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Enabling Industry Benchmarks For Materials Management

Enabling Industry Benchmarks For Materials Management. Dave Doyle, QAD Terry Onica, QAD Sandy Galloway, Akebono. What is the Global MMOG/LE?. (Materials Management Operations /Logistics Evaluation). The recommended industry standard for materials processes developed by AIAG and Odette.

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Enabling Industry Benchmarks For Materials Management

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  1. Enabling Industry Benchmarks For Materials Management Dave Doyle, QAD Terry Onica, QAD Sandy Galloway, Akebono

  2. What is the Global MMOG/LE? (Materials Management Operations /Logistics Evaluation) The recommended industry standard for materials processes developed by AIAG and Odette Self-assessment (six chapters and 206 criteria) to identify gaps between internal processes and industry benchmark Weighted score sheet helps to prioritize improvement efforts

  3. Who Developed the MMOG/LE? • Ford • DaimlerChrysler • American Axle • Gates Corp. • JCI • GM • Robert Bosch • PSA • Renault • Volvo Cars • Volvo Trucks • SMMT Industry Forum

  4. What is the Purpose of the Global MMOG/LE? • Two ways to use this tool • Internally • Assess current processes • Drive continuous improvement • ISO/TS-16949 Compatible • Externally • Supplier development

  5. What the MMOG/LE Looks Like

  6. Road Map for Improvement Gap Analysis

  7. MMOG/LE Self Evaluation Categories Cross Functional Team Needed • Strategy and Improvement • Work Organization • Production and Capacity Planning • Customer Interface • Production and Product Control • Supplier Relationship

  8. Why Take the Self Assessment? • Benchmark your materials management practices in any industry • Don’t start from a blank sheet of paper • Meet customers requirement for approved suppliers • Secure your place • Target list for improvements (Gap/Gains)

  9. Why Take the Self Assessment? • Use as a guideline in emerging global markets for materials management • China, India, Turkey, etc. • Further implement lean manufacturing practices • Reduce manufacturing costs

  10. MMOG/LE Implementations OEMs Suppliers

  11. Let’s Take A Closer Look at the MMOG/LE . . .

  12. MMOG/LE Assessment Points • Objectives 1.2.1 • Defined, communicated and understood within the organization • Measurable and consistent with the organization's materials planning and Logistics strategy • Key Performance Indicators (KPIs) 1.2.2 • Delivery performance to customer • Supplier delivery performance • Premium freight • Packaging MMOG/LE

  13. MMOG/LE Assessment Points • Continuous Improvement 1.4 • Employee involvement through an active suggestion program • Organizational Processes 2.1 • Documented procedures for all interface aspects • Customer, Internal, supplier MMOG/LE

  14. MMOG/LE Assessment Points • Work Environment & HR 2.4 • All applicable safety and environmental regulations (including respective certification) have been identified and met • Defined job descriptions/skills matrices, key tasks have employee backups • Current competence level for each employee and function • Training objectives are clearly defined • Individual training and development plans exist MMOG/LE

  15. MMOG/LE Assessment Points • Resource Planning 2.3 • Flexibility and availability are optimized • Contingency plans exist to avoid disruptions • Capacity Planning 3.2 • Compare resources against long, medium, short-term requirements • PAP requirements are prioritized within scheduling system • Minimize obsolescence of Raw Material, WIP and Finished Goods MMOG/LE

  16. MMOG/LE Assessment Points • Product Realization 3.1 • Participate in, and sign off on, the Product Realization process • Communication 4.1 • A contact list exists • Electronically Communicated • 830/DELFOR/Planning Releases • 862/DELJIT/Shipping Releases MMOG/LE

  17. MMOG/LE Assessment Points • Packaging & Labeling 4.2 • Packaging development/specification is agreed and documented • Periodically audits shipments • Returnable/non-returnable containers need to be available • Shipping 4.3 • Verify the data accuracy • Contents of shipping labels • Content of all ASN's • Documentation and labeling is correct MMOG/LE

  18. MMOG/LE Assessment Points • Transportation 4.4 • FIFO • Shipping Performance • Material Identification 5.1 • Segregate good/bad material • Label, Label, Label • Inventory 5.2 • Controlled Locations • Count Accuracy • Product Structures are Accurate MMOG/LE

  19. MMOG/LE Assessment Points • Engineering Change Control 5.3 • Formal Sign off • Past Models/Inactive Parts • Supplier Communication 6.3 • Electronic Communication • In-Transit Visibility • Supplier Packaging 6.4 • Label, Label, Label • Returnable Control MMOG/LE

  20. MMOG/LE Assessment Points • Transportation 6.5 • In-Transit Visibility • Material Receipt 6.6 • Dock Utilization • Supplier Assessment 6.7 • Supplier Performance MMOG/LE

  21. QAD Takes the MMOG Self-Assessment

  22. What We Did We compared our product solutions to each area of the MMOG/LE and did our own self-assessment at eB2

  23. QAD Products that Support the MMOG/LE Self-Assessment • Supplier Visualization (SV) • Two way Electronic Communication • Suppliers • Sub Contractors • Early Warning, Fast Response • ASNs • In-Transit visibility

  24. QAD Products that Support the MMOG/LE Self-Assessment • EDI ECommerce • Automatically integrated with ERP • Inbound to planning • Outbound shipping to ASN • Electronic Communication • International Standards • Planning, Shipping, & Sequenced Demand • ASN Documents • With Suppliers

  25. QAD Products that Support the MMOG/LE Self-Assessment • ProPlus • Shipping Performance • Record, Monitor, Corrective Action • Supplier Performance • Record, Monitor, Corrective Action • WIP Lot Trace • History, Detail Lot Tracking • Container & Line Charges • Container, Packaging & Alternates • Premium Charges - Control

  26. QAD Products that Support the MMOG/LE Self-Assessment • Project Realization (PRM) • Part Approval Process • Prototypes • Training Plans • Advanced Inventory Management (AIM) • Designated Storage Locations • Inventory Visibility • Lean Manufacturing • Pull systems • Customer Safety Stock/Buffers

  27. QAD Products that Support the MMOG/LE Self-Assessment • Product Change Control (PCC) • Formal Review Process • Desktop2 User Interface • Browse document links • Contact data • Procedural documents • Process Flows • Procedures

  28. QAD Products that Support the MMOG/LE Self-Assessment • Business Intelligence • Ongoing reporting • Management dashboard • KPI tracking and visibility • Service Support Management (SSM) • Customer incident tracking • RMA/RTV management • Employee skills database

  29. QAD Products that Support the MMOG/LE Self-Assessment • MFG/PRO eB2 • Consignment Inventory • Logistics Accounting • Strategic Partners • Data Collection & Bar Code Printing • EDI Connectivity

  30. How Can We Help You with Top MMOG/LE Non-conformances? • Bar code labels are inaccurate • QAD Bar Code Partner • Inability to communicate requirements electronically throughout the supply chain • EDI ECommerce, SV, Supplier Connect Services • Lack of control of Work-In-Process • WIP Lot Traceability • Lack of control of First In/First Out (FIFO) • Standard Picking logic setting in MFG/PRO Inventory

  31. How Can We Help You with Top MMOG/LE Non-Conformances? • Identify customer shipping discrepancies • EDI ECommerce • ASN data is not generated automatically • EDI ECommerce and Bar Code Partner • Responding to unexpected changes in demand • EDI ECommerce and MFG/PRO Customer Schedules • Inadequate storage location labeling • AIM, Bar Code Partner 9. Behind schedule checks are not automatic • EDI ECommerce MFG/PRO Customer Schedules

  32. QAD Assistance for Taking the MMOG/LE Self-Assessment • MMOG/LE discovery session • Where are you in the MMOG/LE continuous improvement journey? • Detailed MMOG/LE self-assessment review • Targeted functional interviews • Perform Gap/Gain analysis • Report highlighting the required improvements • Recommendations

  33. Why Would You Need Assistance? • First Timers • New business with NA automakers • Ford, DCX • New business with European automakers • Renault, Volvo, PSA • New business with Tier 1 Suppliers • JCI, American Axle, Gates Rubber • Benchmark your materials processes

  34. Why Would You Need Assistance? • Reassessers • 3rd Party to validate responses • Improve self-assessment score • Eliminate manual processes • Understand how our product suite can help • eB2 upgrade justifications

  35. QAD MMOG/LE Self-Assessment Summary • Total questions 206 • Covered by Base MFG/PRO 103 and additional modules • Covered by QAD partner products 70 • i.e. Bar Coding, EDI, etc. • Does not apply to QAD products 33 • i.e. HR policies QAD Product Suite to Support MMOG/LE is available for customers and prospects

  36. Implementation Success Stories • Japanese-owned company • Brakes & Brake Products • Tier 1, Tier 2 and Aftermarket Automotive • Goal: • Bullet-proof ERP and associated software products (i.e. bar coding and EDI) integrated with business practices to meet MMOG/LE • Approach: • Partner with ERP • Mistake proof • Apply lean manufacturing techniques • Results: • Existing Systems • Proactive vs. Reactive • Better discipline

  37. AIAG Support of MMOG/LE • Additional documents • FAQs • Web site www.aiag.org • Email mmog@aiag.org • Training

  38. Questions? For an electronic copy of MMOG/LE contact www.aiag.org or contact Morris Brown (mbrown@aiag.org) QAD’s contact for MMOG/LE is Terry Onica (tjo@qad.com) QAD’s contact for MMOG/LE Consulting Assistance is Rick Sager (rgs@qad.com)

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