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REALTIME REUTILIZATION ASSET MANAGEMENT

William Rhodes RRAM Program Manager Naval Supply Systems Command Phone 717 605-6607 (DSN 430)

Ready. Resourceful. Responsive! 19 Jun 02

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Agenda

Background

Description

Composition

Warehouse Management (WM)

Virtual Management (VM)

RRAM Today

Summary

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Background: Goldpiles

Originally Residual Asset Management System (RAM) - 1995

Created to manage “Gold Piles”

Reengineered using LAWSON Insight - 2000Renamed Reengineered RAM (RRAM)

efficiently manage warehouse

Expanded to accommodate new business processes - 2002

Restricted InventoriesVirtual Inventories

A new name came with the expansionRealtime Reutilization Asset Management (RRAM)

No Billing or Financial Transactions

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Background: TAV

Provide Total Asset Visibility (TAV)Comply with Government Performance Results Act (GPRA - Congress)

Achieve DoD Logistics Strategic Plan

100% TAV by FY06

Accomplish TAV per NAVSUP Strategic Objective 5.5.06

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Description: Technology

Mid-Tier (Client-Server)Thin Client

Relies on Internet Connectivity

Web Page Access and Visibility

Linear Barcode Capability Today 2D Barcode Capability by 30 SEP 02

Supports DOD PKI Security

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Description: Visibility

Offset ICP Procurements via IM Toolkit

Offset ICP Backorders via Flashpoint

“A” Purpose “A” Condition Requisition Processing via CPEN/VMSIR

Offset DLA Procurements/Backorders via DZE Processing

Visibility is not equal to Accessibility

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Composition: RRAM

Free Issue Restricted Issue

W arehouse M anagem ent

Sponsor O w ned Material Shipyard Material

V irtual M anagem ent

RRAM

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Composition: WM – Free Issue

Residual M aterial Excess Material

Free Issue

SOM Foreign M ilitary Sales

Sponsor Owned Material

Sea W olf

Closed Com m unity

Restricted Issue

W arehouse M anagem ent

RRAM

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Business Rules: Free Issue

Centralized database at DECC, Chambersburg

Sites operate as remote warehouses

Assets currently include all Navy Cog and 9 Cog Material

Only Ready for Issue (RFI) material available for CPEN/VMSIR

No NAVICP capitalization of assets

IPG II & III requisitions screened (Limited IPG I)

Screening limited to Fleet and NAVSEA SCN and TOB Requisitions

RRAM assets screened first, wholesale/retail second

Requisitions processed as Free Issue using “BN” status

No backorders established in RRAM

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Business Rules: Free Issue

$100 threshold for cross country referralsDD-1348-1 Standard issue/release/receipt documentRealtime posting of receipts and issuesInventory accuracy responsibility resides with ownerSubstitutability and Interchangeablity applicableNo Special Handling Material (HAZMAT, Shelf Life)No RODs, QDRs limited to Category I OnlyLimited carcass tracking of DLRsRRAM assets screened daily against IM Toolkit requirementsConsumables excessed after 12 Months of no issue activityDepot Level Reparables excessed after 24 months of no issue activity

CPEN Referral Rules

IPG IIPG II(Air eligible)

IPG II & III

CONUS

Navy Wholesale

Consumer (9-Cog)

*RRAM* ICP

* RRAM* ICP

*RRAM* ICP

* CRIF Site* POE FISC* RRAM* VMSIR* IMM

* CRIF Site* POE FISC* RRAM* VMSIR* IMM

* RRAM* POE FISC* VMSIR* IMM

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Metrics: Free Issue

As of 31 May 200211 Sites with combined inventory of $795M

Over 6,000 requisitions per month @ $7.4M

FY02

Free Issues 52M

NAVICP MTIS Credits $7.2M

DLA MTIS Credits $5.5M

Web Page Hits 120,459

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RRAM: WM – Restricted Issue

Residual M aterial Excess Material

Free Issue

SOM Foreign M ilitary Sales

Sponsor O wned Material

Sea W olf

Closed Com m unity

Restricted Issue

W arehouse M anagem ent

RRAM

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Business Rules: Restricted Issue

All Material VisibleDZE Processing against ‘A’ Condition NSN material only

Owner Maintains ControlDetermines what material is accessible

Material not Capitalized into NWCF/RRAM doesn’t load ICP MDF

Owner Determines if/where credit appliedDLA pays acquisition price plus 5.5% for PO

DLA pays standard price plus 5.5% for LR

FT Processing Available

Price Negotiable

Asset UsagePer DoD 4140.1R (Super Reg), assets above RO are available to satisfy any priority requisition or Procurement Offset via MRP

Assets Below RO only used to fill IPG 1

Same service or reciprocating service only

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Status: Restricted Issue

SOM PilotOrange Park, FL (NAVAIR) 4/02

Inventory of $547M

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Composition: Virtual Management

Free Issue Restricted Issue

W arehouse M anagem ent

Sponsor O w ned Material Shipyard Material

V irtual M anagem ent

RRAM

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Composition: VM

Why VirtualWarehouse Management System in use

Global Asset Visibility Required

Inventory Owner ProvidesList of NIINs

Desired Action Code

Daily Updates

RRAM ProvidesProcesses DZE Queries against NIINs

Submits FTE/DZF to DLA

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RRAM: Virtual Status

NAVSEA Site at Crane, INPilot Implemented 3/02

SPAWAR Site at San Diego, CAPilot Targeted for 9/02

RRAM Warehouse Sites

Puget Sound

San Diego

North Island

Portsmouth Chesapeake

NAVAIR ISSP

CSCRAMPPWP-CForce ProtectionNEWCONLHD-5ISSE-ChesapeakeHelmets/Vests

Orange Park, Fl

WRRMPPERA CV

SRF YokosukaSRF Sasebo

FISC Pearl Harbor

RMMS-ESURFLANT

SCRAMP-EASTSUBRATS/SUBLANT

PWP-PNEWCONAN/SQS 56

El Centro

Ship Repair

SEAWOLF

Ingleside, TX

North Kingstown

SOM

Crane, IN

VSOM

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RRAM Today: Performance

Ability to screen RRAM from 12 warehouses and 25 inventories

Web Browser provides access

95 NAVAUD Estimated $400M in excess assets…today there is $1.3B Inventories

$795M Free Issue$545M Restricted Issue

Metrics5,377 free issue requisitions were filled for May 02$7.1M free issues made in May 02182 CASREPS were filled in May 02$7.8M sent to DRMO

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Summary

RRAM contributes to Navy TAVProves COTS can operate in a legacy Navy environmentProvides high cost avoidance to fleet, NAVICP and DLA

Enhances visibility while safeguarding accessibilityRRAM – Not just free issue anymore!