Please use the following two slides as a template for your presentation at NES. ADOPTING A CATALOGING PROCESS IN PARTS MANAGEMENT PROCESS TO REDUCE SUPPLY CHAIN AND LIFECYCLE COST Danie Mostert, Ph.D. Manager, USA Operations Jack Fowler Functional Specialist

WHAT IS CATALOGING? Definition - A uniform system of Identifying Items One number concept Multiple Suppliers under one number Consolidate Buys into one order Eliminate duplication of items in inventory

WHY CATALOGING? Reduce Supply Chain Costs Identify and procure the “best” item – seek suppliers that can provide the most preferred items at the best cost Material Standardization Investment recovery Change the relationship with the supplier – Strategic sourcing No duplicate items Reduce inventory locations of “expensive” / critical parts

WHY CATALOGING? Reduce Life Cycle Costs Acquisition costs Research and development costs Non recurring costs like facilities, training, technical data Recurring costs like support equipment upgrades, utility improvements Sustainment costs Scheduled and unscheduled maintenance costs Usage costs Disposal costs

WHY CATALOGING? Reduce Life Cycle Costs Materials and standardizations benefits Modifications using standardized material Standard Support equipment costs Disposal costs Sustainment Select most appropriate equipment/material/and special tooling/special test equipment used in organization during research and development Select support equipment already used Acquisition

What is Cataloging? DEFINITION – A uniform system of Identifying Assets First principle – What is the item commonly known as? Screw – Resistor – Meter - Shirt Second principle – What modifiers are used to further define item? Screw, Machine - Resister, Fixed - Meter, Ampere-Volt-Ohm - Shirt, Polo Third principle – What Physical/Performance Characteristics are normally used to describe the item? Size = Dimensions (Length, width, material, etc.) Range of Use = From Volts, 0-99K Ohms Material = Steel, 100% Cotton Clothing Size = S, M, L, XL, XXL, Where Used = F16 - AN123 Generator, CFM 56 Test Stand

CATALOGING HISTORY 1914 – Navy Initiates a Cataloging Process Public Law Uniform System of Item Identification −Preclude/Eliminate Different Identifications of like items −Standard Language Structure for Items in the inventory Reveal Interchangeability Between Items −Aid in Standardization −Interchangeable and Substitutable Links Between Items

CATALOGING HISTORY Improve Material Management and Logistics Support −Facilitate Intra/Inter Departmental Support and Effectiveness −Multiple Sources for items Centralized Data File −All Users have access to ALL data and decisions −All Users Speak With Same Terminology

CATALOGING PRINCIPLES Provide the “Right Item, Right Time, Right Place, Right Price Every Time!” Source: Defense Logistics Information Service (DLIS) NSN story Identify corporate-wide purchases of material and equipment to obtain better pricing based upon total volume and usage of all programs Identify all supply sources for material and equipment Reduce Catalog maintenance cost by reducing the initial entry and review of like items in many different catalogs for different systems Provide cross support between all programs by using a standard approved item name and Interchangeability and Substitutability standards under single “stock keeping unit” (SKU). Identify items requiring special controls & handling Precious Metals, Hazardous Materials, Aircraft Parts, DEMIL, etc.

WHAT METHOD TO USE? Programs require use of National Stock Numbers (NSN) −Contract −Weapons Systems Using the Federal Standard establishes single method for a company (SKU). −Federal Supply Class (5305) −Item Identifying Number ( ) Federal/NATO Standard of approved item names (Nomenclature/Description). Worldwide Standard Descriptive Elements already defined

How to identify items: Your part Number By supplier Part Numbers Universal Product Code (UPC) European Article Number (EAN) Stock Keeping Unit (SKU) Federal Logistics Information System (FLIS) Existing NATO Standard Already Defined Name and Descriptive Standards in Place Provides a means of monitoring the minimum of items essential to support operations What Identification System Standard?

Many programs require the use of National Stock Numbers (NSN) Support of Contracts, Weapons Systems Using the Federal Standard establishes single method for a company (SKU). Federal Supply Class (5305) and Item Identifying Number ( ) or (NG ) Using the Federal/NATO Standard for Approved Item Names (Nomenclature/Description). Worldwide Standard - Descriptive Elements already defined What Identification System Standard?

H2 Federal Supply Classification Used to classify items of supply identified under the Federal Cataloging Program Groups and Classes have been established for items known to be in the Federal system Federal Supply Group (FSG) identifies, by title, the commodity area covered by the Classes within a group. It has two numbers to identify the Group Group 10 Weapons Group 51 Hand Tools Group 52 Measuring Tools Each Class covers a relatively homogeneous are of commodities in respect to their physical or performance characteristics FSC 5110 – Hand Tools, Edged, Nonpowered FSC 5120 – Hand Tools, Edged, Powered FSC 5130 – Hand Tools, Power Driven FSC Drill Bits, Counterbores, and Countersinks: Hand and Machine FSC Taps, Dies, and Collets; Hand and Machine FSC Tool and Hardware Boxes FSC Sets, Kits, and Outfits of Hand Tools Why Use NATO Standard?

Level of Detail Depends on how and where it is used Does it have a level of CRITICAL Performance Factors/Material Can it be replaced by another item without effecting warranties? Who will use the Information Foreign Nationals Pictures instead of/with words Translation to another language How available is the information to the organization? What different parts of your Organization will use the Information Maintenance – Procurement – Engineering - Warehouse How Much Information Required?

Type of Item Where and how it is used – Single Application = Test Stand for Engine, Ejector Seat Piece Parts with multiple potential applications Screws, Bolts, Hand Tools, Electronic Components Level of Descriptive Detail More potential uses = more detail Size Material Dimensions Limited uses = less detail Where used What it is How Much Information Required?

Definition – A Process by Which Items are Compared Against an Existing Standard or Inventory Items Prevent Entry of Sub-Standard or Duplicate Items into the Inventory Item Entry Control – A Filtering Process for Comparing Potential Candidates to Existing Items or Recognized Standards Mechanically Part Number Screening Limited Characteristics Matching Manually Validate Sources/Part Numbers Review Characteristics for Potential Existing Matches Group Like Items Together Interchangeable and Substitutable Relationships Promote use/depletion of Existing Items in What is Standardization?

VALIDATE PART INFORMATION Part Number Part Number Format VALIDATE SOURCE Existing Source Identifier New Source Creation PERFORM CHARACTERISTICS SEARCH Part Number/CAGE Screening Approved Item Name Source Characteristics Determine Appropriate Actions Add to existing item Create new record Item Entry Control (IEC)

PERFORM CHARACTERISTICS SEARCH Find Existing Like Items Form Fit Function Item Entry Control (IEC)

Save $$$$$$$$$$$$$$ Eliminate Duplicate Items Best Pricing for Individual Parts Reduce Footprint Less Warehouse Space Better Sources for Just In Time Deliveries Standardize Terminology Approved Item Name Source Characteristics Centralize Data Store Merge Multiple Data Stores Into One Ensure Availability of Data to Users KEY POINTS

Overview – Our view FLIS Integration

QUESTIONS ????