Aidan Navy Supply Notes PDF

Chapter 1 - Introduction to RSN Supply Chain Management Naval Engineering and Logistics Command (NELCOM) Structure The Force Support Squadron aligns and consolidates key functions to optimise the end-to-end supply chain management of spares and materials for operations and...

Chapter 1 - Introduction to RSN Supply Chain Management Naval Engineering and Logistics Command (NELCOM) Structure The Force Support Squadron aligns and consolidates key functions to optimise the end-to-end supply chain management of spares and materials for operations and maintenance. It consists of 3 sub centres: - Materiel Provisioning Centre (MPC) - Materiel Support Centre (MSC) - Base Facilities and Services Centre (BFSC) Materiel Provisioning Centre (MPC) 1. Establishes stock management policies and meets demands a. Raises Purchase Requests (PR) for the RSN b. Manage Operations Cost budget 2. Perform approval of controlled issue materials, loans, and loan extensions a. Approves creation/amendment of commodity code/service numbers in Materiel Data Master for new and existing items Materiel Support Centre (MSC) splits into 2 branches: Materiel Support Branch 1. Warehouse Section a. Transfer/Cancellations/Condemnations b. Monitor contractors c. Manage Auto Storage and Retrieval System (ASRS) 2. General Supplies Section a. Manage eMart, tugboat, fumigation and other services 3. Armament Support Section a. Manage the safekeeping and requirement of small arms Munition Support Branch - Issues/supports the loading and unloading of ammunitions - Carries out turnover of ship/unit ammunition - Conducts periodic surveillance inspections Base Facilities and Services Centre (BFSC) 1. Manage shore amenities (recreation, cookhouse) 2. Provide hygiene and value services (camp maintenance, shuttle bus) 3. Support Foreign Warships (FWS) and coordinate berthing and logistics requirement 4. Safety scan and emergency response to environmental threats The Supply and Industry group consists of 6 branches: - Supply Material Management Branch (SMMB) - Strategic Sourcing and Governance Office (SSGO) - Contract Management Office (CMO) - Supply System and Plans Branch (SSPB) - Resource Governance and Support Branch (RGSB) - Industry and Plans Branch (PB) RSN Procurement Workflow - PPWP 1. Planning a. How much is it? b. What is the make and model of the item c. What is the quantity? d. Materiel Provisioning Centre, Strategic Sourcing and Governance Office, Contract Management Office i. Budget Management, Material Data, Material Planning, Contract Management 2. Purchasing a. How do I buy it? b. ST Marine, DSTA PRM i. Procurement 3. Warehousing a. Where can I store it? b. Materiel Support Centre, ST Marine (ST Synthesis) i. Inventory Management 4. Payment a. How to pay for it? b. FNC 5. Customers a. RSN Formation Logistics Support Strategies 1. SAP Enterprise System (ES) a. Used across MINDEF for finance, logistics and operations planning b. It supports end-to-end business processes from: i. Platform/system acquisition management ii. Training, exercise and operations planning iii. Logistics  iv. Procurement and maintenance execution v. Business monitoring 2. Next Generation Procurement System (NGPS) a. A system that facilitates purchases by MINDEF departments and SAF units 3. Government Electronic Business System (GeBIZ) a. Links both ES system and NGPS system to conduct e-commerce with suppliers, e.g. sourcing, awarding, contracting and ordering Material Requirements Planning (MRP) - It is important to balance demands and supplies to ensure efficient supply of materials to meet the demands, so that: - Service level is maximised - Stocking cost is minimised - Forecasting - Performs demand planning for materials stocked in the warehouse (multi-year/annual) - Supports the financial and logistics needs of activities conducted by the SAF units. - The ultimate purpose is to ensure no “stock-out” situation by balancing all demands with supplies timely. “5 Rights” of MRP - Right Price - Reduction in price increases cost saving by MINDEF - There is more cost savings for bulk purchase of fast moving items - Right Quality - Quality helps with branding and customer satisfaction - Reduction of product failure saves the unnecessary time spent on warranty claims - Right Quantity - Reductions in surplus of inventory saves cost - Ensure supplier is able to deliver on time for ad-hoc requirements - Just In Time - Right Place - Deliver to the right location to prevent time wastage and affect operational readiness - Right Time - Failure to deliver on time results in potential “stock-out” situation Types of Material Planning - Planned Maintenance - Can be forecasted i.e. 6 months before refits - Corrective Maintenance - Ad-Hoc and cannot be forecasted but based on past consumption - Replacement, Loan, Additional or One Time Use - Ad-hoc and cannot be forecasted Procurement - Covers activities of raising and approving an order of procurement for goods/services that are indented for MINDEF/SAF from vendors through a contractual agreement. - The bulk of MINDEF purchase is undertaken by DSTA who liaise with local or overseas suppliers. - Purchase goods and services for MINDEF in a way consistent with government procurement policies and procedures. Cyclical Provisioning Advantages: - To obtain discounts or more favourable prices for large-quantity purchases, including similar commodities. - Prevent the need to constantly check on stock levels or make ad-hoc purchases once the provisioning cycle is established. Disadvantages: - If deliveries are seriously delayed, there is a danger of dues-out - If consumption unexpectedly declines suddenly or if deliveries are placed way ahead of time - this can lead to excessive overstock Holding Stocks Advantages: - Become able to match deliveries with day-to-day usage - Discount prices for bulk purchases more than offset the cost of storage - To act as buffer stock between manufacturer and customer - To lay in stocks when prices are low Disadvantages: - Not cost effective to store all items - May result in unmanageable proportion of stocks - Higher holding costs - Non-selective supplies leads to problems in storage, transportation and controlling Principle Considerations for Stock Holding - Timely Delivery - Not all goods are readily available, and delivery could take a long time - For goods with timely deliveries, stockholdings may not be required - Stock in advance to avoid delay - Operational Requirements/Critical Items - Requires immediate availability - May delay the whole operation in the event of “stock-out” situation - Demands: - Slow-moving items do not need to be stocked - Regularly used items can be stocked to avoid delay - Storage Cost - Take into account potential storage expenses (wages, rent, etc.) - Potential obsolescence - Optimization of Funds - Goods in stock hold monetary value - The more goods in stock holding, the less free cash flow A good inventory control system needs to be: - Practical and reliable - Show actual balance of stock - Records issues and receipts - Enable timely & adequate stock replenishment - Show outstanding orders - Highlight slow-moving stock (prevent deadstock) Hazardous Substances - Stored in Petroleum, Oil, and Lubricant (POL) Store and Chemical store - Fuel Farm/Fuel Tank for petroleum products >5000 litres - Waste POL/Chemical Point for waste POL and chemicals awaiting proper disposal - Chemical Warehouse for chemicals ONLY - User Premises with a max of 20 litres for petroleum products Classes of Hazardous Substances 1. Explosive 2. Gases 3. Flammable Liquid 4. Flammable Substances 5. Oxidizing Substances 6. Poisonous Substances  7. Radioactive Substances 8. Corrosive Substances 9. Misc. dangerous Substances Chapter 2 - Finance Procurement Processes & Policies Financial Year The Government’s Financial Year begins from 1 April and ends on 31 March of the following year. The Defence Budget (DB) is the annual budget allocated to MINDEF each Financial Year (FY), as approved by the Parliament. Consideration Factors for Budget Requirement 5 types of expenditure: 1. Recurrent Requirement (RR) a. Requirements that are needed annually for recurrent operations, e.g. Day-to-day running expenditure, expendable items, consumables etc. 2. New Recurrent (NR) a. New requirements that are new in that particular financial year and will recur subsequently, e.g. Operating requirements for setup of new units or the cost of new activities that will be needed annually in future years. 3. One-Time (OT) a. Requirements that occur for only one financial year and are not expected to be permanent in nature. Once the activities are completed, no requirements will be needed. e.g. 25th anniversary celebration activities 4. Cyclical Requirement (CR) a. Existing requirements that are needed after a fixed interval of years, e.g. Maintenance every 3 years 5. New Cyclical (NC) a. New requirements that are needed after a fixed interval of years, e.g. New major exercises that are organised in alternate years System Enablers in MINDEF/SAF - Government e-Business (GeBiz) - An integrated one-stop e-procurement portal used by the Singapore Government to link to global suppliers and strategic partners. It enables suppliers to conduct activities such as receiving Purchase Orders and issuing invoices.  - Next-Gen Procurement System (NGPS) - Intranet-based application that allows MINDEF/SAF to purchase goods and services online. Combines with GeBiz to connect with external suppliers via the Internet. - Enterprise System (ES) - A single integrated system across the SAF for finance, logistics and operation planning. Mainly to receive and transfer goods to and from warehouses. Purchasing Agencies for RSN - DSTA-PRM - For local and overseas purchases - Link with RSN through ES and NGPS interfaces - ST Marine - For purchase of materials from Period Contract up to $100K - For ad-hoc purchase of materials without Period Contract up to $10K - Link with RSN through ES interface 5 Steps of Procurement Process 1. Approval of Requirements (AOR) a. Establish and justify the need 2. Approval of Funds (AOF) a. Ensure funds are available 3. Approval of Purchase (AOP) a. Ensure value-for-money purchase 4. Acceptance Process a. Ensure goods/services are acceptable 5. Payment Processing (PP) a. Pay at agreed quantities and prices Approval of Requirement (AOR) - Requirements stated clearly with cost - Actual AOR amounts (the respective one-time and recurrent cost) are to be sought for approval. - Expected cost increases due to exogenous factors such as inflation for recurrent cost components. 3% Cost Adjustment. - The expected duration of the recurrent requirements - Approved by the correct authorities - To prevent conflict of interest, AOR Approving Authority are not allowed to approve requirements for their exclusive benefits.  - AOR Authority is determined by the type, category and cost of the requirement. - Initiated within the validity period - Valid for a maximum of 2 years to prevent situations in which technological factors render the requirement obsolete Splitting of AOR The splitting of requirements into a number of AOR submissions for ease of obtaining approval is not acceptable as it distorts the cost representation of the requirement. Approval of Funds (AOF) - AOF is a process to establish priority of funding for approved needs due to limited financial resources. It must be obtained from an appointed Approving Officer (AO). Common Fund Usage Sources - Unit Operating Expense (UOE) - Unit Productivity Expense (UPE) - Unit Welfare Expense (UWE) - Commitment to Defence Fund (C2D) - RSN iCare Fund Approval of Purchase (AOP) - After AOR and AOF have been sought, raise a Purchase Request (PR) in NGPS for the Procurement Agency (DSTA-PRM) to kick start the purchase of goods and services. - AOP is a process to establish that prices are competitive and reasonable. - Purchase of goods/services can be done via - ES - Unit submits Request to Materiel Provisioning Centre (MPC) or Platform Readiness Engineering Centre (PREC) to raise PRs to initiate purchase in ES -> DSTA-PRM for processing - NGPS - Buy & Claim via NGPS Principles of Procurement 1. Value of Money  a. Government will procure from sources that can best meet its requirements and offer the best value. However, value for money does not necessarily mean that we always go for the lowest price. b. Look at total benefits, in terms of quality, timeliness, reliability, after-sales services, life span and price c. Use objective evaluation methodology 2. Transparency a. Ensure fairness and preserve the integrity of the government procurement system. b. The government’s procurement objectives, criteria and procedures would as far as possible be made known to suppliers. c. No conflict of interest between an officer’s official position and his work 3. Open and Fair Competition a. Encourage suppliers to give their best offers b. All suppliers (international or local) compete on an “even keel”. Suppliers are given equitable access opportunities and compete on a level playing field. c. No preference to go for any particular country or source. NGPS There are two main types of procurement approaches: - Catalogue Buy: - DSTA-PRM has already sourced and secured contracts with the vendors. All users are to use the Catalogue Buy to purchase any of the items or services required in the Period Contract (PCs)/Framework Agreements (FAs) in order to enjoy bulk discounts from economies of scale. - Non-catalogue Buy - No contract purchase. Procurement Strategies Type of Purchase Procurement Limit Procurement Method Catalogue (suppliers with period Up to $6K Small Value Purchase (SVP) contract) >$6K to $1M NGPS Non-Catalogue (no contract Up to $6K SVP suppliers) >$6K to $90K Invitation to Quote (ITQ) >$90K Invitation to Tender (ITT) Buy-and-Claim System Up to $2K Pay first and be reimbursed later Buy & Claim Factors - Only for items under $2K excluding GST - No NGPS access at the time - Unable to meet minimum quantity required by NGPS vendor - Item is not found in NGPS Catalogue - Items that have to be consumed on the spot (food, etc) - Items are similar or better than NGPS Contracts - Requirements that arose due to situational changes - NOT FOR TTC ITEMS as they need to be bought on charge in ES. Buy & Claim Process 1. Approval of Requirement a. Approval to be sought from Approving Authority via NGPS or hardcopy (exclude GST) 2. Buy Item a. Get a receipt with date receipt no., item purchased and amount paid b. If the item bought is different or the amount exceeds what was approved, re-seek approval. 3. Verify a. Claimant is responsible to check that the goods and services received are satisfactory. There is no need to complete Certificate of Receipt (CoR) as GR is already complete once the item is paid for. 4. Claim a. Claims should be made within 14 days. 5. Approval of Claim a. Approving Officer checks that the claim amount matches the AOR and receipt. Unit Resource Officer (URO) then invalidates and keeps the original receipt for audit checks. Acceptance Process Acceptance is the act of receiving, verifying and acknowledging the quantity, quality and specifications of the goods/services. The Receiving Person (RP): - Performs immediate, physical acceptance for goods/services. - No appointment process, but must be briefed by the Acceptance Officer. - Stamp the CoR on delivery documents, complete it and pass it to the Acceptance Officer promptly. - Performs system acceptance within 14 days from physical acceptance.  - Must pass certification tests before appointment in NGPS. Must not be financially indebted. The RP needs to make sure of three factors: - Accuracy - The items match the delivery documents. - Quantity - The correct number of items has been delivered. - Quality - The items are in good condition. Responsibilities of the RP - Cross-check physical items with items on delivery documents - If there is a need to amend information on the delivery documents, both parties need to countersign next to the changes. - After the RP is satisfied with the goods/services, they should stamp and fill in the CoR to pass to the AcO. Types of Buys 1. Simple Buys where the goods/services can be verified on the spot/in the same day (office supplies, etc) a. Goods Receipt and Filing in 14 days 2. Complicated Buys where the purchase requires technical inspection/testing or voluminous receipt (at least 20 sets of documents/transactions), and cannot be verified on the same day a. Goods Receipt and Filing in 45 days 3. Acquisition and Research & Technology (ART) Buys: purchases made during projects managed by DSTA project managers (new weapon platforms) a. Goods Receipt and Filing in 14 days Special Scenarios - Partial Delivery - If the quantity indicated on the delivery document is wrong, the RP should make corrections in clear writing on the actual quantity delivered. Both RP and deliveryman countersign. - No Delivery Document - RP should not accept goods. However, alternative arrangements can be made to deliver the delivery document subsequently, e.g. via email. - If alternative arrangements have been made, the requestor should inform the RP in advance the details of the delivery.  - If there are no alternative arrangements, the RP should inform the requestor or the AcO and check if she should accept the goods. Payment Processing - Validated via 3-way match - goods receipt, Purchasing Order, Invoice. AcO is to ensure that the claim made on MINDEF is valid and the payment made is authorised, correct and timely. - Non-compliance to Procurement Procedure is UNACCEPTABLE - Asking contractors to start work before Purchase Order is raised - Asking suppliers to deliver articles before Purchase Order is raised - Backdating AOR and Purchase Order to date prior to date of delivery of services or articles Building and Infrastructure (BI) Minor Works - Up to $15K - Execution of Minor Works without rate goes up to $6K - Not allowed to carry out due to safety: - Earth-filling work - Construction/extension of building - Demolition/partial demolition of buildings - HT works include licensing - Cleaning and washing of potable water storage tank - Structure Repairs Purpose of Contracts/Catalogues - Secure lowest/stable price and shortest lead time without the need for quotation/tender - Ensure continuous supplies and services for the entire system lifespan - Establish strategic sourcing and partnership - Transfer of Knowledge and Technical Know-How Types of Contracts - Purchase Order - Materials/Services - One-time purchase - Need sourcing/tendering and Approval of Purchase (AOP) - Period Contract - Prices for Material/Services are either fixed, capped to a certain ceiling or defined by formulae for a duration.  - Purchase within a definite period of time. - Ensure continuous supplies and services for the entire system life cycle - Need sourcing/tendering and Approval of Purchase (AOP) to establish PC - Secure RSN goods and services at the lowest/stable price (and/or value for money) and shortest procurement (repair) lead time - No additional quotation from contractor is necessary for purchase eg, Photography Services for graduation, event coverage and instant print - No need evaluation/Approval of Purchase (AOP) if purchase from PC with single supplier - Framework Agreement - Requirements where it is not feasible to determines the individual goods/services upfront - Purchase within a definite period of time - Need sourcing/tendering and Approval of Purchase (AOP) to establish FA - Need to seek a quotation from the FA contractor. I.e. Require interactive quotations with contractor on labour rate - May incorporate elements of a period contract i.e. contain fixed price items or items which are subjected to some price fluctuations formula - Blanket Order Agreement (BOA) - Materials/Services - Pay-per-use contract includes technical services and supply spares - Normally signed in conjunction with System Purchase - Performance Based Contract - Services - Procuring of explicit desired outcomes - Continuous purchase within a definite a period of time - Need sourcing/tendering and Approval of Purchase (AOP) - Fixed prices/rates Chapter 3 - Next Generation Procurement System (NGPS) Next Generation Procurement System Developed to replace the electronic procurement system (ePS) and improve end-to-end procurement process for MINDEF/SAF - Better User Experience with intuitive interfaces - Greater Operational Efficiency through optimised procurement processes/policies - Stronger Procurement Governance through built-in rules & checks GeBIZ E-procurement portal used by Singapore Government to link suppliers with strategic partners - Open tenders are called in GeBIZ unless classified - Suppliers should be GeBIZ registered before purchases are made from them NGPS Roles & Responsibilities 1. Requestor - Raise Purchase Requests (PRs) on behalf of the unit after proper approval (AOR/AOF) is given - Ensure correct funds used - Ensure PRs are NOT inclusive of GST - Ensure all line items are in UNIT PRICE and not lump sum - (Buy & Claim) Verify total claimable amount in NGPS equals to amount on physical receipt - Ensure all line items have the most appropriate commodity code (If in doubt, route PR to SAFCA) - Ensure AOR is uploaded in the PR. For AORs above Restricted, only approved AOR reference is required - Requestor should not be the Approving Authorities (URO) for the same transaction 2. Unit Resource Officer (URO) - Manage resource budget in NGPS - Approving officer with AOR approving authority for purchases $500 - Approve late submission of Buy & Claim requests online in NGPS - Endorse/Approve users for appointments in NGPS 4. Acceptance Officer (AcO) Ensure that the goods delivered are in good condition. Ensure that the unit price and quantity of the material/ service in the PO tallies with the unit price on the invoice/delivery note. Ensure prompt GR in system upon actual goods receipt. Ensure Serialised items are entered with the correct serial numbers.  Ensure item in NGPS has the correct accountability (TTC or TTI). (Acceptance Officer (AcO) does Certification of Receipt (CoR) of goods/services acceptance within 14 calendar days after delivery of goods & services for Simple Buys as well as within 45 calendar days for Complicated Buys) Segregation of Duties - To eliminate any conflict of interest that may arise for a person performing multiple user roles is a single transitions, safeguarding public funds - The purchaser does not accept and acceptor does not pay AcO cannot be URO Commodity codes - Used to derive Funds and update Asset Master (AM) capitalisation in ES - Consequences of using the wrong commodity code - Service items wrongly capitalised - Fixed asset items wrongly expensed off - In some situations ES will be unable to post GR - ES will block subsequent payment until GR is rectified and successfully posted. This results in delayed payment Purpose of NGPS - Benefits - Better user experience - Greater Operational Efficiency - Stronger Procurement Governance - Improvements in the following areas: - Catalogue Search - Purchase Request (PR) Creation - E-evaluation - Goods Receipt (GR) Shopper role - Ngps auto translate shopping cart item to line item - PR requester can check recent requests for similar requests to combine to prevent split purchase - Guests can browse the catalogue but cannot check out shopping carts. - Shoppers can search for the items they want to procure, add to cart, and check out. - PR Requestors will then create new Purchase Requests (PRs) based on the checked-out cart and submit for approval. Additional features - Use keyword searches to identify needed items. - Find suppliers that best meet user’s needs with filters (e.g. quantity, delivery date, etc). - View lowest price option that meets user’s needs. - Use ‘Save Cart as Favourite’ function for frequent orders. - Identify whether an item you want to purchase is under Period Contract (PC) or Framework Agreement (FA). PR requestor - PR requester can see the requests of all in Unit - Can see all the PRs of different types in one system - Seamless integration of ITeFM with NGPS Request for quotation (RFQ) - Benefits - Users will be guided through the RFQ process. - Auto-RFQ will be launched after the PR requestor has released the PR. Buy and claim - Users can submit multiple receipts in one claim,thus reducing the time taken to create multiple claims for multiple receipts. - Users do not need to itemise the receipt line items in NGPS, nor define commodity codes for each line item. - System will support NGPS users in obtaining AOR approval and buy claim approach approval online. Camp maintenance - Two main systems are: - Next generation procurement system - ITeFM Chapter 4 - Overview of Supply Management in ES Enterprise System Overview - The ES is a single integrated system across the MINDEF/SAF for finance, logistics and operation planning. - It supports end-to-end business processes from: - platform/system acquisition management to training - exercise and operations planning, to logistics and procurement - maintenance execution to business monitoring and reporting Benefits of Enterprise System - Stores all transactional data to provide visibility and enhance reliability of the information. - Integrated critical processes, transaction & dataflow across core systems in MINDEF for Engineering and Maintenance, Supply Management and Finance & Controlling - Strengthens process controls and facilities close loop execution across different functions. - Provides a single data entry point thus increasing efficiency, timeliness and reliability. - Automate creation of posting entries to finance from EM and SM transactions and external interfaces. - Automate routes, prompts and checks for decisions to the right person and to ensure governance. Key Functions of ES 1. Engineering and Maintenance a. Budget planning and finance management b. Maintenance Execution c. Readiness Monitoring d. Engineering Support e. Maintenance Support 2. Finance and Controlling a. Budget Planning b. Budget Execution c. Invoice and Payment d. Assets Management e. Financial Report 3. Supply Management  a. Forecasting b. Material Requirements Planning c. Procurement d. Inventory, Physical and Warehouse Management e. Repair Management f. Disposal Management Enterprise System - Engineering and Maintenance Main objectives: - To ensure that the maintenance budget is allocated and optimally utilised with proper accountability - To facilitate on the management and execution of maintenance jobs between the users (i.e. ships, engineering centres) - To enable for engineering data analysis Key functionalities: 1. Budget planning and finance management 2. Maintenance Execution 3. Readiness Monitoring 4. Engineering Support 5. Auxiliary Support Enterprise System - Finance & Controlling Main objectives: - Ensure defence budget is planned, allocated and optimally utilised with proper accountability Key Functionalities 1. Budget Planning 2. Budget Execution 3. Invoice and Payment 4. Asset Management 5. Financial Report Enterprise System - Supply Management Main objectives: - To supply the right quantity of the right item to the right place at the right time - Whatever is needed for operational readiness is supplied according to when and where it is needed while optimising funds, time and costs The ES has:  - A rich suite of reports to provide both summary and detailed information on all aspects of Supply Management - Functions to track services that have been provided by the 3rd Party Logistics providers SM Master Data - A centrally shared master object used by all logistics modules that captures information in the material master record. - Information captured can be descriptive or can have functional control depending on usage. - Captures the latest management data so as to maintain data currency and integrity, by creating and changing material master records or deleting and archiving material master records when they are no longer needed. - Purpose: - Covers the creation, amendment, deletion and archival of Material Master Data in ES triggered from: - Change in NIIN/MPN - Request on creation of material from user - Interfaces from other scenarios which determine that the material master record does not exist Glossary of Terminologies in ES - Service Master - A centrally shared master object for the definition of services. It contains information to store the relevant information to uniquely describe a particular service: - Description of the services  - Service number and service category - Specify the General Ledger (GL) postings when the service is transacted (via the valuation class) - Material Master - A centrally shared material master object used by all logistics modules. Information captured can be descriptive or can have functional control depending on usage, such as Material Number. - Material Number - A unique 10-digit number (“0”+NIIN) to identify the material. - MRP Controller - Group in MPC responsible for planning material requirements. - Plant - An organisational unit that subdivides an enterprise according to production, procurement, maintenance and material planning aspects. In short, plants are where goods are produced for which users wish to obtain materials. - The Navy has 3 plants, NA01 (Munitions), NC01 (Classified), N001 (everything else). - Cost Centre - Organisational units in SAP within a controlling area that represents a clearly defined location where costs occur. Every RSN unit has a cost centre. - Storage Location (SLOC) - The place within a plant where stock is held. The Storage Location identifies where the stock is, it can also be used to differentiate stock location or use. - A typical RSN unit has 5 different SLOCs at IM level where four SLOC units (N,P,Q,R) are under plant N001, namely: - N for TTC items/TTI items deemed attractive - P for loan items and personal equipping - Q for items sent for repairs under Maintenance Order - R for items awaiting disposal under Maintenance Order - M for munitions is under Plant NA01. - N and M SLOC are managed by Warehouse. - Spare Part Class Code (SPCC): An important number that identifies the course of action to be adopted after usage. - SPCC 1: Expendable - replenish based on usage - SPCC 2/6: Repairable - replenish based on BER - SPCC 0: Neither expendable or repairable. Non-technical item such as tools - Materials Issue Control - An important code that determines whether entitlement checks or approval is required for the various materials. -  Material Issue Control Approval Entitlement Checks E1 Not Required Yes E2 1-Level Yes E3 2-Level Yes N1 Not Required No N2 1-Level No N3 2-Level No - Criticality Code - A code to denote the potential impacts when failure of an equipment manifests. - Criticality Code Description of Impacts Critical (CR) A failure which may cause death or severe injury, major property damage, system loss or major system damage Major (MJ) A failure which may cause minor injury, minor property damage or minor system damage which may result in mission abort or reduction of operational capability Minor (MN) A failure which is not serious enough to cause injury, property damage or system damage but which will result in corrective maintenance Not Applicable (NA) Not applicable - Purchasing Group - A buyer or group of buyers in a company. - PR Purchasing Groups: Z00 (DSTA-PRM), NPB (STM - Without Period Contract) & STM (STM - Against Period Contract) - PO Purchasing Groups: Each PE in DSTA-PRM and STM is mapped to a purchasing group for PO in order to identify the PE handling the PO. - STO Purchasing Group: N01 Chapter 5 - Material Fulfilment via Indent Request in ES Fulfilment of Material via Indent Request in Enterprise System Types & Purpose of Material Request Fulfilment - Mainly two types of material fulfilment; ad-hoc (day) and silent hour (night) - Covers order fulfilment activities to different units within SAF by supply base, including the following activities: - Processing of Requests - Stock Determination of Materials at Supply Base - Transporting of Materials to Requesting Units Functionalities of Material Request Fulfilment - Allows user to fulfil request for materials from Maintenance Locations - Allows user to have visibility of items throughout the Supply Chain - Supports user to record date and time of different stages of material transfer, thus facilitating performance measurement - Allows supply base to prioritise orders for fulfilment - Supports users in real-time transmission, processing and picking of orders for urgent demand. Accountability of Items - TTC - Stores valued more than $500 and include selected items that are valued less than $500 but require exceptional management such as controlled items, sensitive items or attractive items. - Accounted and tracked by Unit Accounting Officer via Enterprise System until they are written off and disposed of due to condemnation, redundancy or loss. - Existing unit routine store check and annual stocktaking will cover accounting of TTC stores. - Residual Value upon disposal. - TTI - Non-controlled equipment items that are valued less than $500, less attractive items. - Accounted and tracked by the Unit Accounting Officer till they are consumed by the sub-units/end users. Such stores are not required to be retrieved for condemnation.  - The sub account holders are required to track and they are given the authority to carry out disposal at the end accordingly. STO Document Types 1. ZNAM - Ad-hoc Request (Non-Ammo) 2. ZNAT - TXP Non-Ammo Request Ad-Hoc Request (ME21N) - May be subjected to entitlement checks and/or approval, depending on ‘Issue Control’ field defined in the Material Master Plant Specific Data View. 1. Request Creation a. An STO is created for materials managed by the same MRP controlled; the request is then subject to approval or entitlement check. 2. Order Fulfilment a. Items requested are transferred from Supplying SLOC into Requesting SLOC. 3. Receipt Acknowledgement a. Goods Receipt is produced to acknowledge completion of transfer; applies to both Direct Consumption and Transfer Requests Ad-Hoc Request Fulfilment Runs  Fulfilment Run Type Description Periodic Fulfilment Run Is a background job executed automatically at the (PFR) pre-defined time Considers all the demands for which requirements date is before current date + 3 working days Urgent Fulfilment Run Is executed when an urgent MO (Priority code = 1) (UFR) is released and saved Considers the requirement ONLY for that specific MO Purpose of urgent MO is to be able to fulfil the urgent order without any delay Ad-hoc Fulfilment Run Auto Fulfilment run can be executed on ad-hoc (AFR) basis by user T-Code: YSMME_OFP Consider the requirement as per the selection criteria provided by users Items of Restrictive Nature (IQS1) - Not everyone can have the SLOC authorization for the indent on specific items. - Y6 extension serves as a tool to allow a specific unit’s SLOC to raise an ad-hoc request despite items being restrictive in nature. - Steps: - Select Y6 Notification Type and enter the description - Select “Material Data” tab and fill in the SSN of items to be requested - Select “Plant/Storage” tab and key in unit’s SLOC. Silent Hour Request - Like Ad-hoc request, silent hour request is the requesting of materials after office hours. - Difference in documents and procedures required when raising a silent hour request. - Silent hour requests are also subjected to approval. Authority for Approval of Request - In RSN, the management and operations of Tuas and Changi Naval Warehouses are contracted to ST-Synthesis - Contractually, ST Synthesis is to provide 2 duty personnel at each base for silent hours issue. Units requiring materials after office hours (i.e. Silent Hours) from the warehouses are to submit their requests to the respective base Integrated Ops Centre (IOC). - Units are to submit a copy of the Silent Hour Request Form (SAF 1734A) for request of materials during silent hour. - A unit representative will be authorised to collect the material requested. - The approving authority is the Ops Room Officer (ORO). Procedure for Issue of Materials - ST duty personnel will check stock availability and the storage location, based on the SAF 1734A submitted by the Unit. - ST duty personnel are to inform the ORO if the stock is not available (or the storage location is at the other base). The ORO will then submit to the unit representative on the outcome. Processing of Silent Hour Issue 1. On the next working day, the ST duty personnel will forward the SAF 1734A & SAF 1211 to FSS > MSC > Warehouse Section 2. Unit Representative shall forward their copy of SAF 1211 to the Unit Supply Officer, informing the Officer of the silent hours issue 3. MSC > Warehouse Section will process the Silent Hour Issue of materials in ES and trigger to generate SAF 1749B (Goods Issue Voucher) 4. ST personnel will retain 1st copy of SAF 1749B and forward 2nd and 3rd copies to Requesting Unit’s Supply Officer. Unit Demand Report (YSMMR_ACKNMATDOC) - Unit Demand Report (UDR) is to be generated at the end of every quarter for verification. - Performance Target: 100% accuracy - Objectives of UDR - To view materials that have been fulfilled and transferred out from the unit during the quarter. - To profile various types of demands and priorities with the aim to analyse the user’s demands so as to better understand their demand habits/pattern. - To list STOs raised by each SLOC. Outstanding Open Demand Report (YSIM_OPEN__DEMAND) - Outstanding Open Demand Report is to be generated monthly to verify if indents are still required. - For STOs no longer required, it is to be deleted as long as outstanding ES transactions will be subjected to audit queries. - To complement the O/S UDR, the contention report lists all outstanding STOs for MRP Controllers to take action. - Objectives of O/S ODR: - To view materials that have not been fulfilled - To monitor Outstanding Open Demand REports as auditors use this to report audit lapses - To inform material planners for their follow up action. Stock-In-Transit Report (YSIM_ST01) - Stock-In-Transit (SIT) report is to be generated weekly to ensure that the stores movements are followed through the entire process. - All SIT will not be checked during verification against Company Equipment Record or Stock Taking as it is not found in the receiving or issuing unit’s SLOC - Performance Targets: Ageing < 7 working days - Objectives of SIT Report: - Prevent incomplete store transactions in ES - To tighten governance of SIT and prevent potential store discrepancies, the following measures have been implemented in ES(Logs): - Daily email notification will be sent to the creator of GI and the Unit Store Accounting Officers of both Issuing and Receiving Units to notify them of the outstanding GI(s) that have aged at least 3 working days so that immediate actions could be taken. - Auto-cancellation of outstanding GI by the system on the 7th working day. The ownership of the item will be reverted to the Issuing Unit’s SLOC. Email notifications will be sent to the creator of GI and Unit’s Store Accounting Officer of the Issuing and Receiving Units as and when the GI has been cancelled. Housekeeping Tasks for Logistics Accounting - System Notification - Outstanding Notifications such as Y2, YP - Perform personnel equipping for budget and/or medals - Liaise with EM to back-flush TTI spares consumed in Maintenance Orders (MO) - Reports - Quarterly Controlled Equipment (CE) returns - Half-Yearly Company Equipment Record (CER) verifications  - Quarterly Unit Demand Report (UDR) is to be generated on every 1st week of the following quarter. Chapter 6 - Material Fulfilment via Loan Request in ES or Manual Document Loan Requests - Subjected to approval - Expiry date - Enable units to obtain stores in the following scenarios: - TTC spares - Replacement when holding items are servicing - Testing/sampling comparison - Support for Ad-Hoc events ES System Loan 1. Loan Request Creation (ME21N) a. Create Loan STO (6000 series number), similar to STO but with the addition of Loan Expiry Date 2. Approval (ME29N) a. Approved by MRP Controllers, who then perform Goods Issue (GI) after processing, generating 2000 series material number 3. Receipt Acknowledgement (YSMM_MATRECEIPT01) a. Requesting unit personnel acknowledges receipt, generating 1000 series material document. Return Loan STO is auto-triggered (Return Loan STO number can be accessed via YSMMR_LOAN_MGMT) 4. Loan Extension (ME22N) a. Extension can be requested up to 2 times for a period of 1 month each 5. Loan Return Goods Issue (MIGO) a. Perform Goods Issue on auto-generated Return Loan STO SAF 1374 - Temporary Loan (TLoan) Book - Only used for loan of pool stores within unit (intra-unit) SAF 1211 - Issue and Receipt Voucher - Used for the following:  - Loan of pool stores between units (inter-unit) - Temporary issue of stores by supply bases during silent hour - Loans to external MINDEF organisations/Ministries (under proper approval) - ES System breakdown - Raise 2 copies of SAF 1211 for every transaction - 1st Copy signed by issuing unit - 2nd copy signed by receiving unit - Check condition of the items - Exchanged copies signed by each unit - Destroy both copies of SAF 1211 after stores are returned Loan Accountability - Accounted (less than 3 months) - Unit to account loan items under stocktake - Accounted (more than 3 months) - Unit’s indent account is automatically frozen by ES until loan is extended/item is returned - MPC tracks ageing loans in quarterly ROP - Not Accounted - Report losses to NLD(RG) and MPC - SAF 1206 enforced if necessary - Conversion of loans to permanent issue before striking out in unit’s account Stores not to be loaned - Shipboard Allowance List - Items that are meant for emergencies at sea and cannot be used while at shore - Controlled Equipment (CE) - TTI Items - Personal Clothing Items (Due to personal hygiene) Chapter 7 - Disposal of Stores & Serviceable Return Before stores and equipment can be disposed, they must be declared Beyond Economic Repair (BER), Beyond Repair, Obsolete or Redundant by the relevant authority. 3 Objectives of disposal Minimise holding cost Ensure smooth transition between systems Maximise returns from divestment of assets Criteria for Condemnation 1. Beyond Economic Repair (BER)/Beyond Repair (BR) a. Stores that are unserviceable or no longer economical to repair due to normal wear and tear, where the repair cost is >75% of its Net Book Value (NBV). b. Or stores that are certified BER/BR due to reasons other than normal wear and tear, investigations are to be conducted. 2. Obsolete a. Stores that are not meeting current requirement or have been replaced by improved models/no longer supportable/phased out from inventory Procedure for Disposal of Items 1. Initiate Disposal Return, by Unit a. Raise Disposal Return in ES (within 6 weeks of obtaining relevant document) b. Return Physical Item to Warehouse 2. Approval, by Warehouse a. TDB/CDB raise Disposal notification (within 7 working days of receiving receipt of returned stores) b. Seek Approving Authority’s approval for condemnation and disposal 3. Performing Physical Disposal, by Warehouse a. Perform physical disposal (within 30 days of approval) b. Acknowledge disposal in ES(Logs) by Witnessing Officer (WO) (within 1 week after disposal) c. Close disposal notification (within 1 week after WO update in ES) Criteria for Redundancy 1. No longer required by MINDEF/SAF (with confirmation with DSTA-PRM) 2. BER 3. Quantity exceeds requirement of MINDEF/SAF Procedure for Disposal of Redundant Items 4. Initiate Disposal Return, by Unit a. Raise Disposal Return in ES (within 6 weeks of obtaining relevant document) b. Return Physical Item to Warehouse 5. Approval, by Warehouse a. TDB/CDB raise Disposal notification (within 7 working days of receiving receipt of returned stores) b. Seek Approving Authority’s approval for condemnation and disposal 6. Performing Physical Disposal, by Warehouse a. Perform physical disposal (within 30 days of approval) b. Acknowledge disposal in ES(Logs) by Witnessing Officer (WO) (within 1 week after disposal) c. Close disposal notification (within 1 week after WO update in ES) Disposal of Perishable Stores & Equipment In the event where urgent disposal of perishable stores and equipment is required prior to official approval and processing in ES: 1. An in-principle approval (can be in email) must be sought from the appropriate Approving Authority before action is taken for disposal. Following the disposal, Units shall liaise with  Naval Warehouse and the Processing Authority to ensure that the disposal notification is duly completed in the ES(Logs). 2. Samples and photographs of the stores and equipment concerned are to be taken for the purpose of investigation if they are required as evidence for investigation. Disposal of TTI Stores and Equipment - Units may require assistance from Naval Warehouse to disposal of TTI stores and equipment with recoverable scrap value (metal cabinet). Unit must ensure that the cost of such stores and equipment has been expended. - Unit shall notify MSC before using the SAF 1763 “Naval Store Return Voucher” accompanied by the Disposal Request Memo. Material No.s must be indicated in the document. - Upon receipt of stores and equipment and the relevant authorisation or supporting document, Naval Warehouse must ensure that the relevant supporting documents of SAF 1763 are signed to serve as the official record for the handing/taking over of stores and equipment between Unit and Naval Warehouse Disposal of Data Storage Media In the event where urgent disposal of perishable stores and equipment is required prior to official approval and processing in ES:  1. For disposal of items with data storage media, unit shall ensure that approval for condemnation has been sought via the disposal notification in ES(Logs) before proceeding with physical disposal (e.g. degaussing, destruction etc.) 2. Unit shall adhere to the prevailing MSD Security Instruction for the procedures to engage MINDEF-approved contractors to degauss and destroy data storage materials Date of Purchase (DOP) - Determines the age of the item to compute the Net Book Value (NBV), so as to identify the appropriate Approving Authorities for condemnation & redundancy. - To determine the repair limits based on MLD55.04 “Guidelines on Determining Repair Limits”, before deciding if the stores & equipment should be sent for repair or certified as Beyond Economical Repair (BER) CAN S/ ES MVT MOVEMENT THIS BE APPROPRIATE DATE TO USE N CODE DESCRIPTION USED AS DOP? 1 101 The date which √ stores/equipment is 2 105 received by the √ Unit should derive the DOP based on movement warehouse. 101/ 105/ ZE1 using the correct batch number The date which (through ES T-code : MB51) stores/equipment 3 ZE1 (purchased through √ NGPS) is received by the unit. Actual purchase date based on past supporting Manual BOC of documents (e.g. HOTO cert, details captured in stores/equipment 4 501 × YP notification). into ES (less Single If unable to be found in YP notification, unit would Asset) need to estimate based on best knowledge Manual BOC of Capitalisation date captured in Fixed Asset 5 ZA1 Single Asset into × Registry (FAR). Approach AD Mgmt Acct Section ES SRO, NPLD for date Parts / Unit should check against NLMIS data on the Compone date of purchase. nts / Low ES data migration (possible source of NLMIS data: Unit SSE, MPC, 561 value date (i.e. balance NLD) 6 asset stock migrated √ from NLMIS to ES) For Single Capitalisation date captured in FAR. Approach Asset NPLD for date ×  Using the maintenance order number, identify the Date of original batch number and derive the DOP based Y62 parts/components × on movement 101. 7 Z62 removed (i.e. uninstalled) from For parts/component that came together with system ship, ship commissioned date is to be used. Net Book Value Computation - Net Book Value = Original Value - (Age/Useful Life x Original Value) - For items with shelf life, use “Shelf life” [i.e. (Date of Expiry – Date of Purchase)] instead of “Useful life”. - For condemnation and redundancy of goods, Age is from Date of Purchase up to Date of Raising G219/G220. - For condemnation of goods due to other than wear and tear (such as accident), Age refers to time from Date of Purchase to Date of Accident/Incident. - When Age exceeds or is equal to the Useful life, NBV is zero. Types of Supporting Documents Categories Spare Part Who can endorse? of Items Class Code (SPCC) 1) "BER Card/ Tag Scrap" (generated from ES) AND Technical 2 or 6 i) Lead Engineer or OIC of Reparable maintenance agency / workshop 2) Service report1 and / or repair quotation to justify BER or ii) Integrated Work Force (IWF) beyond repair superintendent iii) Squadron Marine Engineer / Note: (1) is a cardinal requirement and suffice by itself. (2) is Squadron Combat System and additional supporting document but will not suffice by Engineer/ Hd Combat System itself. This is because (1) contain key details like DOP, Readiness/ Hd Platform System Batch no. which are required for creation of disposal Readiness / F4 / Hd Logistics notification. 1) "BER Card/ Tag Scrap" (generated from ES) OR Technical 1 Expendable 2) BER Card (pink card) Note: "BER Card/ Tag Scrap" is generated from ES and BER Card is the physical pink coloured card. They are not the same thing but both are acceptable as they contained key details for creation of disposal notification. 1) Disposal Request Memo AND Non-Technical 0 i) Logistics/ Supply Administrative officer 2) Service Report and / or Repair Quotation (only applicable ii)Original Equipment for reparable items) Manufacturer (OEM) or commercial agency Note: (1) is a cardinal requirement and suffice by itself. (2) is an additional supporting document but will not suffice by itself. This is because (1) contain key details like DOP, Batch no. which are required for creation of disposal notification. Write-up for original value >$50K (or in the absence of All categories 0,1, 2 & 6 I) Unit’s Entity Head relevant supporting documents) Types of Supporting Documents Categories of Spare Part Who can endorse? Items Class Code (SPCC) Write-up to seek CO MSC for approval (before degauss/ Items containing 0, 1, 2 or 6 i) CO MSC (to approve unit destruction work) AND Data Storage to proceed for degauss / Media destruction work) Degaussing/ Destruction certificate from Authorised i) Authorised Contractor Contractor (DATA TERMINATOR PTE LTD) LOA from MRP controller Warehouse 0, 1, 2 or 6 i) CO Material Provisioning Inventory Centre (MPC) for the disposal of stores in the warehouse Document reference of Approval paper and Extract of System 0, 1, 2 or 6 i) Sign off by Unit Entity Head Minutes Retirement i) Approve by Approving Authority for Condemnation Disposal Write-up and Redundancy 1. The disposal write-up shall be cleared by a. Entity Head for disposal of stores and equipment belonging to the Unit. E.g. Unit CO or Head of Department. b. System Manager for disposal of stores and equipment due to system retirement. 2. Unit should consult NLD-SCMB for comments on the disposal write-up before submission to the Approving Authority. For obsolete items, supporting documents (e.g. email, Obsolete official notice from OEM website) from OEM is required. Methods of Physical Disposal - Transfer to Other Government Bodies, Non-Government Body or Statutory Board - Sale via Period Contract or Ad-hoc Sale - Smelting at Natsteel - Burning at NEA Incineration Plant - Destruction of Landfill Dumping - Conversion to other items of usage - Donation to Charitable/Non-Profit Organisations - Disposal Overseas - Disposal of Hazardous Substances Serviceable Return 1. Item was wrongly indented by user upon verification by the user 2. Item indented to unit was seldom used and is no longer required 3. Items that have been on loan for 3 months Categories of Spare Part Who can endorse? Supporting Documents Items Class Code Required (SPCC) Technical 2 or 6 i) Lead Engineer or OIC of Reparable maintenance agency / workshop ii) Integrated Work Force (IWF) superintendent iii) Squadron Marine Engineer / Squadron Combat System Engineer/ Hd Combat System Readiness/ Hd Platform Serviceable Card System Readiness / F4 / Hd Logistics It is important to note that 1 serviceable card is required for an  Technical 1 individual item, NOT Expendable line item. Non-Technical 0 i) Logistics/ Supply Administrative officer ii)Original Equipment Manufacturer (OEM) or commercial agency All categories 0,1, 2 & 6 I) Unit’s Entity Head Chapter 8 - Indenting of Cookhouse Meals & Field Rations Meal Classifications - Regular Meals: Meals consumed in the cookhouse - Ramadan Meals: Served during the Fasting Month - Push Meal: Meals delivered to other cookhouses or serving points - Out-Ration: Packed rations to be consumed within or outside camp Meals - Breakfast - Lunch - Dinner - Night Snack 1 - Night Snack 2 Types of Meal - Muslim (M)  - Non-Muslim (NM) - Vegetarian-Indian (VI) - Vegetarian-Chinese (VC) - Special Diet Ration Entitlement - Stay-in Personnel: All cookhouse meals - Stay-out Personnel: Lunch meals only, unless there is training outside usual hours - Night Training Personnel/Guard Duty Personnel: Night Snack 1 (for activities ending at 2200H), Night Snack 2 (for activities beyond 2200H) Ration Indent - Ration Indent is done via OneNS Portal - Indent must be done by deadline, which varies based on cookhouse (NMI Cookhouse deadline is 1 week) Ration Amendment - Ration amendments must be done the day before the indent by 0900H Ration Transfer - For transfer of rations from resident cookhouse to destination cookhouse during external training - Notify both cookhouse supervisors and ensure approval is given before transfer Manual Ration Indent - In the event OneNS Portal is down/cannot be accessed, indent can be done via manual forms Ration for RSN Vessels - Indent for raw materials, ingredients and snack items are to be made 1 week in advance of the consumption period, with amendments made 48 hours in advance. - Storage of raw materials, ingredients and snack items: - Clean, well-ventilated, well-maintained, appropriate temperature - Stacked and Issued using First-In-First-Out (FIFO) method - Ensure no cross contamination between raw and cooked food  - Ensure no presence of pests - Ensure no expired products Handling Food Wastage - Food wastage should be computed at cookhouse level to facilitate the payment to the contractor with the allowable 10% buffer in the payment policy - Food wastage >$1000 at Cookhouse Level: - Investigation will be conducted - Rectification of any shortcomings within the system - Investigation reports to be forwarded to cookhouse supervisor and filed for future audits - No wastage but consumption below 90% of Indent Strength: - Ration support section will highlight underconsumption to unit - Investigation will be conducted Meal Accounting System - Servicemen must scan their NRIC at the Point-Of-Sales (POS) machine for accounting purposes Field Ration (FR) - FR can be indented for: - Field Training - Field Camp - Overseas Training - Sea Expedition: Team Building Activities out at Sea - There are 3 types of FR: - Muslim - Non-muslim - Vegetarian - Each FR comprises 4 meals and is meant for one man for 24 Hours - UI of FR is packet (pk) - Shelf life of all FR is 12 months, except noodles which have a shelf life of 6 months - fa - Indents subject to HQ Supply’s approval before releasing STO to ALB Chapter 9 - RSN Assets Fixed Assets - An end item used directly in defence business or for admin purposes - Has its own lifespan of more than 1 year - Meets the capitalisation limit ($5000) Classification of Stores Inventory (Non-end items e.g. expendables, materials, parts of an equipment system, supply that is used or consumed directly in defence activities.) Fixed Assets ○ Single asset ( less than $5000) Group asset ○ A group asset is made up of identical fixed assets. Low value asset ○ LVA are worth