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MMOG/LE: Tips for Satisfying the OEM Requirement
Terry Onica, Director, Automotive, QADDave Doyle, Solutions Consultant, QAD
QAD Explore 2012
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The following is intended to outline QAD’s general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, functional capabilities, and should not be relied upon in making purchasing decisions. The development, release, and timing of any features or functional capabilities described for QAD’s products remains at the sole discretion of QAD.
Safe Harbor Statement
MMOG/LE: Tips for Satisfying the OEM Requirement
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• MMOG/LE overview
• Answering the assessment
• Assessment pitfalls• QAD support• Summary
Presentation Agenda
MMOG/LE: Tips for Satisfying the OEM Requirement
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• QAD’s manufacturing solution supports the Effective Enterprise by:- Meeting industry best practice processes- Satisfying customer requirements- Delivering products/services to address
MMOG/LE compliance
Session Overview
MMOG/LE: Tips for Satisfying the OEM Requirement
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MMOG/LE Overview
MMOG/LE: Tips for Satisfying the OEM Requirement
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• Materials• Management • Operations• Guideline• Logistic • Evaluation
What is MMOG/LE?
MMOG/LE: Tips for Satisfying the OEM Requirement
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• Assessment tool to evaluate/select suppliers according to:−Supply chain capabilities−Industry best practices
• Provides plant score (e.g., A, B or C)
What is MMOG/LE?
MMOG/LE: Tips for Satisfying the OEM Requirement
MMOG/LE = DeliveryISO = Quality
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• Excel spreadsheet with:−Six chapters− 206 criteria−Answer responses: Yes, No, N/A
What is MMOG/LE?
MMOG/LE: Tips for Satisfying the OEM Requirement
3.1 Product Realization X
3.1.1 The MP&L function shall formally participate in, and sign off, the Product Realization process.
Why?
The material organization is involved in each stage (e.g., quoting, engineering) of the Product Realization process to ensure supply chain issues are addressed and parts are available for all phases of production (e.g. prototypes, preproduction, production).
Criterion:
1) F3 ü
The MP&L function shall participate in the Product Realization process to ensure all material planning and logistics requirements are addressed and all changes which affect the supply process are planned, executed and communicated in a synchronized manner (e.g. bill of material (BOM), routings, effectivity dates, supplier notification, scheduling, shipping). Back-up plans shall be in place to ensure continuity of supply.
The engineering change process is outline in WMM- 3111. Engineering Change meetings are held weekly. The materials manager is involved in the meeting. See WMM-3111 for an example of the meeting minutes and invited participants as well as what is included in the organization's engineering change checklist.
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A B C Classification Definition
MMOG/LE: Tips for Satisfying the OEM Requirement
Classification F3 F2 F1 Score
ABest practice Compliance
to ALL
Non-compliance to
< 6No limit > 90%
BUnstable or inconsistent processes
Compliance to ALL
Non-compliance to
6-12No limit 75-89%
CDeficient in key
critical areas
Not compliant to
ANY
Non-compliance to
> 13No limit < 75%
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• Developed by:- AIAG- Odette- Automotive OEMs & Tier 1 Suppliers
• Contributions from QAD:- Member & author- Leader of work group efforts- Lead speaker at worldwide events- Trainer - Provider of software that meets requirements
MMOG/LE Authors
MMOG/LE: Tips for Satisfying the OEM Requirement
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1 2 3 4 5 6
Areas Covered in MMOG/LE
MMOG/LE: Tips for Satisfying the OEM Requirement
OEMs Using Tier 1 Using Tier 1 Using (cont)Chrysler Autoliv SNOP
CNH – Latin America Benteler Valeo
Ford Beru Woco
GM Bosch ZFIveco Brose
Jaguar/Land Rover Continental
PSA Gates
Renault Johnson Controls Under ReviewTofas Fiat (Turkey) Lear BMW
Volvo Car MGI Coutier Daimler
Volvo Truck Pierburg Honda NA
VW (US Pilot Selzer Automotive VW
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MMOG/LE Customer Usage With Suppliers
MMOG/LE: Tips for Satisfying the OEM Requirement
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Answer the Assessment
MMOG/LE: Tips for Satisfying the OEM Requirement
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Let’s Take a Look at a Set of Criteria
MMOG/LE: Tips for Satisfying the OEM Requirement
1) F3
Comparison of resources versus customer requirements shall be reviewed upon receipt of forecast requirements (e.g. 830/DELFOR/planning release), comparing every week of the forecast sent by customers. Capacity planning volumes negotiated with the customer shall also be incorporated in the capacity planning process.
2) F3
Resources versus customer requirements shall be reviewed upon receipt of shipping requirements (e.g. 862/DELJIT/ shipping schedules, 866/DELJIT/sequenced shipping schedules), comparing daily ship requirement sent by customers.
3) F3There shall be a process in place to notify customers of any significant resource limitations in meeting the requirements.
Criteria for 3.2.1 Capacity and Resources
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• What Role or Title would you interview?• What questions would you ask to determine
compliance?• What objective evidence would you expect to
see?
How Would You Respond to the Criteria?
MMOG/LE: Tips for Satisfying the OEM Requirement
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• What role or title would you interview?
How Would You Respond to the Criteria?
MMOG/LE: Tips for Satisfying the OEM Requirement
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• What role or title would you interview?─ Top management ─ Supply chain─ Purchasing─ Production─ Engineering─ Human resources─ Quality─ It─ Sales─ Others, as required
How Would You Respond to the Criteria?
MMOG/LE: Tips for Satisfying the OEM Requirement
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• What questions would you ask to determine compliance?
How Would You Respond to the Criteria?
MMOG/LE: Tips for Satisfying the OEM Requirement
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• What questions would you ask to determine compliance?- How is capacity negotiated with the customer?- How are resources versus customer EDI analyzed?- Does analysis include all areas of the business?- Does analysis include production, prototype,
preproduction and after sales?- How often is capacity reviewed and when?- Are contingency plans in place for capacity constraints?- Are resources for administrative and containers
included?
How Would You Respond to the Criteria?
MMOG/LE: Tips for Satisfying the OEM Requirement
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• What objective evidence would you expect to see?
How Would You Respond to the Criteria?
MMOG/LE: Tips for Satisfying the OEM Requirement
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• What objective evidence would you expect to see?- Work instructions including how capacity is negotiated,
how customer EDI is integrated- Reports from QAD that shows anything out-of-tolerance- How the customer is alerted of significant resource
limitations- Comparative report
• Current release, shipping, 2-5 year trend
- Meeting minutes including action items- Training- Job descriptions
How Would You Respond to the Criteria?
MMOG/LE: Tips for Satisfying the OEM Requirement
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• Would the OEM consider your ‘yes’ to be a yes?- Rate your answer on a 1 – 10 scale
• Would a 6 still be a yes? Would a 4?• Better way to see gaps• Justify projects with ‘points’ that can be improved
Improve Your “Yes”
MMOG/LE: Tips for Satisfying the OEM Requirement
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• .Net UI- Process maps and work instructions- Browses- Operational Metrics- Alerts
• Rough cut capacity planning• CRP reports• MRP Exceptions• MSW/PSW• BI
Leverage QAD to Improve Your Answer
MMOG/LE: Tips for Satisfying the OEM Requirement
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QAD Has Responses for All 206 Criteria
MMOG/LE: Tips for Satisfying the OEM Requirement
QAD answer
Probing/evidencequestions
Location on Process Map
MMOG/LEcriteria
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Assessment Pitfalls
MMOG/LE: Tips for Satisfying the OEM Requirement
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• Who is leading the assessment?• Is the right person answering the
question?• Are you thoroughly documenting your
responses?• Have you documented customer specifics?• Are your work instructions detailed
enough?
Assessment Pitfalls
MMOG/LE: Tips for Satisfying the OEM Requirement
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• ISO/TS 16949, is a technical specification for quality management
• MMOG/LE is similar, but focuses on supply chain processes.
• MMOG/LE has adopted the same process approach as ISO/TS 16949
• Example: Scrap process
Who is Leading the Assessment?
MMOG/LE: Tips for Satisfying the OEM Requirement
Quality
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• Process owners, including management
• All facilities and shifts
• Areas with vital involvement in the assessment process include:
─ Top management ─ Supply chain─ Corporate delivery champion─ Purchasing─ Production─ Engineering─ Program manager─ Human resources─ Quality─ IT─ Logistics─ Sales
Is the Right Person Answering the Question?
MMOG/LE: Tips for Satisfying the OEM Requirement
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• Where will you find customer specifics?• Customer training
• Global terms and conditions
• Materials planning and logistics agreements
• Supplier manuals
• Customer web sites and applications
− EDI portals
− Delivery rating
− Capacity
− Packaging and labeling
− Container management
Have You Documented Customer Specifics?
MMOG/LE: Tips for Satisfying the OEM Requirement
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Are Your Work Instructions Detailed Enough?
MMOG/LE: Tips for Satisfying the OEM Requirement
• Used for training and back-ups• Instructions should Include:
− Step by step instructions− Person(s) responsible− Customer specifics − Customer references− Metrics − Error handling− Contingencies− Document version control− Last date tested− Explanation of any acronyms− Obtaining user logins
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Are You Thoroughly Documenting Responses?
MMOG/LE: Tips for Satisfying the OEM Requirement
Comments boxbest practices
•Evidence− Comments− Work
instructions− Non
applicable− Annual review− Customer
specifics
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• Review critical questions & top criteria• Review processes, procedures & work
instructions • Present findings to management
MMOG/LE Q-Scan
MMOG/LE: Tips for Satisfying the OEM Requirement
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Summary
MMOG/LE: Tips for Satisfying the OEM Requirement
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• Process Maps and Work Instructions• QAD MMOG/LE Answer Sheet• White Paper• Solutions Brochure• MMOG/LE Q-Scan• www.qad.com/mmogle• AIAG/Odette MMOG/LE Level 1 Training
- Register at www.aiag.org or www.odette.org
QAD Support
MMOG/LE: Tips for Satisfying the OEM Requirement
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• What is MMOG/LE• OEM expectations for MMOG/LE
submissions• Answering the assessment
- Are you really compliant?- Ability “to do” versus “discipline doing”
• Common pitfalls• How QAD can help
Summary
MMOG/LE: Tips for Satisfying the OEM Requirement
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Terry Onica Director, Automotive, QADtjo@qad.com
Dave Doyle Solutions Consultant, QADdfd@qad.com
Questions & Answers
MMOG/LE: Tips for Satisfying the OEM Requirement
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