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					                         MMOG (ODETTE / AIAG Logistic Evaluation) - Introduction

         Foreword
         Materials Planning & Logistics is the process of planning, implementing and
         controlling the efficient, effective flow and storage of goods, services and related
         information from point of origin to point of consumption for the purpose of
         conforming to customer requirements.

         This guideline has been prepared to assist organizations in developing and
         implementing a world class Materials Planning & Logistics Management system.

         The document is the result of a collaborative effort between work groups within
         Odette International Limited and the Automotive Industry Action Group to develop a
         material planning and logistics (MP&L) evaluation that can be used globally. The
         basis of the workgroups effort was the Odette Logistics Evaluation (OLE) and the
         AIAG‟s Materials Management Operations Guideline (MMOG).

         Widely used in Europe, the Odette Logistics Evaluation Document was published in
         1999 to provide a common assessment tool that could be used within industry to
         evaluate material planning and logistics systems. The Odette Logistics Evaluation
         has been applied to both automotive and non-automotive industries. It was
         developed for the automotive industry but can also provide improvement for
         organizations where ISO/TS are used.

         Prior to 1999 suppliers were subjected to multiple supplier development programs.
         In response the AIAG formed a work group with the following mission:
             To establish a guideline that defines the elements of a robust materials system
         to manage the flow of productive materials and information for the North American
         automotive industry.

          Establish common terminology that can be used throughout the supply chain.
         The result of their effort was the introduction of the MMOG in July 1999.

         This document represents first of all, a material planning & logistics audit aligned
         with ISO/TS. It can be used additionally for benchmarking studies with internal and
         external partners to identify excellent processes.

         It is therefore a high performing tool for continuous improvements for all materials
         planning and logistics processes within an organization.
         This document provides recommended business practices for the material planning
         and logistics process within the user‟s facility and is intended to establish a common
         definition of materials practices to facilitate effective communication between trading
         partners.

         Automotive OEM‟s and suppliers can utilize this document for two purposes:
          Internal assessments
          Assess current processes
          Benchmark current state/ best practices
          Drive continuous improvement
          Supplier development
          Evaluate supplier performance
          Improve supplier performance
         Throughout this document, “shall” indicates a situation where adherence to the
         criteria is mandatory to the materials management function. Non-compliance to any
         "shall" statement will result in a "C" level on the self-assessment rating.




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                         MMOG (ODETTE / AIAG Logistic Evaluation) - Introduction

         Introduction
         1 What this document is about

         Customer demands for shorter lead times and reliable delivery has created a need for
         fast, flexible and instant flow of information and products throughout all tiers of the
         supply chain.
         Business logistics plays an increasingly significant role in the competitive
         environment and only through continuous improvement can we ensure lower costs
         and increased customer satisfaction.

         To ensure customer expectations are met and to drive continuous improvement it is
         essential that material planning and logistics processes are controlled and monitored
         The purpose of this Evaluation Document is to produce one common material
         planning and logistics evaluation that can be used by both supplier and customer
         throughout the product life cycle, including the early development phases. This
         Document can be used by every partner in the supply chain as a self-assessment, or
         can be used between business partners as an audit tool. This document provides a
         comprehensive assessment of material planning and logistics performance and
         capability.


         2 Objectives

         The document aims to achieve the following objectives:
          Produce a common material planning and logistics evaluation that can be used
         by all business partners both internal and external.
          Enable material planning and logistics continuous improvement plans to be
         developed and prioritized, thus enabling time to be spent on those activities that
         offer greatest benefit
          Establish the components of a material planning and logistics system for
         suppliers of goods and services within the automotive industry.
          Internal to the organization
          External as a supplier development tool
          Prepare basis for benchmarking activities and to identify „Best Practice Criteria‟
         of materials planning and logistics processes for driving continuous improvement
         plans.




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                         MMOG (ODETTE / AIAG Logistic Evaluation) - Introduction

         3 Explanation of the Evaluation Document

         The Document has been divided into six chapters:
         By working through the questions in each of these chapters it is possible for
         companies to assess their material planning and logistics performance and gain
         guidance towards “Best Practice” within the industry. The aim is an easy to use
         document for all partners within the supply chain.

         All of the chapters in the document should be completed in order to gain a
         comprehensive material planning and logistics capability evaluation score.
         Chapters one & two deal with the overall structure of the material planning and
         logistics within the organization. Chapters three through six focus on specific areas
         of material planning and logistics.

         CHAPTER ONE - STRATEGY AND IMPROVEMENT
          Strategy
          Objectives
          Measurement
          Analysis
          Action Plans & Continuous Improvement
          Relationships

         CHAPTER TWO - WORK ORGANIZATION
          Processes
          Organizational Procedures
          Resource Planning
          Work Environment & Human Resources


         CHAPTER THREE – CAPACITY & PRODUCTION PLANNING
          Product Realization
          Capacity Planning
          Production Planning
          Systems Integration

         CHAPTER FOUR – CUSTOMER INTERFACE
          Communication
          Packaging
          Shipping
          Transportation
          Customer Satisfaction & Feedback

         CHAPTER FIVE – PRODUCTION & PRODUCT CONTROL
          Material Identification
          Inventory
          Engineering Change Control
          Traceability

         CHAPTER SIX – SUPPLIER INTERFACE
          Selection
          Logistics Agreements
          Supplier Assessment
          Communication
          Packaging
          Transportation
          Goods Receiving




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                         MMOG (ODETTE / AIAG Logistic Evaluation) - Introduction


         4 SCORING/WEIGHTING

         A-Level
                                 Definition: The supplier far surpasses minimum standards in
                                 every aspect and can be considered at or near "world class"
                                 standards.
                                 Deployment from evaluation: A-Level is achieved if 90% or
                                 higher is obtained overall. Non-compliance to less than 6 F2-
                                 questions and compliance to all F3-questions will result in
                                 Level A.
         B-Level

                               Definition: The supplier is deficient in two or more aspects of a
                               given category or multiple categories. An action plan should be
                               in place, and the corrective action SHOULD NOT require a
                               significant amount of time (3 months or more) to implement.

                               Deployment from evaluation: B-Level is achieved if 75% <
                               90% is obtained overall. Non-compliance to 6 to 12 F2
                               questions and compliance to all F3-questions will result in
                               Level B.
         C-Level
                               Definition: The supplier is deficient in one or more critical/high-
                               impact aspects of a given category. Action plans are required
                               to ensured deficiencies do not result in serious or prolonged
                               issues to the customer.


                               Deployment from evaluation: Non compliance to ANY F3
                               question will result in the overall status to be no higher than
                               Level C or less than 75% obtained overall. Non-compliance to
                               13 or more F2 questions overall will result in Level C.

         Explanation of Evaluation Results Sheet

         Although every question in the document is of great importance to develop material
         planning and logistics performance, a weighted scoring system has been designed to
         identify areas, which should be given a higher priority. This will allow focus on the
         urgent issues to avoid the risk of not meeting business partners‟ requirements.

         Three levels of focus have been defined and weighted as follows:

         F3 If requirements are not met, there is a high risk of interruption to customer
         operations with additional costs to be incurred in the short term.

         F2 If requirements are not met, customer satisfaction and the organization‟s
         performance will be seriously affected.
         F1 If requirements are not met, the organization‟s competitiveness will be adversely
         affected.

         The weightings are an aid to prioritizing continuous improvement activity only and do
         NOT necessarily signify importance of the area in question.




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                           MMOG (ODETTE / AIAG Logistic Evaluation) - Introduction

         5 The Evaluation Process

           Define the assessment type
         Internal self-assessment or external verified assessment by customer or a third
         party?

           What resources are needed?
         The total time required will vary depending on the size and complexity of the
         company. In addition, sufficient time and resources should be allowed to prepare and
         implement the actions. The activity should be co-ordinated and supervised by one
         person, and the recommended people/departments who will be required to be
         involved in the process will include, but not be limited to:
             Material planning and logistics Manager
             Purchasing/Procurement Manager
             Production Managers
             Administration Personnel
             Engineering Manager
             Distribution Manager
             Quality Assurance Manager
             IT/IS staff
             + key operational personnel
         You may also need input from suppliers, customers and service providers.

           Preparation
         1. Read through the document carefully
         2. Discuss with other people involved, gain commitment
         3. Establish preliminary time frame
         4. Collect data & information
         5. In the scoring sheet/spreadsheet indicate whether the criteria has been met.
         6. Document Data
         7. For each question it is necessary to include any supporting documentation e.g.
         flow charts, organization charts

           Complete Evaluation
         In order to automatically populate the Scoring Sheet and Gap Analysis, the results of
         each question are recorded with an “X” in the box in column “D” into the Self
         Assessment portion of the Excel spreadsheet.

          Analyze the data
         Analysis of the self assessment and weighting criteria will give a clear indication of
         priorities for improvement activities.

             Develop an Action Plan

         An action plan is required for all criteria not fulfilled. All criteria not fulfilled will be
         automatically populated onto the gap analysis portion of the Excel spreadsheet.

          Action plan provides the basis for continuous improvement
         Sufficient resources must be allocated to prepare and implement the action plans.
         Recommended review period for action plan is quarterly, at a minimum, until all
         action items are resolved and closed.

          Review at agreed intervals
         Recommended review period for the self-assessment is once/year, at a minimum.




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                                MMOG (ODETTE / AIAG Logistic Evaluation) - Self-Assessment


                                 Global Logistic Evaluation
                                       (based on Odette GLE customized by WABCO)

                     Each question is multiplied by a weight factor:

                     F1 = Low (1 point each)

                     F2 = Medium (2 points each plus an additional 5% each per non-compliance)

                     F3 = High (3 points each; any non-compliance will result in overall evaluation to be

                     Level C due to critical competency factor)



                                Enter "X" in each check box if process is effectively implemented at your facility                      Questions

                                                                                                                                    F3 F2 F1 Total

                     1. STRATEGY AND IMPROVEMENT                                                                                    5   21   9   35



                     1.1 Vision and Strategy
                     The organization has a strategy that ensures the materials planning and Logistics vision is
     1.1.1
                     achieved.
                     For the materials planning and logistics process to be efficient and effective, it needs to be
     Why?
                     acknowledged as an important part of the operation and receive adequate resources.
                     Good knowledge of long-term strategy is a condition for employees to work consistently and be pro-
                     active.
     Criteria:

1)       F2          A documented vision exists for the materials planning and Logistics function.



2)       F2          A documented strategy exists with activities for implementing the materials planning and Logistics vision.

                     The materials planning and Logistics vision and strategy is linked to the organization's overall objectives,
3)       F2
                     including customer requirements and continuous improvement.

                     The materials planning and Logistics vision and strategy is communicated and understood within the
4)       F2
                     organization.


                     Additional comments supporting the organization's current state - "Where are you with respect to
                     this element?"



                     1.2 Objectives
                     Objectives relative to the materials planning and Logistics function are defined, communicated
     1.2.1
                     and understood within the organization.
                     Objectives allow departments and employees to focus on areas of importance to achieve customer
     Why?
                     satisfaction and the organization's materials planning and Logistics strategy.
     Criteria:
                     All objectives are measurable and consistent with the organization's materials planning and Logistics
1)       F2
                     strategy.

2)       F2          Objectives are accepted by all relevant functions and are clearly cascaded throughout the organization.


3)       F2          Objectives are reviewed with senior management at planned intervals.


                     Additional comments supporting the organization's current state - "Where are you with respect to
                     this element?"

                     Key Performance Indicators (KPIs) shall cover objectives for all areas of the materials planning
     1.2.2
                     and Logistics process.
     Why?            KPIs are used to identify the organization's current performance and areas for improvement.

     Criteria:       Minimum requirement (Additional KPIs to be covered by specific customer requirements).

                     Delivery


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                               MMOG (ODETTE / AIAG Logistic Evaluation) - Self-Assessment


                                Global Logistic Evaluation
                                       (based on Odette GLE customized by WABCO)

1)       F3          Delivery performance to customer.


2)       F3          Supplier delivery performance.


3)       F3          Build-to-Schedule (productivity: plan vs. actual).


4)       F3          Lead times for all supply chain processes (physical and information).


5)       F1          Inventory turn over

                     Quality
7)       F2          materials planning and Logistics Quality (e.g., documentation, messages, packaging and labeling).
                     Cost

8)       F2
                     materials planning and Logistics costs (e.g., Premium freight, packaging, handling and storage space).


9)       F1          Stock levels / stock turn broken down into raw material, WIP, finished goods.


                     Additional comments supporting the organization's current state - "Where are you with respect to
                     this element?"



                     1.3 Measurement, Analysis and Action Plans
     1.3.1           Objectives are measured, analyzed, and action plans created where necessary.
                     Measurement and analysis is necessary to ensure awareness of current performance and to engage
     Why?
                     employees in the improvement process.
     Criteria:
1)       F2          Performance against objectives is monitored at planned intervals and reviewed with senior management.


2)       F2          All relevant personnel/functions are informed about performance at planned intervals.

                     A structured problem solving method is used to determine root cause(s) and prevent reoccurrence of
3)       F2
                     material problems.

                     Graphical analysis tools, (e.g., Pareto graphs) displaying historical and trend data are used to track
4)       F1
                     critical areas over time.


                     Additional comments supporting the organization's current state - "Where are you with respect to
                     this element?"

                     Corrective and preventive actions, identified by KPI analysis, to improve performance are
     1.3.2
                     documented.
                     Documentation helps to ensure that identified action plans have been successfully implemented and
     Why?
                     results shared across similar processes.
     Criteria:
                     The management prioritizes documented action plan items. The action plan should include the action
1)       F2
                     responsibility, timing and allocated resource.

                     Evaluations of corrective/preventive actions are performed at the conclusion of each action plan. The
2)       F2          review shall determine both the effectiveness, application to similar processes and the need for any
                     further action.


                     Additional comments supporting the organization's current state - "Where are you with respect to
                     this element?"



                     1.4 Continuous Improvement
     1.4.1           Continuous improvement within the supply chain is driven through a well-established process.


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                               MMOG (ODETTE / AIAG Logistic Evaluation) - Self-Assessment


                                Global Logistic Evaluation
                                        (based on Odette GLE customized by WABCO)

                     Improvement activities throughout the supply chain are necessary in order to achieve overall customer
     Why?
                     satisfaction.
     Criteria:
                     A defined process supported by management for continuous improvement is used within the entire
1)       F1
                     organization and with all supply chain partners.

                     Employees have a documented responsibility for and are allowed time to work on continuous
2)       F1
                     improvement tasks.

3)       F1          The organization encourages employee involvement through an active suggestion program.


                     Additional comments supporting the organization's current state - "Where are you with respect to
                     this element?"

                     There shall be a process to identify and take corrective actions on deficiencies and/or unstable
     1.4.2
                     processes found during internal assessments.
                     For organizations to remain competitive and reduce cost, specific areas of improvement need to be
     Why?
                     identified.
     Criteria:       Minimum requirement (Additional areas to be covered by specific customer requirements).

1)       F3          Bottle neck processes.


2)       F2          Production batch/lot sizes.


3)       F2          Set-up/Change-over times.


4)       F2          Throughput time.


5)       F1          Reduction of complete physical inventories.


                     Additional comments supporting the organization's current state - "Where are you with respect to
                     this element?"



                     1.5 Supply Chain Development
     1.5.1           Actions are taken to improve the relationship between all parties in the supply chain.
                     A strong and successful relationship requires mutual trust and understanding. Supply chain optimization
     Why?
                     relies on organizations working together.
     Criteria:
1)       F1          A structured approach is in use for development of all relationships.


2)       F1          Action plans, processes and relationships of the parties in the supply chain are documented.

                     Methods of analysis are used to assess the supply chain: {e.g. SWOT analysis, (Strengths,
3)       F2
                     Weaknesses, Opportunities, Threats), Benchmarking, Business Networks}


                     Additional comments supporting the organization's current state - "Where are you with respect to
                     this element?"

                     Internal customer satisfaction objectives related to materials planning and Logistics are
     1.5.2
                     identified, measured and communicated within the organization.
                     Internal customer satisfaction is important for facilitating continuous improvement in response to
     Why?
                     customer requirements.
     Criteria:
1)       F2          Clear understanding of internal customer requirements.


2)       F2          Internal customer satisfaction is measured (e.g., press shop parts supplied to the assembly area).




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                               MMOG (ODETTE / AIAG Logistic Evaluation) - Self-Assessment


                                Global Logistic Evaluation
                                       (based on Odette GLE customized by WABCO)

3)       F2          Measurements are fully implemented, used and communicated to relevant functions.


                     Additional comments supporting the organization's current state - "Where are you with respect to
                     this element?"
                                                                                                                                   F3 F2 F1 Total

                     2. WORK ORGANIZATION                                                                                          2   8   9    19



                     2.1 Organizational Processes
                     materials planning and Logistics processes are described starting from customer interface,
     2.1.1
                     through internal production until supplier interface.
                     It is vital to gain an overall view and understanding of your own and your business partners processes in
     Why?
                     order to provide a good foundation for continuous improvement.
     Criteria:
                     There is a documented organizational structure in place to ensure appropriate focus (e.g., direct
1)       F1
                     reporting to the senior management) and resources for all materials planning and Logistics processes.

                     Documentation exists (e.g., flow charts) describing the information flow of all logistics processes,
2)       F1
                     including interfaces with other functions and business partners.

                     Documentation exists (e.g., flow charts) describing the physical flow aspect of all logistics processes,
3)       F1
                     including interfaces with other functions and business partners.

4)       F1          There is an active document control procedure in place. (As defined within TS 16949/QS9000)


                     Additional comments supporting the organization's current state - "Where are you with respect to
                     this element?"



                     2.2 Organizational Procedures
     2.2.1           Organizational procedures exist for all functions within materials planning and Logistics.
                     To ensure a standard way of working and help facilitate learning, it is important to have documented
     Why?
                     procedures.
     Criteria:
                     The organization has procedures, which are evaluated and implemented to ensure compliance with the
1)       F1
                     Materials Planning and Logistics vision.

                     Documented procedures for all customer interface aspects of the materials planning and Logistics
2)       F2          process exist (e.g., customer order planning, stock control, packaging procedures and transport
                     management).

                     Documented procedures for all internal aspects of the materials planning and Logistics process exist
3)       F1          (e.g., assembly and production planning, material handling, stock control and warehousing including
                     MRO inventory).

                     Documented procedures for all supplier interface aspects of the materials planning and Logistics process
4)       F1          exist (e.g.E160, supplier performance assessment, receipt of material, stock control and requirement
                     calculations).


                     Additional comments supporting the organization's current state - "Where are you with respect to
                     this element?"



                     2.3 Resource Planning
     2.3.1           Resource flexibility and availability are optimized.
                     It is essential that resources are optimized to fulfill capacity requirements of all the materials planning
     Why?
                     and logistics operations.
     Criteria:
                     The organization has the ability to adapt its human resources in order to manage and balance workload
1)       F2
                     (e.g., flexibility agreements, peak hours, absenteeism and different industrial calendars).


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                               MMOG (ODETTE / AIAG Logistic Evaluation) - Self-Assessment


                                Global Logistic Evaluation
                                       (based on Odette GLE customized by WABCO)

                     The organization conducts periodic reviews to ensure sufficient resources (e.g., space and equipment)
2)       F2
                     are allocated for all materials planning and Logistics processes.

3)       F2          Overtime is not used as a long-term solution for staffing requirements.


                     Additional comments supporting the organization's current state - "Where are you with respect to
                     this element?"

                     Contingency plans shall exist to avoid disruptions when something unexpected happens in the
     2.3.2
                     supply chain
                     Without contingency plans, any disruption within the logistics process might endanger deliveries to the
     Why?
                     customer (including e.g., assembly lines, workshops).
     Criteria:
                     The organization's contingency plans shall be implemented by a pre-determined function when an
1)       F3
                     emergency occurs and the system shall be validated periodically.

2)       F3          Personnel shall be trained in contingency procedures.

                     Documented and proven procedures for all potential disruptions are identified with appropriate action and
3)       F2          recovery plans, including production and data recovery (e.g., computer/communication failures, industrial
                     disputes, transport and production disruption).


                     Additional comments supporting the organization's current state - "Where are you with respect to
                     this element?"

                     A system exists for highlighting and communicating with both customers and suppliers within the
     2.3.3
                     plant, any incident or deviation from the production plan.
                     Appropriate management of internal customers and suppliers should rely upon communication upstream
     Why?
                     and downstream of any incidents that could affect the normal production process.
     Criteria:
                     There are procedures in place to highlight and communicate incidents or deviations, (e.g., schedule
1)       F2          information, early warning of delays and stoppages), from the production plan, (e.g., regular meetings,
                     reporting and ad-hoc meetings).


                     Additional comments supporting the organization's current state - "Where are you with respect to
                     this element?"



                     2.4 Work Environment & Human Resources
                     The roles and responsibilities within the materials planning and Logistics function are clearly
     2.4.1
                     documented.
     Why?            Clearly defined roles and responsibilities reduce the risk of conflicts and define ownership of issues.
     Criteria:
                     Clearly defined job descriptions/skills matrices exist and are regularly reviewed and updated for each key
1)       F1
                     function within materials planning and Logistics.

                     All key tasks have employee backups designated to manage workflow when the primary employee is not
2)       F2
                     available.


                     Additional comments supporting the organization's current state - "Where are you with respect to
                     this element?"


     2.4.2           There is a process identifying current and required skills within the organization.

     Why?            Understanding the competence gap within the organization is important for improvement.
     Criteria:
                     The competencies and skills required within the organization are identified and there are training
1)       F2
                     programs in place to cover possible gaps.


                     Additional comments supporting the organization's current state - "Where are you with respect to
                     this element?"


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                               MMOG (ODETTE / AIAG Logistic Evaluation) - Self-Assessment


                                Global Logistic Evaluation
                                       (based on Odette GLE customized by WABCO)

                     Actions are taken to improve employee motivation and empowerment in the materials planning
     2.4.3
                     and Logistics function.
                     To ensure employees are motivated to perform at their best, they need encouragement and to feel that
     Why?
                     their efforts are worthwhile.
     Criteria:
                     The employees are empowered to do their job independend where possible.
1)       F1          The performance of the organization and materials planning and logistics function is communicated to
                     employees on a regular basis, reviews are taking place, feedback is given to employees.
                                                                                                                                   F3 F2 F1 Total

                     3. CAPACITY & PRODUCTION PLANNING                                                                             6   6   8    20



                     3.1 Product Realization
                     The organization's materials planning and Logistics function shall formally participate in, and sign
     3.1.1
                     off on, the Product Realization process.
                     The material organization's physical sign off verifies their involvement in the early stages of the Product
     Why?
                     Realization process and therefore are prepared to support the organization at the start of production.

     Criteria:
1)       F3          Material's function shall participate in and sign off on the Product Realization process.


                     Additional comments supporting the organization's current state - "Where are you with respect to
                     this element?"



                     3.2 Capacity Planning

                     The organization shall perform a comparison of its resources against the customer's long,
     3.2.1           medium and short-term requirements. A process shall be in place that ensures prompt
                     communication to the customer of any risk that could affect their operations.

                     A major goal of the scheduling system shall be to review customer requirements for enough in advance
     Why?            to detect potential problems in meeting those customer requirements. This process must occur in a
                     timeframe that allows for corrective action and minimizes the impact to the customer.
     Criteria:
                     Resources versus customer requirements shall be reviewed upon receipt of forecast requirements (e.g.,
1)       F3          830/DELFOR), comparing every week of the forecast (e.g., from week 3 to month 6 of the planning
                     horizon) sent by customers.

                     Resources versus customer requirements shall be reviewed upon receipt of shipping requirements (e.g.,
2)       F3
                     862/DELJIT), comparing daily ship requirement (usually current week and week 2) sent by customers.

                     There shall be a process in place to notify customers of any significant resource limitations in meeting
3)       F3
                     the requirements.

                     Additional comments supporting the organization's current state - "Where are you with respect to
                     this element?"

                     The organization's capacity planning process has the flexibility to ensure that the Product
     3.2.2           Approval Process (PAP) requirements are available in a timely manner to support customer
                     change-overs/launches.
                     The organization's capacity planning process needs to be able to account for regular production, as well
     Why?
                     as PAP requirements to ensure that production requirements are met.
     Criteria:
1)       F1          PAP requirements are prioritized accordingly within the scheduling system.

                     There is a process for building an inventory buffer of current parts prior to production time needed for
2)       F2
                     new model parts approval/evaluation.

                     PAP reviews are held with the participation of Scheduling, Production, Material Control, Engineering, etc.
3)       F1
                     on a regular basis to resolve any issues with meeting customer requirements.


                     Additional comments supporting the organization's current state - "Where are you with respect to
                     this element?"


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                               MMOG (ODETTE / AIAG Logistic Evaluation) - Self-Assessment


                                Global Logistic Evaluation
                                       (based on Odette GLE customized by WABCO)

                     The organization implements measures to minimize obsolescence of Raw Material, WIP and
     3.2.3
                     Finished Goods.
                     For obsolescence claims purposes, a process exists for recording and maintaining maximum material
     Why?
                     authorization from the customer.
     Criteria:
                     The organization has a process in place to communicate running change and balance-out parts for final
1)       F1
                     production runs to ensure no over-production and outside purchased items are ordered to the piece.

                     Scheduling system will not generate production orders above customer requirements for balance-out
2)       F2
                     items.


                     Additional comments supporting the organization's current state - "Where are you with respect to
                     this element?"


     3.2.4           There is a process to ensure the availability of service/spare parts.

     Why?            To satisfy the customer's need for spare parts without jeopardizing the production of current parts.
     Criteria:
                     Quantities are communicated and managed throughout the organization, based on customer
1)       F1
                     requirement orders to ensure on-time deliveries.

                     Documented agreements exist to ensure the supply of service/spare parts (e.g., minimum order quantity,
2)       F1
                     standard pack size).


                     Additional comments supporting the organization's current state - "Where are you with respect to
                     this element?"



                     3.3 Production Planning
                     A process shall exist to plan production requirements and to maintain the parameters of the
     3.3.1
                     production planning system.
     Why?            A production planning and monitoring system contributes to both efficient information and material flow.

     Criteria:       If your processes are automated then "check" both the manual and automated criteria below.

1)       F3          The scheduling system shall consider customer requirements when generating production schedules.

                     A set of parameters, (e.g., transport time, lead times, inventory levels, packaging), and internal
2)       F3          production requirements, (e.g., supplier constraints, scrap rates set-up times), shall be integrated into the
                     production planning system manually.

                     A set of parameters, (e.g., transport time, lead times, inventory levels, packaging), and internal
3)       F1          production requirements, (e.g., supplier constraints, scrap rates set-up times), are integrated into the
                     production planning system automatically.


4)       F2          A flexible production planning system is synchronized with all relevant internal and external systems.


                     The production planning system and its parameters, (e.g., scrap rate, set-up time, lot size, etc.), are
5)       F2
                     updated at planned intervals by a clearly defined responsibility.


                     Additional comments supporting the organization's current state - "Where are you with respect to
                     this element?"

     3.3.2           The production scheduling system supports lean manufacturing (e.g., pull systems).

     Why?            To ensure production schedules reflect customer releases and shipping schedules.
     Criteria:
1)       F1          Pull system concepts are integrated within the production planning process as seen on the shop floor.


2)       F1          Pull system automatically offsets losses or gains based upon inventory verification.




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                               MMOG (ODETTE / AIAG Logistic Evaluation) - Self-Assessment


                                Global Logistic Evaluation
                                       (based on Odette GLE customized by WABCO)

                     Additional comments supporting the organization's current state - "Where are you with respect to
                     this element?"



                     3.4 Systems Integration
                     The customer information shall be processed directly into the organization's planning and
     3.4.1
                     scheduling systems.
                     Direct electronic transfer of data will improve the transfer speed, reduce the possibility of error and
     Why?
                     reduce the cost.
     Criteria:
                     Customer schedule information shall be automatically integrated into the organization's releasing system
1)       F2          to avoid manual transference of data by using ODETTE/AIAG electronic communication standards or
                     any other web based electronic standard.


                     Additional comments supporting the organization's current state - "Where are you with respect to
                     this element?"

                     The organization sets the timing of the Material Requirements Planning System (MRP) process to
     3.4.2
                     coincide with the receipt of the expected customer requirements.
                     The MRP system should calculate the schedule based on the most current information available from the
     Why?
                     customer.
     Criteria:
                     MRP receives the expected customer requirements prior to the actual MRP run to calculate daily
1)       F2
                     production operating plans.


                     Additional comments supporting the organization's current state - "Where are you with respect to
                     this element?"
                                                                                                                                  F3 F2 F1 Total

                     4. CUSTOMER INTERFACE                                                                                        11 15   4    30



                     4.1 Communication
                     The organization maintains a process to ensure a co-operative communication based on actual
     4.1.1
                     and adequate information for both parties.
                     To maintain customer relations, prevent misunderstandings and ensure continued business based on co-
     Why?
                     operative communication.
     Criteria:
                     There are agreed contingency plans established between both parties to maintain permanent
1)       F3
                     communication during bottle-neck situations.

                     The customers' goals regarding materials planning and Logistics performance are clearly defined (e.g.,
2)       F3
                     Customer delivery instructions/schedules), visualized and followed-up by the organization.

                     A contact list exists containing name, function, method of communication (e.g., phone number, fax
3)       F2          number, e-mail address, language spoken, etc…), hours of availability and deputies/back-ups for each
                     materials planning and Logistics function from its customers.

                     Additional comments supporting the organization's current state - "Where are you with respect to
                     this element?"

                     The organization shall receive requirements planning and shipping information electronically,
     4.1.2
                     when available from the customer.
                     Electronic data transfer reduces the possibility of a typographical error or incorrect translation of data
                     when human intervention is involved. Speed is increased by the electronic/mechanical transfer of data
     Why?
                     while reaction time updates in customer requirements for pre-production, production and service parts is
                     improved.
     Criteria:
                     Electronically communicated delivery forecasts (e.g., 830/DELFOR/planning releases) shall be received
1)       F2
                     and processed.

                     Electronically communicated call off's (e.g., 862/DELJIT, shipping schedules, sequenced shipping
2)       F2
                     schedules) shall be received and processed.

                     Additional comments supporting the organization's current state - "Where are you with respect to
                     this element?"



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                               MMOG (ODETTE / AIAG Logistic Evaluation) - Self-Assessment


                                Global Logistic Evaluation
                                      (based on Odette GLE customized by WABCO)

                     The organization shall have a process to ensure that any potential problems that could impact the
     4.1.3
                     customer operation are communicated as soon as they are identified.
                     For the supply chain to remain uninterrupted at all times, any problems with the customer must be
     Why?
                     resolved in a timely manner.
     Criteria:
                     There shall be documented procedure in place for the materials planning and Logistics personnel to
1)       F3          notify the customer and respond immediately to any situation whether identified by the organization or the
                     customer, that could negatively impact the customer's business.

                     Differences shall be resolved with the appropriate customer contact prior to shipment time if the agreed
2)       F3          requirement cannot be met (e.g., transportation mode, quantity-shipped discrepancies, packaging,
                     etc…).

                     The organization shall use interactive inventory management systems where they are available from the
3)       F3
                     customer (e.g., DDL, Smart, other VMI systems).


                     Additional comments supporting the organization's current state - "Where are you with respect to
                     this element?"



                     4.2 Packaging and Labeling
                     The organization shall have a procedure for packaging development, coordinated with the
     4.2.1
                     Product Approval Process.
     Why?            To ensure that the packaging efficiently supports material flow requirements as handling and distribution.
     Criteria:
                     The organization shall have a process and supporting documentation to define standard packaging,
                     (usually reusable container), and back-up packaging (usually expendable containers), and pack size
1)       F3
                     before start of production (e.g., agreements about packaging type and rules for use with customer,
                     involvement of all internal departments connected with the packaging process).

2)       F2          Requirements for packaging development/specification is agreed and documented.

                     The organization periodically audits shipments and conducts a physical review of packaging to ensure
3)       F2
                     compliance with defined packaging requirements.

                     Customer specific packaging should be developed for integration into the manufacturing process (e.g.,
4)       F1
                     max. use of transportation conveyance, transport optimization).

                     When shipping runoff, pilot, PAP parts, the organization makes all shipments in assigned containers so
5)       F1
                     that the customer can validate the container use in their material system.


                     Additional comments supporting the organization's current state - "Where are you with respect to
                     this element?"

                     The organization manages the container process to ensure that the availability of returnable/non-
     4.2.2
                     returnable containers is adequate to support the material flow requirements.
                     Adequate quantity and quality of returnable/non-returnable containers need to be available to keep
     Why?
                     material protected as well as support any production needs.
     Criteria:
                     A documented control system exists for the procurement, allocation and monitoring of all packing
1)       F2
                     material (e.g., returnable containers, expendable packaging, dunnage, spacers).

                     A documented and implemented process exists to ensure that returnable container inventory and their
2)       F2
                     availability in quantity and quality is adequate to cover customer requirements.

                     A documented, customer approved process exists in case of missing, damaged, dirty or otherwise
3)       F3
                     unsuitable packaging.

                     There is a process to notify the customer for each shipment when alternative or back-up packaging is
4)       F2
                     used.

                     A documented process for the storage of customer-supplied packaging is available and followed (e.g.,
5)       F1
                     suitable storage and cleaning facilities for returnable containers).


                     Additional comments supporting the organization's current state - "Where are you with respect to
                     this element?"


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                               MMOG (ODETTE / AIAG Logistic Evaluation) - Self-Assessment


                                Global Logistic Evaluation
                                      (based on Odette GLE customized by WABCO)



                     4.3 Shipping
                     The organization controls its processes to assure that the physical shipments correspond with
     4.3.1
                     the customer demand.
                     To ensure accurate shipment, container and label information and any other necessary documentation
     Why?
                     will fulfill customer requirements.
     Criteria:
                     The organization ensures that any quantity-shipped disagreements with the customer are detected and
1)       F2
                     reconciled in a timely manner without cost penalties to the customer.


                     Additional comments supporting the organization's current state - "Where are you with respect to
                     this element?"

                     The organization shall have a process to ensure complete and accurate data content and timely
     4.3.2
                     transmission of all Advanced Shipping Notices (ASN).
                     Advanced Shipping Notices (ASN) transmits relevant information to the customer so they are aware of
     Why?
                     what the supplier has shipped and can plan accordingly.
     Criteria:
                     The organization shall verify the data contents of shipping labels, (the use of electronic based support
1)       F3          systems such as RFID or scanning is mandatory for some customers), to assure an equality
                     between container content, labels and documentation.

                     The organization ensures that the data content of all ASN's is complete and accurate in accordance with
2)       F2
                     customer requirements.


                     All shipments, including documentation and labeling, shall be prepared to customer, industry and
3)       F3
                     government standards and requirements (e.g., customs handling) including carrier routings.


4)       F2          The shipment process shall ensure that each ASN is transmitted a the time of conveyance departure.


                     Additional comments supporting the organization's current state - "Where are you with respect to
                     this element?"



                     4.4 Transportation
                     The organization shall assure the transport of finished goods satisfies customer requirements
     4.4.1
                     (e.g., carrier, mode, special equipment, cost responsibility).
     Why?            To ensure transport to the customer according to agreed delivery agreements/conditions with customer.
     Criteria:
                     For organization managed transportation the carrier/Lead Logistics Provider is selected and assessed
1)       F3
                     regarding logistics, flexibility and quality parameters.

                     Appropriate equipment (e.g., bracing, banding) is used to ensure the product is delivered to the customer
2)       F3
                     damage-free.

                     The organization has a process to plan transportation capacity together with the carrier/Lead Logistics
3)       F1
                     Provider in line with its own processes and their capacities.

                     The organization has established documented contingency plans in the event of failure of transport,
4)       F2
                     including quantified alternative methods of transport.


                     Additional comments supporting the organization's current state - "Where are you with respect to
                     this element?"



                     4.5 Customer Satisfaction and Feedback
                     The organization has a process to assess customer satisfaction whether or not the customer
     4.5.1
                     provides feedback.
                     Superior materials planning and Logistics performance will ensure customer satisfaction, which will lead
     Why?
                     to a long-term business relationship.
     Criteria:




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                               MMOG (ODETTE / AIAG Logistic Evaluation) - Self-Assessment


                                Global Logistic Evaluation
                                       (based on Odette GLE customized by WABCO)

                     Based on the customer's feedback or industry standards, the organization develops measures to
1)       F2          improve customer satisfaction. Where feedback is not automatically given from the customer, the
                     organization solicits this information.

2)       F2          The organization has a process to regularly assess its performance to all of its customers.

                     The measures are regularly reviewed internally by the management (e.g., warning of unfilled
3)       F2          requirements) and externally (e.g., Logistics performance measures), as required with the customer. An
                     adequate visualization method (e.g., customer satisfaction monitor, charts, graphs) is used.


                     Additional comments supporting the organization's current state - "Where are you with respect to
                     this element?"
                                                                                                                                   F3 F2 F1 Total

                     5. PRODUCTION & PRODUCT CONTROL                                                                               7   7   10   24




                     5.1 Material Identification
                     There shall be a process/method in place to ensure all parts are labeled accurately and identified
     5.1.1
                     easily.
                     Material that is improperly identified could result in misplaced material, lost time and/or production
     Why?
                     disturbances.
     Criteria:
                     The organization shall have a process to correctly identify all material, including in-process material and
1)       F3
                     including direct marking when needed.

                     The organization shall have a process to ensure part's labels are available at the appropriate time and
2)       F3
                     are applied correctly.

3)       F3          The organization shall have a process to clearly identify all storage locations accurately.

                     The organization shall have a process to assure the appropriate identification of all unusable or damaged
4)       F3
                     material (scrap, returns, rejections, etc…).

5)       F1          Bar codes are used to identify and trace material where appropriate.


                     Additional comments supporting the organization's current state - "Where are you with respect to
                     this element?"



                     5.2 Inventory

                     There are systems in place that facilitate access to and management of all types of inventory -
     5.2.1
                     finished goods, Works-in-Process (WIP), and raw material.

                     To properly support the planning process stock management systems must be in place to ensure ready
     Why?
                     access to material.
     Criteria:
                     The organization has a process that facilitates management of all types of inventory, in-house and off-
1)       F2
                     site.

                     The organization has visual controls in place to support inventory management (designated storage, high
2)       F1
                     water mark).

                     Obsolete material is stored in designated areas and is reviewed at defined intervals for potential rework,
3)       F1
                     salvage and for claims purposes, and disposed of in a timely manner.


                     Additional comments supporting the organization's current state - "Where are you with respect to
                     this element?"


     5.2.2           The organization has a process to optimize the material flow.

                     The primary objective of a lean manufacturing/material flow process is to efficiently and effectively
     Why?            support the needs of the organization. As long as there is a need to move parts from one location to
                     another there will be the opportunity to eliminate waste in the material flow process.

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                               MMOG (ODETTE / AIAG Logistic Evaluation) - Self-Assessment


                                Global Logistic Evaluation
                                       (based on Odette GLE customized by WABCO)

     Criteria:
1)       F3          The organization's material flow is designed to support FIFO

                     The organization has a process to optimize the material flow for new and current parts and production
2)       F1
                     processes.

3)       F1          The organization's material flow is designed to facilitate accurate tracking.


                     Additional comments supporting the organization's current state - "Where are you with respect to
                     this element?"

                     The organization has a process that ensures that all material records are maintained and
     5.2.3
                     accurate, and deviations investigated and corrected.
                     To ensure customer product availability and to minimize stock errors it is necessary to have a stock
                     control system. Efficient stock control procedures reduce the risk of obsolescence, stock balance errors
     Why?
                     and the costs of administration and quality problems. A correct stock balance is a prerequisite for reliable
                     material supply to production.
     Criteria:
                     There is a process in place to ensure accurate stock balance of all inventory types (e.g., finished goods,
1)       F2          scrap) and that these stock balance figures are accurately updated in the organization's systems in a
                     timely manner.

                     The organization has a process that ensures the structure of the Bill of Material (BOM) records are
2)       F2          maintained and are accurate. Any deviations are investigated and reflected accurately in perpetual
                     inventory records.


                     Records are maintained, compared to schedule, and information supplied to all appropriate persons, for
3)       F1
                     evaluations of important material processes for the organization.


                     The organization has a process to ensure physical inventory counts, when performed, are done
4)       F1          accurately and reported in inventory records. These inventory counts are performed with an adequate
                     frequency for every part, depending on volume value, waste percentage, etc.


                     The organization has, and periodically evaluates, error reduction tools (e.g., visual controls, bar coding,
5)       F1
                     elimination of manual entry), for part storage, part movement and accurate inventory records.


                     Additional comments supporting the organization's current state - "Where are you with respect to
                     this element?"

                     The organization has a process in place to coordinate "phased out" inventories (e.g., those
     5.2.4           affected by engineering changes and programs that are being phased out) with both supplier and
                     customer.
     Why?            To manage risk and avoid obsolescence costs.
     Criteria:
                     The organization has a process in place to coordinate accurately "phased out" inventories with
1)       F2
                     customers.

                     The scheduling system automatically considers phased out items in order to schedule to the customer's
2)       F1
                     final release (e.g., piece vs. standard pack) to avoid over-run.


                     Additional comments supporting the organization's current state - "Where are you with respect to
                     this element?"


     5.2.5           The organization has a process to continuously evaluate and optimize inventory buffers.
                     To ensure both customer satisfaction and cost efficiency, the levels of inventory should be carefully
     Why?            considered for every part to ensure that stock levels can be kept at a low level without any risk to
                     deliveries to customers.
     Criteria:
1)       F2          The organization has a process to continually evaluate, and adjust if necessary, inventory buffers.




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                               MMOG (ODETTE / AIAG Logistic Evaluation) - Self-Assessment


                                Global Logistic Evaluation
                                       (based on Odette GLE customized by WABCO)

                     The evaluation process considers all factors influencing the need for inventory buffers, (e.g., demand
2)       F2          variability, process capabilities, internal transport and warehousing situation, customer safety stock
                     requirements, different industrial calendars, etc...).


                     Additional comments supporting the organization's current state - "Where are you with respect to
                     this element?"

                     The organization shall have a process to identify and route defective/obsolete material in a timely
     5.2.6           manner. This process shall ensure that defective/obsolete material is segregated and disposed of
                     properly (e.g., reworked or scrapped).

     Why?            To ensure that any defective/obsolete parts are segregated from production material.
     Criteria:
                     The organization has a process that ensures defective/obsolete material is contained, segregated,
1)       F3
                     reworked or disposed of properly.

2)       F1          Determinations and material movements are made in a timely manner.


                     Additional comments supporting the organization's current state - "Where are you with respect to
                     this element?"



                     5.3 Engineering Change Control
                     The organization shall manage engineering revision levels with documented procedures for
     5.3.1
                     customer, supplier, and internal changes.
     Why?            Parts changes can disrupt normal production flow and delivery to the customer if not properly managed.
     Criteria:

                     A formal engineering change/sign-off review shall exist to ensure that all changes which affect the
                     materials planning and Logistics process are planned, performed and communicated in a synchronized
1)       F3
                     manner, (e.g., process sign-off sheet with Bill of Material (BOM) review, routing changes, effective dates,
                     notification to suppliers, scheduling, shipping).



                     Additional comments supporting the organization's current state - "Where are you with respect to
                     this element?"

                     The organization manages the life cycle of tools to ensure customer requirements at all stages of
     5.3.2
                     production.
                     In order to support customer orders for service/spare parts, tools must be capable of producing past
     Why?
                     model parts.
     Criteria:
                     There is a documented, implemented and periodically evaluated process, which tracks a tool's lifecycle
1)       F2
                     (e.g., current status, rework history, ownership, authorizations, BOM item link).


                     Additional comments supporting the organization's current state - "Where are you with respect to
                     this element?"
                                                                                                                                   F3 F2 F1 Total

                     6. SUPPLIER INTERFACE                                                                                         1   9   7    17



                     6.1 Supplier Selection
                     Materials planning and Logistics criteria is considered when selecting suppliers or other
     6.1.1
                     business partners for new or existing products or services.
                     A strong supply chain requires well-functioning organizations not only in the first tier, but also in every
     Why?            link of the chain. All important aspects, including quality, cost and delivery is necessary for a well-
                     functioning supply chain.
     Criteria:
                     The purchasing decision process includes participation from the materials planning and Logistics
1)       F2
                     function




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                               MMOG (ODETTE / AIAG Logistic Evaluation) - Self-Assessment


                                Global Logistic Evaluation
                                       (based on Odette GLE customized by WABCO)

                     Additional comments supporting the organization's current state - "Where are you with respect to
                     this element?"



                     6.2 Materials planning and Logistics Agreement/Instruction
                     Documented agreement/instruction shall exist with suppliers and sub-contractors/outside
     6.2.1
                     processors regarding materials planning and Logistics.
                     To avoid misunderstandings and to make expectations and responsibilities clear among the parties
     Why?
                     involved.
     Criteria:
                     Procedures shall exist where any deviations from the materials planning and Logistics instructions are
1)       F3
                     immediately investigated, communicated and rectified by the supplier.


                     Additional comments supporting the organization's current state - "Where are you with respect to
                     this element?"



                     6.3 Communication
                     A method of communication exists between suppliers, sub-contractors and logistic providers
     6.3.1
                     covering day to day issues and emergency situations.
                     For the supply chain to remain uninterrupted at all times, it is important that empowered personnel from
     Why?
                     key areas can be contacted at all times.
     Criteria:
                     A list of contacts, including back-ups, exists covering all logistics functions and availability of contacts is
1)       F2
                     guaranteed according to agreement.

                     There is a procedure to ensure that the suppliers, sub-contractors, and logistics providers give warning if
2)       F2          there is a risk that requirements cannot be fulfilled; all significant changes are communicated as soon as
                     they are identified.

3)       F1          Information on inbound shipment is used to detect material shortages.


                     Additional comments supporting the organization's current state - "Where are you with respect to
                     this element?"


     6.3.2           Procedures for data exchange shall be implemented with Suppliers and Logistics providers.
                     A fast, reliable, integrated, exact and standardized information flow is necessary to reduce lead times
     Why?
                     both in the physical and the administrative flow.
     Criteria:
                     The organization shall have the capability to send and receive electronic communication in accordance
1)       F2
                     with customer requirements and relevant industry standards.

2)       F1          The quality of information transmitted and received is verified and corrective actions taken if necessary.

                     Transmission frequency and planning horizons are adequate for the commodity produced and accounts
3)       F2
                     for the lead times of purchased parts and material.


                     Additional comments supporting the organization's current state - "Where are you with respect to
                     this element?"



                     6.4 Transportation
     6.4.1           Procedures exist regarding management and cost optimization of inbound transportation.
                     A transportation policy that focuses on cost-efficiency, timing, lead-time and environmental issues is a
     Why?
                     key factor in ensuring reliable material supply.
     Criteria:
                     Transportation set-up is considered as part of the product development process, including transportation
1)       F1          specification, (e.g., lead time), optimization and environmental consideration together with carriers and
                     Lead Logistics providers.


                     Additional comments supporting the organization's current state - "Where are you with respect to
                     this element?"


 db2cc651-0011-4ea1-9469-6b4b21c2dfff.xls - Self-Assessment              page 19 / 32                                                  11/24/2011
                               MMOG (ODETTE / AIAG Logistic Evaluation) - Self-Assessment


                                Global Logistic Evaluation
                                       (based on Odette GLE customized by WABCO)



                     6.5 Material Receipt
                     Sufficient capacity and appropriate equipment in the material receiving function is ensured and
     6.5.1
                     optimized.
     Why?            Without sufficient capacity and/or the right equipment, material receipt could become a bottleneck.
     Criteria:
                     A planning function exists to allocate resources to ensure adequate capacity (personnel, equipment,
1)       F2
                     maintenance and layout/space).

                     All variables that affect the receiving activities are considered to balance the utilization of the docks and
2)       F1
                     space (e.g., scheduling, fixed time slots).


                     Additional comments supporting the organization's current state - "Where are you with respect to
                     this element?"

                     A process exists to verify labeling and documentation against materials planning and Logistics
     6.5.2
                     requirements for procured parts.
                     Reliable material supply requires assurance that the parts and associated documentation delivered meet
     Why?
                     the specified materials planning and Logistics requirements.
     Criteria:
1)       F2          The organization ensures shipping labels are accurate

                     The organization compares shipping documents with actual goods received to ensure accuracy and
2)       F1
                     compliance to organization's requirements/standards.

                     A procedure exists for the correction and follow-up of any discrepancies in the receipt of material (e.g.,
3)       F1
                     quality and quantity verification (including packaging)).


4)       F1          The organization uses visual controls to assist the receiving process.


                     Additional comments supporting the organization's current state - "Where are you with respect to
                     this element?"



                     6.6 Supplier Assessment
                     Partners (suppliers, sub-contractors and logistics service providers) in the supply chain are
     6.6.1
                     assessed regularly according to a defined procedure.
                     A strong supply chain requires well-functioning organizations not only in the first tier, but also in every
     Why?            link of the chain. Follow-up of performance allows parties to focus on areas of importance to achieve the
                     materials planning and Logistics strategy and customer satisfaction.
     Criteria:
                     A tool is used for evaluating all suppliers, sub-contractors, logistic providers on a regular basis and
1)       F2                                                                                                                          F2
                     communicated to all involved functions.

                     The organization has a process to review supplier performance levels on a regular basis. Summarized
2)       F2          information about the suppliers' performance is provided to the purchasing function and the supplier on a       F2
                     regular basis, according to industry standards where they exist.


                     Additional comments supporting the organization's current state - "Where are you with respect to
                     this element?"




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                                                                MMOG (ODETTE / AIAG Logistic Evaluation) - Scoring Summary




                                   Global Materials Management Operations Guide / Logistics Evaluation results sheet



                                                                    Result (Criteria score x Weighting of criteria)
           Question                                                                                                                                                                           % of Max.      S=self     V=verified
Chapter                                                                                                                                                             Act. Score   Max. Score
           number                                                                                                                                                                              Score        assessed    assessed
                      1     Weight.       2   Weight.       3    Weight.     4    Weight.     5   Weight.     6   Weight.     7     Weight.       8     Weight.
  1          1.1.1            F2                F2                 F2                F2                                                                                 0            8          12%
             1.2.1            F2                F2                 F2                                                                                                   0            6           9%
             1.2.2            F3                F3                 F3                F3             F1                F2              F2                   F1           0            18         27%
             1.3.1            F2                F2                 F2                F1                                                                                 0            7          11%
             1.3.2            F2                F2                                                                                                                      0            4           6%
             1.4.1            F1                F1                 F1                                                                                                   0            3           5%
             1.4.2            F3                F2                 F2                F2             F1                                                                  0            10         15%
             1.5.1            F1                F1                 F2                                                                                                   0            4           6%
             1.5.2            F2                F2                 F2                                                                                                   0            6           9%

          Chapter summary                         F3                    F2             F1                                                     Total Chapter 1           0
                              Fulfilled              0                  0                 0                                                   MAX Score                66
                             Not fulfilled           5                  21                9                                                   %                        0%




                                                         Result (Criteria score x Weighting of criteria)
           Question                                                                                                                             Act.                % of Max.     S=self      V=verified
Chapter                                                                                                                                                Max. Score
           number                                                                                                                              Score                 Score       assessed     assessed
                      1     Weight.       2   Weight.       3    Weight.     4    Weight.     5   Weight.     6   Weight.     7     Weight.
  2          2.1.1            F1                F1                 F1                F1                                                           0        4          13%
             2.2.1            F1                F2                 F1                F1                                                           0        5          16%
             2.3.1            F2                F2                 F2                                                                             0        6          19%
             2.3.2            F3                F3                 F2                                                                             0        8          26%
             2.3.3            F2                                                                                                                  0        2          6%
             2.4.1            F1                F2                                                                                                0        3          10%
             2.4.2            F2                                                                                                                  0        2          6%
             2.4.3            F1                                                                                                                  0        1          3%

          Chapter summary                         F3                    F2             F1                         Total Chapter 2                 0
                              Fulfilled              0                  0                 0                       MAX Score                       31
                             Not fulfilled           2                  8                 9                       %                               0%



           Question                                      Result (Criteria score x Weighting of criteria)                                        Act.                % of Max.     S=self      V=verified
Chapter                                                                                                                                                Max. Score
           number     1     Weight.       2   Weight.       3    Weight.     4    Weight.     5   Weight.     6   Weight.     7     Weight.    Score                 Score       assessed     assessed
  3          3.1.1            F3                                                                                                                  0        3           8%
             3.2.1            F3                F3                 F3                                                                             0        9          24%
             3.2.2            F1                F2                 F1                                                                             0        4          11%
             3.2.3            F1                F2                                                                                                0        3           8%
             3.2.4            F1                F1                                                                                                0        2           5%
             3.3.1            F3                F3                 F1                F2             F2                                            0        11         29%
             3.3.2            F1                F1                                                                                                0        2           5%
             3.4.1            F2                                                                                                                  0        2           5%
             3.4.2            F2                                                                                                                  0        2           5%

          Chapter summary                         F3                    F2             F1                         Total Chapter 3                 0
                              Fulfilled              0                  0                 0                       MAX Score                       38
                             Not fulfilled           6                  6                 8                       %                               0%



           Question                                      Result (Criteria score x Weighting of criteria)                                        Act.                % of Max.     S=self      V=verified
Chapter                                                                                                                                                Max. Score
           number     1     Weight.       2   Weight.       3    Weight.     4    Weight.     5   Weight.     6   Weight.     7     Weight.    Score                 Score       assessed     assessed
  4          4.1.1            F3                F3                 F2                                                                             0        8          12%
             4.1.2            F2                F2                                                                                                0        4           6%
             4.1.3            F3                F3                 F3                                                                             0        9          13%
             4.2.1            F3                F2                 F2                F1             F1                                            0        9          13%
             4.2.2            F2                F2                 F3                F2             F1                                            0        10         15%
             4.3.1            F2                                                                                                                  0        2           3%
             4.3.2            F3                F2                 F3                F2                                                           0        10         15%
             4.4.1            F3                F3                 F1                F2                                                           0        9          13%
             4.5.1            F2                F2                 F2                                                                             0        6           9%

          Chapter summary                         F3                    F2             F1                         Total Chapter 4                 0
                              Fulfilled              0                  0                 0                       MAX Score                       67
                             Not fulfilled        11                    15                4                       %                               0%




      db2cc651-0011-4ea1-9469-6b4b21c2dfff.xls - Scoring summary                                           Page 21 / 31                                                                                    11/24/2011
                                                                 MMOG (ODETTE / AIAG Logistic Evaluation) - Scoring Summary




            Question                                      Result (Criteria score x Weighting of criteria)                                       Act.                % of Max.    S=self    V=verified
Chapter                                                                                                                                                Max. Score
            number     1     Weight.       2   Weight.       3    Weight.     4    Weight.     5   Weight.     6   Weight.     7     Weight.   Score                 Score      assessed   assessed
   5          5.1.1            F3                F3                 F3                F3             F1                                          0         13         29%
              5.2.1            F2                F1                 F1                                                                           0         4           9%
              5.2.2            F3                F1                 F1                                                                           0         5          11%
              5.2.3            F2                F2                 F1                F1             F1                                          0         7          16%
              5.2.4            F2                F1                                                                                              0         3           7%
              5.2.5            F2                F2                                                                                              0         4           9%
              5.2.6            F3                F1                                                                                              0         4           9%
              5.3.1            F3                                                                                                                0         3           7%
              5.3.2            F2                                                                                                                0         2           4%

          Chapter summary                          F3                    F2             F1                         Total Chapter 5               0
                               Fulfilled              0                  0                 0                       MAX Score                    45
                              Not fulfilled           7                  7              10                         %                            0%


            Question                                      Result (Criteria score x Weighting of criteria)                                       Act.                % of Max.    S=self    V=verified
Chapter                                                                                                                                                Max. Score
            number     1     Weight.       2   Weight.       3    Weight.     4    Weight.     5   Weight.     6   Weight.     7     Weight.   Score                 Score      assessed   assessed
   6          6.1.1            F2                                                                                                                0         2           7%
              6.2.1            F3                                                                                                                0         3          11%
              6.3.1            F2                F2                 F1                                                                           0         5          18%
              6.3.2            F2                F1                 F2                                                                           0         5          18%
              6.4.1            F1                                                                                                                0         1           4%
              6.5.1            F2                F1                                                                                              0         3          11%
              6.5.2            F2                F1                 F1                F1                                                         0         5          18%
              6.6.1            F2                F2                                                                                              0         4          14%

          Chapter summary                          F3                    F2             F1                         Total Chapter 6               0
                               Fulfilled              0                  0                 0                       MAX Score                    28
                              Not fulfilled           1                  9                 7                       %                            0%


                                                                                               SUMMARY

TOTAL score                                      0                                      F3             F2               F1             Σ                            A, B or C


                                                                                                                                                                     C
Maximum Score                                   275                 Fulfilled              0              0              0             0
%                                               0%                Not fulfilled         32             66               47            145                                                                 FALSE
                                                                              Σ         32             66               47            145                                                                 FALSE



          Company name: ______________________________________________
          Plant/Location : _______________________________________________


          Name of self-assessor: __________________                                                Name of verified-assessor: __________________
          Date: ____________________                                                               Date: ____________________

          Signature : _________________________                                                    Signature : _________________________


Scoring :                    X         = Criteria fulfilled
                           blank       = Criteria not fulfilled

Weighting :            F1       =          1                                    (If requirements are not met, the organization’s competitiveness will be adversely affected)
                                                                                                                 (If requirements are not met, customer satisfaction and the
                       F2       =          2
                                                                                                                        organization´s performance will be seriously affected)
                                                                                      (If requirements are not met, there is a high risk of interruption to customer operations
                       F3       =          3
                                                                                                                         with additional costs to be incurred in the short term)




       db2cc651-0011-4ea1-9469-6b4b21c2dfff.xls - Scoring summary                                           Page 22 / 31                                                                                11/24/2011
                          MMOG (ODETTE / AIAG Logistic Evaluation) - Glossary

        Term                                               Definition
Advanced Quality          Is a systematic means to achieve product and process realization. Advanced
Planning (AQP)            Quality Planning embodies the concepts of error prevention and continual
                          improvement, and is used on a multidisciplinary approach.
AIAG                      Automotive Industry Action Group - A trade association working to increase
                          member productivity through a cooperative effort of North American vehicle
                          manufacturers and their suppliers.
Advanced Shipping         An EDI transaction listing the contents of a shipment of goods as well as
Notice (ASN)              additional information relating to the shipment including order information,
                          product description, physical characteristics, packaging type, marking, carrier
                          information and configuration of goods within the transportation equipment.
                          The ASN complete the JIT cycle, and when used in injunction with bar coded
                          shipping labels it virtually eliminates manual receiving functions by moving
                          data accounting records for electronic payment reducing the need for
                          traditional invoicing procedures.
Assessment                The evaluation of achievement against a specified requirement/standard
Balance out               The final quantity required by a customer before the item is discontinued from
                          production.
Bar Code / Bar Code       The combination of symbol characters and features required by a particular
Symbology                 symbology, including quiet zones, start and stop characters, data characters,
                          check characters and other auxiliary patterns, which together form a complete
                          scannable entity.
Benchmarking              The process of comparing current performance against the practices of other
                          leading Organizations for the purpose of improving performance. Companies
                          also benchmark internally by tracking and comparing current performance
                          with past performance.
Bill of Lading            A legal document generated by a shipper to consign a load to a carrier or
                          transfer responsibility to a carrier. A bill of lading includes information such as
                          number of cartons, weight, carrier, ship-to address, etc.
Bill of lading (master)   A consolidated bill of lading, covering a number of house bills of lading.
Bill of Material (BOM)    A list of all material (components, materials etc) used in the assembly of a
                          particular item.
Bottleneck                The point in a process that limits total output.
Buffer                    A quantity of materials used to protect against process variability.




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                         MMOG (ODETTE / AIAG Logistic Evaluation) - Glossary

          Term                                               Definition
Calibration              A set of operations that establish, under specific conditions the relationship
                         between values indicated by a measuring system or values represented by a
                         material measure of reference material and the corresponding values of a
                         quantity realized by a reference standard.
Capacity              The highest number of units that can be consistently produced in a given
                      period of time. Generally expressed in time increments of both straight time
                      and maximum sustainable overtime levels.
Changeover (or setup) The amount of time taken to change a process over from the last part of a
                      production run to the first good repeatable part of the next production run.
Commodity                A category of similar products (e.g. electronics, metals e.g.).
Competence               The ability to demonstrate the application of knowledge and skills.
Container                A receptacle, expandable or flexible,B44 covering for shipping goods.
                         Example is a carton, case, box, bucket, drum, bin, bottle, bundle, or bag, that
                         an item is packed and shipped in.
                          Box, bag, package or pallet. (See also Transport Unit and Pack,
                         Package or Load
Continuous               A strategic objective in order to enhance the Organizations performance to
Improvement              benefit interested parties. There are two fundamental ways to conduct
                         continuous improvement.
                         1. Breakthrough projects which either lead to revision and improvement of an
                         existing processes or the implementation of new processes, usually carried
                         out by a cross functional team outside routine operations.
                         2. People in the Organization are the best source of ideas for small step or
                         ongoing process improvements and often participate in work groups. Small
                         step ongoing process improvement activities should be controlled in order to
                         understand their effect. The people in the Organization that are involved
                         should be provided with the authority, technical support and necessary
                         resources for the change associated with improvement.
Conveyance               Equipment used to move parts and or containers (sea containers, semi
                         trailers and rail car).
Cum Based System      A system that uses the cumulative quantity received and cumulative quantity
                      shipped to calculate net quantities required and past due quantity.
Cum Start Date        The date that the customer specifies he will begin counting. Used in a cum-
                      based system.
Cumulative Quantities An running total as a count of parts shipped or received in a series or
(CUMS)                sequence of shipments.
Customer              Part to which goods and or services are supplied.
Customer              The delivery timeframe and quantity of products that the customer needs to
Requirements          support its operation.
Customer Scheduling      The functional area of an organization that interacts with the customer to
                         support customer material requirements by coordinating production, shipping,
                         etc., of end items to the customer.
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                         MMOG (ODETTE / AIAG Logistic Evaluation) - Glossary

        Term                                              Definition
Cycle Counting           A method of auditing inventory accuracy by counting only specified
                         parts/material on a predetermined schedule




                                                     25
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                          MMOG (ODETTE / AIAG Logistic Evaluation) - Glossary

         Term                                                Definition
Deficiencies              Anything that inhibits the attainment of Customer demand.
DELFOR Message            UN/EDFACT standard for the delivery forecast with release capabilities.

Delivery Order            A number used for tracking an order (represents a quantity ordered and a
Reference or number       delivery or ship date).
DELJIT Message            UN/EDIFACT standard for the Delivery Just-in-Time material release.
Demand Variability        Fluctuations in demand from one release to another for the same period
DESADV MESSAGE            UN/EDIFACT standard for the Advanced Ship Notice (ASN) - (Dispatch
                          Advice).
Direct Marking            An additive or subtractive process to establish traceability.
Dunnage                   Packaging material that protects the product during transit.

EDIFACT                   EDI for Administration, Commerce, and Transport. EDIFACT is the current
                          acronym for international standards developed by the United Nations
Electronic                Conducting business electronically via traditional EDI technologies or online
Communication             by the internet.
Electronic Data           The computer-to-computer exchange of formatted data between trading
Interchange (EDI)         partners in a standard format and syntax, e.g., ANSI, ASCX12 or
                          UN/EDIFACT.
Enterprise Resource       A class of software for planning enterprise-wide the resources needed to take
Planning (ERP)            customer orders, ship them, account for them and replenish all needed goods
                          according to customer orders and forecasts. Often includes electronic
                          commerce with suppliers.
Finished Goods / parts Produced items, ready for transfer to the customer
Inventory
First in First Out (FIFO) Management process ensuring that the first received is first used.

Individual Training Plan Training plans targeted to achieve specific levels of performance for specific
                         tasks.
Internal Customer         The Next process operation or function within an organization.
Internal Supplier         The previous operation or function within an organization.
Inventory                 Material, supplies and/or finished goods held for future use or sale. Inventory
                          buffers the production process against the uncertainty of demand, the
                          variability of the process, and the cycle time of the process.
Inventory Transactions Inventory transactions document the quantitative change in inventory due to a
                       business event or transaction (e.g., supplier receipt). In addition to the
                       inventory impact of the event (i.e., the actual receipt quantity of a part),
                       inventory transactions also record contextual information about the event. In
                       the case of a supplier receipt, contextual information could include the
                       supplier, date/time of the receipt, part lot number, etc.



                                                      26
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                           MMOG (ODETTE / AIAG Logistic Evaluation) - Glossary

            Term                                           Definition
Kanban                     A pull replenishment system used at a stock point in which a supply batch is
                           ordered based upon a usage of a previous batch.
Key Performance             A Performance measure (metric) used by the organization to determine its
Indicator (KPI)            current performance and identify improvement targets.
                           The KPI should follow the SMART principle e.g.
                           Strategic
                           Measurable
                           Achievable
                           Realistic
                           Timely.
Launch                  The pre-production process leading up to full production of a new
                        program/product
Lead Logistics Provider A logistics operator contracted to manage material flow between supplier and
(LLP)                   customer. Also referred to as 3rd Party Logistic Provider.
Lead Time                  1. The time interval between the conception or designing of a product and its
                           actual productions.
                           2. The time interval between the placing of an order and the delivery of the
                           product or service
Logistics                  The process of planning implementing and controlling the efficient, effective
                           flow and storage of goods, services and related information from point of
                           origin to point of consumption for the purpose of conforming to customer
                           requirements.
Logistics Costs            The total cost involved I the complete logistics operation.
Lot                        A quantity of homogeneous material either manufactured or received.
Master Production          An aggregation of independent material requirements used as input to the
Schedule                   Material Requirements Planning process.
Material Authorisation     The amount of material that the customer is authorizing a supplier to either
                           purchase (RAW) or produce (FAB). If the customer should cancel this order,
                           the customer will pay the supplier for any material that the customer
                           authorized. It is important for the balance-out process to track the highest
                           value of RAW and FAB authorizations
Material                   Goods used during the production process, such as components, raw
                           materials and ancillary materials.
Material Flow Diagram A graphic representation of a material flow process.
Material Requirements A time phased replenishment system to support production and/or
Planning (MRP)        manufacturing processes. It is generally identified with material/inventory
                      control processes.
Mode                  Defines the actual type of transportation, ie Road, Rail, Air, Sea.



                                                       27
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                          MMOG (ODETTE / AIAG Logistic Evaluation) - Glossary

          Term                                             Definition
Materials planning and The process of planning implementing and controlling the efficient, effective
logistics              flow and storage of goods, services and related information from point of
                       origin to point of consumption for the purpose of conforming to customer
                       requirements.
MRO                       Maintenance, Repair, and Operating Supplies – Purchased items not included
                          into the finished product.




                                                      28
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                          MMOG (ODETTE / AIAG Logistic Evaluation) - Glossary

        Term                                                 Definition
Non Value Added           Any work carried out, Which is necessary under current conditions but does
                          not increase product value e.g. inspection, part movement, tool changing,
                          maintenance, organizations should aim to minimize non-value added
                          activities.
Objective                 Something sought, or aimed for.
                          Related to the organizations policy.
Obsolescence              Out-of-date material designated for disposal, obsolete material should be
                          controlled in a similar manner to nonconforming product, (i.e. Corrective and
                          Preventive Action taken).
ODETTE                    Non-profit organization run by automotive people for automotive people. Its
                          main members are six European national organizations who represent their
                          local manufacturers and suppliers (Czech Republic, France, Germany, Spain,
                          Sweden and the U.K.)
Organization              A group of people and facilities with an arrangement of responsibilities,
                          authorities and relationships (e.g. corporation, company, firm, institution or
                          association.)
Partial Lot               The amount left over from a production run that is insufficient to fill a container
                          or package to the customer’s required ship quantity.
Performance to            A performance measurement, which represents the percentage of on-time
schedule                  deliveries to the customer.
Perpetual Inventory       1. The inventory as represented in computer records, used to reconcile
                          against physical inventory. 2. A structured approach of taking a physical
                          inventory and then reconciling to computer records followed where necessary
                          by corrective action. The accuracy of the data is used as a performance
                          metric.
Physical Inventory        A method of verifying inventory record balances by physically counting all
                          inventory on hand.
Pilot Program             A Program to build saleable vehicles on line with samples of approved parts.

Plant                     A manufacturing location
Point of use              The physical point at which the part is consumed (e.g. assembly).
Policy                    The term is used to describe long- and medium-range management
                          orientations as well as annual goals or targets. Another aspect of policy is that
                          it is composed of both goals and measures, that is, both ends and means.
                          Goals are usually quantitative figures established by top management, such
                          as sales, profit, and market share targets. Measures, on the other hand, are
                          the specific action programs to achieve these goals. A goal that is not
                          expressed in terms of such specific measures is merely a slogan. It is
                          imperative that top management determine both the goals and the measures
                          and then deploy them throughout the organization.




                                                      29
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                         MMOG (ODETTE / AIAG Logistic Evaluation) - Glossary

        Term                                             Definition
Pre Production           Manufacture or assembly using production parts and processes prior to
                         continuous scheduled output.
Premium Freight          Charges incurred in addition to contracted delivery, often monitored as an
                         indicator of potential supply problems and supplier efficiency.
Problem Solving          A disciplined process to analyze problems to determine and eliminate root
                         causes.
Process                  An activity or set of activities that use resource to transform inputs into
                         outputs.
                         Inputs in terms of People, Equipment, Materials, Environment and Methods.
                         Output in terms of a product or service which can be measured in terms of
                         Quality, Cost and Delivery.
Procedure                A specified way to carry out an activity or a process.
                         Where the wording “documented or written procedure” is required this could
                         be in terms of a written procedure, flowchart, work instruction or standard
                         operation.
Production               The physical process where value added activity takes place.
Production Part          A part, assembly, or component that will be assembled into a product.

Product Approval    Generic requirements for production part approval for all production and
Process (PAP)       service commodities, including bulk materials. It applies equally whether parts
                    are produced internally or externally by outside suppliers.
Product Realization The process of design for both product and process as defined within
                    ISO/TS16949: 2002.
Pull System         Method of ordering where a fixed stock is held of every item and orders are
                    issued for the immediate replacement of any items that are removed from
Quality Management  stock. Management System Requirements
                    Quality
System Requirements ISO/TS16949: 2002, in conjunction with ISO9001: 2000 defines the quality
                    management system requirements for the design and development,
                    production and when relevant, installation and service of automotive related
                    products.
                    ISO/TS16949: 2002 represents the new global quality management
                    requirements for the automotive sector and replaces QS9000, VDA6.1, AVSQ
                    and EAQF as automotive requirements.
Quality Operating        QOS is a systematic, disciplined approach that uses standardized tools and
System (QOS)             methods to manage a business and achieve ever-increasing levels of
                         customer satisfaction




                                                     30
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                          MMOG (ODETTE / AIAG Logistic Evaluation) - Glossary

        Term                                                 Definition
Receipt Authorization     A unique number, which represents a firm order quantity of an item for a
Number (RAN)              particular delivery date. This number is used to receive material and to track
                          this receipt through the accounts payable process.
Receiving                 Variance between documented receipts and physical receipts.
Discrepancies
Record Integrity          The state in which records match actual occurrence.
Release                   An order of material against a blanket purchase order. A release tells the
                          supplier what, when, how much, and whom to ship it to. Some common EDI
                          documents used for releasing are the X12 830, the EDIFACT DELFOR, and
                          the X12 862.
Relief Cover              Alternative labour used to cover an operation during absence (i.e. holiday
                          cover).
Returnable Container      Shipping container of any material designed to be used for more than one
                          shipment.
Returns                   Any material that is returned to the supplier, Could be due to quality issues,
                          over-shipments, foreign stock, etc.
RFID                      Radio Frequency Identification - Systems that read and or write data to RF
                          tags that are present in a radio frequency field projected from RF reading /
                          writing equipment.
Root Cause                The true cause(s) of a problem, not just its superficial symptoms. Identifying
                          and correcting root cause ensures permanent corrective action.
Routings                  Information detailing the method of manufacturing of a particular item. It
                          includes (at a minimum) the operations to be performed, the work centres
                          involved and the standards for setup and run time. In some companies, the
                          routing also includes information on tooling, operator skill levels, inspection
                          operations and testing requirements
Salvage                   Disposition for material could be rework, reused or recycled.
Schedule                  A document initially provided by the customer defining their requirements in
                          terms of product number, delivery quantity and date. This is often translated
                          using an internal scheduling system to create an internal schedule /
                          manufacturing plan.
Scrap Rate                A predictable percentage of raw materials rejected from use in a
                          manufactured product.
Self Assessment           A method by which a facility or organization compares actual
                          methods/performance to an ideal.
Serial                    A unique identifier assigned to an entity for tracking purposes.
Service                   The activity carried out by a supplier for a customer in which no transfer of
                          ownership of goods takes place. For example: giving advice, making checks,
                          transport...

                                                      31
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                         MMOG (ODETTE / AIAG Logistic Evaluation) - Glossary

         Term                                               Definition
Service parts            Parts used for the repair or maintenance of an assembled product.
                         Synonyms: repair parts, spare parts.




                                                     32
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                            MMOG (ODETTE / AIAG Logistic Evaluation) - Glossary

       Term                                             Definition
Shipment Identification 1. The control ID number assigned to an ASN transaction.
Number (SID)
                        2. A number used by Customs to identify, in a single number, the shipment
                        crossing the border.
Storage Location            The interim location where material is kept in inventory between the receiving
                            dock and point of use.
Strategy                    The method by which Organizations plan to achieve business objectives.
Supplier                    Party, which provides goods and/or services to one or more customers.

Supply Chain                 A list of organizations starting from OEM detailing the product supplied, can
                            be product specific (i.e. all the organizations supplying parts in an steering
                            column assembly)
Supplier Scheduling         A process to provide suppliers with timed customer material requirements
                            information.
System                      Work elements working together or connected in some way to form a whole
                            with an orderly and methodical plan of proceeding, to perform the main
                            function, a combination of “input, process, output”
Third Party                 A service provider that interfaces between the supplier and customer to
                            modify the packaging and or provide a value added process to the product.
Throughput Time             The elapsed time from when material starts a process until its finished, either
                            through a plant or through a production network.
Tier                        The level of supplier (organization) in relationship to the OEM/VM final
                            assembly plant.
Tier 1                      Supplier / organization that supplies parts directly to the OEM/VM final
                            assembly plant.
Tier n                      A supplier to the tier n- 1
Traceability                A precise degree of documented history regarding the life of an entity such as
                            a lot of material, including activities performed and components used.
Transit Time                The elapsed time from shipping dock to receiving dock.
Value Added                 Any work that changes the nature, shape or characteristics of the product in
                            line with Customer Requirements. Organizations should look to maximise their
                            value added activities.
Vendor Managed              The practice of customers making suppliers responsible for determining order
Inventory                   size and timing, usually based on receipt of inventory data. Its goal is to
                            increase inventory turns and reduce stock outs.
Vision                      The target for the Organization, i.e. what/where you want the Organization to
                            be.
Visual Management           The use of (signs, colours, symbols lights) that is readily apparent and can be
                            easily understood. This information can be used to identify, instruct or indicate
                            that normal or abnormal conditions exist and that action may be required.

                                                        33
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Visual Management        MMOG (ODETTE / AIAG Logistic Evaluation) - Glossary

        Term                                          Definition
                         Good Visual Management needs no interpretation and provokes a reaction.




                                                     34
    db2cc651-0011-4ea1-9469-6b4b21c2dfff.xls - Glossary / 34                          11/24/2011

				
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