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Total Asset Management Products

  1. 1. Asset Management Enterprise Asset Management Total Asset Management Products & Services Catalogue Point of contact
  2. 2. Asset Management Enterprise Asset Management Notices Copyright 2008 Lockwood Technology Corporation All rights reserved. This document is protected by copyright with all rights reserved. No part of the document may be reproduced or transmitted by any means or in any form without prior consent in writing from Lockwood Technology Corporation. Trademarks EGOR, POManager, DockManager, Asset Tracker, StockManager, Collector Series, PalmCollector, BarCode Collector, RFID Collector, Desktop Integrator, EventManager, Poller and QuickTrac are registered trademarks of Lockwood Technology Corporation. All non-Lockwood product names and logos mentioned herein are used for identification purposes only, and are the trademarks of their respective owners. Disclaimer While Lockwood Technology has committed its best efforts to providing accurate information in this document, we assume no responsibility for any inaccuracies that may be contained herein, and we reserve the right to make changes to this document without notice. Lockwood Technology –Enterprise Asset Management 2
  3. 3. Asset Management Enterprise Asset Management Catalogue Contents INTRODUCTION .............................................................................................................. 4 Architecture............................................................................................................. 6 Information Management........................................................................................ 6 Data Capture ........................................................................................................... 7 Event Management ................................................................................................. 8 Integration ............................................................................................................... 8 Conventions ............................................................................................................ 9 Document Generation ........................................................................................... 10 Data Diagrams ...................................................................................................... 11 Technical Specifications ....................................................................................... 12 I. SOFTWARE............................................................................................................ 13 Purchase Order Processing ................................................................................... 13 Shipping and Receiving ........................................................................................ 14 Asset Tracking and Management.......................................................................... 15 Supply and Logistics............................................................................................. 29 Information Technology ....................................................................................... 30 Data Collection and Physical Inventory Taking ................................................... 32 Event Detection and Management ........................................................................ 33 Automatic Data Capture ....................................................................................... 35 Software Use Licensing Options .......................................................................... 38 Third Party Licensing ........................................................................................... 38 II. AUTOMATIC DATA CAPTURE HARDWARE ............................................... 39 III. SERVICES........................................................................................................... 40 Consulting ............................................................................................................. 41 Asset Appraisal ..................................................................................................... 44 Information Reconciliation ................................................................................... 45 Implementation & Integration............................................................................... 49 Training................................................................................................................. 50 Site Survey ............................................................................................................ 52 Physical Inventory Taking .................................................................................... 53 Support & Maintenance ........................................................................................ 54 Lockwood Technology –Enterprise Asset Management 3
  4. 4. Asset Management Enterprise Asset Management INTRODUCTION Lockwood Technology Corporation was established in 1994. The Lockwood value proposition is in providing turn key asset management and tracking solutions. Lockwood has developed, maintains and supports a suite of software applications that automate the major aspects of the Asset Life Cycle. The Product suite is made up of modules, which are able to operate independent of one another, are able to be configured to work together, or to be integrated with non-Lockwood applications. The full suite is aptly entitled; Lockwood Asset Management. The current offering is referred to as Asset Management Enterprise V8.1 The suite is comprised of nine (9) primary applications, each intended to satisfy a specific life cycle activity. Life Cycle Activity Module Name Electronic ordering form EGOR Purchase order administration POManager Shipping & Receiving DockManager Asset Tracking & Management Asset Tracker Information Technology Poller Supply & Logistics StockManager Physical inventory & reconciliation Palm Collector RFID Collector Bar Code Collector Automatic event and data capture EventManager QuickTrac Desktop Integrator Lockwood Technology –Enterprise Asset Management 4
  5. 5. Asset Management Enterprise Asset Management Lockwood Technology –Enterprise Asset Management 5
  6. 6. Asset Management Enterprise Asset Management Architecture The Lockwood Asset Management software suite was designed to be compatible with IBM- compatible personal computers running Microsoft XP and Vista operating systems. Information is stored in a MS SQL Server 2005 relational database. All software developed using .NET and designed to function under the client/server architecture model, however offers several variations to enable Intranet connectivity where appropriate. The graphical user interface features familiar Windows menu icons point and click navigation, drop-down windows for data selection, context-sensitive help, intuitive on-screen command buttons, online user help guides and organized data entry presentation screens. Built-in intuitive information exchange filters (IEF) accept data imports for many sources and can produce data exports in many formats - flat file, MS Excel, MS Access, XML to name a few. All software will operate via the LAN/WAN or Intranet and enables a client to dynamically select, or switch, server connections as needed. The suite is tightly coupled with; Crystal Reports, Microsoft Word, electronic mail, electronic fax, document imaging, digitization and Microsoft Visio and a variety of automatic identification hardware including bar coding and radio frequency identification technologies. Information Management 1. Information is stored and presented within logical file folders - entitled users are able to create an unlimited number and type of; data fields and logical file folders 2. File folders can be logically linked together and displayed by category 3. Fields of data and logical file folders can be user-defined, named and associated at will FILE FOLDERS DATA FIELDS Lockwood Technology –Enterprise Asset Management 6
  7. 7. Asset Management Enterprise Asset Management Recognizing that individuals are unique as are their information requirements, Lockwood elected to design its software with features that allow for each user to customize information sorting and reporting. The standard technical means to access information within a relational database is using a protocol known as a query structure. A query represents specific syntax that accomplishes a specific task, such as retrieve, sort and display specific information. To ease this process for non-technical personnel, Lockwood has established a query wizard entitled Ad Hoc Query, whereby the user provides English type instructions, or chooses from list options to the wizard. The wizard in turn translates the user’s instructions into a query. The query can be run, stored (for future reference) and updated. The output from the query can be viewed online or stored as an electronic file. Data Capture An important aspect of the asset management life cycle is data capture. In particular, conducting physical inventory taking and of lesser importance being able to track movement on a real time Lockwood Technology –Enterprise Asset Management 7
  8. 8. Asset Management Enterprise Asset Management basis. As it relates to automating data capture (ADC), Lockwood has integrated aspects of the software suite with ADC hardware technologies such as bar coding and radio frequency identification (RFID). Lockwood is a certified integrator with the major hardware manufacturers of these technologies and has insured that the integration is compatible with the current international standards as depicted below: Technology Standard Bar coding Codes 39 & 128 RFID EPC UHF Gen 2 The Collector series modules are compatible with the Palm OS and Windows Mobility platforms and devices. Lockwood applications feature embedded ADC middleware enabling the applications to interact with bar coding and RFID technologies in a user-transparent fashion. Continuing on the line of automatic data capture, Lockwood expanded its V7 offering with a product line entitled QuickTrac. This software product represents a bundled, turnkey means to utilize automatic data capture (ADC) technology with existing non-Lockwood backend legacy systems and/or reference data without having to modify source code or integrate ADC middleware. Event Management Lockwood created an umbrella application (i.e. works with all modules within the suite) entitled the EventManager. This module is designed to monitor for, and react to, unexpected incidents as well as expected events. The EventManager is rules-based and runs as a system service on the database sever. Rules contain all the logic necessary for the EventManager to detect and react to an incident or event. A rule is a series of instructions, provided to the EventManager by system users via a point and click wizard, or via external sources. The EventManager stores rules in a relational database (MS SQL Server). Rules are comprised of two primary components triggers and actions. Triggers comprise a specific incident or event. Actions comprise what specific action(s) the EventManager is to take based upon specific triggers. Integration The suite was designed specifically for ease of integration with non-Lockwood applications or disparate information sources. In order to facilitate the sharing of information between Lockwood’s software systems and non-Lockwood applications, the software utilize import and Lockwood Technology –Enterprise Asset Management 8
  9. 9. Asset Management Enterprise Asset Management export information filters. These filters, which are comprised of stored procedures, serve to batch information and pass that information in file form between two disparate data sources via transaction-processing applications. For purposes of definition: Export - implies the extraction of information from one application to be used to input into another application. Import - implies pulling in and applying information from a file created by a disparate source for input into the receiving application. These filters are simple routines that: 1) Organize data and reformat data structures, such as records, into acceptable formats with appropriate record delimiters that can be recognized and utilized by either system 2) Accumulate data structures/records into acceptable file formats that can be recognized by either system 3) Apply file naming and file-exchange protocol (typically defining a path) conventions that are recognized by the receiving system(s) The objective being to create batch files that contain records that house specific data, which can be read and processed by the receiving system. The receiving system is setup to monitor for the presence of a recognizable file (based upon the file naming and file-exchange conventions). When an import files presence is detected, the receiving system opens and reads the file, and begins to process the file contents into the system. Applications creating export files (which become import files for another application) do so based upon either an interactive user command or at predefine scheduled intervals. In order to satisfy each unique customer application or requirement, Lockwood custom tailors each of these import and export filters as necessary. Conventions Standard conventions have been applied throughout all modules. These include: Convention Description Graphical Interface Standard MS Windows GUI Navigation Mouse –point and click Keyboard – up & down arrows, enter, tab, bksp and del keys On screen – Tool bars, menus & icons, command buttons User assistance Onscreen help access and context-sensitive help with command buttons Information organization Information is organized by category and sub category and & presentation placed into logical file folders that simulate physical manila file folders Lists Pre-defined static lists of multiple choice options that appear as drop down lists with dialog boxes Scalability Entitled power users are able to define an unlimited number of data fields, categories, sub categories and logical file folders Data access Features built-in query wizards Lockwood Technology –Enterprise Asset Management 9
  10. 10. Asset Management Enterprise Asset Management Reporting Tightly integrated with Crystal Reporting Logical attachments Ability to link to an unlimited number of; electronic files, documents, pictures and MS Visio files Document control Ability to generate transaction-specific documentation on demand utilizing MS Word templates Security Features user login, audit trail, digital signature authentication, data encryption and MS Windows authentication Integration Built-in adjustable information sharing filters Document Generation Lockwood’s software is able to automatically generate documents as a result of a transaction: such as creating a loaner agreement as a result of the loan of an asset, or a return materials authorization (RMA) or a purchase order. Documents are created automatically through the use of MS Word document templates. The document templates contain a combination of standard text, interspersed with variable place-holders where the system will interject a specific data element from an asset’s set of data elements (found in each profile) where necessary. For example, suppose you have just agreed to loan an asset to a vendor. To create a standard loaner agreement from a document template is as simple as using MS Word. The system accesses the document template to create a Microsoft Word document that contains the standard text found in the template as well as insert the variables that are specific to the transaction such as; asset serial number, vendor name, return date, etc. Lockwood’s software enables the user to select from a list of available document templates (displayed when the “Output file tab is selected”) The user is able to identify how the document (once created) should be dispersed (i.e. filed electronically, fax electronically, printed, set for MS Word edit, or emailed. Multiple documents can be selected and dispersed in different fashions, all within the same session. Lockwood Technology –Enterprise Asset Management 10
  11. 11. Asset Management Enterprise Asset Management Data Diagrams Lockwood back end relational databases are comprised of a series of tables. Each table is made up of various table elements. Tables are linked to one another using common attributes such as in the examples depicted below: The next visual depicts a sample Asset Diagram Lockwood Technology –Enterprise Asset Management 11
  12. 12. Asset Management Enterprise Asset Management Technical Specifications Operating Platform Database Other ADC Other environment Document scanners, MS Word RFID MS Windows MS SQL Bar code scanners & Client Server Crystal Reports Bar XP & Vista 2005 printers Email (SMTP) code RFID Fixed readers Same Intranet IIS and MS IE Palm OS Portable hand-held Hot sync (Palm RFID Windows units Mobile MS Access Desktop) Bar Mobile 802.11 enabled & Active sync code portable printing MS Word System MS Windows MS SQL Crystal Reports Service XP 2005 Email (SMTP) Lockwood Technology –Enterprise Asset Management 12
  13. 13. Asset Management Enterprise Asset Management I. SOFTWARE Purchase Order Processing Module name – EGOR External from the PO Manager is a web application entitled EGOR, which is an acronym representing the phrase “Electronically Generated Order Request”. Non-PO Manager users, known as Requestors, make requests to order items via EGOR. EGOR features order forms that align to standard PO Manager lists thus facilitating synchronous data alignment between the request and the PO Manager Administrator-defined lists. Once a request has been entered via EGOR, it is staged in the PO Manager for review and processing by a transaction processing User. Module name – POManager The POManager is a comprehensive purchase order transaction-processing module that can operate independently or collectively with the other modules of the suite. The PO Manager is used to initiate, administer and manage purchase orders. As with the other modules within the Enterprise suite, the POManager features information presented is logical file folders as well as user-defined setup features including, list construction, creation of data fields and user entitlements, to name a few. Purchase requests (requisitions) are made via a web-enabled front end. Incoming requisitions are stored in a request queue for processing. Transaction processing users (Buyers) select requests from the queue for processing. Once a purchase order has been drafted, entitled users known as approvers, review and approve processed requests. As purchase orders are created, the PO Manager has the ability to review information resident in the Asset Tracker and Stock Manager, searching for similar items as to those being ordered that are currently idle/available, alert the transaction user who is doing the order in the hopes that the item will be reallocated or drawn from stock as opposed to buying new. The POManager is also able to interact with the Dock Manager (see next page) in efforts to automate the incoming receipts process, whereby the Dock Manager enables to user to review log and update purchasing information using the Intranet and portable computing equipment. POManager features; multi-currency enabled automatic form generation using MS Word templates embedded event management Lockwood Technology –Enterprise Asset Management 13
  14. 14. Asset Management Enterprise Asset Management ad hoc query capability transaction templates for processing redundant orders the ability to clone existing orders the user is able to scan and logically attach copies of physical documents to orders controlled access via user logon and digital signature authentication comprehensive audit trail automatic extension calculations (qty * unit price, sales tax, etc.) embedded information sharing procedures for interfacing with other applications and reference data sources Shipping and Receiving Module name – DockManager The DockManager is a shipping and receiving transaction processing application. The module is intended to work on an interactive basis with a purchase order application such as the POManager. The DockManager module was developed in .NET and is intended to run via the Intranet. The DockManager is compatible with Microsoft Internet Explorer. The DockManager (DM) process flow is as follows: DM imports current purchase order information from a purchase order application (such as the POManager) As the shipper/receiver is receiving an incoming shipment, he/she selects the appropriate PO number from an on-screen DM drop down list (which represents all import purchase information) The shipper/receiver is able to drill downward (through the PO) into the line item level details in order to compare to and verify against the physical items being received Lockwood Technology –Enterprise Asset Management 14
  15. 15. Asset Management Enterprise Asset Management The shipper/receiver is able to augment the line item level detail with receipt data such as quantity received and serial number The shipper/receiver is also able to auto-generate unique asset numbers (from a preset range) as well as to print a bar coded label to be affixed to the incoming item Once the incoming shipment has been fully received, the shipper/receiver is able to upload (export) the results of their receiving effort back to the purchase order system The DM, utilizing the purchase order information combined with any user-supplied information(such as serial number), creates a new asset tracking record and inserts it into the master asset tracking database (accessible by either the Asset Tracker or the Stock Manager) Asset Tracking and Management Module Name – Asset Tracker The Asset Tracker is the primary module of the suite and provides many rich features that are designed to be holistic and accommodate most asset tracking and management practices, including: • Desktop polling of computers for software and hardware • Software license librarian • Global modification capability • Construction of asset hierarchies (configurations and/or families) • Document imaging (attach copies of documents to asset records) • Asset pictures (via JPEG images) • Automatic form generation (using MS Word templates) • Contract management • Scheduling and schedule management • Administration and management of property loans • Automatic reminders and notifications • Event detection and automatic reaction to event detection • Cloning of existing asset records • Transaction templates to reduce repetitive data entry activities • Financial capabilities such as calculating depreciation • Automated information reconciliation options • Analyzer tool for gleaning and summarizing information from the audit trail • GASB34 Reporting The Asset Tracker is able track any type of tangible or intangible asset, from hardware to software, office furniture to artwork, vehicles to documents and so on. The presentation screens Lockwood Technology –Enterprise Asset Management 15
  16. 16. Asset Management Enterprise Asset Management and data elements automatically adapt to the type of asset being stored and tracked. In addition to tracking every-day use assets, the suite also provides for materials management and inventory control. These modules afford the ability to track, maintain and manage consumable items, warehouse inventory or surplus components that are not in current use. The suite was designed to track assets as they enter facilities, as they move around within the facility, as they leave the facility and between multiple facilities regardless of where they are located. You can track assets that are on loan or consignment and, can monitor and track anything that is allocated to an employee, contractor, customer, personnel and vendors. These include; pagers, cell phones, keys, credit cards, uniforms, vehicles, tools, weapons, etc. Using the intelligent import filter, the system will interact and reconcile with your general ledger and other relevant databases. You may also track asset relationships such as parent to children. This is particularly useful when tracking and maintaining assets configurations. TECHNOLOGY Asset Tracker is integrated with bar coding and radio frequency identification (RFID) automatic data capture technologies. Standard system options enable you to read and write a variety of bar code labels using protocols such as code 39 and code 128. Bar coded labels are user-definable in terms of the label size and the information that is to be displayed on the label. Asset Tracker support EPC, class o and Gen 2 RFID standards for ultra high frequency RFID. The Asset Tracker also supports document imaging (can scan and store copies of invoices, purchase orders, maintenance agreements, warranties, etc. and store them with each asset), interacts with electronic mail, electronic fax for communications and utilizes Crystal Reports for report management. Pictures can be imported and stored with each asset profile record providing the ability to view the asset and to generate reports with the asset’s picture on the report. ASSET INFORMATION The software provides multiple methods for accessing, sorting viewing and updating asset information. Information is presented in an organized fashion on tabbed screens each representing related fields of information. Each asset profile contains information elements such as asset number, serial number, model, manufacturer, vendor, acquisition date, purchase order number, invoice number, multiple levels of location (i.e. building, room, bin, etc.) classification, category, complete set of financial records (i.e. purchase price, general ledger number, current depreciation, accumulated depreciation, etc.) department, cost center, responsible custodian employee name and telephone number, asset status, miscellaneous comments, date of last inventory, warranty and support contract data fields, miscellaneous asset characteristics . The following asset was classified in the computer category, consequently a file tab entitled software, which lists all installed software on the computer, is displayed and filled with data collected from the auto-discovery module. Lockwood Technology –Enterprise Asset Management 16
  17. 17. Asset Management Enterprise Asset Management A common attribute found throughout the product suite is user-definable data fields. An unlimited number of fields of data (on-screen dialog boxes) can be pre-defined (name, type and use) and placed wherever deemed appropriate on the presentation screens. Many screen input data fields are accompanied with user-customized drop-down lists. Lockwood Technology –Enterprise Asset Management 17
  18. 18. Asset Management Enterprise Asset Management Information can be sorted and viewed in a variety of easy to use methods, including an Ad Hoc Query function that enables the entitled non-technical user to sort information dynamically at their leisure. User –defined condition RESULTS DISPLAY HERE An entire asset profile can be stored as a transaction template, thereby offering the ability to replicate similar asset entries from a template versus hand entering the same type of information over and over again manually. The Asset Tracker provides a function that allows the entitled user to make global (or mass) modifications to many records at the same time with a single statement. For example, if there are 100 assets allocated to department A, that must be reallocated to department B, through the global modification option, all 100 assets can be modified to reflect the departmental change with a single command. Lockwood Technology –Enterprise Asset Management 18
  19. 19. Asset Management Enterprise Asset Management DOCUMENT MANAGEMENT This feature includes the capability of scanning and storing electronic copies of documents with asset profiles. Examples include; purchase orders, invoices, warranties, maintenance agreements, certifications, etc. Documents can be referenced online and be reproduced and/or electronically communicated (via email and efax) at the touch of a command button. Asset Tracker can generate documents as a result of a transaction: such as creating a loaner agreement as a result of the loan of an asset. Documents are created automatically through the use of MS Word document templates. The document templates contain a combination of standard text, interspersed with variable place-holders where the system will interject a specific data element from an asset’s set of data elements (found in each profile) where necessary. For example, suppose you have just agreed to loan an asset to a vendor. To create a standard loaner agreement from a document template is as simple as using MS Word. The system accesses the document template to create a Microsoft Word document that contains the standard text found in the template as well as insert the variables that are specific to the transaction such as; asset serial number, vendor name, return date, etc. INFORMATION IMPORT & EXPORT The Asset Tracker provides information import and export capabilities. The entitled user can import information from other sources, reconcile and apply that information, and can export information from the database to be used elsewhere (i.e. Access, Excel, XML. etc.). The suite features embedded information exchange filters (IEF) that seamlessly share information, automatically with other ERP systems such as SAP/R3, Oracle, Peoplesoft, Lawson to name a few. These filters can be quickly adapted to work with many other systems as well. SECURITY Asset Tracker has a comprehensive user security option allowing the administrator to grant user names, passwords, levels of data access and feature access entitlement. All activity is recorded into a complete secure audit trail, which is accessible with the appropriate level of access. Access is gained through user accounts that are protected by encrypted passwords. User accounts are defined within groups. Groups are granted various entitlements that either enable, or restrict, access to features and information. The system utilizes MS Windows Authentication and is compatible with digital signature authentication as well Lockwood Technology –Enterprise Asset Management 19
  20. 20. Asset Management Enterprise Asset Management Access can be customized by drilling down into finite levels, in this example access restrictions are applied by logical file folder File folders Access Modes REPORTING In addition to a host of standard report templates, reporting is accommodated via an intelligent report writer, Crystal Reports. The report write creates reports via report templates, which can be created and modified through the use of an intelligent report wizard by non-technical users. The software offers this simple to use report-wizard for modifying and creating reports visa point and click methodology for the definition and construction of unique reports Lockwood Technology –Enterprise Asset Management 20
  21. 21. Asset Management Enterprise Asset Management CUSTOM DATA FIELDS What if the he standard data fields offered out-of-the-box with don’t serve your need? The answer is; create your own. The process is simple – assign a data type, name the data field, position it on the screen and then, use it! SCHEDULES AND EVENT DETECTION The Asset Tracker features an embedded a robust Scheduler and Event Manager. The scheduler offers the ability to define and assign any type of schedule to any asset. Examples can include: calibration, preventative maintenance, cleaning, inspection, etc. The event manager offers the capability to define an event and an associated reaction that you want to enact once the event has (or is about to) occurred. EXAMPLE 1. Monitoring leased assets – receiving advance notice prior to the lease expiration date. EXAMPLE 2. Maintenance schedules – monitor maintenance schedules, send out schedule assignments, and reminders to the responsible technicians, once completed reset for next schedule and escalate if problems are encountered. AUTOMATIC REMINDERS Asset Tracker enables the user to define a series of auto-reminders that will administer automatically. For example, property that has been loaned is due to be returned and if it is not, the auto-attendant feature can monitor this, detect the overdue loan and send an automatic reminder via electronic mail. CONTRACT MANAGEMENT Asset Tracker is able to manage and evaluate contractual information related to a given asset, or set of assets, and take user-defined action(s) as well as maintain electronic copies of related documents. SEARCH CAPABILITY Asset Tracker offers many levels of information query and search. From a simple field Lockwood Technology –Enterprise Asset Management 21
  22. 22. Asset Management Enterprise Asset Management search, whereby the user selects the data field to search under coupled with a related value to search for. An example of a more robust search enables the non-technical user to create user- specific SQL queries. An intuitive wizard walks the user through a series of questions to create an SQL query. Queries can be simple, compound and complex. Queries can be executed immediately and/or named and saved for future reference. Hierarchal searching is also supported. SOFTWARE LICENSE MANAGEMENT The module features a software librarian that is used to track; software purchases, software licenses, license allocation and versions. Used in conjunction with the auto-discovery module, can detect and report computing platforms with unlicensed software. INFORMATION MANAGEMENT & ANALYSIS A significant benefit of possessing historical information and being capable of obtaining computing characteristics automatically is to conduct impact analysis. The software offers tools Lockwood Technology –Enterprise Asset Management 22
  23. 23. Asset Management Enterprise Asset Management that accept user-defined parameters (such as time period, minimum requirements, values, department id, etc.) and that research through historical information stored in the audit trail. The result is succinct reporting that summarizes topics such as; move, add & change, computing platforms need what modifications in order to accommodate a planned operating system upgrade, software license compliance, ROI and many more. FINANCE The Asset Tracker offers financial capabilities including; calculating depreciation, recording values in multiple currencies with automatic conversion, supports GASB34 regulations via options such as the ability to establish user-defined fund sources and to apply multiple fund sources to a single purchase. Standard reports depict split-funded acquisitions and so forth. Automated information imports enable information sharing with the general ledger and the fixed asset register. Lockwood Technology –Enterprise Asset Management 23
  24. 24. Asset Management Enterprise Asset Management PROPERTY LOANS The comprehensive property loan module automates; property loan requests, loan approvals, removal from and return to the facility, and audit trail updates. This feature has an automatic alert capability to send reminders when loaned property is due to return or did not return when it should have. The auto-attendant provides a reconcilement feature that insures assets out on loan are accounted for during physical inventories and cycle counts. TRANSACTION TEMPLATES & INFORMATION CLONING Through the use of transaction templates and information cloning, the Asset Tracker eliminates the need to enter redundant information or to enter repetitive transactions. Transaction templates contain all data elements of a specific transaction and are stored. When needed these can be recalled to automatically create new asset entries using the template as the data entry model. Information cloning provides the ability to recall an existing entry from the database and clone that entry thereby creating a duplicate asset record. The user may change whatever characteristics necessary within the new record to make it unique from the cloned entry. These features reduce time needed for data entry and the opportunity for introducing data entry errors. These features can be used to; automatically create multiple redundant asset entries, establish standard asset configurations and to augment an asset record with standard descriptive information quickly and accurately. Lockwood Technology –Enterprise Asset Management 24
  25. 25. Asset Management Enterprise Asset Management HIERARCHIES & DEPENDENCY RELATIONSHIPS Asset hierarchies equate to assets that have either relationships or dependencies and need to be logically linked to one another. These relationships are often referred to as parent-to-children relationships. This feature enables the user to form asset relationships on many levels (child to parent, parent to grandparent, etc.), which we call hierarchies. Using hierarchies, the user can view these structures, adjust them dynamically (click, drag and drop), search and report. System users will be warned when they attempt to change an asset if that action will affect other assets within the hierarchy. The software provides capability to make mass adjustments to all members of an asset hierarchy, such as change of location or owner. Lockwood Technology –Enterprise Asset Management 25
  26. 26. Asset Management Enterprise Asset Management EMPLOYEE ALLOCATIONS Employee allocations are used to track mobile assets allocated to employees and contractors. Typical mobile assets include; PDAs, cellular telephones, pagers, credit cards, keys, uniforms, 2- way radios, etc. Elements such as: asset category and asset data fields can be defined by the system administrator to suit specific your specific requirements. Automated Reconciliation The Asset Tracker offers an enhanced automated information reconciliation that will compare and report reconciliation findings between user-defined sources of data (e.g. physical inventory to master database, etc.) Example 1. Physical inventory - information is collected using a hand-held data collection unit. The information is imported into the software and staged in a temporary folder. This feature will conduct automated reconciliation (comparing) between the staged information to the live data. Lockwood Technology –Enterprise Asset Management 26
  27. 27. Asset Management Enterprise Asset Management Reporting depicts findings; the user is offered the ability to make adjustment prior to the live data being updated with the staged information. IMPACT ANALYSIS Impact analysis enables the user to construct a set of minimum (baseline) requirements that each polled computer will be compared to with the results reported on as either meets requirements or, fails and why. This feature is ideal for determining which computers require software or hardware alterations during the planning stages for operating system upgrades for example. The user constructs Requirements sets, which are then named and stored for later recall and application. There are no limits to the number of requirement sets you may create. Requirement sets represent a group of specific values (specifications) that are used to compare to polling results and to measure compliance to the requirement set. You can create as many different requirements sets as you care to and you can include as many specifications within a set as necessary. SPACE PLANNING . The Asset Tracker is tightly integrated with Visio from Microsoft. Visio enables the integration of space planning with asset record keeping. Intuitive filters using 2-way information exchange between the Asset Tracker data repository and Visio data elements and document maps enable automatic update to document layouts and/or asset information Lockwood Technology –Enterprise Asset Management 27
  28. 28. Asset Management Enterprise Asset Management Module Name – RemoteLink RemoteLink facilitates connectivity to the Asset Tracker Database via the Intranet, or a Web- connection. RemoteLink allows the remote user to interact with the Asset Tracker back end database via an internal web-server. Once authenticated, users may access a menu of options that allow access to asset information found in the Large Enterprise database. These options include: Inquiring on a specific asset Changing the location of a specific asset Requesting the loan (property pass) of an asset Viewing reports Adjusting which database the server accesses Importing Data Sending mail to the database administrator Obtaining online assistance RemoteLink is compatible with Microsoft Internet Explorer Version 5.0 (IE) or better and IIS. The application was designed using Java Script and HTLM. Lockwood Technology –Enterprise Asset Management 28
  29. 29. Asset Management Enterprise Asset Management Supply and Logistics Module name – StockManager The StockManager is a robust inventory control application that automates warehousing, logistics and distribution activities. StockManager is a rules-based system that conforms to each individual requirement including functions, automated event detection and alerts, screen displays and reporting. The system automates many common warehousing and distribution activities including: • Min and max auto-detection • Trend analysis and reordering advice • Stock picking • Cycle counting, physical inventory & reconciliation • Cross-dock transaction processing • Bulk & loose piece stocking • Order, back-order, reserve, consume & return functions • Many system features can be user-defined via a point-and-click rules wizard • An unlimited number of warehouses, zones, areas and bin locations • User-defined Automated event & alerts management BOM relationships • Cycle counting and physical inventory modules that are tightly integrated with bar coding and RFID technologies • Document management and document production features enable the scanning and storing of documents or the auto-production of documents such as invoices, packing slips, etc. • User-defined ad hoc query capability • Embedded interfacing capability for interacting with purchase order and shipping/receiving applications Lockwood Technology –Enterprise Asset Management 29
  30. 30. Asset Management Enterprise Asset Management Information Technology Module Name – Poller The Poller auto discovery module offers an agent that gathers software and hardware characteristics from IBM-compatible personal computers. The agent interacts with Microsoft Corporation’s Windows Management Instrumentation (WMI) utility, which must be installed on each PC, in order to enable the polling function. Any system running MS Windows 2000 or MS Windows XP does not need to install WMI, as it is already tightly bundled with these operating systems directly from Microsoft. Systems running pre-2000 MS Windows operating systems may need to install the WMI tool. Lockwood Technology provides the WMI tool with the software installation kit. Windows Management Instrumentation (WMI) includes information on the state of system memory, inventories of currently installed client hardware and software applications, and a variety of other information on client status. Implemented for Microsoft® Windows® platforms, the WMI technology enables systems, applications, networks, and other managed components to be represented using the Common Information Model (CIM). In addition to data modeling, WMI offers a powerful set of base services that include query-based information retrieval and event notification. Access to these services and to the management data is made possible with a single Component Object Model (COM) programming interface. The agent reviews and reports back all software (operating components and otherwise) found anywhere (including the registry and all executables located on each disk) on each destination PC. WMI returns the software product; names, version and license identification to the agent, and records this information into an XML file. Polling for Software The Poller reviews and reports back all software (operating components and otherwise) found anywhere (including the registry and all executables located on each disk) on each destination Lockwood Technology –Enterprise Asset Management 30
  31. 31. Asset Management Enterprise Asset Management PC. WMI returns the software product; names, version and license identification to the Poller. The Poller records this information into an XML file. Polling for Hardware The Poller will discover and report back all hardware components that form the system configuration. This information is recorded into the same XML file as the software results. Impact Analysis Impact analysis enables the user to construct a set of minimum (baseline) requirements that each polled computer will be compared to with the results reported on as either meets requirements or, fails and why. This feature is ideal for determining which computers require software or hardware alterations during the planning stages for operating system upgrades for example. The user constructs Requirements sets, which are then named and stored for later recall and application. There are no limits to the number of requirement sets you may create. Requirement sets represent a group of specific values (specifications) that are used to compare to polling results and to measure compliance to the requirement set. You can create as many different requirements sets as you care to and you can include as many specifications within a set as necessary. The intent is to enable the Poller to: 1) Poll PCs on your network (either interactively or on an automated schedule basis) 2) Compare the results (software and hardware attributes) to baseline requirements that you establish as the standards that you want to uphold for the systems on your network 3) Compile a report of any variances to the requirements the Poller detects 4) Email the report to a specified email account for review The Poller will operate as a standalone application and return all polled information into an XML document. Alternatively Lockwood’s enterprise asset tracking software system offers an import feature that will interpret and load all polled information from the XML document into each appropriate asset profile within the Asset Tracker database. Further, the Poller can be initiated directly from an asset’s profile, to poll on an interactive, real-time and automatically load/update the PC’s software and hardware characteristics. Polling is delimited by single, or groups of computers. You may interactively poll a single computer by providing either the computer’s node name or it’s network (IP) address. Lockwood Technology –Enterprise Asset Management 31
  32. 32. Asset Management Enterprise Asset Management Data Collection and Physical Inventory Taking Module Name – Collector Series The Collector represents a series of applications that are used for conducting cycle counting, physical inventory taking, asset tagging and in some cases information reconciliation. The Collector Series is comprised of the following applications: Module Name Characteristics Architecture ADC capability Fixed Asset Collector Designed for use with the Asset Palm OS Bar coding codes Bar Code Collector Tracker Enterprise module. Windows 39 & 128 Somewhat user definable – batch Mobile up and downloads or wireless accessibility Warehouse Collector Designed for use with the Palm OS Bar coding codes StockManager Enterprise 39 & 128 module. Somewhat user definable – batch up and downloads or wireless accessibility RFID Collector Designed for use with any Windows Bar coding codes module – either Lockwood or any Mobile 39 & 128 vendor. RFID read/write User definable featuring; EPC class 0 and Portable; Imaging, bar Gen 2 protocols code scanning and/or RFID detection Active sync or 802.11 data transfer Real—time data gathering and reconciliation to back- end reference data Lockwood Technology –Enterprise Asset Management 32
  33. 33. Asset Management Enterprise Asset Management Because the Collector series modules were designed to align with specific applications, such as the Asset Tracker, the StockManager or any vendor application, the features will vary between each. These variations are depicted in the chart below: Module Compatible with Features Fixed Asset Collector Asset Tracker Ability to upload and download existing Bar Code Collector Asset Tracker setup definitions including; site, asset categories and sub-categories and asset number ranges Ability to dynamically cross-reference and map up to three miscellaneous data fields between the two modules Ability to up and download between the Collector and the Asset Tracker via the Intranet RemoteLink Warehouse Collector StockManager Ability to upload and real-time reconcile current StockManager inventory data to physical count data RFID Collector Asset Tracker, Ability to StockManager or any user define the data collection screen vendor system map and link external reference data fields to each data element on the collecting screen upload and reconcile (and auto-adjust reference data as a result) real-time between the external reference data and the physical count data Event Detection and Management Module name – EventManager Lockwood Technology –Enterprise Asset Management 33
  34. 34. Asset Management Enterprise Asset Management Lockwood’s EventManager product is designed to monitor for, and react to unexpected incidents as well as expected events. The EventManager is a rules-based software module, which runs as a system service on a database server and is MS Windows compatible. Rules contain all the logic necessary for the EventManager to detect and react to an incident or event. A rule is a series of instructions, provided to the EventManager by system users via a point and click wizard, or via external sources. The EventManager stores rules in a relational database (MS SQL Server). Rules are comprised of two primary components triggers and actions. Triggers comprise a specific incident or event. Actions comprise what specific action(s) the EventManager is to take based upon specific triggers. For example; Trigger- device XYZ is scheduled to be calibrated tomorrow at 3:00 PM EST Action- instruct appropriate technician with scheduled activity request This represents a relatively simple, one-dimensional planned event whereby a device is expected to be calibrated at a given point in time. The action that is related to this trigger is to create a schedule and notify the proper technician of this activity. We could make this rule a little more complex, and turn it into a compound rule. For example; Trigger- device XYZ is scheduled to be calibrated tomorrow at 3:00 PM EST Action- instruct appropriate technician with scheduled activity request Action- monitor to insure that the actual schedule is carried out Trigger- if it is completed - reset the schedule for the next interval Trigger- if it is not completed - escalate the situation as instructed The EventManager must have access to stored information, other than the rules, in order to be useful. Stored information in the example provided above would be calibration schedules. The EventManager needs to learn and understand the data dictionary of the stored information being accessed in order to function. Rules can be stored as either queries (simple) or stored procedures (compound). Rules can be defined into logic hierarchies with no limit on the number of tiers or conditions. Rules can be automatically converted into queries or stored procedures by the software, based upon user-supplied input, or can be produced externally from the software and then cross-referenced. EventManager is designed to enable users to create ad hoc queries (rules) on the fly through point-and-click actions using standard MS Windows GUI and navigation modes. Lockwood Technology –Enterprise Asset Management 34
  35. 35. Asset Management Enterprise Asset Management Automatic Data Capture Module Name – QuickTrac As radio frequency identification (RFID) is becoming increasing prevalent in the government and private sectors, many are struggling with the complexities of integrating this technology with existing back end information systems and dealing with the vast amount of information being produced. Recognizing this emerging problem, Lockwood has developed an extremely simple and effective solution to this problem entitled QuickTrac©. The usefulness of RFID lies in the innate ability to automatically capture vast amounts of information using radio frequency technology. Specialized equipment is required and offered by many well-known manufacturers. Yet, to use this technology with existing legacy applications poses a new set of problems. To begin, software commonly referred to as middleware is required. Middleware must be integrated with back end system(s) to enable those applications to interact with RFID tools. Middleware typically requires modification to the back end system in order to implement and is only a part of the equation. Users also need flexible software for facilitating data capture and event processing. Event processing is a technique that allows transformation of raw data into actionable data. This is particularly important in light of, the amount of data that RFID is able to generate. QuickTrac features all three characteristics; integration, data collection and event processing. QuickTrac adapts proprietary back end systems to interact with RFID data capture without modification to the software. QuickTrac simplifies integration between its embedded RFID middleware and any back end system, using an intuitive point-and-click wizard. The QuickTrac kit also includes user-defined data collection scripts whereby the user determines what the application will do during collection activities. QuickTrac’s built-in event processing (EventMgr©) represents a sense and respond tool that empowers the user to predefine a set of rules for monitoring and reacting to emerging incidents or events. The EventMgr continually evaluates the flow of raw data, while compiling and reacting to actionable situations, such as movement into or out of restriction environments. Lockwood Technology –Enterprise Asset Management 35
  36. 36. Asset Management Enterprise Asset Management QuickTrac© is designed to enable the Operator to record (capture) as well as substantiate (reconcile pre-existing) information using automatic data capture (ADC) technologies such as bar coding and radio frequency identification tools with a simple integration mechanism for linking to external reference data sources, regardless of the platform or protocol. The value of this product is best described within three dimensions: 1) TURN-KEY QuickTrac© includes everything you need to get started - pre-packaged in one simple-to-use kit. In fact, it is ready to use right out of the box, including portable and fixed RFID equipment, a laptop computer fully loaded with all necessary software, a supply of Smart tracking tags and operational manuals. The kit, which comes in a rugged, weatherproof carry case that complies with airline carry on requirements, requires only minutes to setup and begin using. 2) VERSATILE Regardless of the situation, QuickTrac© will accommodate your unique requirements, easily as well as quickly. This portable kit can be used indoors or outdoors, features wireless connectivity and is able to track anything, anywhere, under any conditions. QuickTrac© versatility; a) enables the Operator to customize unique data collection requirements and b) empowers the Operator to import , export and align with reference data from any external source without altering any software applications 3) AGNOSTIC The real benefit of QuickTrac© is its ability to exchange (share) information on a 2-way basis with any external source such as; legacy systems, data warehouses, enterprise reporting systems and asset tracking and management systems. QuickTrac enables the Operator to; validate, modify and add new information to existing external reference data, using state-of- the-art technologies such as RFID without altering the backend systems that house the external reference data, on a near real-time basis. Lockwood Technology –Enterprise Asset Management 36
  37. 37. Asset Management Enterprise Asset Management The QuickTrac suite is actually comprised of multiple applications including: RFID Collector is an operator-definable module for use on the handheld RFID/Bar code enabled data collection unit. The software is able to collect & store; operator id, date & time, up to two location fields and up to five operator-defined data fields, is able to upload reference data from external sources and will communicate interactively (wireless) with the laptop for synchronization and data-sharing activities. o Operational Features Physical inventory taking & real-time reconciliation Automatic sense & respond activities (such as movement) with automatic alerts and data updates Search & automatically locate specific items Ability to read, write and erase data Desktop integrator module for use on the wireless laptop enables the operator to custom design software setup features, integrate and exchange data with any platform and external reference data source RFMonitor is the actual RFID middleware that enables the transactions applications to interact with the RFID hardware QuickTrac is compatible with EPC Gen 2 standards and is featured in both high frequency (13.5 MHz) and ultra high frequency (900 MHz) versions. Lockwood Technology –Enterprise Asset Management 37
  38. 38. Asset Management Enterprise Asset Management Software Use Licensing Options Lockwood’s software is licensed via a use licensing model, whereby the client purchases a specific type and number of use licenses that apply to servers (where the database will reside and client workstations where the client executable will reside). Licensing modes License Type Description Server Platform use license is required for each server installation Instance Only one license is required per server instance Workstation Single License is specific to a particular workstation – not transferable concurrent named device Single License is specific to a particular individual – not transferable concurrent named user Single License is not specific to a workstation or individual concurrent un-named Building License supports all users/workstations in a named building Regional License supports all users/workstations in a named region Enterprise License supports all users/workstations throughout the Enterprise Third Party Licensing Lockwood’s applications are integrated with and in some cases depend upon the use of third party software. These are as follows: Third Party Dependency Purpose Microsoft .NET Framework 2.0 Application support Microsoft SQL Server 2005 Basic Standard Edition Back end database management SQL Native Client 2005 Workstation license SQL Sever 2005 Integration Services Microsoft MS Word 2003 Automatic document generation Crystal Crystal .NET Framework 2.0 Running default reports Reports Crystal Reports XI Create custom reports Microsoft Internet Explorer V5.5 (or greater) Intranet access Lockwood does not supply third party licenses with its standard installation kits with the exception of Crystal Reports .NET Framework 2.0 for the running or default Lockwood Crystal Reports templates. Lockwood Technology –Enterprise Asset Management 38
  39. 39. Asset Management Enterprise Asset Management II. AUTOMATIC DATA CAPTURE HARDWARE Through Lockwood’s Total Asset Management and QuickTrac solution sets, Lockwood is able to supply automatic data capture hardware technology and miscellaneous label stock to its customers. The offerings are depicted in the following table. Technology Description Manufacturer Bar coding Handheld data collection & Motorola & Intermec scanning Handheld & tabletop printers Zebra Label stock Radio frequency identification Handheld data collection & Motorola & Intermec (RFID) RFID detection Fixed RFID interrogators, Motorola & Intermec antenna & portals RFID label printer/encoders Zebra Passive & active label stock Global Positioning (GPS) Integrated global positioning with handheld units RFID tag samples Lockwood Technology –Enterprise Asset Management 39
  40. 40. Asset Management Enterprise Asset Management III. SERVICES Lockwood offers a full-line of services, which complement the Asset Management Solution offering. Services include: Asset Life cycle Review and evaluation of life cycle business practices and internal Consulting controls resulting in recommendations for improvements via leverage of technology and implementation of “best practices” Asset appraisal Verification of assets, coupled with asset appraisal & valuation for inclusion into fixed asset capital register. Reconciliation of asset Information information repositories such as fixed asset registers, IT information Reconciliation systems and other significant accounting sources. Implementation Implementation of automatic data capture tools, such as Lockwood’s EAM software and hardware portfolio. Integration of Lockwood’s Integration EAM software suite within enterprise information flow (I.e. Oracle, SAP, PeopleSoft, Lawson, etc.) Site Survey Onsite evaluation for the placement of RFID portals with consideration for signal interference and logical positioning Education Training related to use of EAM software and automatic data capture technologies (bar coding , RFID). Education concerning asset management life cycle practices, controls and verification techniques Physical Planning and execution of physical inventories all classes Inventory (operational fixed assets, inventory, manufacturing floor and intellectual properties). Support & Ongoing support & maintenance of EAM software suite and Maintenance automatic data capture tool set (I.e. bar coding and RFID equipment) Lockwood Technology –Enterprise Asset Management 40
  41. 41. Asset Management Enterprise Asset Management Consulting “Asset Management represents a governing set of principles that must be embedded into all asset life cycle business practices.” Enhancements in modern technology not withstanding, managing fixed assets efficiently are a sizable challenge. They affect a myriad of business-related activities, from financial planning to, to reporting, to budgetary control. Many separate, complex and labor-intensive tasks are involved with asset tracking, and the slightest error can have drastic implications. Lockwood can help your organization to achieve the greatest return on investment in assets while simultaneously reducing cost and maximizing productivity throughout the asset life cycle, through its Best Practices Consulting service. Asset Management summarizes a very broad set of principles and business practices. Asset Management can relate to most any aspect of conducting business operations including; process & procedure, information management, internal controls, compliance with regulations, return on investment, return on assets, maximization of value, preventative maintenance, utilization, cost of goods sold to name just a few. The focus of of Lockwood’s consulting is asset management at the enterprise level across the entire spectrum of the asset life cycle. Exhibit – Asset Life Cycle Distributing rights and responsibilities, accompanied with rules and procedures for making decisions, directing and controlling business operations, all fall into the category of corporate governance. Corporate governance provides a framework for setting and achieving objectives and monitoring performance. Organizations evolve in terms of maturity and priority of needs concerning corporate governance. Better known as the “Maturity Model”, an enterprise will move through the model in reaction to growth, technological evolution, pressure to comply with regulation and as money and resources allow. Reacting to these demands more often than not happens at inopportune moments and is not metered consistently or pervasively. All in all producing incompatible and unreliable results that appear to be insurmountable. Lockwood Technology –Enterprise Asset Management 41
  42. 42. Asset Management Enterprise Asset Management The acquisition, utilization and maintenance of operational assets are a critical component of corporate governance because opportunity for waste, redundancy, error and fraud can cripple an organization. Implementing an enterprise-wide asset management program will ease the transition through the Maturity Model. And because implementing an asset management program is a proactive action (as opposed to a reactive one) the prospects for achieving sustainable success with the least amount of disruption are much greater. As the organization becomes more mature in terms of internal controls, repeatable processes, monitoring, information sharing and accuracy, the more efficient it will become. Asset management is nothing more than a decision to adjust business operations in support of these principles. Let’s look at designing, implementing and sustaining an asset management program from a view point of implementing “Best Practices” within an end-to-end asset tracking and management program. The most successful companies have weathered the ordeal of keeping abreast of changes in inventories, important milestones like disposals and transfers, depreciation calculations and changes to tax laws and regulations by upgrading their fixed asset management process from a largely manual operation to a more sophisticated, automated system of checks, balances and real-time reporting. Implementing a reliable and customizable fixed-asset software solution can help automate these tasks to save time and money, without sacrificing accuracy and control. A fully integrated asset management system helps manage the complexities of the fixed-asset life cycle, from acquisition to disposal. It also offers accounting executive’s accurate asset information throughout the life cycle like current depreciation values and projected depreciation that is critical for timely decision-making as well as comprehensive internal and external reporting. Planning for and implementing an enterprise-wide asset management program should be outsourced to experienced external sources who have advanced knowledge of “best practices”, who can navigate through roadblocks and pitfalls and who have the experience necessary to guide the enterprise through the range of trials and tribulations of implementation. Paramount to the program is access to accurate, timely information, which can be easily verified on an ongoing basis. At one end of the spectrum lie the internal operational needs of the organization while at the other end is the profound need to be competitive and profitable. All too often these forces are at odds with each other, strengthening one often weakens the other and vice versus. To design and implement an organization-wide asset management program three elements must be addressed; 1) a review of existing life cycle and associated practices, 2) a formal implementation plan that among many things identifies; internal controls, control points, stakeholders, gatekeepers, technology and automation opportunities, data gathering, management and reporting conventions and 3) a means for measuring and sustaining results. A complete review of the critical business processes that have the greatest impact on the asset life cycle is essential. The simplest method to determine and place priority on life cycle procedures is divide the cycle into primary categories that encompass multiple actions such as; procurement, utilization and reporting. Each of these stages can be declared to form a hierarchy of related activities. For example procurement could include; budgeting, purchase order administration, shipping & receiving and accounts payable t and so forth. The goal is to establish Lockwood Technology –Enterprise Asset Management 42
  43. 43. Asset Management Enterprise Asset Management relationships between the often-disparate procedures that together enable the organization to accomplish major acts of business. Due diligence enables review of these practices as a whole and frequently uncovers process potholes in the form of delay, error and most importantly incompatible information conventions. Stakeholders in this flow are management personnel who have oversight responsibility corporate governance within a given business practice (or set of practices) that form a significant aspect of the life cycle. Gatekeepers are individuals who perform the actual tasks (practices) that form the life cycle. Therefore Stakeholders set policy, internal controls and conventions and have overall responsibility for implementation and governance. Gatekeepers, who report into the Stakeholders span of control and authority, have the ultimate job of performing those actual tasks while adhering to the rules (controls and conventions) that were set forth by the Stakeholders. Gatekeepers perform these activities and apply the rules at points within the asset life cycle commonly referred to as “control points”. Control points are considered critical stages within the cycle where it is both practical as well as verifiable to assert and monitor internal controls. Examples include; purchase order process, shipping and receiving and financial reporting, to name a few. A thorough due diligence review will provide a documented record of; stakeholders, gatekeepers, internal controls and associated existing procedures, insight into opportunity for improvement as well as level of risk (disruption) to operations that inevitably accompanies change and control points. Using real-world examples we can benchmark performance and implement documented best practices in use in other organizations that have successfully implemented an asset management program. Through knowledge-sharing Lockwood can identify and avoid potential pitfalls while minimizing the disruption that accompanies change. Planning commonly targets objectives related to: Integration of standards and conventions Improvement of information management Reaffirmation of accountability accompanied with revised internal controls Implementing methods to validate and sustain results Conducting an objective review of the existing environment and life cycle Compiling and managing factual information that is universally accepted/accessible Lockwood Technology –Enterprise Asset Management 43
  44. 44. Asset Management Enterprise Asset Management Asset Appraisal Appraisal & Valuation is conducted in conjunction with strategic partners such as Value Advisory Services. The knowledge, qualifications, experience and industry-recognized objectivity of the professionals of our strategic partners make them highly valued in dispute arbitration proceedings and as expert witnesses and attorney-advisors. Personnel inspect the assets to be valued. During the inspection process, detailed descriptive information pertaining to the assets is identified and compiled. Whenever possible, this includes age, manufacturer, model, serial number, and relevant capacities and specifications. At this time a variety of other data relating to the assets may be discussed, requested, or gathered during the inspection. In some cases, additional information will be subsequently requested. There are three basic valuation methods that are used to derive an indication of the value of the assets. These methods include the cost approach, sales comparison approach, and income approach to value. 1. Cost Approach - A set of procedures in which an appraiser derives a value indication by estimating the current cost to reproduce or replace the personal property, deducting for all depreciation, including physical deterioration, functional obsolescence, and external/economic obsolescence. 2. Sales Comparison Approach- A set of procedures in which an appraiser derives a value indication by comparing the personal property being appraised to similar assets that have been sold recently, applying appropriate units of comparison, and making adjustments based on the elements of comparison to the sale prices of the comparable. 3. Income Capitalization Approach - A set of procedures in which an appraiser derives a value indication for income-producing personal property by converting anticipated benefits into value. This conversion is accomplished either by: (1) capitalizing a single year’s income expectancy or an annual average of several years’ income expectancies at a market derived capitalization rate or capitalization rate that reflects a specified income pattern, return on investment, and change in value of the investment; or (2) discounting the annual cash flows for the holding period and the reversion at a specified yield rate. Appraisals are developed and submitted in conformance with the Uniform Standards of Professional Appraisal Practice (“USPAP”), as promulgated by the Appraisal Standards Board of the Appraisal Foundation. Our Value Advisory Services, represented by Mr. Ken Schaub has been acting as a certified appraiser for the last 25 years. Our combined experience extends to the following asset categories: computers, telecommunications, circuit boards, appliances, audio/video, electronic office equipment, electronic retail equipment (cash registers, etc.), furniture, vehicles, building maintenance, tools, biomedical, artwork, fixtures, statues, software, building systems (HVAC, generators, etc.), test chambers, research and development equipment, instruments, plaques, commercial-industrial machinery & heavy equipment, fabrication equipment, material-handling equipment, food-processing equipment and wire & cable machinery Lockwood Technology –Enterprise Asset Management 44
  45. 45. Asset Management Enterprise Asset Management Information Reconciliation Lockwood offers a comprehensive fixed asset verification & reconciliation service. The service is designed with the intent of; improving the quality of the existing ledger information and improving the process flows that impact asset information as it flows throughout the typical asset life cycle. This requires objective assessment of the ledger contents and the business rules (internal controls) that support internal asset management. Lockwood has successfully refined this service over the past ten (10) years with our many customer engagements throughout the world. Lockwood charges an inclusive fixed fee for this service, which is usually charged as a percentage of the remaining net book value of the full fixed asset ledger. The degree of percentage is dependent upon the scope and complexity of the ledger contents. A typical fixed asset verification engagement would require anywhere from one-three (1-3) months - start to finish, depending upon the scope and complexity of the project. The fixed asset verification service is comprised of five (5) stages; 1. Ledger review and analysis 2. Verification planning 3. Onsite physical asset verification 4. Information management 5. Asset management education 1. Ledger Review & Analysis The first step involves having Lockwood process specialists review the ledger contents. Ledger review entails breaking the ledger into components. Components enable Lockwood process specialists to categorize ledger assets into classifications such as; tangible, intangible, requires research (for such entries as purchase order numbers and project codes, or other line items that are bundled), etc. Once the ledger has been compartmentalized, it is analyzed in order to decide on the best approach for executing the verification stage. The review and analysis results in a series of management reports that are used to present a set of operating metrics that will be used to guide the project (i.e. how much value and how many assets are we trying to validate and where). The ledger review also positions Lockwood for making recommendations for process changes to the financial reporting process. Lockwood typically follows three (3) guiding principles while accessing and analyzing capital fixed assets entries as designated on a corporate fixed asset register (FAR). They are as follows: I. DIVIDE AND CONQUER Our real-world experience has proved that the first hurdle to overcome is the perception that a fixed asset register is so large and cumbersome that the task seems insurmountable thus stagnating progress. In order to reduce the over-whelming nature of the task and to bring order to the process, Lockwood conducts an evaluation of the fixed asset register with the objective of sorting and consolidating the register line items into smaller more-refined subsets ordered by category and then by classification: Lockwood Technology –Enterprise Asset Management 45
  46. 46. Asset Management Enterprise Asset Management Tangible versus intangible 1 Tangible assets are assets, which can be physically seen or accessed without having to disable or damage the asset or significantly disrupt operations. Value versus end of life By isolating FAR line items with a remaining net book value from line items that have reached either end-of-life or have been fully depreciated we are able to allocate priorities and emphasis. Greatest value to lowest FAR line items are organized by greatest monetary value to lowest thus creating an order of priority and a means to assign a level of effort accordingly Statutory Flagging those assets, regardless of value that have significant material or statutory implications (i.e. are considered critical to business operations) The goal is to disseminate a large problem into smaller more manageable portions that can be more easily delegated to separate groups of personnel for action (i.e. discovery efforts). Step one is to seek, discover and identify; trends, quasi standards and obvious problems such as inappropriate FAR classification of dissimilar assets (i.e. assets with different useful lives being inadvertently grouped together). Obvious problems are resolved prior to moving forward. Quasi standards are catalogued for inclusion into the project plan while trends are discussed, understood and considered while constructing the plan. II. FOCUS ON THE REASONABLE AND FEASIBLE Using these logical classifications, planning is conducted defining rules that equate the most reasonable and feasible actions/efforts available to validate each line item. FAR line items are flagged to meet conditions that dictate the level and method of effort applied. These include: Levels of matching & Logical assumption Levels of matching begin with the most obvious whereby exact matching occurs first (i.e. asset or serial numbers) then migrates to variables such as matching model to model and so forth. The more the level of matching moves away from exact matching the more we apply logical assumptions to insure that the matching can sustain audit scrutiny and will be considered reasonable and legitimate. Pooling of like descriptions Often we find that there is no reasonable method to match using linking factors such as asset, serial or model numbers and we must resort to, and interpret, general descriptions that were recorded in note-like fashion. Further, a description could infer pooling of assets. For example the description may simply state office furniture and have some value associated with it. And/or the 1 In some cases embedded devices such as circuit boards, which collectively may comprise significant value and could be considered intangible can be verified through electronic polling (or pinging) allowing Lockwood to reference the intangible device to a tangible device such as a router Lockwood Technology –Enterprise Asset Management 46
  47. 47. Asset Management Enterprise Asset Management FAR entry may be associated to a purchase order or project code. In all of these cases there are alternative validation methods we can choose; from pooling like descriptions and making reasonable logical assumptions that link the logical record to a set of physical assets that we have physically verified, up to and including reviewing the referenced paper trail in order to gather enough detail required to make a physical verification. Onsite insight Whenever we conduct validation with less than exact- matching involved, we rely heavily on the insight of select customer personnel who work in the specific locations (hence the use of he word onsite) where the FAR indicates the asset(s) should be, and who would have had some level of: knowledge, access or responsibility towards the types of asset(s) being validated. We select and enlist this help with the objective in mind of focusing on those personnel that have the most likelihood of subject-matter expertise pertaining to the asset(s) in question. We record what we learn as notes to the line item and use those notes to refine our search and to support the outcome of the validation effort for that asset(s). 2. Verification Planning Once the ledger review is done and all agree on the operating metrics, a plan is constructed that depicts the verification process, outlines responsibilities, deliverables and schedules. The plan is crafted by Lockwood and submitted to the customer for acceptance. Once accepted, the plan is used to guide the verification stage. III. TEST & VERIFY THE PLAN The last principle entails testing and verification the validation processes, and of the overall plan. First, we submit the plan for review and feedback to the appropriate operational and audit personnel, adjusting the plan where necessary based upon their feedback. Second we conduct a pilot or trial of the plan using the results to further refine the plan. As a matter of course, Lockwood continues to evolve the plan moving forward as the project ensues thus producing a reliable historical reference of the project. The plan defines the process, methods, schedules, responsibilities as well as the final deliverable. The deliverable produces both validation of line items as well as recommended adjustments to the FAR including but not limited to; correction of data elements (i.e. locations, models, values etc.) and additions and deletions of line items. 3. Asset Verification During the verification stage Lockwood Inventory Specialists, under the direction of dedicated Inventory Controllers, go onsite, locate and physically verify each tangible asset. It is during this stage of the project that current asset information is gathered, asset-tracking technology is deployed (such as bar coding or RFID) and project progress measurements are conducted using the operating metrics as the baseline. Verification entails, having Lockwood teams go onsite to each location, seek out each ledger asset, verify its existence, gather current asset information (such as current location), tag assets (bar coding or RFID) and submit results. As an adjunct offering, while onsite Lockwood can seek out and collect asset information for those assets that are not currently listed on the ledger, but are of obvious material value (and consequently should be listed on the ledger) and will appraise the asset’s value for inclusion into the ledger. Lockwood Technology –Enterprise Asset Management 47