Podcast
Questions and Answers
Which of these methods of materiel issuance is preferred for reducing administrative workload?
Which of these methods of materiel issuance is preferred for reducing administrative workload?
In what specific case does the text recommend utilizing a Non-User account in NexGen IT?
In what specific case does the text recommend utilizing a Non-User account in NexGen IT?
What is the primary reason for using a Facility Operations Facility Project (FOFP) for lodging maintenance team materiel issuance?
What is the primary reason for using a Facility Operations Facility Project (FOFP) for lodging maintenance team materiel issuance?
What factor is considered crucial when determining the most suitable approach for issuing materiel?
What factor is considered crucial when determining the most suitable approach for issuing materiel?
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When is using individual Work Tickets (WT) appropriate for materiel issuance?
When is using individual Work Tickets (WT) appropriate for materiel issuance?
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What is the primary purpose of the Issue Materiel process?
What is the primary purpose of the Issue Materiel process?
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According to the CFO requirements, who should materiel be issued to?
According to the CFO requirements, who should materiel be issued to?
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What is the primary factor that determines whether a materiel item is categorized as direct or indirect?
What is the primary factor that determines whether a materiel item is categorized as direct or indirect?
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What is the recommended practice for reviewing materiel charges?
What is the recommended practice for reviewing materiel charges?
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What is the importance of establishing the appropriate Unit of Measure (UOM) for materiel items?
What is the importance of establishing the appropriate Unit of Measure (UOM) for materiel items?
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Why are items like oil, lubricants, and paint frequently challenged with UOM?
Why are items like oil, lubricants, and paint frequently challenged with UOM?
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What is a common misconception about the term "Materiel"?
What is a common misconception about the term "Materiel"?
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Which of the following describes the nature of INDIRECT materiel?
Which of the following describes the nature of INDIRECT materiel?
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What is the main reason for issuing indirect materiel to the WG?
What is the main reason for issuing indirect materiel to the WG?
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Why is issuing individual screws or washers directly to a specific WT not practical?
Why is issuing individual screws or washers directly to a specific WT not practical?
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Which of the following is an example of indirect materiel?
Which of the following is an example of indirect materiel?
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How is indirect materiel cost reimbursed?
How is indirect materiel cost reimbursed?
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What is the main difference between direct and indirect materiel?
What is the main difference between direct and indirect materiel?
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Which of the following is NOT a characteristic of direct materiel?
Which of the following is NOT a characteristic of direct materiel?
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Which of the following situations would warrant the issue of direct materiel?
Which of the following situations would warrant the issue of direct materiel?
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What is the significance of the pseudo location 'HEAVYVEH1'?
What is the significance of the pseudo location 'HEAVYVEH1'?
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Why is it important to avoid ordering surplus materiel for a specific job?
Why is it important to avoid ordering surplus materiel for a specific job?
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Which of the following statements is true about U-Fix-It materiel?
Which of the following statements is true about U-Fix-It materiel?
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Why is it problematic to charge a reimbursable customer for surplus materiel that won't be used on their project?
Why is it problematic to charge a reimbursable customer for surplus materiel that won't be used on their project?
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If a box of screws is issued directly to a 2B WT for a pavilion construction, what type of materiel is it considered?
If a box of screws is issued directly to a 2B WT for a pavilion construction, what type of materiel is it considered?
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What is the primary purpose of tracking direct materiel costs?
What is the primary purpose of tracking direct materiel costs?
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Why should shops avoid ordering surplus materiel with the expectation of using it as 'shop stock' for future jobs?
Why should shops avoid ordering surplus materiel with the expectation of using it as 'shop stock' for future jobs?
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If a set of safety goggles is issued to a mechanic for use on a specific job, and the goggles will be rendered non-serviceable after use, what type of materiel is it considered?
If a set of safety goggles is issued to a mechanic for use on a specific job, and the goggles will be rendered non-serviceable after use, what type of materiel is it considered?
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Which of the following is a key factor in deciding whether to issue materiel directly to a WT or to the WG?
Which of the following is a key factor in deciding whether to issue materiel directly to a WT or to the WG?
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Study Notes
Materiel Issue Process
- Inventory items (stocked or purchased) are issued to WTs, WGs, or U-Fix-It from GOCESS.
- CoMC/Inventory Technician issues materiel to complete work requirements.
- Materiel is issued to a specified person per CFO requirements, using various NexGen Issue Ticket methods:
- Full/partial issue to original requester
- Full/partial issue to an alternate person
Materiel Categorization
- Materiel categorization (direct/indirect) is determined by its use, not its inherent type.
- Cost is categorized based on job cost accounting principles.
- Periodic review of materiel charges is advised.
- Ensure indirect materiel is not charged to WTs
- Ensure direct materiel is not charged to WGs
- Particular attention should be paid to pseudo locations.
- Foreman and Lead Technician work with CoMC to set appropriate unit of measure (UOM).
- If materiel is ordered in large quantities (e.g. 55-gallon drums), best practice is to use logical UOMs to spread the materiel cost across multiple jobs.
Indirect Materiel
- Indirect materiel costs cannot be fully attributed to one WT.
- Indirect materiel is issued to the WG and becomes part of the shop rate.
- Issuing each individual item, even small ones (nails, screws), is not practical, and the most efficient unit of issue (box) is recommended.
- Indirect materiel is often used across several jobs daily.
- Reimbursable customers' materiel should be charged against the WT (when the entire UOM is used for that job).
- This ensures reimbursement in accordance with base agreements.
- Indirect materiel is only issued to the WG, NOT to WT.
- Examples include office supplies and PPE.
- Indirect materiel is almost always to ATA WGs, but some PPE may go to ETA WGs (e.g., R&O).
- Indirect materiel costs are NOT directly reimbursable, but via the shop rate.
- Indirect materiel costs are added to the shop rate calculation.
- Materiel can be both indirect and direct based on its use.
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Never issue materiel to WTs in pseudo locations (HEAVYVEH1, SMENGINE1, SHOPTOOL1).
- Materiel costs for these should be added to the shop rate.
Direct Materiel
- Direct materiel costs are fully attributable to a single WT.
- Direct materiel is issued to the WT.
- Direct materiel costs are NOT added to the shop rate.
- Direct materiel costs are directly reimbursable when issued to reimbursable customer WTs.
- Direct materiel can be used for tools, equipment, or PPE if rendered unserviceable post-use on the WT.
- If excess, unreturnable direct materiel, treat surplus as indirect for subsequent jobs (avoid surplus materiel).
- Do not order excess materiel to use as shop stock.
U-Fix-It Materiel Issue
- Materiel issue to FMs is determined locally.
- Most common is direct issue to the facility.
- Non-user accounts may be created for FMs without NexGen SAAR access.
- Alternative methods include new WTs for each issue or FOFPs (for reimbursable customers).
- Lodging maintenance materiel issues must be via FOFP to track against facility costs.
- Preferred method for issues is directly to the facility, followed by FOFPs, lastly individual WTs.
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Description
This quiz covers the processes involved in issuing materiel and the categorization of inventory items. It details the steps for issuing stock to work teams and emphasizes the importance of following cost accounting principles while managing direct and indirect materiel. Review the best practices for handling large quantities and pseudo locations.
