MMOG/LE: Tips for Satisfying the OEM Requirement Terry Onica, Director, Automotive, QAD Dave Doyle, Solutions Consultant, QAD QAD Explore 2012

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


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• MMOG/LE overview

• Answering the assessment

• Assessment pitfalls• QAD support• Summary

Presentation Agenda


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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


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MMOG/LE Overview


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• Materials• Management • Operations• Guideline• Logistic • Evaluation

What is MMOG/LE?


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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 = DeliveryISO = Quality

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• Excel spreadsheet with:−Six chapters− 206 criteria−Answer responses: Yes, No, N/A

What is MMOG/LE?


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


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


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1 2 3 4 5 6

Areas Covered in MMOG/LE


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


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Answer the Assessment


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Let’s Take a Look at a Set of Criteria


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?


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• What role or title would you interview?



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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



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• What questions would you ask to determine compliance?



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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?



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• What objective evidence would you expect to see?



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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



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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”


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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


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QAD Has Responses for All 206 Criteria


QAD answer

Probing/evidencequestions

Location on Process Map

MMOG/LEcriteria

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Assessment Pitfalls


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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


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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?


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?


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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?


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Are Your Work Instructions Detailed Enough?


• 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?


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


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Summary


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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


http://www.aiag.org/

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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


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Terry Onica Director, Automotive, [email protected]

Dave Doyle Solutions Consultant, [email protected]

Questions & Answers


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www.qad.com© QAD Inc 2012

http://www.qad.com/

Documents

MMOG/LE: Tips for Satisfying the OEM Requirement Terry Onica, Director, Automotive, QAD Dave Doyle, Solutions Consultant, QAD QAD Explore 2012