How to Conduct Your Own Logistics Assist Visit (LAV)

CDR Alex DagnachewLCDR Tim Henning

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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

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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

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Spotlight Metrics M8 Portal / Quick links / Financial Spotlight Review:

https://www.navmedfinancial.org/cms/ Naval Medical Logistics Commandhttps://gov_only.nmlc.med.navy.mil/code06/metrics-

tracking.asp 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

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Spotlight Metrics

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Logistics "7" Spotlight MetricsMetric 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

https://wwwa.nko.navy.mil/portal/navymedicine/fip/home/sop 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 readinessSurgeon General Memorandum on Internal Controls in Navy

Medicine

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NMLC Guidance

https://gov_only.nmlc.med.navy.mil/code06/medlogsop.asp

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

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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

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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

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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

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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

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Acquisition

Review last PPMAP; correct any findings identified NAVSUPINST 4200.82F 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 4205.3D

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)

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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

https://gov_only.nmlc.med.navy.mil/lce/ NAVSUP Contracting Knowledge

https://www.navsup.navy.mil/cks

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Acquisition Continued

Government Commercial Purchase Card (GCPC) BUMED SOP and NAVSUPINST 4200.99

Small Business Specialist Review

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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 VisitUsed to validate MMD’s effectiveness = External

Assumption of DutiesMM Self Assessment of MMD’s effectiveness

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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

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Inventory Mgt (LOG/CPD)

NIS RatesCurrent LOG $$ value (Effective or

Wasteful)Turn-Over Rates >2/monthNumber of Items Carried (Compared to

total Orders)Deadstock (non-AMAL items)

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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 BackordersFOR OFFICIAL USE ONLY

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Customer Effectiveness: Unexecuted Orders

Orders are expected to be Timely

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Current LOG $$ value

Current LOG $$ value: (Effective or Wasteful)Stocked Supplies = $Money$

Are you effective with these funds or wasteful

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Inventory IM Report

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Inventory IM - Inv turnover per item

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Turn-Over Evaluation

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Is the Turn-Over Effective?

Deadstock

Deadstock BO Report:- Shows all items not moved (requested) in past 6 - 12 Months, and Greater than 12 Months- Replaced Zero Demand from Inventory IM Report

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PV Credit Mgt

PV Credits should be used before APF/OPTARNew 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

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Catalog Records Management

Unused DMLSS Catalog Records should be Deleted

Customers can only see 500 rows of data in catalogWhen 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!

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Purchase Card Controls

Purchase Card Orders Most Time ConsumingMost Expensive/CostlyMost Troublesome

Move to eCommerce Essential

Effective Management Paramount

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PC Order Reduction to eCommerce

More time is spent making PC buys than other SOSs Combined.

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SOS Annual Dollar$ Annual OrdersOpen Market $8,817,701 277

MILSTRIP $13,872,023 36,447ECAT $26,548,764 91,241

PC $72,643,125 215,370PV $624,812,706 1,105,704

Totals $746,694,319 1,449,039

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 VendorSOP & BO NMLC webpage

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eZ SAVe Use

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PC Span of ControlThe APC/AO need to validate and justify Open PC Accts

- Credit Cards require “ROUTINE” use-Instruction is weak, Material Managers should be strict

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Reconciliation / Encumbered Funds

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Receipted Orders does not equal Obligations

Resources

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Questions

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