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The item manager and client must ensure that the material type is appropriately classified. The material type plays a role in activities from processing to authorizations. Material types include:
- Capital — has a service life of more than 1 year, is identified as a stand-alone item of property throughout its useful life, has a unit cost of $10,000 or more, and depreciates in value.
- Expendable — items that cost less than $10,000; repair parts and replacement components (e.g., batteries, motors), regardless of cost; and, for the most part, MTE, neighborhood delivery and collection box units (NDCBUs), workroom furniture, and similar items.
- Sensitive — materials considered especially vulnerable to theft or loss (e.g., computers, cameras, valuable portable equipment).
The supplier and client communicate the material’s factors to the item manager. These must be defined because they influence the receipt, storage, distribution, and recovery of the material. Material factors include:
The following areas will be incorporated into planning activities, if applicable to the material:
- Schedule — key delivery dates of the material (leads to appropriately allocating and positioning inventory and assets; the schedule information will be supplied by the client and supplier).
- Technology — the current systems for tracking, handling, distributing, and managing the material (e.g., manual and automated systems such as the eMARS and the Solution for Enterprise Asset Management (SEAM).
- Environmental/Hazardous Waste — all applicable regulations regarding safety, control, and disposal of hazardous materials (e.g., the storage/disposal of hazardous/regulated materials needs to be organized and controlled).
- Security/Sensitivity Issues — will affect receipt, storage, and distribution of materials, if not resolved.
- Other material planning activities (e.g., forecasting demand to bring supply and demand into convergence, adjusting for peak demand periods, and continually examining usage and quality trends of materials).
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