By Marla Williams, CPPMPresident, Integrated Asset Management, Inc.

Executive Vice President, Federal Center Chapter

Verify that your records match the actual physical conditions

Includes:◦ Identifying property that is not currently in the

system◦ Identifying assets that are no longer needed by

the organization.

What loss rate is acceptable? Typical acceptable loss rates are between

0.5 and 5%. Weapons, hazardous materials, laptop

computers with sensitive information may have a zero acceptable loss rate.

Low cost items may have acceptable loss rates as high as 20%.

Cost and effort to replace the item Lost productivity Release of company-sensitive or personal

info Danger to the individual, the community or

the organization

Capital AssetsAccountable or Controlled Assets◦Sensitive Assets

Not Purchased for Resale Useful Life of Over One Year Acquisition Cost Greater Than Threshold

◦ $5,000 to $300,000, depending on size of organization

◦ Usually represents 80% of total asset value Reported on financial statement Any additions or changes must be noted on

annual statements Ultimate responsibility of the Chief Financial

Officer.

Purchase cost less than Capitalization Threshold

Items that may be vulnerable to theft Computers or PDA’s with personal or

sensitive information Hazardous material Weapons See ASTM E2608 Standard – provides

Equipment Control Matrix

Inventory is an audit Needs to be performed by individuals who

have no vested interest in the outcome. Use:

◦ third party vendor◦ headquarters personnel◦ teams from another location

Over 1,000 assets, should justify investment in automated inventory tools:◦ Commercial Off-the-Shelf (COTS) Single

Workstation System with one HandHeld Computer <$10,000

◦ COTS Multiple Workstation System over a network with two HandHeld Computers $20,000-$25,000

◦ Oracle or SQL-based system with customized screens and interfaces to suit your specific needs $250,000+

Old handhelds had proprietary operating systems and limited memory

New handhelds are portable computers running Windows Mobile or CE operating systems:◦ Can read RFID, UID codes or bar codes◦ Allow multiple configurations or prompts ◦ Run multiple applications (e.g. work orders,

preventative maintenance, etc.)

Linear Bar Codes◦ Most common and affordable

UID ◦ DOD Program for Equipment over $5,000◦ 2d matrix codes and linear bar codes assign

unique identification numbers to serialized equipment

◦ Purchase Information is sent to a National Registry

◦ Benefit to non-DOD. . .

RFID◦ Tags can be passive or ◦ active◦ Inventory with Handhelds◦ or Fixed Station Scanners◦ Fixed Scanning at Loading Dock, Entrances, and

Hallways makes collection automatic but can be expensive

◦ Consider for server rooms or areas that contain sensitive or hazardous materials

◦ Not a “real” security measure unless hidden inside equipment

◦ Cost Effective for High Volume Supply Chain Management Applications like Wal Mart

Project Manager should develop a detailed Inventory Plan and share it with all interested parties◦ Inventory personnel◦ Employees◦ Security personnel◦ Management

Main Contact◦ Available during work hours

Location Contact or Custodian Access Cards/Security Badges If escorts are required, how many? Procedures for Locked Rooms Maximum Number of Returns to Location

E-mail or Flyer to Employees◦ Ask for complete cooperation◦ Instruct employees to remove property from

overhead compartments, desk drawers and storage closets and leave the items out until inventoried.

◦ Give employees a contact name and telephone number for questions.

◦ Provide copies of the e-mail to the inventory team - to reduce interruptions.

Bar Code Label Supply◦ Consider pre-printed labels or print your own

Bar Code Labels for Locations◦ Some systems use bar code room tags to identify

locations. Floor Plans with Location Names and Organization

boundaries◦ Assign location names to workstations/cubicles

Condition Codes◦ Consider using GSA Codes◦ Put them in writing◦ Give Examples◦ Ask for specific damage information

Status Codes◦ IU-In Use◦ IS-In Storage (available for use by another)◦ EX-Excess to be turned in

Strategy for Laptops, PDA’s, Cellphones◦ E-mail known owners◦ Create Flyer for inventory team to leave◦ Host doughnut stations at elevator banks◦ Create Mail In Packages for Remote users◦ Don’t Forget Federal Continuity of Operation

Assets (COOP)

Laptops and Docking Stations◦ Many users are not familiar with proper undocking

procedures◦ Check with IT Department for proper “undocking”

procedures◦ Consider assigning special IT Help Desk person to

assist with docking issues during inventory Leave flyer with Help Desk contact at each station

when finished

Strategy for Vehicles◦ Station Inventory personnel at Centralized

Maintenance or Fueling Locations◦ Use fuel card system data◦ Organize special inventory times that minimize

disruption

Catalogs keep descriptions uniform and consistent◦ Identify Categories and Classifications◦ Basic Types (e.g. PC-Desktop, PC-Laptop)◦ Manufacturer Names◦ Model Numbers, Part Numbers◦ Dimensions (Floor Standing Equipment, Furniture)◦ Furniture Attributes (Color, Material, Finish, etc.)◦ Document Catalog Development Guidelines◦ Determine Process for Adding New Catalogs

Digital Images◦ Linked to Catalog/Asset ◦ Can be done with $100 digital cameras◦ Place sign in photograph with number to allow

you to rename later Can be dry eraser boards with magnets/velcro or

pre-printed numbers generated in Excel in a large font printed on plain paper

◦ Some companies use cameras that will allow them to assign the name in the camera

Standardize Tag Placement Guidelines◦ Keep it simple◦ Use photographs to illustrate◦ How will it look?◦ Is the tag easy to remove or tamper with?◦ If locked, can I access the tag?◦ If moved, will it block the tag?

Training◦ If Contractor is using your equipment, be sure they

have been adequately trained ◦ Consider train the trainer sessions for handhelds◦ Consider detailed scripts for inventory personnel

Flyer to Leave for Employees Who Are Out Set Progress Goals and Monitor Them

◦ How many assets will be inventoried each day?◦ What level of accuracy should we find during

auditing?◦ Are we on target to meet our completion deadline?

Ideally, wall to wall inventories should be conducted building by building, floor by floor, room by room

Rooms should be inventoried sweeping from left to right, right to left or some consistent pattern

If done by Organization or Custodial Officer, may miss items or whole room/areas not previously recorded – suggest tracking carefully on master floor plans

Uploads◦ Equipment failures or accidents could lose hours

or days of valuable work if not transferred Enter New Catalogs

◦ New catalogs should be entered immediately to reduce duplications and keep descriptions uniform

Update Master Floor Plan◦ Master Floor Plan should be updated to reflect

each team’s work, locked rooms or unusual conditions

Run Reports by Location Randomly audit 5% of each inventory

team’s work – catching problems while they are small . . .

PM posts each team’s counts and reasons for daily gains and losses

PM meets with teams at the end of each day: to receive feedback from teams about their progress review previous days audit results share productivity gains or losses Go over information about changes in schedule, etc.

Run Exception List of Items Not Found by previous location

Send Inventory Personnel back Update inventory data Run Exception List of Items Not Found by

Organization and Location Send list to the Accountable Organization

for further research Third Party should verify items found

Reconcile all assets inventoried by tag Does the system look for duplicate Serial

Numbers? Look for Serial Number matches between:

◦ List of All New Assets Tagged◦ Exception Listing of Items Not Found

Update reconciliation

Run several reports or spreadsheets:◦ All New Items Tagged by Organization◦ All Items Not Found with Purchase Cost by

Organization◦ All Items Found with Purchase Cost by

Organization

Measure annual overage or loss rates by overall number and value

Also makes these calculations for each Organization

Also calculate these values by category of equipment

Compare new information to previous losses/gains for trend

Generally, if the total value of your losses are in excess of 5%

Or you have an Organization with losses in excess of that rate, further investigation is required.

You can just rely on the physical inventory to maintain accuracy and continue to get the

same results, or worse,or

you can look at the physical inventory as an opportunity to make improvements in the

property management process

Marla Williams, CPPMPresidentIntegrated Asset Management, Inc.marla@weinventoryassets.com(800) 731-9569Millersville, Maryland