“ If Logisticians Can Cook” Logistics Assist Visit Concepts

1. “ If Logisticians Can Cook” Logistics Assist Visit Concepts Edlouie S. Ortega, MSM, CDFM, CPFM Equipment and Technology Management Medical Equipment and Logistics Solutions Naval Medical Logistics Command

2. How do you measure success? • Do you believe in key performance indicators (KPI)? • How do you know which KPI to track? • Should all KPI measureable?

3. Who do you agree with? “Tell me how you measure me, and I'll tell you how I will behave.” - Eli Goldratt " Tell me how you’ll measure me, and I’ll tell what damn fool things I’ll do to make the measurement look good." - Tony Rizzo

4. Restaurant Industry…What we measure • Cash flow. Restaurants are very cash-intensive, forking over money for fresh inventory and tipping out servers and other staff on a daily basis. • Percentage of repeat customers. The National Restaurant Association estimates that three-quarters of most restaurants' sales come from repeat customers. • Staff turnover. On average, management turnover rates run around 20% annually for table-service restaurants, while hourly workers turn over at roughly a 150% clip Forbes.com

5. Other KPIs we measure • Table-turn over rate. How many times table is filled with customer. How fast tables empty and fill during a shift. • Order-throughput time. How long before a meal goes out to the customer. Drinks – appetizer – main course – dessert. • Table-turn time. How long did the table remain empty and how long did it stayed filled.

6. Restaurants Does Logistics Too and More… • Contracts • Outlays • Budget • Regulations • Overall Strategy • Competition • Staff Development • Procure materials • Move materials • Produce materials • Monitor • Assess • Control

7. What we can learn from a Cook It’s all about the… • food • presentation • timing • customer service • dish washer • work flow And sometimes it’s not all about measurable KPI…

8. What we can learn from a Cook Front of the House – Back of the House - Expedite!!! • Assurance: The act of giving confidence, the state of being certain or the act of making certain. • Control: An evaluation to indicate needed corrective responses; the act of guiding a process in which variability is attributable to a constant system of chance causes.

9. What we can learn from a Cook • Quality Assurance: The planned and systematic activities implemented in a quality system so that quality requirements for a product or service will be fulfilled. • Quality Control: The observation techniques and activities used to fulfill requirements for quality. Standard processes/quality products… not to make measurements look good.

10. What we can learn from a Cook • Outputs Defined as the goods or services produced (e.g., patient admissions, bed days, work orders, receipts). • Outcomes Defined as the impacts on indicators arising from the delivery of outputs (e.g., fill rate, turn-over ratio, SOS Due-in rate, maintenance completions rate, unable to locate). “More focused on Effectiveness than Efficiency”

11. Define Logistics • Logistics The planning, implementation, and coordination of the details of a business or other material operations. • Medical Logistics Is the logistic of pharmaceuticals, medical and surgical supplies, medical devices and equipment, and other products needed to support doctors, nurses, and other health and dental care providers. Because its final customers are responsible for the lives and health of their patients, medical logistics is unique in that it seeks to optimize effectiveness rather than efficiency.

12. Logistics Assist Visit Purpose: Assist Logisticians to achieve Total Asset Management (TAM) and improve internal management control of accountable equipment. Evaluate the effectiveness of the Equipment, Technology Material Management (ETM) processes from materiel procurement planning to eventual property disposal Evaluate the effectiveness of the Purchasing Management, Acquisition Planning and Requirements Development, and Contracting Officer’s Representative (COR) Programs The Logistics Assist Visit is NOT an inspection, this is strictly an assist visit to help your staff identify strengths and weaknesses and to provide them with the tools that they need to successfully carry out their mission.

13. Logistics Assist Visit Focus: Assessment of continued suitability as it applies to aging technology. Assessment of effective use of the logistics information system as a tool for improving materials management operations. Collect information to develop technical criteria for use as basis for acquisition actions across BSO-18. Assessment of accountable equipment records with an acquisition cost of $25,000 and greater. Assessment of Material Management Assessment of Acquisition Management

14. Logistics Assist Visit Assessment Methodology Use of existing data and focus on establishing the baseline between the site and the "Best Practices" in BSO-18 claimancy and in the industry. Incorporate training, database management, material management, technology management and acquisition management site visits. Provide feedback to the site regarding LAV findings and recommendations that will help the site focus on its strengths and immediate improvement.

15. Logistics Assist Visit Assessment Elements 1. Evaluate synchronization of the Navy business practices, policies, and logistics and acquisition information systems. 2. Validation Processes (Management Assertion) 3. Evaluate training requirements and provide just-in-time training as needed.

16. Logistics Assist Visit 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.

17. Logistics Assist Visit 2. Validation Process (Management Assertion): • 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. Assessment Elements

18. Logistics Assist Visit Assessment Elements 3. Evaluate training requirements and provide just-in-time training as needed. Identify functionality gaps. Identify execution gaps. Identify process gaps. Identify current workload and productivity. Identify additional training requirements.

19. Assessment Candidates Equipment Receipt Inventory Management/UID Five Year Equipment Replacement Plan Device Code Assignment Property/Item Decrease/Loss Document Control Maintenance Plan and Procedures Repair Parts Request and Issue Service Contracts Material Due-ins Emergency Management Plan/CBRNE/IPP COR Appointment, Training and Management ECAT Orders

20. Performance Metrics Analysis

21. Total Items: 729 Total Acq Cost: $114M Imaging Equipment Portfolio Total Items: 550 Total Acq Cost: $96M Total Items: 181 Total Acq Cost: $42M Total Items: 124 Total Acq Cost: $15M

22. Capacity Utility Rate

23. Projected Cost Avoidance In Thousands

25. Echelon 2 Navy Medicine Support Command Dual Hatted Position Echelon 3 Support Functions MOU Echelon 4

26. Related Sessions LO-T-3-B Equipment Management Self Assessment - Conduct Your Own LAV LO-T-3-C Material Management Self Assessment - Conduct Your Own LAV LO-T-3-D Maintenance Management Self Assessment - Conduct Your Own LAV LO-W-3-C Automatic Identification Technologies (AIT) /IUID and RTLS LO-W-3-D Equipment Management Process LO-W-3-E Annual Inventory Process and Requirements