1. ASTM
ASSET MANAGEMENT STANDARDS
JANUARY 14, 2014
By Marla Williams, CPPM
President, Integrated Asset Management, Inc.
Treasurer/Past President, Federal Center
Chapter
2. IMPACT ON FEDERAL AGENCIES
Section 12(d) of the National Technology Transfer Act of 1995 (P.L.
104-113, or "the Act") codified the policies of OMB Circular A-119.
Section 12(d)(1) states that "Except as provided in paragraph (3) of
this subsection, all Federal agencies and departments shall use
technical standards that are developed or adopted by voluntary
consensus standards bodies, using such technical standards as a
means to carry out policy objectives or activities determined by the
agencies and departments."
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3. IMPACT ON FEDERAL GOVERNMENT
CONTRACTORS
FAR 52.245-1 Government Property
(b) Property management.
(1) The Contractor shall have a system to manage (control, use,
preserve, protect, repair and maintain) Government property in its
possession. The system shall be adequate to satisfy the requirements
of this clause. In doing so, the Contractor shall initiate and maintain
the processes, systems, procedures, records, and methodologies
necessary for effective control of Government property, consistent with
voluntary consensus standards and/or industry-leading practices and
standards for Government property management except where
inconsistent with law or regulation. . .
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4. WHAT IS A VOLUNTARY CONSENSUS
STANDARD?
Wide base of users come together
Utilize Standards Development Organizations structure and systems
Vote to
Develop
Amend
Maintain (Review Regularly)
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5. WHO ARE STANDARDS DEVELOPMENT
ORGANIZATIONS?
Internal Organization of Standards (ISO)
Aerospace Standards
American National Standards Institute (ANSI)
National Institute of Standards
ASTM International
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6. WHY ASTM INTERNATIONAL?
Established in 1898, ASTM International provides a global forum
for the development and publication of international voluntary
consensus standards for materials, products, systems and
services.
ASTM membership includes more than 30,000 technical experts
from 150 countries around the world.
NPMA and ASTM formed E53 Committee in June, 2000.
Develops criteria for the management and administration of
durable and movable assets
Currently 26 Standards have been developed and more being
developed all the time – reviewed every 5 years
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7. HOW DO I GET STANDARDS?
Visit the ASTM.com web site to join.
Basic Individual Membership with on-line access to the current on-line
standards for $75.00 per year.
Includes Standards Tracker feature allows you to specify Standards or Committees
of interest to you so that you can stay up to date!
Volume 4.12
Can be accessed through npma.org link.
1/14/2014MARLA W ILLIAMS, CPPM (800)731 -9569
8. COMMITTEE E53 OFFICERS ON ASSET
MANAGEMENT
Chairman: William G. Franklin
Vice-chairman: Cinda K. Brockman
Recording secretary: Richard R. Shultz
Membership secretary: Kim Doner
Past chairman: Robert Holcombe
Member-at-large: Patrice Baker
Member-at-large: Amber L. Barber
Member-at-large: Richard C. Culbertson
Member-at-large: Michael T. Showers
Member-at-large: Tamra A. Zahn
1/14/2014MARLA W ILLIAMS, CPPM (800)731 -9569
9. E53 SUBCOMMITTEES AND
STANDARDS
E53.01 Process
Management
E53.02 Data Management
E53.03 Financial
Management
E53.04 Reutilization and
Disposal
E53.05 Property
Management Maturity
E53.06 Terminology
E53.07 Sustainable Property
Management
E53.08 Management of Fleet
Assets
E53.10 ISO Asset
Management Activity
E53.20 United States
Government Contract Property
Management
E53.90 Executive
E53.90.01 Standards
Development
E53.90.02 Education
E53.90.03
Marketing/Promotional/PR
Lead
E53.91 Awards
E53.92 Planning
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10. WHAT DO THE NUMBERS MEAN?
For example:
E2604 – 09 Standard Practice for Data Characteristics of Equipment Records
E is from an “E” Committee
2604 is sequentially assigned
09 is the year of publication – remember, they are required to be reviewed every five
years so they are constantly changing
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11. EXISTING STANDARDS
DATA MANAGEMENT
E2604 – 09 Standard Practice for Data Characteristics of
Equipment Records
presents both essential and optional data elements
E2674 – 09 Standard Practice for Assessment of Impact of Mobile
Data Storage Device (MDSD) Loss
Methodology for assessing and quantifying the impact of the loss of mobile
data storage devices (e.g. thumb drives, auxiliary hard drives, and other
personally identifiable or entity sensitive information)
E2812 – 11 Standard Practice for Uniform Data Management in
Asset Management Records Systems
To maintain data consistency, integrity, and usability to achieve uniform data
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12. EXISTING STANDARDS
PROCESS MANAGEMENT
E2132 – 11 Standard Practice for Inventory Verification: Electronic
and Physical Inventory of Assets
includes either physical or electronic confirmation of existence, location and
quantity and addresses inventory planning, acceptable physical/electronic
techniques, reconciliation, key results, interpretation of results, special
considerations, and inventory results reporting.
E2279 – 09 Standard Practice for Establishing the Guiding Principles
of Property Management
guiding principles governing acquisition, use and disposal of assets…seek “best
value”. . . foster problem solving and innovation. .. .seeking to be effective and
efficient, to the point at which benefits exceed the costs of operations
E2497 – 11 Standard Practice for Calculation of Asset Movement
Velocity (AMV)
Calculates rate at which assets (not consumables) move into, within and out of
accountability system – may foster additional practices related to or based on AMV
information and trend tracking over time (e.g. staff, system and technology
requirements)
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13. EXISTING STANDARDS
MORE PROCESS MANAGEMENT
E2499 – 11 Standard Practice for Classification of Asset Physical
Location Information
Covers standardizing terminology related to physical location and includes ten
increasingly specific level, assigning standard name and level number to each
(e.g. …PLL 2 is Country,…PLL 5 is Site, PLL 6 Building,…PLL9 Desk/Shelf
location…)
E2605 – 13 Standard Practice for Receiving Assets
Verifying, recording, and reporting original receipt of assets (equipment and
supplies) – very detailed, excellent standard for all organizations.
E2606 – 13 Standard Practice for Receipt Notification as a Result
of Tangible Asset Movement
Covers notification of asset movement to promote accurate visibility of asset
location and timely recording of updates.
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14. EXISTING STANDARDS
MORE PROCESS MANAGEMENT
E2631 – 09 Standard Practice for Physical Placement of an
Entity-Controlled Supplemental Identification Label
Placement of labels of controlling entity label – not for manufacturer or OEM
markings – limited guidance but worth review
E2671 – 10 Standard Practice for Defining Movements,
Shipments, and Transfers of Tangible Property
Provides definitions for movement, shipments and transfers
E2672 – 09 Standard Practice for Identification and
Categorization of Tooling
grouping, identification and categorization criteria for describing tooling – both
ordinary and unique – to identify critical items, increase tool utilization, and
help allocate resources and manage production.
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15. EXISTING STANDARDS
MORE PROCESS MANAGEMENT
E2715 - 09 Standard Practice for Moveable Property Storage
Defines physical protection and control of moveable property in
storage/warehouse locations to ensure best value while avoiding undue risk –
specific details.
E2811 - 11 Standard Practice for Management of Low Risk
Property (LRP)
Low Risk Property should be administratively controlled and managed to a
lesser degree with a more efficient technique than high risk property – see
also E2608 Equipment Control Matrix.
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16. EXISTING STANDARDS
FINANCIAL MANAGEMENT
E2378 – 13 Standard Practice for the Recognition of Impaired or
Retired Personal Property
Proper accounting for assets that are still retained but need to be recognized
as impaired or retired to less expensive levels of administrative control.
E2453 – 13 Standard Practice for Determining the Life-Cycle Cost
of Ownership of Personal Property
Excellent method for evaluating the life cycle cost of ownership over time by
separating the three major life cycle stages (acquisition, utilization and
disposition) into detailed substages with efforts and costs related to each
substage where a present value adjustment is made dependent on factors
such as tax increases, appreciation in the value of the asset, unforeseen
maintenance or repair issue, etc.
1/14/2014MARLA W ILLIAMS, CPPM (800)731 -9569
17. EXISTING STANDARDS
PROPERTY MATURITY MANAGEMENT
E2452 – 12 Standard Practice for Equipment Management
Process Maturity (EMPM) Model
Provides insight into the effectiveness of an entity with a detailed assessment
of how it acquires, uses and disposes of equipment and two fundamental
levels of equipment management (process management and operations).
The Model recognizes five maturity levels from Basic to Optimizing and
provides a structure for the entity to rate themselves .
E2495 – 13 Standard Practice for Prioritizing Asset Resources in
Acquisition, Utilization, and Disposition
Establishes a quantitative process for prioritizing asset resources in
acquisition, utilization, and disposition; a method for ranking assets based on
factors important to the organization and create information to justify
arguments for investment, security strategies and disposition plans; enables
management to identify critical assets and allocate resources appropriately.
1/14/2014MARLA W ILLIAMS, CPPM (800)731 -9569
18. EXISTING STANDARDS
PROPERTY MATURITY MANAGEMENT
E2608 – 08 Standard Practice for Equipment Control Matrix (ECM)
Matrix for determining the level of control required for 5 categories of equipment
based on the consequences of loss of control (see also E2674 Assessment of
Impact of Mobile Data Storage Device Loss
E2675 – 09 Standard Practice for Property Management System
Outcomes
Outcomes/metrics for assessment of property management system – useful to
provide policy and operational guidance
E2676 – 09 Standard Practice for Tangible Property Mobility Index
(MI)
Standardizes practice and terminology related to mobility of property using Mobility
Index from indiscernible items for which movement is not visible or discernable due
to size or other factors to immovable items like Real Property which typically must
be destroyed or dismantled to move. Can be used in conjunction with E2608’s
Equipment Control Matrix, E2132 Inventory Verification and
E2131Addressing/Reporting Loss, Damage and Destruction
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19. EXISTING STANDARDS
REUTILIZATION AND DISPOSAL
E2131 – 09 Standard Practice For Addressing and Reporting
Loss, Damage, or Destruction of Tangible Property
Method for calculating LDD Ratio and acceptable ratios for property based on
the E2608 Equipment Control Matrix
E2306 – 13 Standard Practice for Disposal of Personal Property
Recommendations for identification and management of surplus property and
most economical and efficient manner of disposing of such items including
donation, recycling, sale, destruction or abandonment
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20. EXISTING STANDARDS
REUTILIZATION AND DISPOSAL
E2607 - 08(2013) Standard Practice for
Cannibalization/Reclamation of Serviceable Equipment
Components to Support Demand Requirements
Encourages communication between stakeholders and gives a process for
meeting current and future demand requirements by cannibalizing and
reclaiming components from existing equipment components
E2858 – 12 Standard Practice for Sales of Personal Property
Identifies cost effective sales governing decision process to determine the
best method for selling the items, pre-sale, sale and post-sale activities.
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21. EXISTING STANDARDS
TERMINOLOGY
E2135 - 10ae1 Standard Terminology for Property and Asset
Management
Fairly comprehensive list of the most common and most important definitions
for asset management – includes sample calculations of common values.
Excellent starting point for dealing with diverse organizations within any
department or agency.
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22. EXISTING STANDARDS
UNITED STATES GOVERNMENT
CONTRACT PROPERTY MANAGEMENT
E2936 – 13 Standard Guide for Contractor Self Assessment for U.S.
Government Property Management Systems
Applies to the current version of FAR Government Property clause 52.245-1 dated
April 2012 and is intended to provide a foundation for the minimum effective
internal assessment of a contractor’s Government property management system.
Also provides several Statistical Sampling Plans
1/14/2014MARLA W ILLIAMS, CPPM (800)731 -9569
