single stock fund slides

1 Financial Management School

Single Stock FundSingle Stock Fund

AWCFDEPOT

WHOLESALERETAIL

LOGISTICSOWNERSHIP


Terminal Learning ObjectiveTerminal Learning Objective

Action: Identify the four tenets of Single Stock Fund (SSF) and the financial systems impacted by SSF.

Condition: Without references.

Standard: Identify the four tenets of SSF and how financial transactions occur under SSF with 100% accuracy.


Single Stock FundSingle Stock Fund

What it is!

• Army initiative that tears down logistics and financial ownership barriers

• What it is not!

• A substitute for the Army’s Resource Allocation Process

• The end state for Logistics & Financial Information Technology Systems


AWCF ElementsAWCF Elements

InformationServices

FY 01 Sales$0.11B

OrdnanceFY 01 Sales

$0.67BDepotMaintenanceFY 01 Sales

$1.2B

Supply Managed Army (SMA)

$4.7B FY01, Split into

Wholesale and Retail

S S F

Wholesale& Retail

Inventory Funded by the AWCF-SMA:

– Secondary Army Managed Items (Excluding Class V)

– Selected Non-Army Managed Items


“Fragmented logistics and financial systems are causing inefficient inventory management, unacceptable lack of financial predictabilityand hinder our ability to logistically support

future concepts of operations.”

Extract from VCSA Decision Briefing,

18 Nov 97

The ProblemThe Problem


Right #1

Army initiative that tears down

logistics and financial

ownership barriers

and improves

logistics support

The Solution:The Solution:Single Stock FundSingle Stock Fund


Single Stock Fund DefinitionSingle Stock Fund Definition

An Army business process re-engineering initiative aimed at:

… Improving Warfighter Support: Worldwide Access to

stock; AWCF Funds ASLs

… Consolidating separate wholesale and retail elements into

a single fund

… Integrating and simplifying supply and financial processes

… Integrating logistics and financial automated information systems


The Four SSF TenetsThe Four SSF Tenets

Single Point of Sale - Linking O&M Customers to the National System

Single Credit Process- Eliminating current tiered credit systems

Integrated Requirements Determination - National visibility and decision-making

National Maintenance Management - Fixing the right stuff, right place, right standard

Tearing down ownership barriers Setting conditions for other process & organizational changes

Moving the Army towards standardization

Driving the Changes


SSF Tactical Flow Process SSF Tactical Flow Process AcronymsAcronyms

SARRS Standard Army Retail Supply System

MRF Management Review File

CCSS-Log Commodity Command Standard System-Logistics

CCSS-F Commodity Command Standard System-Finance

FTP File Transfer Protocol

ISB Installation Supply Buffer

ODS Operational Data Store

ILAP Integrated Logistics Analysis Program

STANFINS Standard Financial System

DAAS Defense Automated Address System


DAAS

CCSS(NICP)

AMI

SARSS-Gateway

SARSS-2AC/B(CMMC)

SARSS-2AD(DMMC)

SARSS-1(SSA)

ULLS(Unit)

ULLS(Unit)

SARSS-1(INSTALLATION

DOL)

SAMS(DSU)

SAMS(DSU/GSU)

ICP(DLA, GSA,

et al)

AMCISS(AMCINST)

SDS(MAINTDEPOT)

TAV

STARFIARS-MOD

STANFINS

DSS(DIST

DEPOT)RASFIARS

SOMARDS

Interfund Bill

NAMI

F02, F08, F09

Legend Financial Systems

Supply Systems

Management Reporting System (ILAP)

Management Reporting System (TAV)

Other Systems

AMCRETAIL

ARMYRETAIL

Wholesale

Shortcomings

• Multiple points of sale• Multiple levels of

ownership• Multiple levels of

financial accounting• Limited asset visibility• Redundant Inventories• Limited redistribution• Variable credit• Non standard business

practices• Sub-optimized

requirements determination

Changes

Before SSF Systems ArchitectureBefore SSF Systems Architecture

dCAS

3

2

1

4


ICP

DAAS

CCSS(NICP) AMI

& NAMI

SARSS-Gateway

SARSS-2AD(DMMC)

SARSS-1(SSA)

ULLS(Unit)

ULLS(Unit)

SARSS-1(INSTALLATION

DOL)

SAMS(DSU)

SAMS(DSU/GSU)

(DLA, GSA,et al)

AMCISS(AMCINST)

SDS(MAINTDEPOT)

TAV

ISB

STANFINS

DSS(DIST

DEPOT)

SOMARDS

Interfund Bill

F09

ILAP

ILAP

Legend

Financial Systems

Supply Systems

Management Reporting System (ILAP)

Management Reporting System (TAV)

Other Systems

ACIF

AFMIS

ACIIPS

FAS

IFS

TAMMIS

PRISM

080file

SARSS-2AC/B(CMMC)

SingleStockFund

NAMI

OSC

Middleware

RTRP

• Non-SARSS Consumer Funded

dCAS

ODS

1

2

34

SSF Systems InterconnectivitySSF Systems Interconnectivity


SSF SolutionSSF Solution

SARSS2AC/B

ISB

SARSS Gateway DAASCCSSSupply(LSSC)

SSF Middleware

CCSSFinancial(DFAS)

SARSS2AD

SARSS1

OMASARSS1

ULLS SAMS

STANFINS

UNITILAP

UNITILAPSERVER

MACOM/CORPSINSTALLATIONILAPSERVER

CORPS

DIVISION

BN/BDE

UNITI

XX

XII

XXX

dCAS

Reconciliation tools ILAP and dCAS

ODS

1

2

3


SSF Key System ChangesSSF Key System Changes

• Middleware passes SARSS transactions to ISB (not normally passed outside of SARSS)

• ISB processes SARSS Transactions

• ODS is a financial bridge from ISB to STANFINS

• ILAP is a management information tool which takes data from multiple sources, integrates the data, and allows managers to access this data for their functional needs.

• ILAP should be looked at as a data warehouse. Data is stored on all the ILAP servers and aggregated at different levels


SSF SolutionSSF Solution

SARSS2AC/B

ISB

SARSS Gateway DAASCCSSSupply(LSSC)

SSF Middleware

CCSSFinancial(DFAS)

SARSS2AD

SARSS1

OMASARSS1

ULLS SAMS

STANFINS

UNITILAP

UNITILAPSERVER

MACOM/CORPSINSTALLATIONILAPSERVER

CORPS

DIVISION

BN/BDE

UNITI

XX

XII

XXX

dCAS

Reconciliation tools ILAP and dCAS

ODS

1

2

3


Army Credit PolicyArmy Credit Policy

Complex Tiered, Credit Process

Single Process

Wholesale Credit

• NSN-by-NSN

• Changes IAW NAP

Retail Credit

• DA Alternate Credit

• Determined by RAC

AWCF-SMA Credit

• NSN-by-NSN • LOCKED Annually

– Serviceable– Unserviceable– AMI/NAMI

• AMI:– Serviceable: AMDF price - surcharge– Unserviceable: varies, based on National need

• NAMI:– General Rule:

– Serviceable: 3%– Unserviceable: 0%

– FLR on active repair program:– Serviceable: 83%– Unserviceable: 57% (historical average of unit price - loaded repair costs)

• Stable• Predictabl

e• Simple

• MACOM Retained Credit

Yesterday 1 Oct 00

Currently 104 NAMI FLRs on active repair programs


Credit UpdateCredit Update

Goal: Credit issued to the

customer within 7 days from

turn-in to the AWCF

An Average


Obligation Authority credit capitalization and cash management for AWCF-SMA will be managed by AMC

AMC will report to HQDA all financial aspects of the AWCF-SMA. CCSS financial will be the single general ledger for SSF and provide appropriate reports to Integrated Material Management Centers and HQ ALC for all AWCF operations (Retail Stocks will be de-capitalized).

Budget submission and defense will be ALC’s responsibility along with Unit Cost Goal management

Financial ManagementFinancial Management


Varying PerspectivesVarying Perspectives

• Changed Inventory Ownership

• Reduced ability to generate and migrate funds

• Changed credit flows (eliminating retail-level credits)

• National direction of General Support (GS) Repair

– Workforce associated with GS repair funded by AWCF vs O&M

– All repairs based on National need

• Changed billing procedures, billed from wholesale to O&M customer

• Modernized Army Supply System – Merged Retail and Wholesale stocks– Optimized stockage of inventory

• Integrated Requirements Determination Processes

• Offset procurements through redistribution of excess inventory Army-wide

• National Maintenance Management

• Streamlined and improved efficiency of AWCF Financial Management processes

• Elimination of redundant financial transactions - Sales and Credit

Benefits From The Army Perspective

Impacts From aField Perspective


The Army Single Stock Fund




The Army Single Stock Fund ProgramThe Army Single Stock Fund Program

AMC

DOL

RM

WarFighter

SSF - Depends on Where You AreSSF - Depends on Where You Are


The Four SSF TenetsThe Four SSF Tenets

Single Point of Sale - Linking O&M Customers to the National System

Single Credit Process- Eliminating current tiered credit systems

Integrated Requirements Determination - National visibility and decision-making

National Maintenance Management - Fixing the right stuff, right place, right standard

Tearing down ownership barriers Setting conditions for other process & organizational changes

Moving the Army towards standardization

Driving the Changes


ReviewReview

• True/False – Is the single credit process tenet meant to provide a stable, predictable and simple credit process to customers?- True

• What are the four tenents of the SSF? - Single point of sale, single credit process,

integrated requirements determination, and a national maintenance management system

• True/False – Is local maintenance management a benefit that the SSF provides the Army? - False


Terminal Learning ObjectiveTerminal Learning Objective

Action: Identify the four tenets of Single Stock Fund (SSF) and the financial systems impacted by SSF.

Condition: Without references.

Standard: Identify the four tenets of SSF and how financial transactions occur under SSF with 100% accuracy.

single stock fund slides

Business

stanfins ilap

file sarss

ilap servers

systems ods

ssa ulls unit ulls unit

financial transactions

tenets of ssf

ssf systems architecture