Logistics Management System Solutions

1
Logistics Management System Solutions

• Logistics Management System Solutions Working
  Group
• Survey Results
• February 2005

2
Overview of Survey Results

• The observations and findings in this report were
  developed from the Logistics Management Solutions
  survey conducted in December 2004.
• Twenty-six government staff from seventeen
  agencies responded to the survey.
• While a higher response rate was desired, the
  survey responses indicated key trends in
  government personal property

3
Major Themes

• We identified seven high-level themes that were
  supported by findings and conclusion from the
  data.

• The cost of current systems is modest (before
  replacement), but benefits are not tracked to
  justify costs
• Agencies perceive sufficient security in their
  asset management systems
• System functionality varied with new technology
  and practices (e.g., RFID) not widely employed
• Ownership and usage of asset data varied widely
  among the agencies

• Most agencies perceive the need to replace
  outdated asset management systems
• Non-compliance (e.g., with JFMIP, Section 508) is
  a significant issue
• Generally, management of information technology
  assets is sound

4
A high percentage of asset management systems are
relatively old
Question 11

• Observations
• 44 of the systems came on-line before 1995.

5
Current asset management systems are not widely
integrated with key proximal systems
Question 12
Question 13
Question 14

• Observations
• Roughly 70 of asset management systems are not
  integrated with financial or procurement systems.
• Almost 90 of asset management systems are not
  integrated with systems that manage specific
  commodities.

6
Most asset management information systems are
managed by property management/logistics
organizations
Question 52
Information Technology
Property Management
Finance
Logistics
Other

• Observations
• Over two-thirds of asset management are managed
  by Property Management or Logistics organizations.

7
Most agencies do not use current COTS products
and technology
Question 6
Question 15

• Observations
• Over half the asset management systems are not
  COTS tools.
• Almost two-thirds are not web-based.

8
A majority of respondents are looking to replace
their current system, to respond to new agency
directives and replace outdated technology
Question 20
Question 21

• Observations
• Almost 60 of respondents are looking to replace
  their current system.
• Roughly one-third of respondents cite new agency
  directive and outdated technology as the reasons
  for this position.

9
Major Themes

• We identified seven high-level themes that were
  supported by findings and conclusion from the
  data.

• Most agencies perceive the need to replace
  outdated asset management systems
• Non-compliance (e.g., with JFMIP, Section 508) is
  a significant issue
• Generally, management of information technology
  assets is sound

• The cost of current systems is modest (before
  replacement), but benefits are not tracked to
  justify costs
• Agencies perceive sufficient security in their
  asset management systems
• System functionality varied with new technology
  and practices (e.g., RFID) not widely employed
• Ownership and usage of asset data varied widely
  among the agencies

10
Many respondents were not familiar enough with
key government requirements for asset management
systems to assert whether their systems were in
compliance
Question 18
Question 22

• Observations
• Over half the respondents were not sure if their
  asset management system satisfied JFMIP
  requirements or stated that their asset
  management system was not compliant.
• Only half responded affirmatively that their
  asset management system satisfied Section 508
  requirements.

11
Major Themes

• We identified seven high-level themes that were
  supported by findings and conclusion from the
  data.

• Most agencies perceive the need to replace
  outdated asset management systems
• Non-compliance (e.g., with JFMIP, Section 508) is
  a significant issue
• Generally, management of information technology
  assets is sound

• The cost of current systems is modest (before
  replacement), but benefits are not tracked to
  justify costs
• Agencies perceive sufficient security in their
  asset management systems
• System functionality varied with new technology
  and practices (e.g., RFID) not widely employed
• Ownership and usage of asset data varied widely
  among the agencies

12
Most agencies have a formal program to manage
information technology assets
Question 26
Question 25
Question 27

• Observations
• Over two-thirds have a formal IT asset management
  program.
• A majority are managed by the CIO.
• Nearly all are governed by instruction/directives.
  
• Results for software assets were similar to
  overall IT assets.

13
Most agencies have software to support the IT
asset management program and the majority tracks
critical asset data
Question 28
Question 29

• Observation
• Over 70 of the respondents stated that their IT
  asset management program have software to support
  the program.
• Nearly 70 track critical asset types such as
  asset identification, costs, procurement date,
  and vendor.

14
Major Themes

• We identified seven high-level themes that were
  supported by findings and conclusion from the
  data.

• Most agencies perceive the need to replace
  outdated asset management systems
• Non-compliance (e.g., with JFMIP, Section 508) is
  a significant issue
• Generally, management of information technology
  assets is sound

• The cost of current systems is modest (before
  replacement), but benefits are not tracked to
  justify costs
• Agencies perceive sufficient security in their
  asset management systems
• System functionality varied with new technology
  and practices (e.g., RFID) not widely employed
• Ownership and usage of asset data varied widely
  among the agencies

15
The original acquisition and annual operation and
maintenance costs for the asset management
systems are modest, likely reflective of system
age and technology
Question 41
Question 42

• Observation
• A third of existing asset management systems cost
  less than 100K to acquire another third cost
  more than 5M.
• A majority of agencies spend less than 100K per
  year on operating and maintaining their asset
  management system.

16
In general, indirect costs associated with asset
management are not calculated, while system costs
are allocated in a number of ways
Question 65
Question 43

• Observation
• Nearly half the respondents do not calculate
  indirect costs associated with asset management.
• Roughly half of the respondents allocate costs
  per user, seat, or number of transaction.

17
While most agencies do not quantify cost savings
associated with improved asset management, more
are planning to in the future, showing the return
on investment for better asset management
processes, organization, and systems
Question 64

• Observation
• More agencies plan in the future to capture the
  benefits of reducing obsolete or excess assets.
• Almost 90 of respondents intend to capture some
  kind of benefit.

18
Major Themes

• We identified seven high-level themes that were
  supported by findings and conclusion from the
  data.

• Most agencies perceive the need to replace
  outdated asset management systems
• Non-compliance (e.g., with JFMIP, Section 508) is
  a significant issue
• Generally, management of information technology
  assets is sound

• The cost of current systems is modest (before
  replacement), but benefits are not tracked to
  justify costs
• Agencies perceive sufficient security in their
  asset management systems
• System functionality varied with new technology
  and practices (e.g., RFID) not widely employed
• Ownership and usage of asset data varied widely
  among the agencies

19
Respondents consider asset data and systems to be
secure
Question 45
Question 46
Question 48

• Observation
• All respondents store asset data on a secured
  system.
• 80 assess the current asset management system as
  secure or very secure.
• Nearly all respondents have adequate controls for
  user access and separation of duties.

20
Most systems do not use Public Key Infrastructure
(PKI) Digital signature capability
Question 49

• Observation
• 92 of asset management systems do not use PKI.

21
While most respondents asserted that their asset
management provided for continuity of operations
(COOP), most do not identify mission critical
assets
Question 50
Question 51

• Observation
• Over 80 of asset management systems provide for
  COOP.
• Nearly 30 do not identify mission critical
  assets.

22
Major Themes

• We identified seven high-level themes that were
  supported by findings and conclusion from the
  data.

• Most agencies perceive the need to replace
  outdated asset management systems
• Non-compliance (e.g., with JFMIP, Section 508) is
  a significant issue
• Generally, management of information technology
  assets is sound

• The cost of current systems is modest (before
  replacement), but benefits are not tracked to
  justify costs
• Agencies perceive sufficient security in their
  asset management systems
• System functionality varied with new technology
  and practices (e.g., RFID) not widely employed
• Ownership and usage of asset data varied widely
  among the agencies

23
Most agencies are planning to use innovative
asset management practices and technology in the
future
Question 60
Question 61

• Observation
• Currently, only 16 of respondents use UID.
  Nearly half plan to use it in the future or
  require more information.
• Similarly, only 13 use RFID the percentage is
  expected to grow to over 35 with 16 wanting
  more information.

24
While a majority of asset management system
automatically provide key reporting
capabilities, most do not auto-generate reports
to GSA
Question 38
Question 40
Question 54

• Observation
• Over 60 of asset management systems allows for
  ready query of required data.
• Less than a quarter of respondents can
  automatically generate reports to GSA.

25
Over half the respondents perform an annual
comprehensive physical inventory on capital
assets less than half the inventory data are
uploaded automatically to the asset management
system
Question 62
Question 63
All Classes
Entire Agency
Some
Some Offices
Location Only
Outside the Agency
Not Shared
Manual
Automatic

• Observation
• Almost 52 of the respondents perform an annual
  physical inventory.
• More than half plan to upload data automatically
  in the future.

26
Most assets can be tracked by functional
group/class and most agencies have a method for
assigning standard names
Question 55
Question 59

• Observation
• Almost 75 can track all assets by functional
  group or classes.
• Almost 65 have a method for assigning standard
  names.

27
Most asset management systems do not have a
Discovery/Tracking tool
Question 16
28
Major Themes

• We identified seven high-level themes that were
  supported by findings and conclusion from the
  data.

• Most agencies perceive the need to replace
  outdated asset management systems
• Non-compliance (e.g., with JFMIP, Section 508) is
  a significant issue
• Generally, management of information technology
  assets is sound

• The cost of current systems is modest (before
  replacement), but benefits are not tracked to
  justify costs
• Agencies perceive sufficient security in their
  asset management systems
• System functionality varied with new technology
  and practices (e.g., RFID) not widely employed
• Ownership and usage of asset data varied widely
  among the agencies

29
Most agencies track government-furnished
contractor-operated property
Question 58

• Observation
• Nearly 60 of agencies track government-furnished
  contractor operated property.

30
The majority of respondents are not using asset
management data in the key processes of
acquisition, budgeting, disposition, or
maintenance
Question 67

• Observation
• Nearly 40 of the agencies stated that the
  acquisition and disposition processes make use of
  the asset utilization data for planning.

31
Additional Data
32
Question 7
33
Question 8
34
Question 9
35
Question 23
36
Question 24
37
Question 36
38
Question 37
39
Question 30
40
Question 31
41
Question 32
42
Question 33
43
Question 34
44
Question 35
45
Question 47
46
Question 56
47

• Glossary of Terms
• Commodities- Different Items either stored or
  offered through a supply system.
• COOP- Continuity of Operations Plan permitting an
  organization to function in the event of an
  emergency.
• FSC Class- Federal Supply Classification used to
  group similar items into classes.
• NSN- National Stock Number is an identified
  applied to each item of supply.
• Hybrid- A system that is composed of two or more
  different types of components or software
  performing essentially the same function.
• JFMIP SR 004 and 03 2- can be found at Joint
  Financial Management Improvement Program
  http//www.JFMIP.gov
• Public Key Infrastructure (PKI) Federal Public
  Key Infrastructure
• Rehabilitation Act (Section 508 Compliant)
  Department of Justice Section 508 Homepage
• SF 120 (Report of Excess Property)
• SF 122 (Transfer Order Excess Personal Property)
• SF 123 (Transfer Order Surplus Personal Property)
• SF 126 (Report of Personal Property for Sale)