ADOPTING A CATALOGING PROCESS IN PARTS
MANAGEMENT PROCESS TO REDUCE SUPPLY CHAIN AND
LIFECYCLE COST
Please use the following two slides
as a template
your
Daniefor
Mostert,
Ph.D.presentation
Manager, USA Operations
at NES.
[email protected]
Jack Fowler
Functional Specialist
[email protected]
WHAT IS CATALOGING?
• Definition - A uniform system of Identifying Items
• One number concept
• Multiple Suppliers under one number
• Consolidate Buys into one order
• Eliminate duplication of items in inventory
WHY CATALOGING?
• Reduce Supply Chain Costs
• Identify and procure the “best” item – seek suppliers that can provide
the most preferred items at the best cost
• Material Standardization
• Investment recovery
• Change the relationship with the supplier – Strategic sourcing
• No duplicate items
• Reduce inventory locations of “expensive” / critical parts
WHY CATALOGING?
• Reduce Life Cycle Costs
• Acquisition costs
• Research and development costs
• Non recurring costs like facilities, training, technical data
• Recurring costs like support equipment upgrades, utility
improvements
• Sustainment costs
• Scheduled and unscheduled maintenance costs
• Usage costs
• Disposal costs
WHY CATALOGING?
• Reduce Life Cycle Costs
Acquisition
Select most appropriate
equipment/material/and
special tooling/special test
equipment used in
organization during
research and development
Select support equipment
already used
Sustainment
Materials and
standardizations
benefits
Modifications using
standardized material
Standard Support
equipment costs
Disposal costs
What is Cataloging?
DEFINITION – A uniform system of Identifying Assets
• First principle – What is the item commonly known as?
Screw – Resistor – Meter - Shirt
• Second principle – What modifiers are used to further define item?
Screw, Machine - Resister, Fixed - Meter, Ampere-Volt-Ohm Shirt, Polo
• Third principle – What Physical/Performance Characteristics are
normally used to describe the item?
Size = Dimensions (Length, width, material, etc.)
Range of Use = From 0-220 Volts, 0-99K Ohms
Material = Steel, 100% Cotton
Clothing Size = S, M, L, XL, XXL,
Where Used = F16 - AN123 Generator, CFM 56 Test Stand
CATALOGING HISTORY
• 1914 – Navy Initiates a Cataloging Process
• 1952 - Public Law 82-436
• Uniform System of Item Identification
− Preclude/Eliminate Different Identifications of like items
− Standard Language Structure for Items in the inventory
• Reveal Interchangeability Between Items
− Aid in Standardization
− Interchangeable and Substitutable Links Between Items
CATALOGING HISTORY
• Improve Material Management and Logistics Support
− Facilitate Intra/Inter Departmental Support and Effectiveness
− Multiple Sources for items
• Centralized Data File
− All Users have access to ALL data and decisions
− All Users Speak With Same Terminology
CATALOGING PRINCIPLES
Provide the “Right Item, Right Time, Right Place,
Right Price Every Time!”
Source: Defense Logistics Information Service (DLIS) NSN story
•
Identify corporate-wide purchases of material and equipment to obtain
better pricing based upon total volume and usage of all programs
•
Identify all supply sources for material and equipment
•
Reduce Catalog maintenance cost by reducing the initial entry and
review of like items in many different catalogs for different systems
•
Provide cross support between all programs by using a standard
approved item name and Interchangeability and Substitutability
standards under single “stock keeping unit” (SKU).
•
Identify items requiring special controls & handling
•
Precious Metals, Hazardous Materials, Aircraft Parts, DEMIL, etc.
WHAT METHOD TO USE?
• Programs require use of National Stock Numbers (NSN)
− Contract
− Weapons Systems
• Using the Federal Standard establishes single method
for a company (SKU).
− Federal Supply Class (5305)
− Item Identifying Number (00-123-4567)
• Federal/NATO Standard of approved item names
(Nomenclature/Description).
•
•
Worldwide Standard
Descriptive Elements already defined
What Identification System Standard?
•
How to identify items:
•
•
•
•
•
•
Your part Number
By supplier Part Numbers
Universal Product Code (UPC)
European Article Number (EAN)
Stock Keeping Unit (SKU)
Federal Logistics Information System (FLIS)
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•
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Existing NATO Standard
Already Defined Name and Descriptive Standards in Place
Provides a means of monitoring the minimum of items
essential to support operations
What Identification System Standard?
• Many programs require the use of National Stock
Numbers (NSN)
• Support of Contracts, Weapons Systems
• Using the Federal Standard establishes single method
for a company (SKU).
• Federal Supply Class (5305) and Item Identifying Number
(00-123-4567) or (NG-123-4567)
• Using the Federal/NATO Standard for Approved Item
Names (Nomenclature/Description).
•
Worldwide Standard - Descriptive Elements already defined
Why Use NATO Standard?
H2 Federal Supply Classification
Used to classify items of supply identified under the Federal Cataloging
Program
Groups and Classes have been established for items known to be in the
Federal system
Federal Supply Group (FSG) identifies, by title, the commodity area covered by the
Classes within a group. It has two numbers to identify the Group
Group 10 Weapons
Group 51 Hand Tools
Group 52 Measuring Tools
Each Class covers a relatively homogeneous are of commodities in respect to their
physical or performance characteristics
FSC 5110 – Hand Tools, Edged, Nonpowered
FSC 5120 – Hand Tools, Edged, Powered
FSC 5130 – Hand Tools, Power Driven
FSC 5133 - Drill Bits, Counterbores, and Countersinks: Hand and Machine
FSC 5136 - Taps, Dies, and Collets; Hand and Machine
FSC 5140 - Tool and Hardware Boxes
FSC 5180 - Sets, Kits, and Outfits of Hand Tools
Why Use NATO Standard?
Why Use NATO Standard?
Why Use NATO Standard?
Why Use NATO Standard?
Why Use NATO Standard?
Why Use NATO Standard?
Why Use NATO Standard?
Why Use NATO Standard?
How Much Information Required?
• Level of Detail
• Depends on how and where it is used
• Does it have a level of CRITICAL Performance Factors/Material
• Can it be replaced by another item without effecting warranties?
• Who will use the Information
• Foreign Nationals
• Pictures instead of/with words
• Translation to another language
• How available is the information to the organization?
• What different parts of your Organization will use the
Information
• Maintenance – Procurement – Engineering - Warehouse
How Much Information Required?
• Type of Item
• Where and how it is used – Single Application = Test Stand for
Engine, Ejector Seat
• Piece Parts with multiple potential applications
• Screws, Bolts, Hand Tools, Electronic Components
• Level of Descriptive Detail
• More potential uses = more detail
• Size
• Material
• Dimensions
• Limited uses = less detail
• Where used
• What it is
What is Standardization?
Definition – A Process by Which Items are Compared Against
an Existing Standard or Inventory Items
• Prevent Entry of Sub-Standard or Duplicate Items into the Inventory
• Item Entry Control – A Filtering Process for Comparing Potential
Candidates to Existing Items or Recognized Standards
• Mechanically
• Part Number Screening
• Limited Characteristics Matching
• Manually
• Validate Sources/Part Numbers
• Review Characteristics for Potential Existing Matches
• Group Like Items Together
• Interchangeable and Substitutable Relationships
• Promote use/depletion of Existing Items in
Item Entry Control (IEC)
• VALIDATE PART INFORMATION
• Part Number
• Part Number Format
• VALIDATE SOURCE
• Existing Source Identifier
• New Source Creation
• PERFORM CHARACTERISTICS SEARCH
• Part Number/CAGE Screening
• Approved Item Name
• Source Characteristics
• Determine Appropriate Actions
• Add to existing item
• Create new record
Item Entry Control (IEC)
Item Entry Control (IEC)
• PERFORM CHARACTERISTICS SEARCH
• Find Existing Like Items
• Form
• Fit
• Function
KEY POINTS
• Save $$$$$$$$$$$$$$
• Eliminate Duplicate Items
• Best Pricing for Individual Parts
• Reduce Footprint
• Less Warehouse Space
• Better Sources for Just In Time Deliveries
• Standardize Terminology
• Approved Item Name
• Source Characteristics
• Centralize Data Store
• Merge Multiple Data Stores Into One
• Ensure Availability of Data to Users
Overview – Our view
Vendors
Suppliers
Manufacturers
14 Million
truth
Materials
Source of
Item Identification
Data
Catalogue Tool
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Standards
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Manage client dictionary (abbreviations, colloquial,
pattern)
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Codification of items noun, modifiers, attributes
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Manage manufacturer/supplier data (excluding prices)
Central Data Repository
• Long Description
• Client Dictionary
(standards)
• FLIS NSN’s
• Local Stock number
FLI Search
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Item descriptive info
SAP mat nr
N, M and Attributes val
short description
long description
UoM (base & order)
P Val Key
GR Proc
FNB Indicator
Source of truth
Asset
Identification Data
Asset DB
Source of truth
Transactional
Identification Data
Business
Units
FLIS
Integration
QUESTIONS
????