Establish a National Codification Bureau (NCB)

There is no one single way to implement a National Codification Bureau and the NATO Codification System like there are no two codification bureaus identical in organization, scope, systems and methods. This brochure collects some of the more recent experiences in developing a national codification capability. The experiences are recorded from NATO Countries assisting countries that are new to the NCS and from the countries themselves establishing the NCS.

Study and develop an understanding of the NATO Codification System (NCS)

Step 1: Familiarization

A core study team needs to establish a thorough understanding of the NCS so they may be able to articulate the basic process and champion the benefits both nationally and internationally with Defense decision-makers
A core team needs to be established to carry through the analysis, planning and implementation steps. The key personnel involved in the initial actions should be supplemented with team members having broad experience in the existing defense logistics operations (to include corporate purchasing and field level operations) as well as individuals well versed in Information Technology.
A good way to begin the process is to have a team from one of the NATO National Codification Bureaus (NCB), or through BASELOG a combined team, visit the country and provide an extensive workshop on the NCS. A sample agenda for such a workshop is shown below in part. The agenda is developed for a visit of 8 days. The agenda can be shortened or altered to meet the needs of each country. As a result, the country should be able to refine its requirements for establishing an NCB. There are various funds available in some of the NATO countries and AC/135 to fund this type of visit.

Step 2: Concept approval and national support

The use of the NCS needs to be approved "in concept" by national authorities, and support given for detailed planning
It is very important to have senior defense decision-makers support for NCS implementation. This is essential to insure you will receive the acceptance and cooperation of individual military services. Therefore, you must obtain approval of the concept and support for the detailed study phases. Appropriate "Concept Papers" or briefings, on the merits of introducing a standardized materiel management language for use by the armed forces, need to be given to obtain high-level approvals for further action. This paper should also include a forecast of anticipated cost benefits.
To assist the core team it might be useful to visit a country that operates the NATO Codification System.
The core team must study the various concepts for establishing an NCB, what coverage it should have and whether is should be centralized or decentralized. An introduction to these concepts can be found in part K.
At this point you should obtain senior command's approval to proceed with the detailed studies. You may wish to have a formal "charter" for the study developed and approved. This initial approval provides the cornerstone for subsequent political, budgetary, and legislative support, which will be necessary for subsequent implementation.

Step 3: Understanding

Develop a detailed understanding of NCS concepts, technical requirements and the options for implementation
Send a team of 2-3 to the training courses on offer in some of the NATO NCBs to learn about basic codification followed by a period of on-the-job-training. Those receiving the instruction can then instruct others in the country.
The country should as far as possible familiarize themselves with the available documentation on the NCS. Some of the NATO documentation will not be officially available until the country has obtained sponsorship by AC/135 (Allied Committee 135 - The Group of National Directors on Codification), but most of the information they need at this stage will be freely available through workshops, consultations, brochures and Internet access. See part F and G for references.
Evaluate NCS and other nation's CD-ROM and on-line codification products currently available for their usefulness.
At this point establish internet access for your team, if they don't have it already. A lot of information is already available there, and in the future a great deal related to codification will depend on it. The NATO Codification Web site provides a good overview of the NCS. That Web site also provides addresses, telephone numbers, and FAX numbers for each of the NATO NCBs.
The core team must study the various concepts for establishing an NCB, what coverage it should have and whether is should be centralized or decentralized. An introduction to these concepts can be found in part H.
At the end of this phase the core team must produce a proposal to the senior command that must include:
  • Personnel Requirements for a National Bureau
  • Computer Hardware
  • Information Systems
  • Supporting Documentation Costs
  • Training
  • Implementation Timeframe
  • Sponsorship

Determine How to Apply the NATO Codification System Nationally

Step 4: Analysis

Conduct a detailed analysis of current national codification methods, and the interfaces and uses of codification data in logistics life-cycle applications
Establish a working group to determine and document current armed forces item identification practices.
Determine the following:
  • The degree of application of existing NATO Stock Numbers (NSN) to items of supply used by the country.
  • The nature of possible NCS use in logistics applications, including requisitioning, technical manuals, warehouse markings, and so forth.
  • The transition process necessary to effectively implement the NCS throughout national logistics processes.
Carry out a macro cost benefit analysis in consultation with the national military departments. Evaluate if the costs of becoming part of the NATO Codification System (NCS) will deliver commensurate benefits.

Step 5: Guidance elaboration

Develop recommendations for national implementation. Propose these to decision makers and get approval to proceed to detailed implementation
Determine parameters for NCS implementation and stock number assignment. For example: will all repetitively ordered, stocked, stored and issued materials be assigned National Stock Numbers? Will certain weapon systems scheduled to be discontinued from inventory be exempt from codification? Will base-level local purchase consumable items, not related to a weapon system, be exempt?
Define data elements required for material management and control within the logistics operations. For example: information on how and from where to requisition the item, information on special handling or safety requirements, information on special disposal or security requirements.
Make final recommendations on codification concept and coverage.
Establish procedures for codification of new weapon systems and their parts. Establish procedures and priorities for codification and transition of existing materials.
Define how the NCS and other data will be used and distributed, in catalogs, in repair parts manuals, on CD-ROM or other media.
Formally present a costed proposal to senior command and get final approval to proceed. Including:
  • Agreement to adopt the NATO Codification System (NCS);
  • Agreement to establish a National Codification Bureau (NCB);
  • Approval to proceed to implement.

Step 6: Legal framework

Establish legal and regulatory authority and assign responsibilities
Appoint NCB Management Team and provide accommodation. Establish the legal and regulatory structure necessary to mandate use of the NCS within national forces. National legislation may be necessary to make compulsory use of codification by national forces. If an NCS based system is only used partly by national forces, the benefits that can be derived from the system may never be realized.
For non-NATO countries, consider applying for sponsorship in the NCS.
Sponsored countries need to and new NATO countries will be required to implement the Standard NATO Agreements (STANAGs) that are applicable to codification. The names of these STANAGs are listed below. The complete text of the STANAGs can be found in the AC/135 brochure on Sponsorship
  • 3150: Universal System of Supply Classification
  • 3151: Universal System of Item Identification
  • 4177: Uniform System of Data Acquisition
  • 4438: Uniform System of Dissemination of Data
Establish bilateral agreements with other NCS countries as necessary for exchange of data and acquisition of documentation and support.

Step 7: Procedures

Identify and establish procedural changes that are required
Change publications and functional diagrams in use nationally to make clear the role and requirements of codification.
Provide overview training for national forces and major national manufacturers to familiarize them with the structure and benefits of the NCS. This training will be very important to win a broad-based acceptance and understanding of the system. This training may be provided either by national representatives or with the assistance of a NATO country.

Step 8: Infrastructure planning

Determine Basic Infrastructure Development & Milestones
For smaller countries or for any country looking for an inexpensive way to begin usage of the NCS, consider participating in the BASELOG program. BASELOG was established by NATO Allied Committee 135 (AC/135) and is coordinated by the NATO Support and Procurement Agency (NSPA). Under BASELOG, NSPA or a NATO country can: provide consultation, training, and other support. Under BASELOG, countries may even perform codification processing for participating countries and help them establish a codification infrastructure. BASELOG can be a permanent setup or a temporary setup for a few years while a country establishes an independent codification capability. For more information and a complete BASELOG catalog, contact NSPA.
If a country decides to develop an independent NATO codification capability, they may wish to hire a consultant. The consultant should be experienced in operating a National Codification Bureau and have a background, which includes both system design and logistics application of item data. His or her role should be to develop a business plan for implementation of an NCS compliant codification system based on the country's specific needs and funding availability. The country may be able to obtain a consultant from another NATO NCB or hire an independent consultant. Some of the things that should be considered:
  • The plan should include data base construction and maintenance and both internal and external communications requirements, such as a possible link to the NATO Mailbox System (NMBS) system of telecommunications data exchange.
  • Of particular importance is establishing a means of distributing codification information to those within national forces who can benefit from it. The medium of distribution may be either CD-ROM or telecommunications or both and ideally will utilize existing means of distribution and communication.
  • Consider whether it will be most beneficial to develop a national codification CD or to utilize an existing product, such as the NATO Mater Cross Reference List (NMCRL). Tier 1 Sponsored countries can have their data included into this product.
  • Determine how to integrate the new data elements added from the NCS with existing data elements, which are required for operational decision-making.
  • How to insure continued flow of proper information to national logistics systems.
Based on the business plan, develop milestones, with dates, to carry out the implementation plan. The milestones should include interface testing with other NCBs and NSPA to ensure compatibility.
Develop a national codification manual that reflects the unique application and usage of the NCS based system within the country.
Evaluate the extent to which NCS codification publications need to be translated into the national language.
Establish an NCB with sufficient staffing. Initially a country may only require a small staff to carry out the planning duties specified in this paper. Eventually the country may require a larger staff to fully implement the planned function of the NCB. This could include people to write and maintain item identifications, maintain codification publications, provide technical and ADP support, provide administrative support, and provide liaison support to national forces and other players in the NCS world, such as NATO AC/135 (see "A Sample NCB Organization" below). An important element of the staffing process will be to determine the number of items in the national logistics system that will require codification. The answer to that question will lead naturally to the central staffing question: How many codifiers will the country require?
The NCB should be in a single location. Its location and the services it provides should be widely publicized throughout the national force structure. Note: A central office for codification matters is required for NATO and NCS sponsored countries. Evaluate the work to be done to provide a transition from the existing system of identification to the new NCS based system, considering the following criteria:
  • Evaluate and categorize existing items, with input from all branches of the national forces.
  • Include groupings by weapon system or end item and the country of manufacture/design control.
  • Focus on items of national manufacture for initial codification.
  • The country should identify items in its system that are manufactured in NATO countries and assigned NATO Stock Numbers (NSNs) using the NATO MCRL. The country may find that the majority of the items it uses have already been assigned NSNs and have item identification data, particularly if it utilizes systems manufactured in the U.S. or other NATO countries. For those items, they will be able to import the data from those countries' systems to its system.
The country should analyze existing processes for registration and identification of national manufacturers and develop a strategy for building a national NATO Commercial and Governmental Entity (NCAGE) code file and assign NCAGEs to national companies it procures from. Exchange of NCAGE data within the NCS is carried out by a transaction called DIC KHN. See Chapter V of ACodP-1 for details. NCAGE files are published and displayed in H4 handbooks, found in the H-SERIES CD-ROM, the NATO MCRL, and other national files.
The time frame for implementation will vary depending on the amount of money available for implementation and the number of staff members devoted to the task. Four years is probably a realistic goal. However, BASELOG can probably be implemented in one year or less.
If you aim for full participation in NCS (Tier 2 Sponsorship), develop and manage test information and codification systems in compliance with the rules defined in ACodP-1 (Allied Codification Publication no. 1).
'Sell' the codification concept to the logistics user community and other government entities through familiarization visits and training courses.
Arrange for trial transactions to be exchanged with another NCS participating system.
Produce your own country catalogue and catalogue products.

Sample NCB Organization

The structure of a National Codification Bureau will of course depend on the decisions reached on the functions to be performed by the organization.
NCB Organisation
Cataloging: This department actively applies the cataloging rules, researching, naming, classifying, and describing items of supply and assigning National Stock Numbers to them. Subject to bilateral agreements, they may interface with other NCBs on the assignment of external NSNs. After NSN assignment, it is their responsibility to maintain the cataloging records.
Cataloging Tools: The staff that translates the International Standards (to include ACodP-1, Item Classification (H2), and Item Name Directory (H6) (this makes English or French language skills a necessity for some members of this department. In addition, this department is responsible for the assignment of national NCAGEs.
Customer Liaison, Training and Publications: This department focuses on support of the using military forces with information about the items they use, provided in forms or formats which effectively satisfies their information needs. This function may include providing user training, in such subjects as the national cataloging system/NCS and in the interpretation and use of publications. These personnel help define the functional requirements leading to systems changes and product development.
Information Technology: This department will design, develop, operate and upgrade the data system, which supports the cataloging process and the interfaces with other organizations. Often this support will be provided by an external specialist organization, or by a contractor.

Develop Partnership Opportunities

Consider active participation in the NCS by requesting NATO Codification System sponsorship. Countries in the Pacific region may want to consider participation in the Pacific Area Cataloging System (PACS) Forum. Participation in these groups is necessary to keep up with the development of the NCS. Any country interested in NCS sponsorship should contact NSPA at the address below. Details about the requirements for sponsorship are included in the Sponsorship Brochure.
Among other things, sponsorship in the NCS will allow the country to participate in BASELOG and join the NATO MBS, which permits telecommunications data exchange with all NATO countries and many non-NATO countries. Also, sponsored countries are assigned a National Codification Bureau (NCB) code and a NATO Commercial and Governmental Entity (NCAGE) code identifier to distinguish their NSNs and NCAGEs from other participants in the NCS. These codes are also required for exchanging data within the NCS.
Several NCS user countries, NATO and non-NATO, have developed mature NCS-compliant automated cataloging systems, which may be available for purchase. It would be worthwhile to review each of these and the costs and benefits involved. For information contact NSPA.

Bottom Line Advice

Don't try to reinvent the wheel. Find out what other NCBs have already developed to review the possibility of adapting a system that is already developed, rather than starting from scratch. NSPA, the United States, or other NATO or NCS sponsored countries can provide advice about the possible options.
If possible, develop a PC-based system, because that would be far less expensive to develop and maintain than a system based on a mini-computer or mainframe. The increasing power of PCs and networked PCs makes this a distinct possibility. If a PC based system isn't feasible, the next option should be a mini-computer based system.
Countries will find that a system based on a mainframe will be more expensive and more difficult to change that a system residing on a mini-computer or a PC network.