Gm Operation Management - PowerPoint

Document Sample
Gm Operation Management - PowerPoint Powered By Docstoc
					        Global MMOG/LE
    Materials Management
Operations Guideline & Logistics
           Evaluation

      Cara Besh          Morris Brown
    DaimlerChrysler          AIAG
       Co-Chair         Program Manager
   MMOG Work Group    Materials Management
Chrysler Group Launches in 2004

9 New Product Launches

2-3 Per Year is the Average

Let’s take a look!
         We Need Help!

Goal is NO supplier disruptions to
production

Utilize all tools available

MMOG/LE is one of those tools!
What is the Global
  MMOG/LE?
Who is the Work Group?


• Ford              • Robert Bosch
• DaimlerChrysler   • PSA
• American Axle     • Renault
• Gates Corp.       • Volvo Cars
• JCI               • Volvo Trucks
• GM                • SMMT Industry
                      Forum
           Who is the
                   ?

• Automotive Industry Action Group
• Industry Trade Association
• 1,400 Member Companies
• Automotive, Truck, Heavy
  Equipment Manufacturers
• Suppliers – Production & Non
  Production
                        Background
• Founded in 1982
• Mission is to develop standards and
   implementation strategies that improve the
   global automotive supply chain
• Only place in North America where all OEMs,
  suppliers and service providers can assemble to
  address issues and resolve problems that affect
  the global automotive supply chain.
• AIAG Objective
  • Reduce cost and complexity
  • Improve product quality, employee health and safety and the
    environment
  • Optimize speed-to-market
        Who is Odette?
 Odette is a non-profit organization
  run by automotive people for
  automotive people.
 The principal areas of activity are:
    -E-Business Communications
    -Logistics Management
    -Engineering Data exchange



 Member countries: Benelux, Czechia,
 France, Germany, Spain, Sweden,
 UK
Global Team
              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
    • Industry accepted benchmark in Materials Management
    • Create common terminology
    • Gain consensus on what is important
    • Save money
What is the MMOG/LE
    “Process?”
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
  MMOG/LE Self Evaluation
       Categories

 Strategy and Improvement
 Work Organization

 Production and Capacity Planning

 Customer Interface

 Production and Product Control

 Supplier Relationship
  Structure of Global MMOG/LE
                                 4.1 COMMUNICATION

                                 4.1.1        The organization maintains a process to ensure a co-
                                              operative communication based on actual and adequate
              Question                        information for both parties.

                                 Why?         To maintain customer relations, prevent misunderstandings and
                                              ensure continued business based on co-operative
        Why-Statement                         communication.

                                 Criteria:

         Criteria to be          q (F2)       There are agreed contingency plans established between both
                                             parties to maintain permanent communication during
        evaluated with                       bottleneck situation(s). (1.4.2)
       specific weighting
                                 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
Change to ODETTE Logistics                   function from its customers (1.4.2/16)

        Evaluation :             q (F1)       The contact listing must support the entire scheduled operating
  Evaluation no more on                      hours of all customers (18)

question level but on criteria   q (F1)       There is a documented process (incl. process owner) for
                                             maintaining contact information internally and updating the
            level                            contact information on the customer's system (17)
Scoring : Scoring Summary
Scoring : ABC-Classification
       Gap Analysis Tool
Global MMOG/LE
  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?
  MMOG/LE Implementations
 OEMs




Suppliers
    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
Non-Automotive Companies

• Ericcson
• High Schools/Universities
• Boeing
• ABB Robotics
• Schemker
                   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
   How Can I Gain
Management Support?

   Why SHOULD
Management Support
    this Effort?

What’s in it For Me?
What’s in it for Me?
   Cost Savings
   Improved Delivery Ratings/Scores
   Meeting Customer Requirements
     Increase Customer Satisfaction
     Better understanding of customer requirements

   Reduced Stress
     Fewer expedites/emergencies
     Consistent Processes
What Happens When I
Implement MMOG/LE?
     Using the MMOG internally
            Case Studies
   Simco Automotive used MMOG
    to develop action plans
    – Reduced:
        Premium freight by 85%
        Obsolescence costs by 80%
        Inventory Carrying Costs by 43%
        Data Entry Time by 20%
        Stress!!!
    – Additional Improvements:
        Increased Revenue
        Improved scheduling and visibility
        Improved customer relations
    – Savings $135,000 - Cost $60,000 =
      $75,000 ROI Percentage = 125%
Using the MMOG internally
       Case Studies
   Gates Rubber Company
    – MS-9000 Mandate by Ford
  Benefits Realized at Ford
Percent of N.A. Assembly Plant Suppliers
     with a Delivery Rating Over 81            Total
                                             Suppliers
                                           1994 – 1171
                                           1995 – 1184
                                           1996 – 1158
                                           1997 – 1250
                                           1998 – 1389
                                           1999 – 1424
                                           2000 – 1459
                                           2001 – 1528
  Calendar Year (thru June 2001)
    Morris Brown
  Program Manager
Materials Management

       AIAG
What Resources are
Available to Me if I
 Don’t Understand
   Something?
What Is Available if I
 am a Member of
       AIAG?
 MMOG Tools

 FAQ   Website
 – Here’s what it
   looks like
 – www.aiag.org
   accessible
   through
   “members
   only”
   website
               https://mows.aiag.org/source/3/faqs/faq's_index.cfm#MMOG
    MMOG Tools
   Email Point of Contact
    – For members &
      nonmembers
    – Find it on AIAG website
    – mmog@aiag.org

   Materials Management
    Work Group
    – Contact Us!
    – Ford, DCX, JCI,
      Am. Axle, Gates Rubber,
      others
    MMOG Tools

   Free downloads
    to AIAG members
    – M-7 Global MMOG/LE
    – M-8 Supplier Delivery
      Performance Guideline
    – M-9 Performance
      Improvement
      Guideline
What Is Available if I
am NOT a Member of
       AIAG?
http://www.aiag.org/membership/index.asp
 What is the Future of
the Global MMOG/LE?
 Training Development Process

Training Provider Group          Work
                                 Group
                          AIAG            Training
    INTENTIA                              Slides

OLY MANGEMENT
 CONSULTANTS
                                          Instructor
                                          Manual
    TRILOGIS

                                         Participant
                                         Manual
         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
      Supportfor assessment
      Resources to accomplish action plans
        Training Dates
 One-dayCourse 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
Related MMOG/LE Sessions
   Detail MMOG/LE for Automotive
    Suppliers-C. Besh & M. Brown
    10:00-11:00

   How QAD Supports Your Industry
    Benchmark with Global MMOG/LE-
    D. Doyle & T. Onica 11:30-12:30

   Achieving Best Practices in
    Materials Management Session at
    Annual Explore Conference
   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!
  (Milliken)
                                                      MMOG

                                                                       Tier n
   How Can I Gain
Management Support?

   Why SHOULD
Management Support
    this Effort?

What’s in it For Me?
What’s in it for Me?
   Cost Savings
   Improved Delivery Ratings/Scores
   Meeting Customer Requirements
     Increase Customer Satisfaction
     Better understanding of customer requirements

   Reduced Stress
     Fewer expedites/emergencies
     Consistent Processes
What Happens When I
Implement MMOG/LE?
     Using the MMOG internally
            Case Studies
   Simco Automotive used MMOG
    to develop action plans
    – Reduced:
        Premium freight by 85%
        Obsolescence costs by 80%
        Inventory Carrying Costs by 43%
        Data Entry Time by 20%
        Stress!!!
    – Additional Improvements:
        Increased Revenue
        Improved scheduling and visibility
        Improved customer relations
    – Savings $135,000 - Cost $60,000 =
      $75,000 ROI Percentage = 125%
       Using the MMOG internally
              Case Studies
           Gates Rubber Company
              – MS-9000 Mandate by Ford
105                                                     180
100                                                     160
 95                                                     140
 90                                                     120
 85                                                     100
 80                                                      80
 75                                                      60
 70                                                      40
 65                                                      20
 60                                                       0
      Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct         Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct
                 Nov 99 - Oct 00   Nov 00 - Oct 01                       Nov 99 - Oct 00   Nov 00 - Oct 01
  Benefits Realized at Ford
Percent of N.A. Assembly Plant Suppliers
     with a Delivery Rating Over 81                            Total
                                                             Suppliers
                                                            1994 – 1171
    100%                                        91%   95%
                                                            1995 – 1184
                                          88%
     80%
                        79%   80%   83%
                                                            1996 – 1158
                                                            1997 – 1250
                  55%
     60%
     40%    33%

     20%                                                    1998 – 1389
      0%
           1994 1995 1996 1997 1998 1999 2000 2001          1999 – 1424
                                                            2000 – 1459
                                                            2001 – 1528
  Calendar Year (thru June 2001)
    Morris Brown
  Program Manager
Materials Management

       AIAG
What Resources are
Available to Me if I
 Don’t Understand
   Something?
What Is Available if I
 am a Member of
       AIAG?
 MMOG Tools

 FAQ   Website
 – Here’s what it
   looks like
 – www.aiag.org
   accessible
   through
   “members
   only”
   website
                  https://mows.aiag.org/source/3/faqs/faq's_index.cfm#MMOG
    MMOG Tools
   Email Point of Contact
    – For members &
      nonmembers
    – Find it on AIAG website
    – mmog@aiag.org

   Materials Management
    Work Group
    – Contact Us!
    – Ford, DCX, JCI,
      Am. Axle, Gates Rubber,
      others
    MMOG Tools

   Free downloads
    to AIAG members
    – M-7 Global MMOG/LE
    – M-8 Supplier Delivery
      Performance Guideline
    – M-9 Performance
      Improvement
      Guideline
What Is Available if I
am NOT a Member of
       AIAG?
http://www.aiag.org/membership/index.asp
 What is the Future of
the Global MMOG/LE?
 Training Development Process

Training Provider Group          Work
                                 Group
                          AIAG            Training
    INTENTIA                              Slides

OLY MANGEMENT
 CONSULTANTS
                                          Instructor
                                          Manual
    TRILOGIS

                                         Participant
                                         Manual
         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
Related MMOG/LE Sessions
   Detail MMOG/LE for Automotive
    Suppliers-C. Besh & M. Brown
    10:00-11:00

   How QAD Supports Your Industry
    Benchmark with Global MMOG/LE-
    D. Doyle & T. Onica 11:30-12:30

   Achieving Best Practices in
    Materials Management Session at
    Annual Explore Conference
   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!

				
DOCUMENT INFO
Description: Gm Operation Management document sample