How to Conduct Your Own Logistics
Assist Visit (LAV)
CDR Alex Dagnachew
LCDR Tim Henning
How to Conduct Your Own LAV
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By conducting your own LAV you are planning for success. Treat
your self assessment as if it is an inspection. MEDIG & LAV Check
Lists are your tools to conduct a self assessment.
Team should consist of Materiel Manager and the MMD Division
Officers. Conduct a self assessment at least annually, document your
assessment, and continue to monitor your findings.
Review last MEDIG/JCAHO/PPMAP Audits/LAV Reports and
prepare for any that may be upcoming.
Assist Logisticians to achieve and improve internal management
control of accountable assets and improve business processes.
Evaluate the effectiveness of Equipment Management processes from
materiel procurement planning to eventual property disposal.
Evaluate the effectiveness of the Purchasing Management,
Acquisition Planning Requirements Development, and Contracting
Officer’s Representative (COR) Programs.
FOR OFFICIAL USE ONLY
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LAV Assessment Elements
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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
FOR OFFICIAL USE ONLY
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LAV Assessment Elements Continued
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Receipt Control
Inventory Management
Five Year Equipment Replacement Plan
Device Code Assignment
Property/Item Decrease/Loss
Maintenance Plan and Procedures
Service Contracts
Material Due-ins
Emergency Management Plan/CBRNE/IPP
COR Appointment, Training and Management
ECAT Orders
Purchase Card Management
FOR OFFICIAL USE ONLY
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Spotlight Metrics
M8 Portal / Quick links / Financial Spotlight Review:
https://www.navmedfinancial.org/cms/
 Naval Medical Logistics Command
https://gov_only.nmlc.med.navy.mil/code06/metrics-tracking.asp
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Report Categories:
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Appropriate Use of Acquisition Priorities
Undelivered Orders
Inappropriate Use of Purchase Card
Purchase Card Usage Reduction
Unable to Locate Equipment
Equipment Maintenance
Use to Gauge command performance
Used by BUMED to monitor commands
Coordinate with Comptroller
FOR OFFICIAL USE ONLY
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Spotlight Metrics
Logistics "7" Spotlight Metrics
Goal
Metric
> 95%
Personal Service Contract Fill Rate
Appropriate Assignment of Acquisition of Priorities
Priority 3
< 10%
Priority 6
< 20%
Preventive Maintenance Medical Equipment
100%
Risk Level 1
> 96%
Risk Level 2 &3
< 2%
Unable to Locate Equipment
Undelivered Orders (Due-Ins)
ECAT
< 15 days (20 days OCONUS)
MILSTRIP
< 20 days
PRIME Vendor (USE&JIT)
< 7 days(15 days OCONUS)
PRIME Vendor (NUS&Other)
< 15 days(20 days OCONUS)
Open Market
< 20 days
Purchase Card
< 30 days
Government Purchase Card Usage Rate
< ## & $$ Same Month Previous Year
Inappropriate use of Government Purchase Card
< .004
FOR OFFICIAL USE ONLY
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BUMED Standard Operating
Procedures
https://wwwa.nko.navy.mil/portal/navymedicine/fip/home/sop
 Contract Closeout
 Electronic Catalog
 Equipment Contract Establishment
 MEDSURG Prime Vendor Management
 Personal Property
 Purchase Card
 Contracting Officer’s Representative (COR)
SOPs = Standard Business Processes required since 1 Oct 2009
SOP compliance helps with audit readiness
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Surgeon General Memorandum on Internal Controls in Navy Medicine
FOR OFFICIAL USE ONLY
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NMLC Guidance
https://gov_only.nmlc.med.navy.mil/code06/medlogsop.asp
Guidance On:
 Recurring and Split Requirements Prevention
 Log Inventory Level Setting
 Standard Recommended Monthly BO Reports
 Purchase Card Use Reduction to Prime Vendor
 Assumption of Duties
FOR OFFICIAL USE ONLY
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Other Things to Look For/Use
Delegation/Appointment Letters and Warrants
 MEDSURG and Pharmacy PV Credit Reports
 MED IG Checklist
 DMLSS Reports for Due-Ins and Equipment
Management
 Equipment Program and Review Committee
 Command Ethics and Standards of Conduct
 Unauthorized Commitments
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FOR OFFICIAL USE ONLY
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Equipment Program Review
Committee (EPRC)
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Role
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Plan, Budget, Approve, and Prioritize equipment
acquisitions
Membership
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Chairman, appointed by CO
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Directors (DFS, DSS, DAS, DMS, DNS)
Comptroller
Equipment Manager
Head, MMD
Staff CEC or Facilities Manager
Maintenance Manager/BMET
Chief Information Officer (CIO)
Safety Officer
FOR OFFICIAL USE ONLY
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EPRC Continued
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Responsibilities
Semi-annually (at minimum) prioritize O&M using
Expense Equipment Request Form
 Annually (at minimum) review the equipment
management program including instructions, etc.
 Annually (at minimum) establish OP priorities
 Annually (at minimum) monitor equipment
replacement, property administration and excess
equipment programs
 Review and validate 5-Year OP Equipment
Requirement List provided by NMLC via BUMED and
respective Regional Commands
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FOR OFFICIAL USE ONLY
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Process Validation
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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
FOR OFFICIAL USE ONLY
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Acquisition
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Review last PPMAP; correct any findings
identified
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NAVSUPINST 4200.82F identifies exactly what will be
reviewed during your PPMAP; familiarize yourself with
this instruction and refer to often
CORs – ensure they are properly nominated and
appointed IAW NAVSUPINST 4205.3D
 Warrants – Contracting Officers properly
appointed via SF1402; trained prior to appointment
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Ordering Officers properly warranted IAW BUMED
Ordering Officer Guide for DLA e-Commerce Contracts
(Prime Vendor/ECAT)
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FOR OFFICIAL USE ONLY
Acquisition Continued
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Defense Acquisition Workforce Improvement Act
(DAWIA) compliance
Acquisition staff (personnel in job series 1102 and 1105)
certified to the required level
 Continuous Learning of 80 hours every two years IAW
SECNAV DAWIA Operating Guide (21 Dec 2011)
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Resources – utilize to stay abreast of acquisition
changes
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NMLC website – Lead Contracting Executive
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https://gov_only.nmlc.med.navy.mil/lce/
NAVSUP Contracting Knowledge
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https://www.navsup.navy.mil/cks
FOR OFFICIAL USE ONLY
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Acquisition Continued
Government Commercial Purchase Card (GCPC)
BUMED SOP and NAVSUPINST 4200.99
 Small Business Specialist Review
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FOR OFFICIAL USE ONLY
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Purpose of MM Standardization
This material is presented to alleviate the frustrations with
the learning curve, which historically takes 6 to 10 years
for Material Managers/Medical Logisticians to become
fully competent and effective.
If Material Manager/Medical Logistician is not fully aware
of their responsibilities for the Command, and the
processes involved, they will be unable to ensure their
operations are in alignment with the standardized
processes expected to make BUMED fully compliant
with standardized processed for the enterprise.
FOR OFFICIAL USE ONLY
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Assumption of Duties
LAV = Logistics Assist Visit
Used to validate MMD’s effectiveness = External
Assumption of Duties
MM Self Assessment of MMD’s effectiveness
FOR OFFICIAL USE ONLY
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How do you evaluate yourself?
LOG/CPD:
Primary mechanism for accommodating customer needs.
Warehouse vs. Warehousing
Reduced: Credit Card Purchases
Customer Emergency Orders
Customer Safety Stock
FOR OFFICIAL USE ONLY
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Inventory Mgt (LOG/CPD)
NIS Rates
Current LOG $$ value (Effective or Wasteful)
Turn-Over Rates >2/month
Number of Items Carried (Compared to total Orders)
Deadstock (non-AMAL items)
FOR OFFICIAL USE ONLY
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Customer Effectiveness: NIS Rates
NIS Rates: IM NIS DMLSS BO Report
- NIS items per Customer orders
- Items NIS at time of Customer Order
Shows all orders NIS at time of order
- Top ten NIS items per date Range
Shows only the time 10 items NIS (low hanging fruit)
- Log Inventory Level Setting
- IM Stocked Usage with Delivery Method
- ACTIVE Backorders
FOR OFFICIAL USE ONLY
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Customer Effectiveness: Unexecuted Orders
Orders are expected to be Timely
FOR OFFICIAL USE ONLY
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Current LOG $$ value
Current LOG $$ value: (Effective or Wasteful)
Stocked Supplies = $Money$
Are you effective with these funds or wasteful
FOR OFFICIAL USE ONLY
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Inventory IM Report
FOR OFFICIAL USE ONLY
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Inventory IM - Inv turnover per item
FOR OFFICIAL USE ONLY
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Turn-Over Evaluation
Is the Turn-Over Effective?
FOR OFFICIAL USE ONLY
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Deadstock
Deadstock BO Report:
- Shows all items not moved (requested) in past 6 - 12
Months, and Greater than 12 Months
- Replaced Zero Demand from Inventory IM Report
FOR OFFICIAL USE ONLY
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PV Credit Mgt
PV Credits should be used before APF/OPTAR
New DMLSS functionality
-Populates DMLSS PV Credit Balance.
-Prompts user to use PV credits prior to OPTAR
Credits moved from 90 days to 120 days.
Some credits are from DLA reconciled old orders, so may
not have full time period to use credits
FOR OFFICIAL USE ONLY
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Catalog Records Management
Unused DMLSS Catalog Records should be Deleted
Customers can only see 500 rows of data in catalog
When items are not visible, they as MMD for new Catalog
Solution: Run Catalog Records Without Current Transactions
- Also shows new Catalog Records not yet Ordered!
FOR OFFICIAL USE ONLY
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Purchase Card Controls
Purchase Card Orders
Most Time Consuming
Most Expensive/Costly
Most Troublesome
Move to eCommerce Essential
Effective Management Paramount
FOR OFFICIAL USE ONLY
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PC Order Reduction to eCommerce
More time is spent making PC buys than other SOSs
Combined.
SOS
Open Market
MILSTRIP
ECAT
PC
PV
Totals
Annual Dollar$ Annual Orders
$8,817,701
277
$13,872,023
36,447
$26,548,764
91,241
$72,643,125
215,370
$624,812,706
1,105,704
$746,694,319
1,449,039
FOR OFFICIAL USE ONLY
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Inventory Standardization / PV
Optimization
Is Command performing PC reduction processes?
Are they effective?
Should be performed at least Quarterly
Purchase Card Use Reduction to Prime Vendor
SOP & BO NMLC webpage
FOR OFFICIAL USE ONLY
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eZ SAVe Use
FOR OFFICIAL USE ONLY
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PC Span of Control
The APC/AO need to validate and justify Open PC Accts
- Credit Cards require “ROUTINE” use
-Instruction is weak, Material Managers should be strict
FOR OFFICIAL USE ONLY
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Reconciliation / Encumbered Funds
Receipted Orders does not equal Obligations
FOR OFFICIAL USE ONLY
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Resources
FOR OFFICIAL USE ONLY
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Questions
?
FOR OFFICIAL USE ONLY
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