By Marla Williams, CPPM

President, Integrated Asset Management, Inc.

Executive Vice President, Federal Center
Chapter

Verify that your records match the actual

physical conditions
Includes:

Identifying property that is not currently in the

system
Identifying assets that are no longer needed by
the organization.

What loss rate is acceptable?

Typical acceptable loss rates are between
0.5 and 5%.
Weapons, hazardous materials, laptop
computers with sensitive information may
have a zero acceptable loss rate.
Low cost items may have acceptable loss
rates as high as 20%.

Cost and effort to replace the item

Lost productivity
Release of company-sensitive or personal
info
Danger to the individual, the community or
the organization

 Capital

Assets
Accountable or Controlled Assets
Sensitive Assets

Not Purchased for Resale

Useful Life of Over One Year
Acquisition Cost Greater Than Threshold

$5,000 to $300,000, depending on size of

organization
Usually represents 80% of total asset value

Reported on financial statement

Any additions or changes must be noted on
annual statements
Ultimate responsibility of the Chief Financial
Officer.

Purchase cost less than Capitalization

Threshold
Items that may be vulnerable to theft
Computers or PDAs with personal or
sensitive information
Hazardous material
Weapons
See ASTM E2608 Standard provides
Equipment Control Matrix

Inventory is an audit
Needs to be performed by individuals who
have no vested interest in the outcome.
Use:

third party vendor

headquarters personnel
teams from another location

Over 1,000 assets, should justify investment

in automated inventory tools:
Commercial Off-the-Shelf (COTS) Single
Workstation System with one HandHeld Computer
<$10,000
COTS Multiple Workstation System over a network
with two HandHeld Computers $20,000-$25,000
Oracle or SQL-based system with customized
screens and interfaces to suit your specific needs
$250,000+

Old handhelds had proprietary operating

systems and limited memory
New handhelds are portable computers
running Windows Mobile or CE operating
systems:

Can read RFID, UID codes or bar codes

Allow multiple configurations or prompts
Run multiple applications (e.g. work orders,
preventative maintenance, etc.)

Linear Bar Codes

Most common and affordable

UID
DOD Program for Equipment over $5,000
2d matrix codes and linear bar codes assign
unique identification numbers to serialized
equipment
Purchase Information is sent to a National Registry
Benefit to non-DOD. . .

RFID

Tags can be passive or

active
Inventory with Handhelds
or Fixed Station Scanners
Fixed Scanning at Loading Dock, Entrances, and
Hallways makes collection automatic but can be
expensive
Consider for server rooms or areas that contain
sensitive or hazardous materials
Not a real security measure unless hidden inside
equipment
Cost Effective for High Volume Supply Chain
Management Applications like Wal Mart

Project Manager should develop a detailed

Inventory Plan and share it with all
interested parties

Inventory personnel
Employees
Security personnel
Management

Main Contact
Available during work hours

Location Contact or Custodian

Access Cards/Security Badges
If escorts are required, how many?
Procedures for Locked Rooms
Maximum Number of Returns to Location

E-mail or Flyer to Employees

Ask for complete cooperation
Instruct employees to remove property from
overhead compartments, desk drawers and
storage closets and leave the items out until
inventoried.
Give employees a contact name and telephone
number for questions.
Provide copies of the e-mail to the inventory team
- to reduce interruptions.

Bar Code Label Supply

Consider pre-printed labels or print your own

Bar Code Labels for Locations

Some systems use bar code room tags to identify
locations.

Floor Plans with Location Names and Organization

boundaries
Assign location names to workstations/cubicles

Condition Codes

Consider using GSA Codes

Put them in writing
Give Examples
Ask for specific damage information

Status Codes
IU-In Use
IS-In Storage (available for use by another)
EX-Excess to be turned in

Strategy for Laptops, PDAs, Cellphones

E-mail known owners

Create Flyer for inventory team to leave
Host doughnut stations at elevator banks
Create Mail In Packages for Remote users
Dont Forget Federal Continuity of Operation
Assets (COOP)

Laptops and Docking Stations

Many users are not familiar with proper undocking
procedures
Check with IT Department for proper undocking
procedures
Consider assigning special IT Help Desk person to
assist with docking issues during inventory
Leave flyer with Help Desk contact at each station
when finished

Strategy for Vehicles

Station Inventory personnel at Centralized
Maintenance or Fueling Locations
Use fuel card system data
Organize special inventory times that minimize
disruption

Catalogs keep descriptions uniform and

consistent

Identify Categories and Classifications

Basic Types (e.g. PC-Desktop, PC-Laptop)
Manufacturer Names
Model Numbers, Part Numbers
Dimensions (Floor Standing Equipment, Furniture)
Furniture Attributes (Color, Material, Finish, etc.)
Document Catalog Development Guidelines
Determine Process for Adding New Catalogs

Digital Images
Linked to Catalog/Asset
Can be done with $100 digital cameras
Place sign in photograph with number to allow
you to rename later
Can be dry eraser boards with magnets/velcro or
pre-printed numbers generated in Excel in a large
font printed on plain paper

Some companies use cameras that will allow

them to assign the name in the camera

Standardize Tag Placement Guidelines

Keep it simple
Use photographs to illustrate
How will it look?
Is the tag easy to remove or tamper with?
If locked, can I access the tag?
If moved, will it block the tag?

Training
If Contractor is using your equipment, be sure they
have been adequately trained
Consider train the trainer sessions for handhelds
Consider detailed scripts for inventory personnel

Flyer to Leave for Employees Who Are Out

Set Progress Goals and Monitor Them
How many assets will be inventoried each day?
What level of accuracy should we find during
auditing?
Are we on target to meet our completion deadline?

Ideally, wall to wall inventories should be

conducted building by building, floor by
floor, room by room
Rooms should be inventoried sweeping from
left to right, right to left or some consistent
pattern
If done by Organization or Custodial Officer,
may miss items or whole room/areas not
previously recorded suggest tracking
carefully on master floor plans

Uploads
Equipment failures or accidents could lose hours
or days of valuable work if not transferred

Enter New Catalogs

New catalogs should be entered immediately to
reduce duplications and keep descriptions uniform

Update Master Floor Plan

Master Floor Plan should be updated to reflect
each teams work, locked rooms or unusual
conditions

Run Reports by Location

Randomly audit 5% of each inventory
teams work catching problems while they
are small . . .

PM posts each teams counts and reasons for daily

gains and losses
PM meets with teams at the end of each day:

to receive feedback from teams about their progress

review previous days audit results
share productivity gains or losses
Go over information about changes in schedule, etc.

Run Exception List of Items Not Found by

previous location
Send Inventory Personnel back
Update inventory data
Run Exception List of Items Not Found by
Organization and Location
Send list to the Accountable Organization
for further research
Third Party should verify items found

Reconcile all assets inventoried by tag

Does the system look for duplicate Serial
Numbers?
Look for Serial Number matches between:

List of All New Assets Tagged

Exception Listing of Items Not Found

Update reconciliation

Run several reports or spreadsheets:

All New Items Tagged by Organization
All Items Not Found with Purchase Cost by
Organization
All Items Found with Purchase Cost by
Organization

Measure annual overage or loss rates by

overall number and value
Also makes these calculations for each
Organization
Also calculate these values by category of
equipment
Compare new information to previous
losses/gains for trend

Generally, if the total value of your losses are

in excess of 5%
Or you have an Organization with losses in
excess of that rate, further investigation is
required.

You can just rely on the physical inventory to

maintain accuracy and continue to get the
same results, or worse,
or
you can look at the physical inventory as an
opportunity to make improvements in the
property management process

Marla Williams, CPPM

President
Integrated Asset Management, Inc.
marla@weinventoryassets.com
(800) 731-9569
Millersville, Maryland