ITEM UNIQUE IDENTIFICATION (IUID)

1

• ITEM UNIQUE IDENTIFICATION (IUID)
• OSD WORKSHOPS/JLB TASK FORCE
• STATUS UPDATE
• November 17, 2009

2
Background on Item Unique Identification (IUID)

• POLICY Emerging Policy on IUID in the Supply
  Chain (DoD 4140) identifies requirements for
  intensive management by UII for a select subset
  of IUID items, e.g., classified, sensitive, NWRM
  (scope of items still being determined)
• BUSINESS PROCESSES AFFECTED Receipt, Physical
  Inventory, Issue, Disposal, Directed
  Returns/Retrograde/ Materiel Returns Program, and
  Discrepancy/Deficiency Processing
• BASELINE ASSUMPTIONS
• DLMS compliance
• FLIS identification code will be developed for
  IUID

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OSD WORKSHOPS/JLB TASK FORCE UPDATE

• OSD/SCI Logistics IUID Workshops established to
  identify requirements that can be used as the
  framework for detailed business rules to enable
  use of IUID in logistics transactions/ processes
• IUID Workshop developed requirements/business
  rules to be finalized and socialized via
  iterative, collaborative DLMS Process Review
  Committee/Proposed DLMS Change (PDC) process
  
• During first half of CY 09 IUID Workshops with
  DoD Components were held on Receipt Discrepancy
  Reporting Issue Inventory Potential Levels of
  Management Intensity
• Final policy and business rules held in abeyance
  as JLB Task Force Validates IUID Implied Value

4
IUID Value Proposition

• IUID offers quantifiable efficiency and
  effectiveness gains compared to DoDs current
  data capture and tracking
• IUID value can be quantified in key value chains
• Positive Inventory Control
• Property Accountability
• Product Lifecycle Management
• Implementation requirements and costs can be
  assessed by examining IUID-related actions for
  each value chain within and across a set of
  applicable logistics nodes
• Suppliers
• Distribution Centers
• Base/Forward Supply
• Depot-level Maintenance
• Field-level Maintenance
• Field Activities
• Disposal Activities

End-to-end processes
Where people and machines interact with IUID to
achieve success in defined value chains
Validated Value Proposition Must Drive Policy
Implementation!
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5
Task Force Products

• Validated value proposition for key value chains
  across all applicable logistics nodes
• Set of integrated, prioritized, and time-phased
  requirements for IUID marking, tracking, and use
  across the value chains
• Recommended policy and guidance adjustments
• Action Briefing for JLB

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DLMS Transactions with IUID Data Placeholders
140A Small Arms Reporting 180M Material Returns
Reporting 511M Requisition Modification 511R Req
uisition 527D Due-in, Advance Receipt, Due
Verification 527R Receipt, Inquiry, Response
Material Receipt Acknowledgement 810L Logistics
Bill 842A/W Supply Discrepancy Report
Submission 842S/Q Storage Quality Control
Report 842S/R Storage Quality Control Report
Reply 846A Asset Reclassification 846F Ammunitio
n Freeze/Unfreeze 846I Asset Status
Inquiry/Report 846R Location Reconciliation
Request 856 Advance Ship Notice 856R Shipment
Status Materiel Return 856S Shipment
Status 861 Acceptance Report 867I Issue 870M
Material Returns Supply Status 940R Material
Release 945A Material Release Advice 947I Inven
tory Adjustment

• Identifies transactions addressed during IUID
  Workshops
• DS 527D also contains a UIDRFID indicators to
  alert the receiving activity that the incoming
  materiel should have IUID and/or passive RFID
  data IAW the contract.

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BACKUP CHARTS
8
JLB Agreed Way Ahead
Actions Complete

• Validate/Mature value propositions/chains
  considering
• Benefits of using IUID
• Marking scope/costs
• Companion AIT/AIS requirements/costs
• Conduct integrated requirements analysis
• Determine policy and guidance updates consistent
  with 1 and 2
• Continue to mature service-specific IUID/SIM
  implementation plans based on
• OSD Policy/Guidance
• Prioritized Requirements
• Budget/Resource
• Implement across DoD

Aug 2009
Nov 2009
Jan 2010
Execute Via Task Force That Leverages Existing
Work Groups and Progress
A unified view and synchronized actions needed to
leverage past work and move efficiently and
effectively forward
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Receiving Controlled Items by IUID UII from New
Procurement (Distribution Depot) Additional
System Requirements (blue text indicates NEW
system/DLMS requirements)

• Receive updates to collect UII(s) (i.e. 856 and
  PMR (527D) with UII flag (see note 1 below)
• If necessary, prompt user to collect UII(s) via
  AIT
• If evidence of tampering, prompt user to collect
  UII(s) on the item
• Send update to ICP of which UII has been received
  (ICP keeps track of UIIs by storage depot) (i.e.
  527R Receipt)
• Send update to WAWF for acceptance (i.e. 861 to
  WAWF - see 861 rules for inclusion of UIIs (see
  note 2)
• Store UIIs in warehouse mgt system
• When prompted by receiver, print new packaging
  label with UII(s) in PDF 417 format
• If UII mismatches occur, system will prompt
  discrepancy actions (See Discrepancy Reporting
  Slides)
• Note 1 FLIS IUID designator being considered
  may obviate need for 527D flag
• Note 2 861 is sent with UII(s) for any partial
  quantity received and accepted. UII(s) are not
  sent for total quantity accepted or total
  quantity not accepted. 527R includes UII(s) for
  all items received by supply condition,
  regardless of acceptance.
• Similar Depot Receipt flows exist for
  Redistribution Orders (RDOs) and Materiel Returns
  Program (MRP)

ERP
Inventory Control Point
861fromWAWF
527D
861
527R
856
GEX
DAAS
527D
856
861to WAWF
527R
DSS
Distribution Depots
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Retail Receiving Controlled Items
RequisitionedReceived from Depot Stock
Additional System Requirements

1. Establish due-in based on requisition submission.
2. Receive updates to collect UII(s) based on 856S.
3. If necessary, prompt user to collect UII(s) via
   AIT
4. If evidence of tampering, prompt user to collect
   UII(s) on the item.
5. Process receipt into retail inventory with UIIs
   and store UIIs in warehouse mgt system
6. Send update to ICP of which UII(s) has been
   received (i.e. 527R MRA) (See alternative
   approaches)
7. When prompted by receiver, print new packaging
   label with UII(s) in PDF 417 format
8. If UII mismatches occur between 856S and materiel
   received, system will execute discrepancy
   actions (See Discrepancy Reporting Slides)

ERP
Inventory Control Point
945A or867I
527R
DAAS
527R MRA
856S
856S 945A or 867I
DoD Logistics AIS
SBSS
OR
DSS
SARSS
OR
IUID Material
DoD Logistics AIS
RSUPPLY
Distribution Depots
Customer
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Issuing Controlled IUID Items from Depot Stock
Materiel Release Orders (MROs)Additional System
Requirements

• ICP continues to send MRO (940R) to depot without
  UII(s)
• ICP receives MRC or Issue (945A/867I see note
  below), with UIIs, in response to MRO
• ICP decrements balance by UII in MRC/Issue.
  Reconciliation process needed to resolve UII
  mismatches between 945A/867I and UII on ICP
  records
• ICP maintains visibility of those debited UIIs
  identified in MRC/Issue for comparison to
  customer 527R MRA UIIs
• ICP receives MRA with UII(s) (see alternative
  approaches)
• ICP must reconcile UII mismatches between MRA and
  ICP issue records
• Service/Agency transaction usages differ, some
  ICPs use MRC to decrement the inventory balance
  others use the issue transaction. Question
  Standardize versus use of two different
  transactions sent by the depot dependent on the
  service/agency recipient.
• Similar Issue flows exist for RDOs and Lateral
  Redistribution Orders (LROs)

ERP
Inventory Control Point
945A or 867I
940R
527R MRA
DAAS
856S
527R MRA
856S 945A or 867I
DoD Logistics AIS
940R
SBSS
OR
DSS
SARSS
OR
IUID Material
DoD Logistics AIS
RSUPPLY
Distribution Depots
Customer
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Physical Inventory Control Program/Physical
Inventory for Controlled UII Items (Depot)
Additional System Requirements

• Owner/Manager initiates scheduled and special
  physical inventories using the Physical Inventory
  Request (846P) which is sent to the depot. (The
  new FLIS IUID designator for the NSN serves as
  the Key to indicate physical inventory by UII
  required)
• Depots initiate scheduled, special, and spot
  physical inventories. (The new FLIS IUID
  designator will indicate to the owner/manager
  that the inventory will be conducted by UII.)
• Spot Inventory initiated due to a total or
  partial denial.
• Special inventory initiated owner/manager or
  depot as a result of location survey, location
  reconciliation, unresolved mismatches, etc.
• Depot must verify, by physical location, all UIIs
  by condition code against the accountable record.
• Results of UII differences are reported to the
  owner/manager via 947I. Details for reporting
  UII differences to the owner/manager must be
  determined (e.g., when only UII has mismatches -
  no quantity or condition change)
• Mismatches on UII-- Causative research is
  required on any discrepancies found as a result
  of the inventory.
• Owner/Manager must verify reported UII and
  condition code against their record
• Mismatches require new reporting procedures of
  UIIs and/or condition code of items with depot
  accountable record.
• Owner/manager requests a transaction history via
  a 846P and the depot responds with the historical
  balance affecting transactions (527R 867I, 945A,
  and 947I all with the UII included.
• (For inventory purposes, the inventory line item
  for Controlled UII Item will be defined as stock
  number supply condition code UII.)
• 1 The physical inventory interface transaction
  between the owner/manager and the depot will not
  be required with the establishment of single
  shared-asset balance.

ERP
Owner/ Manager
846P
947I
DAAS
846P
947I
DSS
Distribution Depots
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Scope of IUID Items
All Other Consumables Over 5K
No Tracking
All NSNs over 5K 351,143 NSNs 842,000 Storage
Locations 631M Eaches
All Other DLRs over 5K
Tracked by MX
Serialized CSI Not Classified or Sensitive (NCS)
SENSITIVE ITEMS NOT CLASSIFIED
5,000 NSNs 12,000 Storage Locations 9M Eaches
Tracked by Supply and Maintenance
CLASSIFIED
500 NSNs 1,200 Storage Location .9M Eaches
NWRM
All figures are estimates pending OSD validation
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Task Force Logistic Nodes - Definitions

• Node Definitions
• a. Acquisition Logistics Planning Program
  management processes to define logistics
  requirements for life cycle management of weapon
  systems and subsystems.
• b. Suppliers Inventory Control Point
  functions and manufacturers actions to provide a
  part to the logistics domain, including both
  organic and commercial activities.
• c. Distribution Centers Parts and materiel in
  storage awaiting movement to other nodes of the
  value chains.
• d. Transportation Actions required to move
  parts and materiel between nodes.
• e. Base and Forward Supply Actions at a local
  inventory site to provide materiel to customers.
  This can include local supply activities in
  support of depot activities.
• f. Depot Maintenance Actions taken to perform
  higher level maintenance, overhaul, rebuild, and
  repair regardless of location.
• g. Field Level Maintenance Intermediate and
  organizational maintenance in support of customer
  units and activities.
• h. In Service Engineering and Logistics
  Analysis Investigation and evaluation of
  operating systems and components to assess need
  for revised procedures or design.
• i. Field Activities and Operations Actions
  taken by units to operate, or prepare to operate,
  equipment and weapon systems.
• j. Disposal Actions taken to sell, destroy,
  demilitarize or otherwise remove military
  materiel from the inventory.