor equipment replacement, property administration and excess equipment programs  Review and validate 5-Year OP Equipment Requirement List provided by NMLC via BUMED and respective Regional Commands FOR OFFICIAL USE ONLY 11

Process Validation  Valuation: Test all contributing factors (device code, life expectancy, useful life, acceptance date, acquisition cost, etc.)  Completeness: Test to ensure that maintenance significant equipment and personal properties are entered in DMLSS  Accountability: Test if the equipment found on site belongs to the entity  Replacement Plan: Test for proper equipment selection and requisition process  Due-in Receipt: Test to ensure that due-in materials are properly receipted and properly recorded FOR OFFICIAL USE ONLY 12

Acquisition  Review last PPMAP; correct any findings identified  NAVSUPINST F identifies exactly what will be reviewed during your PPMAP; familiarize yourself with this instruction and refer to often  CORs – ensure they are properly nominated and appointed IAW NAVSUPINST D  Warrants – Contracting Officers properly appointed via SF1402; trained prior to appointment  Ordering Officers properly warranted IAW BUMED Ordering Officer Guide for DLA e-Commerce Contracts (Prime Vendor/ECAT) FOR OFFICIAL USE ONLY 13

Acquisition Continued  Defense Acquisition Workforce Improvement Act (DAWIA) compliance  Acquisition staff (personnel in job series 1102 and 1105) certified to the required level  Continuous Learning of 80 hours every two years IAW SECNAV DAWIA Operating Guide (21 Dec 2011)  Resources – utilize to stay abreast of acquisition changes  NMLC website – Lead Contracting Executive   NAVSUP Contracting Knowledge  FOR OFFICIAL USE ONLY 14

Acquisition Continued  Government Commercial Purchase Card (GCPC) BUMED SOP and NAVSUPINST  Small Business Specialist Review FOR OFFICIAL USE ONLY 15

FOR OFFICIAL USE ONLY 16 Purpose of MM Standardization This material is presented to alleviate the frustrations with the learning curve, which historically takes 6 to 10 years for Material Managers/Medical Logisticians to become fully competent and effective. If Material Manager/Medical Logistician is not fully aware of their responsibilities for the Command, and the processes involved, they will be unable to ensure their operations are in alignment with the standardized processes expected to make BUMED fully compliant with standardized processed for the enterprise.

Assumption of Duties LAV = Logistics Assist Visit Used to validate MMD’s effectiveness = External Assumption of Duties MM Self Assessment of MMD’s effectiveness FOR OFFICIAL USE ONLY 17

How do you evaluate yourself? LOG/CPD: Primary mechanism for accommodating customer needs. Warehouse vs. Warehousing Reduced: Credit Card Purchases Customer Emergency Orders Customer Safety Stock FOR OFFICIAL USE ONLY 18

Inventory Mgt (LOG/CPD) NIS Rates Current LOG $$ value (Effective or Wasteful) Turn-Over Rates >2/month Number of Items Carried (Compared to total Orders) Deadstock (non-AMAL items) FOR OFFICIAL USE ONLY 19

Customer Effectiveness: NIS Rates NIS Rates: IM NIS DMLSS BO Report - NIS items per Customer orders - Items NIS at time of Customer Order Shows all orders NIS at time of order - Top ten NIS items per date Range Shows only the time 10 items NIS (low hanging fruit) - Log Inventory Level Setting - IM Stocked Usage with Delivery Method - ACTIVE Backorders FOR OFFICIAL USE ONLY 20

Customer Effectiveness: Unexecuted Orders Orders are expected to be Timely FOR OFFICIAL USE ONLY 21

Current LOG $$ value Current LOG $$ value: (Effective or Wasteful) Stocked Supplies = $Money$ Are you effective with these funds or wasteful FOR OFFICIAL USE ONLY 22

Inventory IM Report FOR OFFICIAL USE ONLY 23

Inventory IM - Inv turnover per item FOR OFFICIAL USE ONLY 24

Turn-Over Evaluation FOR OFFICIAL USE ONLY 25 Is the Turn-Over Effective?

Deadstock Deadstock BO Report: - Shows all items not moved (requested) in past Months, and Greater than 12 Months - Replaced Zero Demand from Inventory IM Report FOR OFFICIAL USE ONLY 26

PV Credit Mgt PV Credits should be used before APF/OPTAR New DMLSS functionality -Populates DMLSS PV Credit Balance. -Prompts user to use PV credits prior to OPTAR Credits moved from 90 days to 120 days. Some credits are from DLA reconciled old orders, so may not have full time period to use credits FOR OFFICIAL USE ONLY 27

Catalog Records Management Unused DMLSS Catalog Records should be Deleted Customers can only see 500 rows of data in catalog When items are not visible, they as MMD for new Catalog Solution: Run Catalog Records Without Current Transactions - Also shows new Catalog Records not yet Ordered! FOR OFFICIAL USE ONLY 28

Purchase Card Controls Purchase Card Orders Most Time Consuming Most Expensive/Costly Most Troublesome Move to eCommerce Essential Effective Management Paramount FOR OFFICIAL USE ONLY 29

PC Order Reduction to eCommerce More time is spent making PC buys than other SOSs Combined. FOR OFFICIAL USE ONLY 30 SOSAnnual Dollar$Annual Orders Open Market$8,817, MILSTRIP$13,872,02336,447 ECAT$26,548,76491,241 PC$72,643,125215,370 PV$624,812,7061,105,704 Totals $746,694,3191,449,039

Inventory Standardization / PV Optimization Is Command performing PC reduction processes? Are they effective? Should be performed at least Quarterly Purchase Card Use Reduction to Prime Vendor SOP & BO NMLC webpage FOR OFFICIAL USE ONLY 31

eZ SAVe Use FOR OFFICIAL USE ONLY 32

PC Span of Control The APC/AO need to validate and justify Open PC Accts - Credit Cards require “ROUTINE” use -Instruction is weak, Material Managers should be strict FOR OFFICIAL USE ONLY 33

Reconciliation / Encumbered Funds FOR OFFICIAL USE ONLY 34 Receipted Orders does not equal Obligations

Resources FOR OFFICIAL USE ONLY 35

Questions ? FOR OFFICIAL USE ONLY 36