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AOF Support Solutions Envelope

Policy, information and guidance on the Support Solution aspects of UK MOD Defence Acquisition

version 5.12.0 - August 2010

Content

Governing Policy (GP) 3.3 – Inventory Planning

Scope

The application of Inventory Planning optimises the inventory solution through life to maximise inventory availability and equipment sustainability within available financial resources. The aim is to minimise military, operational and business financial risk over the life of a platform, equipment or commodity range.

Inventory Planning also directly supports the financial Planning Round (PR), as it communicates the project team’s justification for its inventory-financing requirement. In doing so, it is endorsed as a best practice process by DE&S D Finance.

Inventory Planning is an essential building block to all platform, equipment and commodity support solutions.

As a minimum, an embryonic Inventory Plan must be available for Support Solutions Envelope (SSE) compliance to demonstrate that the project team has planned the most efficient and effective use of resources in order to sustain military capability through life.

Where an inventory plan has already been created, the new solution is to be embedded in the plan to provide assurance of coherence and remove duplication of effort.

An embryonic or developed plan is considered best practice for SSE Key Support Area 3 (KSA 3) compliance.

The inventory scope is defined by Ranging, and the level of inventory quantified through Scaling.

The appropriate level of Inventory Analysis (including Logistics Modeling) activity determines Ranging and Scaling (R&S) [definitions available at JSP 886 GlossaryExternal link to Ministry of Defence Intranet content (Volume 1 Part 1A)] at key stages in the CADMID cycle.

Applicability

Where the inventory is held on the project team's balance sheet, an Inventory Plan is required, irrespective of whether traditional support arrangements apply, or a form of Contractor Logistics Support (CLS), Contracting for Availability (CfA) or Contracting for Capability (CfC) applies.

Where the inventory is to be held off balance sheet, an Inventory Plan mirroring the MOD internal requirement (particularly with respect to Inventory Metrics) is to be obtained from the contractor in order to underwrite platform or equipment availability.

It is vitally important for project teams to assure themselves that, prior to contractual commitment, any level of financial and operational risk within the contracting strategy is realistic, affordable and fully meets their business requirements.

Underpinning Policy

JSP 886External link to Ministry of Defence Intranet content - The Defence Logistics Support Chain Manual.

Compliance Tool – Evidence Requirements

The Evidence Requirements for this Governing Policy (GP) can be found within the SSE Compliance Tool.

The adopted Support Solution is to provide specific evidence in order to achieve compliance with the needs of this GP.

Variations from this evidence set may be possible and should be discussed with the Subject Matter Experts (SME) or the relevant Support Solutions Officer (SSO) at the earliest opportunity.

Any risks associated with this variance will be agreed with the Key Support Area (KSA) Owner’s representative and SSO for the project team to manage or mitigate.

Any costs associated with this risk mitigation may potentially fall to the project team to fund the integration of a non-compliant solution.

GP 3.3 compliance areas [27KB DOC] that may assist project teams in the provision of evidence are provided separately to this GP.

Supporting Information

JSP 886 Volume 2External link to Ministry of Defence Intranet content

JSP 886 Volume 2 Part 2 – IPT Inventory Planning has recently been re–published and comprises the five sections detailed below:

  • Section 1 – Introduction to Inventory Planning
  • Section 2 – Inventory Planning
  • Section 3 – Creation of the Inventory Plan
  • Section 4 – The Application of Inventory Analysis
  • Section 5 – Inventory Performance Reporting

For Further information on Inventory Planning, Inventory Planning Functional Competences, V&V Modelling tools visit the SCS (Inv Opt) WebsiteExternal link to Ministry of Defence Intranet content.

Sponsoring Authority

  • AD SCS (Inventory Optimisation)
  • Mil: 9439 17387
  • Civ: +44 (0) 1264 381387

Subject Matter Experts (SME)

For all aspects of this KSA the initial POC is the SIT Lead.

On completion of tailoring, the following may be contacted for specialist advice.

Title Scope Phone / Email
Inventory Planning Inventory Planning advice and guidance
Change History

Change History

Due to the significant number of changes contained within the SSE Version 5 update, ‘Change History’ will only reflect those amendments, inclusions or deletions which follow the launch of the website on 1st November 2008.

The SSE updated to Version 5.0.0 on 1st November 2008 following a full review of all documents and changes to a number of GPs. Individual document Change History pages will detail changes other than minor editorial amendments.

1 August 2010
Removal of ‘Support Solution Assurance Guidance’ paragraph.
Minor text change.
1 July 2010
Minor text changes.
1 April 2010
Text changed to reflect that support assurance policy and guidance is now incorporated into JSP 899.
1 February 2010
SME email addresses updated.
1 July 2009
Support Solution Assurance Guidance paragraph added.
SME details amended.
1 June 2009
CADMID’ hyperlink added.
1 May 2009
Minor text changes.
‘Support Improvement Team Officer’ changed to ‘Support Solutions Officer’.
IPT’ changed to ‘project team’.
SME details updated.
1 April 2009
Minor text change.
Hyperlink targets amended.
References to SCS Sp Solns replaced by SIT.
1 November 2008
Major update.