Intensive Item Management Value Chain

1. Intensive Item Management Value Chain Kathy Smith UID Task Force Meeting August 26, 2009

2. Agenda • Intensive Item Management (IMM) Value Proposition • Proposed Tier 2 Levels • Authorization and References • IMM Generalized Requirements • IIM Node-specific Requirements • Enablers and Issues • IIM Status Summary

3. Intensive Item Management (IIM) Value Proposition • Intensive Item Management – worldwide visibility & control by UII • Enables secure handling/recall of NWRM, Small Arms and other controlled items • Supports strict accountability, disposal, DEMIL by UII • Definition: This value chain focuses on the value of using the IUID in the intensive item management and control of critical and sensitive items. It involves strict item accountability while in receipt,physical inventory and issue using the UII and tracking while in-transit and in-use for improved visibility. At the most intensive management, it involves the Integrated Materiel Management (IMM) managing the worldwide inventory by UII. At the least intensive management, it involves capturing and maintaining the UII while in storage and within configuration records, but the IMM is managing the worldwide inventory by NSN.

4. Tier 2 Levels • Proposed Tier 2 (to be validated through IUID Task Force): • Nuclear Weapon-Related Materiel (NWRM) • Classified items • Critical Safety Items (CSIs) • Sensitive items • Major Defense Acquisition Programs (MDAP) special tooling

5. Authorities and References • DoD-D 4140.1-R Supply Chain Materiel Management Regulation • DoD 4000.25-M DLMS Manual • MIL-STD 129: Military Marking for Shipment and Storage • MIL-STD 130: Identification Marking of U.S. Military Property • DoD 4100.39-M Federal Logistics Information System (FLIS) Procedures Manual, Volume 10: Table 61: “Controlled Inventory Item Codes” • DoD Instruction 8320.04 “Item Unique Identification (IUID) Standards for Tangible Personal Property”

6. IMM Value Chain Generalized Requirements Mark Track • Capture and store UII locally at all nodes except Acq Planning, In-Serv Engineering and Transportation • Provide UII to and from all nodes except Acq Planning, In-Serv Engineering and Transportation • Maintain strict accountability within storage and maintenance facilities by UII for most intensively- managed items • Ensure unique transportation tracking number to maintain integrity of referential link to UID in shipment • End State: purchase only marked items (mark internally by exception only) • Transition Period: prioritize marking of existing legacy items based on CBA • Standardize missing/illegible discrepancies and procedures for marking discrepant materiel • Update tech data with marking placement and make tech data available to all receiving activities • Check for duplicates in UID Registry upon submission of Receiving Report vice after acceptance • Ensure MILSTD 129 UII package markings in UID clause AIT/AIS Use • Develop and implement reengineered business processes necessary to use UII to enhance item management (see node-specific requirements) • Provide asset visibility as a by-product of collecting UID for intensive item management • AIT • Ensure adequate AIT infrastructure available to nodes • Complement UID with use of RFID for hands-free processing of intensively-managed items • AIS • Develop and implement system changes to execute reengineered processes to use UII to enhance item management (see node-specific requirements) 6

7. Supply Chain Nodes Transportation

8. Acquisition Logistics Planning • Ensure MIL-STD 129 package marking requirements are added to the UID contract clause in order to ensure supplier compliance. • Ensure that contracts for intensively-managed items contain UID item marking contract clause

9. Suppliers (Commercial) • Mark items with UII in accordance with the IUID DFARS clause requirements. • Mark packaging with the UII in accordance with the appropriate MIL-STD 129 requirement. • Forward UII(s) electronically through WAWF

10. Suppliers (Inventory Control Points (ICPs)) Receive • System will receive update from depot of which UII has been received for most intensively-managed items and quantity by NSN for the least intensively-managed items. • System will ensure acceptance is captured for new procurement receipts. • Store UII inventory records by storage site for most intensively-managed items. ICPs will continue to store inventory records by NSN for the least intensively-managed items. Physical Inventory • Perform ICP-level inventory using UII. Issue • Send orders to issuing depot without UII and PMR to receiving depot with UII flag. • Decrement balance by UII in Warehouse Management System. • Maintain visibility of those debited UII identified for comparison to receipted UII. • Reconcile UII mismatches between receipt and ICP issue records. • ICP will continue to send DROs without UIIs for intensively managed items.

11. Distribution Centers Receive • Receiver will collect UII via AIT from outside of unit packaging via PDF 417. • If UII is pre-populated by ASN, the collected UII will be systemically compared to the ASN UII. • If the package has been damaged, (or tampered with for classified/sensitive items) then receiver should open packaging to collect UII from the item. • If the item is a new procurement, receiver must perform acceptance in WAWF or systemic interface. • The system will send an update to the applicable ICP indicating receipt of UII items (UII for most intensively-managed items, quantity by NSN for least intensively-managed items). • Warehouse management systems will store item UII in inventory regardless of intensity of management. Physical Inventory • Perform Depot-level inventory using UII. Issue • Issuer will use AIT to collect UII from outside of unit packaging via PDF 417. • If UII is not available on the exterior packaging, the issuer will use AIT to collect the UII from the item and place a new label with UII on packaging. • Issuer will look for evidence of tampering and/or damage on classified/sensitive items. • Users will debit inventory by UII issued in WMS. • Depots will send issue transactions to ICPs in response to MRO.

12. Base and Forward Supply Receive • Receiver will collect UII via AIT from outside of unit packaging via PDF 417. • If UII is pre-populated by ASN, the collected UII will be systemically compared to the ASN UII. • If the package has been damaged, (or tampered with for classified/sensitive items) then receiver should open packaging to collect UII from the item. • If the item is a new procurement, receiver must perform acceptance in WAWF or systemic interface. • The system will send an update to the applicable ICP indicating receipt of UII items (UII for most intensively-managed items, quantity by NSN for least intensively-managed items). • Warehouse Management Systems (WMS) will store item UII in inventory regardless of intensity of management. Physical Inventory • Perform Installation-level inventory using UII. Issue • Issuer will use AIT to collect UII from outside of unit packaging via PDF 417. • If UII is not available on the exterior packaging, the issuer will use AIT to collect the UII from the item and place a new label with UII on packaging. • Issuer will look for evidence of tampering and/or damage on classified/sensitive items. • Users will debit inventory by UII issued in local system. • Send issue transactions to ICPs in response to MRO.

13. Depot Maintenance Receive • Receiver at depot will collect UII via AIT and update the accountable record at the depot maintenance site. • If the item is a new procurement, receiver must perform acceptance in WAWF or via systemic interface. Issue • Perform Depot-level inventory using UII. Configuration Management • Update configuration records for reparables and/or end items with appropriate UII(s) during maintenance actions • Keep accurate record of UII(s) in bench stock

14. Field Level Maintenance Receive • Receiver at field maintenance activity will collect UII via AIT and update the accountable record at the field level maintenance site. • If the item is a new procurement, receiver must perform acceptance in WAWF or via systemic interface. Issue • Perform Unit-level inventory using UII. Configuration Management • Update configuration records for reparables and/or end items with appropriate UII(s) during maintenance actions

15. In Service Engineering and Logistics Analytics • Update technical data with marking placement and make tech data available to all receiving activities. • Prioritize the non-recurring engineering activities centered on marking to update the technical data on the most intensively-managed items first. • Perform UII data collection from each node for trend and metrics analysis.

16. Field Activities and Operations Receive • Receiver at field activities and operations will collect UII via AIT. • Receivers will process receipts into retail inventory with UII and store UII. • The system will send update to ICP of which UII has been received for most intensively-managed items and quantity by NSN for least intensively-managed items. Physical Inventory • Perform Unit-level inventory using UII. Issue • Issuer will use AIT to collect UII and debit inventory by UII issued in local stock control system.

17. Disposition • Collect UII, if available, on disposition and update IUID registry • Issue to DRMO • ICPs will continue to send DROs without UIIs • Defense Reutilization and Management Office (DRMO) • Collect and record the UII on final disposition for most intensively-managed items • Provide UII to gaining agency when reutilizing most intensively-managed items

18. Transportation • Ensure integrity of referential link between transportation unique tracking number, the requisition, and the UII established by the shipper to enable traceability back to the UII in the originating shipper’s system (e.g. DLA). • Integrity of the referential link will be maintained throughout all consolidations/deconsolidations and aggregations/disaggregations.

19. Enablers and Issues Enablers • Availability of appropriate AIT infrastructure • Capability to exchange UII information through DLMS transactions • Existence of a FLIS Code that distinguishes between most and least intensively-managed Issues • Discipline and consistency in collecting and using UII for intensive item management is required at all nodes for success • Transition steps/interim business processes must be developed and used until end state can be achieved, such as: • Prioritizing and marking legacy items to include consumables • Maintaining inventory of marked and unmarked items on same NSN • Developing systems changes etc. • FLIS Code not yet developed/implemented • IUID DFARS clause needs to be updated to include MIL-STD 129 packaging requirements • Not all systems are DLMS Compliant

20. Summary • Held 5 UID Workshops with the Logistics Community • Developed an Integrated Requirements Set • Held meeting with Node Leaders to discuss and refine Integrated Requirements Set • Early success demonstrated with use of UID for intensive management of NWRM items