Midwest MFG/PRO User Group
March 23, 2004
MMOG/LE for Automotive Suppliers
Cara Besh Morris Brown
DaimlerChrysler AIAG
Co-Chair Program Manager
MMOG Work Group Materials Management
What is the Global
MMOG/LE?
MMOG History
OEMs and Automotive Suppliers
MAP Study - Identified the Problem
− Surveys and self-assessments from different customers
− Too busy filling out forms
− No consensus on what was important
Purpose of the Project
− Industryaccepted benchmark in Materials Management
− Create common terminology
− Gain consensus on what is important
− Save money
What is the MMOG/LE
“Process?”
MMOG vs. Global MMOG/LE
MMOG: Global MMOG:
Business Process Business Process
developed by DCX, developed by DCX, Ford,
General Motors, Ford, Bosch, Volvo, PSA, and
suppliers.
and suppliers.
4 Chapters 6 Chapters
16 Sections 61 Questions
323 Requirements 206 Criteria
Based on QS-9000 Based on TS-16949
format. format.
MMOG/LE Self Evaluation Categories
Strategy and Improvement
Work Organization
Production and Capacity Planning
Customer Interface
Production and Product Control
Supplier Relationship
Strategy & Improvement
Vision & Strategy
Objectives
Measurement, Analysis & Action Plans
Continuous Improvement
Supply Chain Development
Work Organization
Organizational Processes
Organizational Procedures
Resource Planning
Work Environment & Human Resources
Production and Capacity Planning
Product Realization
Capacity Planning
Production Planning
Systems Integration
Customer Interface
Communication
Packaging & Labeling
Shipping
Transportation
Customer Satisfaction & Feedback
Production and Product Control
Material Identification
Inventory
Engineering Change Control
Traceability
Supplier Relationship
Supplier Selection
Materials Planning & Logistics
Agreement / Instruction
Communication
Packaging & Labeling
Transportation
Material Receipt
Supplier Assessment
OUR GOAL:
Supplier Development through
the Supply Chain
Ratings
OEM
(Ford, MMOG Ratings
DCX)
Tier 1
(JCI)
MMOG Ratings
Tier 2
(Milliken)
MMOG
Tier n
What do the OEMs look at as “evidence” when
auditing to the MMOG/LE?
Question 5.2.2
– Criteria #2 Visual controls for inventory mgmt.
Question 4.1.2
– Criteria #1 EDI releases are received and processed
without manual entry
Questions 2.3.2
– Criteria #3 Procedures for potential disruptions
Tips from Suppliers that have
rolled out the MMOG/LE
Alignment with ISO TS16949
Internal Metrics/Customer Ratings
Customer Support of MMOG/LE
Utilize internal expertise
Establish a cross functional team
Take advantage of multiple customer
requirements
What does the new Global
MMOG/LE look like?”
Structure of Global MMOG/LE
4.1 COMMUNICATION
4.1.1 The organization maintains a process to ensure a co-
Question operative communication based on actual and adequate
information for both parties.
Why? To maintain customer relations, prevent misunderstandings and
Why-Statement ensure continued business based on co-operative
communication.
Criteria:
Criteria to be
evaluated with q (F2) There are agreed contingency plans established between both
parties to maintain permanent communication during
specific weighting bottleneck situation(s). (1.4.2)
q (F2) The customers’ goals regarding Material Planning and Logistics
performance are clearly defined (e.g. Customer delivery
instructions/schedules), visualised and followed-up by the
organization (3.1.4)
q (F1) A contact list exists conta ining name, function, method of
communication (e.g. phone number, fax number, e-mail
address, language spoken, etc.), hours of availability and
deputies/back-ups for each Material Planning and Logistics
function from its customers (1.4.2/16)
q (F1) The contact listing must support the entire scheduled operating
hours of all customers (18)
q (F1) There is a documented process (incl. process owner) for
maintaining contact information internally and updating the
contact information on the customer's system (17)
Scoring Summary
National
organisation logo
Global Materials Management Operations Guide / Logistics Evaluation results sheet
Question Result (Criteria score x Weighting of criteria) Act. Max. S=self V=verified
Chapter
number 1 Weight. 2 Weight. 3 Weight. 4 Weight. 5 Weight. 6 Weight. 7 Weight. Score Score assessed assessed
1 1.1.1 F2 F2 F2 F2 0 8
1.2.1 F2 F2 F2 0 6
1.2.2 F3 F3 F3 F2 F2 F2 F1 0 16
1.3.1 F2 F2 F2 F1 0 7
1.3.2 F2 F2 0 4
1.4.1 F1 F1 F1 0 3
1.4.2 F3 F2 F2 F2 F1 0 10
1.5.1 F1 F1 F1 0 3
1.5.2 F2 F2 F2 0 6
Chapter summary F3 F2 F1 Total Chapter 1 0
Fulfilled 0 0 0 MAX Score 63
Not fulfilled 4 21 9 % 0%
SUMMARY
TOTAL score 0 F3 F2 F1 ? A, B or C
Maximum Score 351 Fulfilled 0 0 0 0
% 0% Not fulfilled 35 75 96 206
? 35 75 96 206
Scoring : ABC-Classification
Level definition Global MMOG / LE
Definition : The supplier far surpasses minimum standards in every aspect and can be
considered at or near "world class" standards.
A-Level Logistics 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.
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
B-Level Logistics 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.
Definition : The supplier is deficient in one or more critical/high-impact aspects of a given
category . Action plans are required to ensure deficiencies do not result in serious or
prolonged issues to the customer.
C-Level Logistics
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 overal will result in Level C.
Gap Analysis Tool
Global MMOG/LE
Criteria
Question # Weight Element Desired State Current State
The management prioritizes
documented action plan items. The
1.3 Measurement, action plan should include the action,
Analysis and responsibility, timing and allocated
1) F2 Action Plans resource.
Evaluations of corrective/preventive
actions are performed at the conclusion
of each action plan. The review shall be
1.3 Measurement, used to determine the effectiveness, the
Analysis and application to similar processes and the
2) F2 Action Plans need for any further action.
A defined process supported by
management for continuous
improvement is used within the entire
1.4 Continuous organization and with all supply chain
1) F1 Improvement partners.
Where Do We See the Most
Nonconformances?
1. Bar code labels are inaccurate
2. Inability to communicate requirements
electronically throughout the supply
chain
3. Lack of control of Work-In-Process
4. Lack of control of First In/First Out
(FIFO)
Where Do We See the Most
Nonconformances?
5. Identify customer shipping
discrepancies
6. ASN data is not generated
automatically
7. Responding to unexpected changes in
demand
8. Inadequate storage location labeling
9. Behind schedule checks are not
automatic
How will the
Global MMOG/LE
be implemented?
Will I need to reassess?
MMOG/LE @
Required of all launch suppliers
to North American DCX Plants
Required by product launch
– One time submission
– Ratings bonus
What are we doing with the
scores?
– Compare MMOG w/past
delivery performance
– Potential on-site assessment
• MMOG is used as a tool
Global MMOG/LE @
North America Q1 Award - requires
Level “A”
Self assessments required annually
Timing of rollout - either document will
be accepted for self assessment in 2004
Global MMOG/LE @
Supplier Locations
Johnson Controls
Gates Corporation
American Axle
European Companies
Automotive
– Ford-Germany
– Bosch
– Volvo Car
– Volvo Truck
– PSA (Puegot)
– Renault
Non-automotive
OUR GOAL:
Supplier Development through
the Supply Chain
Ratings
OEM
MMOG
(Ford,
DCX)
Ratings
Tier 1
(JCI)
MMOG
Ratings
Tier 2
(Milliken)
MMOG
Tier n
AIAG Support of MMOG/LE
Additional documents
FAQs
mmog@aiag.org
AUTO-TECH
Training
Complementary Documents to MMOG/LE
Customs
– Information Kits on Importing into US, Canada, & Mexico
available from AIAG
– Classes at AIAG on HTS and NAFTA Content Reporting
– Annual Customs Town Hall on August 31, 2004 in Detroit
Crisis Management (M-12)
– File can be downloaded/ordered at www.aiag.org
TREAD Act Reporting (TC-5)
– Information Kit on TREAD Act Reporting available from AIAG
Automatic Identification
– Numerous standards available on bar code labels, direct part
marking, & RFID
Returnable Containers
– Numerous standards available on returnable containers
AIAG Support of MMOG/LE
Email Contact mmog@aiag.org
Website www.aiag.org
FAQ’s on Global MMOG/LE
AIAG Support of MMOG/LE
AutoTech 2004
http://www.aiag.org/autotech/index.asp
– August 31-September 2 @COBO Hall in Detroit
– Educational sessions ranging from informational
presentations that provide overviews of technology,
implementation plans for suppliers, or discussions on
supplier programs.
– Top-level representatives from OEM and supplier
companies who speak during breakfast, luncheon,
and dinner functions.
Overview of the MMOG/LE Process
1 2
Supplier
Development/
Audit Team Executive Assemble Team
+ Delivery Sponsor
Rating
+ Delivery
Customer Rating
Interface 3
MMOG Self
Assessment
7 8
Measure Progress Evaluate effectiveness Self-Assess
6 5 4
MMOG Self Develop Identify Gaps
Assessment
Action Plan Set Goals
Training Needs
A Continuous Improvement Cycle
Professional Development
Course Objectives
Use Global MMOG/LE information
in this course as a tool for
continuous improvement and as a
result be able to:
– Describe all sections of MMOG/LE
– Self-assess your operations and perform a gap
analysis
– Generate, based on gap analysis and sample project
plan, your own Global MMOG/LE improvement
implementation plan
Course Objectives
Through sample presentations and
action plans, you will also be capable of
communicating Global MMOG/LE issues
to:
– Management
– Specific Members
– Overall organization
– In order to gain:
• Sponsorship
• Management acceptance
• Support for assessment
• Resources to accomplish action plans
Training Dates
One-day Course in Southfield, Michigan
– April 2
– May 3
– May 25
– June 14
– June 16
How to Sign up for Class
– Call AIAG at 248-358-3003
– www.aiag.org/education/mmog_training.asp
MMOG/LE Training @ Explore!
“Using the MMOG/LE as a
Continuous Improvement Tool”
Will be offered in conjunction with QAD
Explore Annual Conference on
May 27, 2004
Charlotte, NC
Call Customer Service to register
248-358-3003
Or register online at
www.aiag.org
Contact Us!
Cara Besh, DaimlerChrysler
cab10@dcx.com
Eric Minehart, Ford
eminehar@ford.com
Aidan Hughes, Gates Corp.
ahughes@gates.com
Connie Harde, American Axle
hardec@aam.com
Morris Brown, AIAG
mbrown@aiag.org
You have questions…
We have information!