1. 2011 NPMA Conference Series III National Capital Area Conference Leaders in Asset Management National Capitol Area Conference Charles L. Robinson, Director GSA, Office of Personal Property Management National Capital Region November 14, 2011

2. 2011 NPMA Conference Series III National Capital Area Conference Property 101, Session 3: Storage, Warehousing, Utilization, Consumption

3. 2011 NPMA Conference Series III National Capital Area Conference Property 101, Session 3  Storage and Warehousing - Intro An important part of the property management function. Helps organization meet its goals and objectives.

4. 2011 NPMA Conference Series III National Capital Area Conference Storage and Warehousing Traditional warehouse responsible for: Storage, receipt, issue, and distribution of property Protection of property Ensuring property is available Ensuring storage of property is justified Ensuring property issued for valid purposes Maintaining documentation to support property control records

5. 2011 NPMA Conference Series III National Capital Area Conference Storage and Warehousing Variables to consider when establishing a warehouse (in addition to cost): Type Size Work force Material handling system and equipment Layout Need for specialized facilities Tracking and documentation controls

6. 2011 NPMA Conference Series III National Capital Area Conference Storage and Warehousing  In public or government sector:  Warehouse must comply with public laws and other regulations  Policies and procedures must by written  Current and accurate records of all activities must be maintained  Federal and state regulations and guidelines must be followed  Shelf life taken into account, and  Warehouse must be kept clean and safe and properly marked

7. 2011 NPMA Conference Series III National Capital Area Conference Warehousing  Includes several integrated functions:  Space allocation  Receiving  Storage  Issue  Recording  Reports

8. 2011 NPMA Conference Series III National Capital Area Conference Warehousing Space Allocation: Should be based on frequency of use and priority of function (e.g. short v. long-term items) Based on frequency of movement (racking v. floor space)

9. 2011 NPMA Conference Series III National Capital Area Conference Warehousing Receiving: “Gateway” to the warehouse – accepts first responsibility for the property Property is to be matched with procurement or transfer document (and carrier’s freight bill) to ensure accuracy Items/property physically inspected to verify quantity, quality, etc.

10. 2011 NPMA Conference Series III National Capital Area Conference Storage Definition: Designated area where an item remains after being received until it is issued Function: To protect property from loss, damage, degradation, or theft, and to ensure it is available when needed Aspects: Proper selection of locations; item separation; in-storage maintenance; and locating and movement

11. 2011 NPMA Conference Series III National Capital Area Conference Storage Issue: Major function in warehouse operation Warehouse operation and inventory control is tested during this process An inefficient issue process can result in loss of inventory Recording: Accurate recording of items received, stored, and/or issued must be accurately and timely recorded Audit and validation of recordings should be routinely performed

12. 2011 NPMA Conference Series III National Capital Area Conference Storage Reports: Essential for communications between the warehouse and other operations Can be standard, periodic, or special  Examples include – space availability, storage, receiving Keep warehouse personnel informed Types: Four types – building, environmentally controlled building, yard, and special storage Two categories – Covered and open

13. 2011 NPMA Conference Series III National Capital Area Conference Warehouse Layout Objective is to maximize space utilization while attaining the maximum number of picks for issues from stock and conducting inventories at the lowest possible cost A general-purpose warehouse should be configured for a combination of bulk, bin, shelf, and rack storage When possible, there should be a straight line flow of stock from unloading point to storage and from storage to packing and shipping area Other considerations include – quantity of items; frequency of receipt and issue; size and weight of items; MHE capacity; and accessibility requirements

14. 2011 NPMA Conference Series III National Capital Area Conference Warehouse Equipment Safety of personnel and protection of property must be taken into consideration Storage pallet used most often – along with shrink wrap, bubble wrap, etc. MHE include: forklifts, pushers, loaders, ramps, and bridge plates Other equipment includes: metal shelving, pallet racks, and numerous other types of racking systems

15. 2011 NPMA Conference Series III National Capital Area Conference Inventory and Distribution Methods Two methods typically used: Last in – First out (LIFO) First in – First out (FIFO)

16. 2011 NPMA Conference Series III National Capital Area Conference Warehouse Management Systems Used to ensure all property moving through the warehouse is accounted for System could range from manual to computerized Stock locator system identifies and tracks item location Record elements should include description, control number, date received, condition, and cost Commercial off the shelf (COTS) systems may also be used

17. 2011 NPMA Conference Series III National Capital Area Conference Utilization Definition: making us of; documented use of an asset; act of employing something Core elements – ensuring assets are used for designated purpose; maximize level of use; identify when item is idle; method of communicating availability of asset; and process for assessing utilization

18. 2011 NPMA Conference Series III National Capital Area Conference Utilization Role of Property Manager: Maintain and improving the organization’s operation and profitability with the assets and materials it has Document events and report results of the utilization program Participate in management processes that establish and adjust requirements on which the business is based (at least 13 processes)

19. 2011 NPMA Conference Series III National Capital Area Conference Utilization Authorized Use Written policy and procedures should be maintained on the use of all assets  Policy should include – list of property and attributes; title and ownership; location; accountable department; purpose of use; and time period of use

20. 2011 NPMA Conference Series III National Capital Area Conference Reutilization This program identifies items that are excess, idle, or no longer needed and manages the transfer of the same Benefits include – avoidance of new procurements; fills authorized program requirements; and reduces risk of unauthorized utilization

21. 2011 NPMA Conference Series III National Capital Area Conference Consumption Definition: process of incorporating material into an end item or using it in the performance of a documents business objective; the measurement of the actual use of consumable items against planned use Benefits: can provide valuable information to support planning, production, and day-to-day operations; and can improve efficiency, reduce costs, and prevent production shutdowns

22. 2011 NPMA Conference Series III National Capital Area Conference Consumption Process: Issuance of material Actual use of material Unused material Return to stores

23. 2011 NPMA Conference Series III National Capital Area Conference Consumption A good program is based on: Identifying requirements Reviewing and adjusting requirements as needs change Providing accurate data to management Constant communication required among most departments Accurate, timely, updated data ensures success

24. 2011 NPMA Conference Series III National Capital Area Conference Summary/Q&A Storage and Warehousing Utilization Consumption