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
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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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