1. Template Documentation 01/12/2006
Computerized Inventory Records Management
-Improves Accuracy and Compliance-

2. 2 Template Documentation 02/05/16
Introductions
 Mark Ferrero
– Founder and President of P-Wave, Inc.
– 17+ Years Experience in Management and working with
regulated industries
– Leading the launch of Master Blaster - inventory and
blast documentation management software

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Agenda
 Objectives
 Inventory Records Management Overview
 Inventory Records Management Challenges
 Compliance Overview
 How Computer Systems Help
 Master Blaster Demo
 Questions

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Objectives
 You will walk away with
– An understanding of the basic concepts of inventory
management and compliance.
– An understanding of how compliance has, and is,
effecting inventory management for the blasting industry.
– Insight into how computerization of inventory records
systems can improve efficiency, accuracy and
compliance.

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Why is there so much focus on maintaining
accurate inventory records?
Post 911Post 911
Oklahoma CityOklahoma City
 Threat of terrorism
– Government expected to protect against
future attacks
 Regulatory agencies demand it
– Federal Explosives Law - ATF
– DOT
 Increase in lawsuits and litigation
– Poor records management means higher
risk

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Definition:
A good inventory records mangement system must provide an
organization with information that is accurate, complete, timely, cost-
effective, useable, accessible and compliant.
Current Inventory Records Mangement Challenges for the Explosives Industry:
(1) Ability to find errors/loss/theft when they occur
(2) Traceability and accountabilty
(3) Prevention of theft and loss/ Quickly identify and trace
(4) Managing many magazine sites and large volumes
(5) Changing and unclear regulations
(6) Human error
(7) Integration / rekeying data into accounting systems
(8) Timely information to management
(9) Is our system compliant?
Inventory Records Management Challenges?

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FSA -
SYSC
GLBA
Sarbanes-Oxley
21 CFR Part 11
NARA Part 1234
HIPAA
eSign Act
SEC 17a-4
DoD 5015.2
ISO 15489-1
Common Criteria
BSI DISC PD
0008:1999
Basel
II
Data Protection
Act of 1998
Freedom of
Information
Act of 2000
The National Archive
(TNA)
UK Metadata Framework
DICOM
Federal
Explosives
Law
SEC 17a-3FERC Part 125
NASD 3010
US Patriot
Act
Rev.
Proc 97-
22
ISO 15489-2
MoRe
q
CRFB - France
BaFin – Germany
Why a focus on compliance?

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What Is Compliance?
 Adhering to External Rules/Regulations, Internal
Policies and Good Business Practices…..and
Being Able to Prove It

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Business Drivers for Compliance
INTEGRITY
CONFIDENTIALITYACCESSIBILITY
Reduction of Risk
 Litigation, adverse regulatory actions, tarnished reputation
 ATF says you must maintain accurate inventory records.
 “How much do you value your license?” It is that important!
Reduction of Cost
 Operations, legal discovery

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Federal Explosives Law
Specified
Capabilities
• Query & Retrieve
• Query & Retrieve
• Retention Mgmt
• System Validation
Laws & Regulations
Enforce Common
Compliance Goals
for Records and Data:
• Integrity
• Confidentiality
• Accessibility
• Acquisition and Disposition:
• (1) Date of importation or other acquisition.
• (2) Name or brand name of manufacturer
and country of manufacturer.
• (3) Manufacturer’s marks of identification.
• (4) Quantity (applicable quantity units, such
as pounds of explosives, number of
detonators, number of display fireworks etc.).
• (5) description (dynamite [dyn], blasting
agents [ba] and size (length and diameter)
• (6) Name, address and license number of
the person from whom the explosives material
was received.
• The system must have the ability to be queried by
date shift code and/or lot number.
• The system must have an acceptable daily
memory backup capability such as disck or tape.
• The system must be capable of providing a
printout of all records:
• (1) For purposes of inspection by ATF
• (2) When the system memory is purged
• (3) When buisness is discontinued
27 CFR 55.121 Subpart - G
Records and Reports

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Federal Explosives Law
Specified
Capabilities
• Retention Mgmt
• Retention Mgmt
• System Validation
Laws & Regulations
Enforce Common
Compliance Goals
for Records and Data:
• Integrity
• Confidentiality
• Accessibility
• The computer printout must contain explosives
in inventory as well as all that were sold during
the period covered, sequentially by date of
acquisition.
• The system must account for all explosives
materials returned.
• The system must record both the manufacturer
and the importer of foreign-made explosives.
• The system must record the names and
addresses of the distributee (buyer) and in the
case of a corporation or other business entity,
its authorized rep or agent.
• The system cannot rely on invoices or other
paper/manual systems (must be self
contained).
27 CFR 55.121 Subpart - G
Records and Reports

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Federal Explosives Law
Specified
Capabilities
• Query & Retrieve
• Query & Retrieve
• System Validation
Laws & Regulations
Enforce Common
Compliance Goals
for Records and Data:
• Integrity
• Confidentiality
• Accessibility
• A separate magazine daily summary record is
to be maintained for each magazine. 27 CFR
555.127 requires a licencee or a permittee, not
later than the close of the next business day to
record the following entries by manufactures
name or brand name:
• (a) Total quantity received in and removed
from each magazine during the day.
• (b) Total quantity remaining on hand at the
end of the day.
•All pertinent information relative to the daily
summary of the magazine transactions shall
be made available and provided to an ATF
officer upon request.
•Must report any loss or theft to ATF within
24 hours of discovery.
27 CFR 55.121 Subpart - G
Records and Reports
Access Control

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How Computer Systems Help
 Validation of data built into the software system
 Bar Coding automatically record correct date codes and
item numbers
 Real time tracking of inventory levels allow discrepancies
to be quickly identified and rectified
 Allow for optimization of inventory levels, eliminate stock-
outs, increase sales and squeeze the most out of the
supply chain.

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How Computer Systems Help
 Allows quick analysis of inventory levels and useage
 Inventory data can be easily integrated with financial
accounting systems eliminating the need to re-key
information.
 System quickly provides regulators with accurate view of
all inventory transactions.
 Search and sort capabilities make it easy to find detailed
information on items, magazine inventory and transactions.

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Master Blaster System
 Master Blaster™ is a blast and inventory management
software system that improves documentation accuracy,
minimizes paperwork, and allows for rapid search and
retrieval of blast documentation.

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Questions?