Overview of ASTM Asset Management Standards

ASTM

ASSET MANAGEMENT STANDARDSJANUARY 14, 2014

By Marla Williams, CPPM

President, Integrated Asset Management, Inc.

Treasurer/Past President, Federal Center

Chapter

IMPACT ON FEDERAL AGENCIES

Section 12(d) of the National Technology Transfer Act of 1995 (P.L.

104-113, or "the Act") codified the policies of OMB Circular A-119.

Section 12(d)(1) states that "Except as provided in paragraph (3) of

this subsection, all Federal agencies and departments shall use

technical standards that are developed or adopted by voluntary

consensus standards bodies, using such technical standards as a

means to carry out policy objectives or activities determined by the

agencies and departments."

1/14 /2014MARLA W ILL IAMS, CPPM (800)731 -9569

IMPACT ON FEDERAL GOVERNMENT

CONTRACTORS

FAR 52.245-1 Government Property

(b) Property management.

(1) The Contractor shall have a system to manage (control, use,

preserve, protect, repair and maintain) Government property in its

possession. The system shall be adequate to satisfy the requirements

of this clause. In doing so, the Contractor shall initiate and maintain

the processes, systems, procedures, records, and methodologies

necessary for effective control of Government property, consistent with

voluntary consensus standards and/or industry-leading practices and

standards for Government property management except where

inconsistent with law or regulation. . .


WHAT IS A VOLUNTARY CONSENSUS

STANDARD?

Wide base of users come together

Utilize Standards Development Organizations structure and systems

Vote to

Develop

Amend

Maintain (Review Regularly)


WHO ARE STANDARDS DEVELOPMENT

ORGANIZATIONS?

Internal Organization of Standards (ISO)

Aerospace Standards

American National Standards Institute (ANSI)

National Institute of Standards

ASTM International


WHY ASTM INTERNATIONAL?

Established in 1898, ASTM International provides a global forum

for the development and publication of international voluntary

consensus standards for materials, products, systems and

services.

ASTM membership includes more than 30,000 technical experts

from 150 countries around the world.

NPMA and ASTM formed E53 Committee in June, 2000.

Develops criteria for the management and administration of

durable and movable assets

Currently 26 Standards have been developed and more being

developed all the time – reviewed every 5 years


HOW DO I GET STANDARDS?

Visit the ASTM.com web site to join.

Basic Individual Membership with on-line access to the current on-line

standards for $75.00 per year.

Includes Standards Tracker feature allows you to specify Standards or Committees

of interest to you so that you can stay up to date!

Volume 4.12

Can be accessed through npma.org link.


COMMITTEE E53 OFFICERS ON ASSET

MANAGEMENT

Chairman: William G. Franklin

Vice-chairman: Cinda K. Brockman

Recording secretary: Richard R. Shultz

Membership secretary: Kim Doner

Past chairman: Robert Holcombe

Member-at-large: Patrice Baker

Member-at-large: Amber L. Barber

Member-at-large: Richard C. Culbertson

Member-at-large: Michael T. Showers

Member-at-large: Tamra A. Zahn


E53 SUBCOMMITTEES AND

STANDARDS E53.01 Process

Management

E53.02 Data Management

E53.03 Financial Management

E53.04 Reutilization and Disposal

E53.05 Property Management Maturity

E53.06 Terminology

E53.07 Sustainable Property Management

E53.08 Management of Fleet Assets

E53.10 ISO Asset

Management Activity

E53.20 United States

Government Contract Property

Management

E53.90 Executive

E53.90.01 Standards

Development

E53.90.02 Education

E53.90.03

Marketing/Promotional/PR

Lead

E53.91 Awards

E53.92 Planning


WHAT DO THE NUMBERS MEAN?

For example:

E2604 – 09 Standard Practice for Data Characteristics of Equipment Records

E is from an “E” Committee

2604 is sequentially assigned

09 is the year of publication – remember, they are required to be reviewed every five

years so they are constantly changing


EXISTING STANDARDS

DATA MANAGEMENT

E2604 – 09 Standard Practice for Data Characteristics of

Equipment Records

presents both essential and optional data elements

E2674 – 09 Standard Practice for Assessment of Impact of Mobile

Data Storage Device (MDSD) Loss

Methodology for assessing and quantifying the impact of the loss of mobile

data storage devices (e.g. thumb drives, auxiliary hard drives, and other

personally identifiable or entity sensitive information)

E2812 – 11 Standard Practice for Uniform Data Management in

Asset Management Records Systems

To maintain data consistency, integrity, and usability to achieve uniform data


EXISTING STANDARDS

PROCESS MANAGEMENT

E2132 – 11 Standard Practice for Inventory Verification: Electronic and Physical Inventory of Assets

includes either physical or electronic confirmation of existence, location and quantity and addresses inventory planning, acceptable physical/electronic techniques, reconciliation, key results, interpretation of results, special considerations, and inventory results reporting.

E2279 – 09 Standard Practice for Establishing the Guiding Principles of Property Management

guiding principles governing acquisition, use and disposal of assets…seek “best value”. . . foster problem solving and innovation. .. .seeking to be effective and efficient, to the point at which benefits exceed the costs of operations

E2497 – 11 Standard Practice for Calculation of Asset Movement Velocity (AMV)

Calculates rate at which assets (not consumables) move into, within and out of accountability system – may foster additional practices related to or based on AMV information and trend tracking over time (e.g. staff, system and technology requirements)


EXISTING STANDARDS

MORE PROCESS MANAGEMENT

E2499 – 11 Standard Practice for Classification of Asset Physical Location Information

Covers standardizing terminology related to physical location and includes ten increasingly specific level, assigning standard name and level number to each (e.g. …PLL 2 is Country,…PLL 5 is Site, PLL 6 Building,…PLL9 Desk/Shelf location…)

E2605 – 13 Standard Practice for Receiving Assets

Verifying, recording, and reporting original receipt of assets (equipment and supplies) – very detailed, excellent standard for all organizations.

E2606 – 13 Standard Practice for Receipt Notification as a Result of Tangible Asset Movement

Covers notification of asset movement to promote accurate visibility of asset location and timely recording of updates.


EXISTING STANDARDS


E2631 – 09 Standard Practice for Physical Placement of an

Entity-Controlled Supplemental Identification Label

Placement of labels of controlling entity label – not for manufacturer or OEM

markings – limited guidance but worth review

E2671 – 10 Standard Practice for Defining Movements,

Shipments, and Transfers of Tangible Property

Provides definitions for movement, shipments and transfers

E2672 – 09 Standard Practice for Identification and

Categorization of Tooling

grouping, identification and categorization criteria for describing tooling – both

ordinary and unique – to identify critical items, increase tool utilization, and

help allocate resources and manage production.


EXISTING STANDARDS


E2715 - 09 Standard Practice for Moveable Property Storage

Defines physical protection and control of moveable property in

storage/warehouse locations to ensure best value while avoiding undue risk –

specific details.

E2811 - 11 Standard Practice for Management of Low Risk

Property (LRP)

Low Risk Property should be administratively controlled and managed to a

lesser degree with a more efficient technique than high risk property – see

also E2608 Equipment Control Matrix.


EXISTING STANDARDS

FINANCIAL MANAGEMENT E2378 – 13 Standard Practice for the Recognition of Impaired or

Retired Personal Property

Proper accounting for assets that are still retained but need to be recognized

as impaired or retired to less expensive levels of administrative control.

E2453 – 13 Standard Practice for Determining the Life-Cycle Cost

of Ownership of Personal Property

Excellent method for evaluating the life cycle cost of ownership over time by

separating the three major life cycle stages (acquisition, utilization and

disposition) into detailed substages with efforts and costs related to each

substage where a present value adjustment is made dependent on factors

such as tax increases, appreciation in the value of the asset, unforeseen

maintenance or repair issue, etc.


EXISTING STANDARDS

PROPERTY MATURITY MANAGEMENT

E2452 – 12 Standard Practice for Equipment Management Process Maturity (EMPM) Model

Provides insight into the effectiveness of an entity with a detailed assessment of how it acquires, uses and disposes of equipment and two fundamental levels of equipment management (process management and operations). The Model recognizes five maturity levels from Basic to Optimizing and provides a structure for the entity to rate themselves .

E2495 – 13 Standard Practice for Prioritizing Asset Resources in Acquisition, Utilization, and Disposition

Establishes a quantitative process for prioritizing asset resources in acquisition, utilization, and disposition; a method for ranking assets based on factors important to the organization and create information to justify arguments for investment, security strategies and disposition plans; enables management to identify critical assets and allocate resources appropriately.


EXISTING STANDARDS

PROPERTY MATURITY MANAGEMENT

E2608 – 08 Standard Practice for Equipment Control Matrix (ECM)

Matrix for determining the level of control required for 5 categories of equipment based on the consequences of loss of control (see also E2674 Assessment of Impact of Mobile Data Storage Device Loss

E2675 – 09 Standard Practice for Property Management System Outcomes

Outcomes/metrics for assessment of property management system – useful to provide policy and operational guidance

E2676 – 09 Standard Practice for Tangible Property Mobility Index (MI)

Standardizes practice and terminology related to mobility of property using Mobility Index from indiscernible items for which movement is not visible or discernable due to size or other factors to immovable items like Real Property which typically must be destroyed or dismantled to move. Can be used in conjunction with E2608’s Equipment Control Matrix, E2132 Inventory Verification and E2131Addressing/Reporting Loss, Damage and Destruction


EXISTING STANDARDS

REUTILIZATION AND DISPOSAL

E2131 – 09 Standard Practice For Addressing and Reporting

Loss, Damage, or Destruction of Tangible Property

Method for calculating LDD Ratio and acceptable ratios for property based on

the E2608 Equipment Control Matrix

E2306 – 13 Standard Practice for Disposal of Personal Property

Recommendations for identification and management of surplus property and

most economical and efficient manner of disposing of such items including

donation, recycling, sale, destruction or abandonment


EXISTING STANDARDS

REUTILIZATION AND DISPOSAL

E2607 - 08(2013) Standard Practice for

Cannibalization/Reclamation of Serviceable Equipment

Components to Support Demand Requirements

Encourages communication between stakeholders and gives a process for

meeting current and future demand requirements by cannibalizing and

reclaiming components from existing equipment components

E2858 – 12 Standard Practice for Sales of Personal Property

Identifies cost effective sales governing decision process to determine the

best method for selling the items, pre-sale, sale and post-sale activities.


EXISTING STANDARDS

TERMINOLOGY

E2135 - 10ae1 Standard Terminology for Property and Asset

Management

Fairly comprehensive list of the most common and most important definitions

for asset management – includes sample calculations of common values.

Excellent starting point for dealing with diverse organizations within any

department or agency.


EXISTING STANDARDS

UNITED STATES GOVERNMENT

CONTRACT PROPERTY MANAGEMENT

E2936 – 13 Standard Guide for Contractor Self Assessment for U.S.

Government Property Management Systems

Applies to the current version of FAR Government Property clause 52.245-1 dated

April 2012 and is intended to provide a foundation for the minimum effective

internal assessment of a contractor’s Government property management system.

Also provides several Statistical Sampling Plans


QUESTIONS?

Marla Williams, CPPM

President

Integrated Asset Management, Inc.

[email protected]

(800) 731-9569

Severna Park, Maryland


mailto:[email protected]

Documents

Overview of ASTM Asset Management Standards