By Marla Williams, CPPMPresident, Integrated Asset Management, Inc.Executive Vice President, Federal Center Chapter

Verify that your records match the actual physical conditionsIncludes:Identifying property that is not currently in the systemIdentifying 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 itemLost productivity Release of company-sensitive or personal infoDanger to the individual, the community or the organization

Capital AssetsAccountable or Controlled AssetsSensitive Assets

Not Purchased for ResaleUseful Life of Over One YearAcquisition Cost Greater Than Threshold$5,000 to $300,000, depending on size of organizationUsually represents 80% of total asset valueReported on financial statement Any additions or changes must be noted on annual statementsUltimate responsibility of the Chief Financial Officer.

Purchase cost less than Capitalization ThresholdItems that may be vulnerable to theftComputers or PDAs with personal or sensitive informationHazardous materialWeaponsSee ASTM E2608 Standard provides Equipment Control Matrix

Inventory is an auditNeeds to be performed by individuals who have no vested interest in the outcome. Use:third party vendorheadquarters personnelteams 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

Old handhelds had proprietary operating systems and limited memoryNew handhelds are portable computers running Windows Mobile or CE operating systems:Can read RFID, UID codes or bar codesAllow multiple configurations or prompts Run multiple applications (e.g. work orders, preventative maintenance, etc.)

Linear Bar CodesMost common and affordableUID DOD Program for Equipment over $5,0002d matrix codes and linear bar codes assign unique identification numbers to serialized equipmentPurchase Information is sent to a National Registry Benefit to non-DOD. . .

RFIDTags can be passive or activeInventory with Handhelds or Fixed Station ScannersFixed Scanning at Loading Dock, Entrances, and Hallways makes collection automatic but can be expensiveConsider for server rooms or areas that contain sensitive or hazardous materialsNot a real security measure unless hidden inside equipmentCost 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 partiesInventory personnelEmployeesSecurity personnelManagement

Main ContactAvailable during work hoursLocation Contact or CustodianAccess Cards/Security BadgesIf escorts are required, how many?Procedures for Locked RoomsMaximum Number of Returns to Location

E-mail or Flyer to EmployeesAsk for complete cooperationInstruct 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 SupplyConsider pre-printed labels or print your own

Bar Code Labels for LocationsSome systems use bar code room tags to identify locations.Floor Plans with Location Names and Organization boundariesAssign location names to workstations/cubicles

Condition CodesConsider using GSA CodesPut them in writingGive ExamplesAsk for specific damage information

Status CodesIU-In UseIS-In Storage (available for use by another)EX-Excess to be turned in

Strategy for Laptops, PDAs, CellphonesE-mail known ownersCreate Flyer for inventory team to leaveHost doughnut stations at elevator banksCreate Mail In Packages for Remote usersDont Forget Federal Continuity of Operation Assets (COOP)

Laptops and Docking StationsMany users are not familiar with proper undocking proceduresCheck with IT Department for proper undocking proceduresConsider assigning special IT Help Desk person to assist with docking issues during inventoryLeave flyer with Help Desk contact at each station when finished

Strategy for VehiclesStation Inventory personnel at Centralized Maintenance or Fueling LocationsUse fuel card system dataOrganize special inventory times that minimize disruption

Catalogs keep descriptions uniform and consistentIdentify Categories and ClassificationsBasic Types (e.g. PC-Desktop, PC-Laptop)Manufacturer NamesModel Numbers, Part NumbersDimensions (Floor Standing Equipment, Furniture)Furniture Attributes (Color, Material, Finish, etc.)Document Catalog Development GuidelinesDetermine Process for Adding New Catalogs

Digital ImagesLinked to Catalog/Asset Can be done with $100 digital camerasPlace sign in photograph with number to allow you to rename laterCan be dry eraser boards with magnets/velcro or pre-printed numbers generated in Excel in a large font printed on plain paperSome companies use cameras that will allow them to assign the name in the camera

Standardize Tag Placement GuidelinesKeep it simpleUse photographs to illustrateHow 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?

TrainingIf Contractor is using your equipment, be sure they have been adequately trained Consider train the trainer sessions for handheldsConsider detailed scripts for inventory personnelFlyer to Leave for Employees Who Are OutSet Progress Goals and Monitor ThemHow 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 roomRooms should be inventoried sweeping from left to right, right to left or some consistent patternIf done by Organization or Custodial Officer, may miss items or whole room/areas not previously recorded suggest tracking carefully on master floor plans

UploadsEquipment failures or accidents could lose hours or days of valuable work if not transferredEnter New CatalogsNew catalogs should be entered immediately to reduce duplications and keep descriptions uniformUpdate Master Floor PlanMaster Floor Plan should be updated to reflect each teams work, locked rooms or unusual conditions

Run Reports by LocationRandomly audit 5% of each inventory teams work catching problems while they are small . . .

PM posts each teams counts and reasons for daily gains and lossesPM meets with teams at the end of each day:to receive feedback from teams about their progressreview previous days audit resultsshare productivity gains or lossesGo over information about changes in schedule, etc.

Run Exception List of Items Not Found by previous locationSend Inventory Personnel backUpdate inventory dataRun Exception List of Items Not Found by Organization and LocationSend list to the Accountable Organization for further researchThird Party should verify items found

Reconcile all assets inventoried by tagDoes the system look for duplicate Serial Numbers?Look for Serial Number matches between:List of All New Assets TaggedException Listing of Items Not FoundUpdate reconciliation

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

Measure annual overage or loss rates by overall number and valueAlso makes these calculations for each OrganizationAlso calculate these values by category of equipmentCompare 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,oryou 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

With gamblers, they say a fool and his money are soon parted. What I want to know is how did a fool and his money get together in the first place?*