Inventory Accuracy Standards

Upon completion of the physical inventory and reconciliation of the stock records, the count and adjustment documents must be reviewed. The documents are reviewed to determine the number of items inventoried and the number of location or quantity errors both corrected or adjusted. As a minimum, an accuracy rate of 90 percent is considered acceptable (refer to TYCOM instructions for additional guidance on validity standards). If the accuracy rate is below standard, the supply officer immediately initiates action to ensure more effective maintenance of stock records.

Location Audits

The purpose of the location audit is to verify that material in storage locations agree with the location in the stock record. A location audit should be scheduled so that it is done just before the scheduled inventory of a particular storage area. All storage areas (100 percent) must be audited on an annual basis.

A well-managed location audit program (LAP) reduces inventory efforts and improves the supply effectiveness and inventory accuracy. The LAP also improves the use of all available storage space.

PROCEDURES.- Location audit procedures are contained in NAVSUP Instruction 4440.185, TYCOMs' directives, and NAVSUP P-567. The stock number, location, unit of issue, and shelf-life expiration date are verified during a location audit.

LOCATION AUDIT VALIDITY.- The location validity rate is computed upon completion of a location audit for a particular storeroom or storage area. The accuracy rate for a location audit is 98 percent. The rate is computed by auditing 5 percent of the locations involved and subtracting the number of erroneous locations from the total number of locations audited. Then, divide the difference by the total number of locations audited and the result is the accuracy rate. As an example, for 850 locations validated with 17 errors, the following applies:

850-17=833

833 + 850= 98% accuracy rate

An accuracy rate of less than 98 percent for a particular storage area is considered unsatisfactory and is reason to conduct additional validations or a random sampling inventory in that area. The supply officer may require additional corrective action or training (or both) depending on the severity of the location or inventory accuracy problem. This may requite a complete review of current supply practices, the use of SUADPS-RT, and assistance from the TYCOM or Navy Management Systems Support Office (NAVMASSO) supply management teams.

Inventory Reports

The fleet commanders report the gross inventory adjustments, by type commander, to COMNAVSUP-SYSCOM on a quarterly basis. Upon completion of an inventory segment of material afloat, the accuracy rate is entered on the inventory schedule. Results of spot inventories are reported to the requesting activity.

SPECIAL INVENTORIES

Other categories of material have various storage, inventory, and reporting procedures. Although only a few AKs work with these materials, you as the supervisor should know the basic procedures for managing them.

AIRCRAFT

The complete aircraft is not carried in any stores account or equipage record. During the transfer or receipt of an aircraft, specific items or equipment must be inventoried. The aircraft inventory is accomplished to establish a formal and continuous chain of accountability of specified material. Specified items for inventory is listed in the Aircraft Inventory Record (AIR) Equipment List, OPNAV 4790/111. The AIR is applicable to all aircraft of a specified type/mode/series (TMS) and lists selected material and equipment. A master aircraft inventory record (MAIR) that identifies installed and loose equipment requiring inventory is maintained by Naval Air Systems Command (NAVAIRSYSCOM). The MAIR serves as a checklist for items requiring inventory, provides reasons/authorizations for shortages, and documents certificates of accountability.

Other items besides those listed in the AIR must be inventoried. The equipment listed in or comprising subsystem of the applicable mission essential subsystem matrix (MESM) must be accounted for before transferring the aircraft. The accountability of most MESM items is done by system operations checks and maintaining a maintenance action form or facsimile file. Any missing MESM-related items must be identified in the AIR as shortages even though the item is not listed in the AIR equipment list.

The AIR consists of the following parts: Certification and Record of Transfer, OPNAV Form 4790/104; Binder, OPNAV Form 4790/109; Title Page and Sectional Breakdown Diagram, OPNAV Form 4790/110; Equipment List, OPNAV Form 4790/111; and Shortages, OPNAV Form 4790/112. OPNAV Instruction 4790.2, provides detailed procedures for the use of the aircraft inventory record.

When an aircraft is to be transferred on site, designated inventory teams from the transferring and accepting activities jointly inventory the aircraft using the AIR. Entries are made in the appropriate columns of the Equipment List, OPNAV Form 4790/111, indicating the quantity of each item on board the aircraft at the time of transfer. Any items missing and not available for transfer with the aircraft are identified on the AIR Shortages, OPNAV Form 4790/112. A Certification and Record of Transfer, OPNAV Form 4790/104, is completed at the time of transfer.

When a ferry pilot is required to effect an aircraft transfer, two inventories are made. One inventory is made before the ferry flight by the transferring activity and one inventory is made upon completion of transfer by the accepting activity. The aircraft ferry pilot does not participate in these inventories, except to accept custody of pilferable and classified equipment from the transferring activity and to transfer custody of these items to the accepting activity.

When an aircraft is delivered to a depot or contractor facility and is scheduled to be returned to the same organization after testing or rework projects, items not requiring rework or required by the testing activity are retained by the reporting activity. All such removals are appropriately noted on the OPNAV Form 4790/112 to relieve the depot or contractor activity of accountability requirements.

When an aircraft is being prepared for transfer to the Aerospace Maintenance and Regeneration Center (AMARC) for storage, any AIR items used to protect the aircraft from damage, to make the aircraft safe for maintenance, or required for passenger support remain with the aircraft. Questions concerning disposition of AIR items before transfer of aircraft to AMARC should be forwarded to NAVAIRSYSCOM via the chain of command.