Materiel Control Chapter 4

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Questions and Answers

Which of these methods of materiel issuance is preferred for reducing administrative workload?

  • Using Non-User accounts in NexGen IT.
  • Directly to the facility. (correct)
  • Via Facility Operations Facility Project.
  • Via individual Work Tickets.

In what specific case does the text recommend utilizing a Non-User account in NexGen IT?

  • When issuing materiel to a reimbursable customer via a Facility Operations Facility Project.
  • When issuing materiel to a lodging maintenance team performing U-Fix-It work.
  • When issuing materiel to a facility without an active SAAR. (correct)
  • When issuing materiel to a facility with a limited budget for maintenance.

What is the primary reason for using a Facility Operations Facility Project (FOFP) for lodging maintenance team materiel issuance?

  • To ensure that the facility's available budget is not exceeded.
  • To avoid the need for individual Work Tickets.
  • To simplify the process of obtaining reimbursement for the materiel.
  • To track the cost of materiel usage against the facility. (correct)

What factor is considered crucial when determining the most suitable approach for issuing materiel?

<p>The number and skillset of staff within R&amp;O and MC. (C)</p> Signup and view all the answers

When is using individual Work Tickets (WT) appropriate for materiel issuance?

<p>When issuing highly specialized materiel for a specific project. (A)</p> Signup and view all the answers

What is the primary purpose of the Issue Materiel process?

<p>To issue inventory items to support work tasks and projects. (A)</p> Signup and view all the answers

According to the CFO requirements, who should materiel be issued to?

<p>A specifically identified individual. (B)</p> Signup and view all the answers

What is the primary factor that determines whether a materiel item is categorized as direct or indirect?

<p>The circumstances of the materiel's use in a specific job. (C)</p> Signup and view all the answers

What is the recommended practice for reviewing materiel charges?

<p>Conducting periodic reviews of all materiel charges. (C)</p> Signup and view all the answers

What is the importance of establishing the appropriate Unit of Measure (UOM) for materiel items?

<p>It ensures that the correct cost is attributed to the correct asset. (C)</p> Signup and view all the answers

Why are items like oil, lubricants, and paint frequently challenged with UOM?

<p>They are often ordered in large quantities due to discounts and limited availability. (D)</p> Signup and view all the answers

What is a common misconception about the term "Materiel"?

<p>Materiel can be categorised as direct or indirect before the time of issue. (A)</p> Signup and view all the answers

Which of the following describes the nature of INDIRECT materiel?

<p>Its cost cannot entirely be attributed to a single WT. (B)</p> Signup and view all the answers

What is the main reason for issuing indirect materiel to the WG?

<p>To ensure that the cost of the materials is distributed across all future work. (C)</p> Signup and view all the answers

Why is issuing individual screws or washers directly to a specific WT not practical?

<p>It is too time-consuming and labor-intensive to do so. (B)</p> Signup and view all the answers

Which of the following is an example of indirect materiel?

<p>A new computer for the shop office. (B)</p> Signup and view all the answers

How is indirect materiel cost reimbursed?

<p>By adding the indirect materiel cost to the shop rate. (D)</p> Signup and view all the answers

What is the main difference between direct and indirect materiel?

<p>All of the above. (D)</p> Signup and view all the answers

Which of the following is NOT a characteristic of direct materiel?

<p>It is used on multiple WTs. (B)</p> Signup and view all the answers

Which of the following situations would warrant the issue of direct materiel?

<p>Issuing a set of tools to a mechanic for a specific repair job. (A)</p> Signup and view all the answers

What is the significance of the pseudo location 'HEAVYVEH1'?

<p>It is a placeholder for WTs that account for labor, not materials. (A)</p> Signup and view all the answers

Why is it important to avoid ordering surplus materiel for a specific job?

<p>All of the above. (D)</p> Signup and view all the answers

Which of the following statements is true about U-Fix-It materiel?

<p>The type of materiel issued is decided at the local level. (D)</p> Signup and view all the answers

Why is it problematic to charge a reimbursable customer for surplus materiel that won't be used on their project?

<p>All of the above. (D)</p> Signup and view all the answers

If a box of screws is issued directly to a 2B WT for a pavilion construction, what type of materiel is it considered?

<p>Direct materiel (D)</p> Signup and view all the answers

What is the primary purpose of tracking direct materiel costs?

<p>To ensure reimbursable customers are charged accurately. (C)</p> Signup and view all the answers

Why should shops avoid ordering surplus materiel with the expectation of using it as 'shop stock' for future jobs?

<p>All of the above. (D)</p> Signup and view all the answers

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?

<p>Direct materiel (A)</p> Signup and view all the answers

Which of the following is a key factor in deciding whether to issue materiel directly to a WT or to the WG?

<p>All of the above (D)</p> Signup and view all the answers

Flashcards

GOCESS Store Materiel Issue

The process of issuing inventory items necessary for completing work requirements.

Issue Tickets in NexGen

Documentation methods for issuing materials, often required to track who receives items.

Direct Materiel

Materiel that can be attributed directly to a specific work task.

Indirect Materiel

Materiel whose costs cannot be specifically linked to a single work task.

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Cost Categorization

The process of organizing costs based on the usage context in Job Cost Accounting.

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Unit of Measure (UOM)

A defined quantity used to measure the amount of materiel issued.

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Pseudo Locations

Special categories or tags for tracking materials that may not be linked to specific jobs.

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Best Practice for Material Orders

The recommendation to order smaller quantities of materials for specific jobs when feasible.

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Non-User Account

An account created when FM lacks an active SAAR, allowing access to NexGen IT.

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Work Ticket (WT)

A document created each time materiel is issued for tracking and reimbursement purposes.

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Facility Operations Facility Project (FOFP)

A project opened annually for reimbursements and work history tracking against facilities.

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U-Fix-It Process

A method for issuing materiel typically involving simple repair tasks, often tracked with Work Tickets.

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Preferred Materiel Issuing Method

The best practice for issuing materiel starts directly to the facility, then uses FOFP, and lastly individual WTs.

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Indirect Materiel Cost

Cost assigned to the Work Group, influencing shop rate.

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Unit of Issue

The most efficient packaging for a consumable item.

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Actual Time Accounting (ATA)

A system where costs are directly traced to actual work time.

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Estimated Time Accounting (ETA)

A system where costs are estimated rather than tracked directly.

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Direct Materiel Cost

Cost assigned to a specific Work Task, directly attributable to that task.

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Reimbursable Customers

Customers who are charged for costs incurred, ensuring proper billing.

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Work Task (WT)

A defined job or project that requires materiel and resources.

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Consumable Items

Materials that are used up in the course of work, like screws and nuts.

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Office Supplies

Materials used for administrative tasks, considered indirect costs.

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Personal Protective Equipment (PPE)

Gear such as gloves and masks that protects workers, treated as indirect costs.

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Surplus Materiel

Extra materials that exceed needs for a specific job.

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Shop Rate Calculation

The hourly cost that includes indirect materiel costs.

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U-Fix-It Materiel Issue

Locally decided process for issuing materials in the unit's U-Fix-It program.

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Job-Specific Tools

Tools issued that will be consumed or rendered unusable after a job.

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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.
  • 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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