CPPS Module 2 exam questions and answers

Movement The act or process of moving, a change of place or position, the physical relocation of property from one area to another. Movement Effectively tracking throughout the life cycle is on of the most challenging aspects. Movement Record location must be updated following the movement of an asset and the documentation retained in the property record. Off-Site Property control policies and procedures must be specific regarding the conditions under which use is authorized, what responsibility the asset user assumes by taking an asset, and any use limitations that are placed on the equipment. Off-site location must be reflected in the property records. Off-Site Property must be returned within one week unless an extended time period is specifically approved; at the time of the organization wide inventory, all property must be returned to its authorized location so that it can be accounted for by physical inventory; subject to recall at any time Property Movement Documents Transfer and Accountability Form, Hand Receipt, Equipment Log-Out Form, Electronic or Automated Property Pass Systems Shipping 1)Movement from one geographical are to another 2) originator responsible for packaging, packing, preservation, and marking of any shipment 3) Property Manager responsible for determining applicability of applicable laws 4) shipping documents must accompany the shipment 5) laws may apply to hazardous materials 6) system of receipt notification is established to ensure completed shipments 7) responsibility rests with the shipper (unless legally indicated otherwise) 8) shipments made via licensed Interstate Commerce Commission (IIC) burden of liability is places with carrier Maintenance The act of maintaining to keep in an existing state or preserve from failure of decline, something that maintains, the upkeep of property or equipment. Property Management While not responsible for the maintenance of equipment, must ensure that all compliance requirements are met from a property perspective. Maintenance Plan Systematic regularly scheduled inspection and service for recall. Maintenance Plan Application of (usually color-coded) labels or paint dots that indicate the equipment's service status. Should include equipment identification, service date, next service date. Calibration The act of checking or adjusting, by comparison with a standard, the accuracy of a measuring instrument. Audit of Maintenance Process Quality Assurance should be responsible for reviewing the entire process of maintenance and calibration. Physical Inventory The determination of inventory quantity by actual count; physical inventories can be taken on continuous, periodic, or annual basis. Inventory Essential process for which the Property Manager is responsible. Role of the Physical Inventory To ensure the assets recorded in the property system physically exist, to determine if unrecorded or improperly recorded transactions have occurred, and to identify any excess, defective, or obsolete assets on hand. Inventory Frequency If not set by outside agency, Property Manager should determine; considerations include asset value, degree of sensitivity, facilities security, and pilferability. Costly, should only be conducted as often as required. Inventory by Exception Continuous inventory allows ordinary business operations to count inventory touches, at cycle end report run to find assets not touched within the cycle, only those items have to be inventoried. Reconciliation Most important part of inventory. Utilization The making use of; documented use of an asset in the business process; act or practice of employing something; legal enjoyment of property that consists in its employment, occupation, exercise or practice Primary Objective of Utilization Management Program 1) Maximize the use of an asset throughout its useful life 2) Make available for re-utilization in a timely manner should it become idle Utilization Program 1) ensures that assets are used foe the purpose for which they were acquired 2) authorizes and tracks utilization for any different purpose 3) Maximizes the degree of use of each asset 4) Identifies when an asset is idle and available for shared use or transfer 5) Communicates that information to all potential users 6) Facilitates any necessary relocation 7) Periodically reviews and assesses the utilization of each asset Reutilization Objectives 1) Reduce or eliminate unnecessary expenditures for duplicate assets 2) reduce costs in the area of storage, security, and physical inventory 3) Reduce the risk of unauthorized utilization 4) Stimulate the identification and prompt reporting of excess 5) Transfer excess to fill authorized program requirements Consumption The process of incorporating material into an end item or otherwise using it in the performance of a documented business objective; the measurement of the actual use of consumable item against planned use. Solid Basis of Consumption Program 1) Identifying requirements 2) Reviewing and adjusting requirements 3) Providing accurate data to management