Let Us Help You Pave the Way
How to Conquer MMOG/LE
Terry Onica – Director, Automotive, QAD
Sharon Wood – Corporate Delivery/MMOG Champion,
SGroup Automotive
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Let Us Help You Pave the Way - How to Conquer MMOG/LE
Safe Harbor Statement
The following is intended to outline QAD’s general
product direction. It is intended for information
purposes only, and may not be incorporated into
any contract. It is not a commitment to deliver
any material, code, functional capabilities, and
should not be relied upon in making purchasing
decisions. The development, release, and timing
of any features or functional capabilities
described for QAD’s products remains at the sole
discretion of QAD.
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Let Us Help You Pave the Way - How to Conquer MMOG/LE
Session Agenda
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MMOG/LE overview
OEM expectations & best practices
QAD support
S Group automotive case study
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Let Us Help You Pave the Way - How to Conquer MMOG/LE
MMOG/LE Overview
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Let Us Help You Pave the Way - How to Conquer MMOG/LE
What is MMOG/LE?
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•
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Materials
Management
Operations
Guideline
Logistic
Evaluation
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Let Us Help You Pave the Way - How to Conquer MMOG/LE
What is MMOG/LE?
• Developed by AIAG/ Odette with OEMs and Suppliers
• Assessment tool to select & evaluate suppliers
• Provides site score (e.g., A, B or C)
MMOG/LE = Delivery
ISO/TS-16949 = Quality
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Let Us Help You Pave the Way - How to Conquer MMOG/LE
Focuses on Supply Chain Management
■ Organizations capabilities against best
practice in handling:
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Customer volume fluctuations
Capacity constraints
Contingency planning
Sub supplier capability
Resource allocation
Employee skills
…and much, much more
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Let Us Help You Pave the Way - How to Conquer MMOG/LE
What is MMOG/LE?
• Excel spreadsheet with:
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F3
Six chapters
206 criteria
Answer responses: Yes, No, N/A
Criteria weighting: F3 F2 F1

Supplier delivery performance metrics (e.g. on-time
delivery, receipt discrepancies, ASN accuracy) shall be
defined and measured.
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Let Us Help You Pave the Way - How to Conquer MMOG/LE
A B C Classification Definition
Classification
A
Best practice
B
Unstable or inconsistent
processes
■ Level A
 F3 criteria = 35
 F3 require ERP usage
■ Level C
 Spreadsheets
C
Deficient in key
critical areas
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Let Us Help You Pave the Way - How to Conquer MMOG/LE
MMOG/LE Chapters
1.
2.
3.
4.
5.
6.
Strategy & improvement
Work organization
Capacity & production planning
Customer interface
Production & product control
Supplier interface
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Let Us Help You Pave the Way - How to Conquer MMOG/LE
MMOG/LE Customer Usage with Suppliers
OEMs Using
Tier 1 Using
Tier 1 Using (cont)
Chrysler
Autoliv
Pierburg
CNH – Latin America Benteler
Selzer Automotive
FAW-VW
Beru
SNOP
Ford
Bosch
Valeo
GM
Brose
WABCO
Iveco
Continental
ZF
Jaguar/Land Rover
Faurecia
PSA
Gates
Under Review
Renault
Johnson Controls
BMW
Tofas Fiat (Turkey)
Lear
Daimler
Volvo Car
Magna Powertrain Honda NA
Volvo Truck
MGI Coutier
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VW
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Let Us Help You Pave the Way - How to Conquer MMOG/LE
OEM Submission Requirements
Submissions
■ Supplier selection
■ Annual update
 Chrysler by March 31, Ford and GM by July 31
Audits
■ Poor supplier performance
■ New business
■ Growing suppliers
■ New product launch
Potential impact to risk for customer’s business
■ Not achieving a Level A
■ Not submitting an MMOG/LE assessment
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Let Us Help You Pave the Way - How to Conquer MMOG/LE
OEM Assessment Expectations
& Best Practices
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Let Us Help You Pave the Way - How to Conquer MMOG/LE
Is MMOG/LE Being Driven by Management?
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Driven by operations
Executive management teams
Corporate delivery champion (CDC)
Championed by materials management
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Let Us Help You Pave the Way - How to Conquer MMOG/LE
Are You Relying on Spreadsheets?
■ Planning
■ Scheduling
■ Sub-suppliers
A
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Let Us Help You Pave the Way - How to Conquer MMOG/LE
Who is Leading the Assessment?
Quality
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Materials
Manager
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Let Us Help You Pave the Way - How to Conquer MMOG/LE
Is the Right Person Answering the Question?
■ Top management
■ Materials manager
■ Corporate delivery
champion
■ Purchasing
■ Production
■ Engineering
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Program manager
Human resources
Quality
It
Logistics
Sales
Customer service
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Let Us Help You Pave the Way - How to Conquer MMOG/LE
Have You Documented Customer Specifics?
■ Global terms and conditions
■ Supplier manuals
■ Customer web sites and applications
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EDI portals
Delivery rating
Capacity
Packaging and labeling
Container management
■ Customer training
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Let Us Help You Pave the Way - How to Conquer MMOG/LE
Are You Thoroughly Documenting Comments?
■ Record evidence
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Work instructions
Customer specifics
Notes
Non applicable
■ Annual review
■ Competition
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Let Us Help You Pave the Way - How to Conquer MMOG/LE
Poor Assessment Comments? Why?
1
2
Criteria
Delivery performance to customer
(e.g. customer performance rating,
ship-to-schedule, shipping
discrepancies) shall be measured.
Resources versus customer
requirements shall be reviewed upon
receipt of shipping requirements (e.g.
862/DELJIT/shipping schedules…)
comparing daily ship requirement
sent by customers.
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Comments
JIT and daily meeting
Let Us Help You Pave the Way - How to Conquer MMOG/LE
Best Practice Assessment Comments. Why?
Criteria
Comments
Only documentation required is
All shipments, including
the packing slip (50.6.4) and the
documentation and labeling, shall be shipper (50.6.8); ASN export
prepared to customer, industry, and
screen is (50.6.22). Labeling is
government/international standards
covered in MMOG/LE 4.3.2.1.
and requirements (e.g. customs
Ford labeling specs are listed in
handling, C-TPAT, PIP, AEO)
MP&L In A Box as indicated in
including carrier routings.
Work instruction for ASN process
is WI-ASN-0030-EM-FORD
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■
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Menu item in ERP (50.6.4, etc.)
Customer specifics (Ford MP&L in a Box
Work instruction (WI-ASN-0030-EM-Ford)
Cross reference to other criteria (MMOG/LE 4.3.2.1)
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Let Us Help You Pave the Way - How to Conquer MMOG/LE
Are Your Work Instructions Detailed Enough?
 Used for training & back-ups
 Instructions should Include:
Purpose/scope
Person(s) responsible
Explanation of acronyms
MMOG/LE criteria
Step by step instructions
 Obtaining user logins
 Customer specifics
 Errors & contingencies
 Metrics
 Document version control
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Let Us Help You Pave the Way - How to Conquer MMOG/LE
QAD Support
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Let Us Help You Pave the Way - How to Conquer MMOG/LE
QAD MMOG/LE Answer Sheet Update
Criteria
Answer
Recently added: Q-Scans and Cebos!
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Q-Scan
Let Us Help You Pave the Way - How to Conquer MMOG/LE
QAD Automotive Process Map
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Let Us Help You Pave the Way - How to Conquer MMOG/LE
Project Health Check – Op Metrics
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Let Us Help You Pave the Way - How to Conquer MMOG/LE
Schedule Variances – Op Metrics
<- Customer
Supplier ->
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Let Us Help You Pave the Way - How to Conquer MMOG/LE
MMOG/LE Q-Scan
■ Review critical questions & top OEM criteria
■ Review processes, procedures, work
instructions and assessment comments
■ Present findings to management
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Let Us Help You Pave the Way - How to Conquer MMOG/LE
Cebos Modules to Support MMOG/LE
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Documents
Training management
Problem solver
Customer management
Supplier management
APQP
Auditing
Gage
Work manager
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Let Us Help You Pave the Way - How to Conquer MMOG/LE
S Group Automotive Case Study
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Webberville Manufacturing Facility
Sgroup Automotive
● Small to mid-size company
(aprox. 175 employees)
Owosso Manufacturing Facility including
Shea Interiors
SK Automotive, Puebla,
Mexico
● Tier 1 supplier to Ford & Chrysler
● Tier 2 supplier to JCI & Faurecia
Products Produced
● Load Floors
● Spare Tire Covers
● Headliners
● Seat Backs
QAD Version Service Pack 1
SGroup QAD Implementation
Go-Live January 2013
QAD EOB process – on premise
3 sites in 4 months
Why QAD?
● To better align ourselves to become MMOG/LE compliant with our customers:
▪ Better Inventory Control (5.2.2.1)
▪ EDI Compliance (4.1.2.3)
▪ Consistent communication with our suppliers
through Supply Chain Portal (6.3.2.1)
▪ Ease of Production Scheduling (3.3.1.1)
QAD Easy-On-Boarding
As you click on the down arrow, you will see the Work Instruction for
that procedure. It will also take you to the screen of the procedure, in
this case Confirm Shipper.
Supplier Performance – MMOG/LE F3 Critical
The compliance button takes you to all MMOG/LE elements of
Receiving.
Each element is clickable and brings up the MMOG/LE
compliance with the QAD answer.
What QAD has done for me in the present:
● Ease of training end-users with the process maps
● QAD EOB came ready to use. No custom enhancements needed for go-live
● Customer specifics were already loaded in QAD for MMOG/LE compliance
● Work instructions for most processes were already written – just needed to be
“Sgrouped”
What QAD will do for me in the future:
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Set up a cycle count program at all 3 plants
Pull and review reports for scrap, downtime and production efficiencies
Tracking of supplier performance through Supply Chain Portal
The use of operational metrics within QAD
With the use of CEBOS Preventative Maintenance module, this software
enables us to be compliant with these four MMOG/LE requirements
pertaining to the inspection and calibration of all equipment used to satisfy
customer requirements.
Next steps using CEBOS:
● Gage Calibration
● APQP & PPAP
● Document Control
● Layer Process Audits
● Corrective Actions for Quality & Delivery
Let Us Help You Pave the Way - How to Conquer MMOG/LE
Summary
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Let Us Help You Pave the Way - How to Conquer MMOG/LE
Summary
■ Ford & GM annual assessments due 7/31/13
■ OEM assessment expectations
 How does your organization stack up
■ QAD can help you meet customer expectations
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QAD Answer Sheet
MMOG/LE Q-Scan
Cebos Quality module
Process maps with work instructions & op metrics
EOB process for new implementation and upgrades
■ MMOG/LE Version 4
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Let Us Help You Pave the Way - How to Conquer MMOG/LE
To Down Load Automotive Process Maps
■ Available for download at QAD App Store for
customers on maintenance
■ Automotive Process Maps (107)
■ Easy On Boarding Bundle includes:
 Work instructions (600+)
 Training courses (115)
 Compliance points (206)
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Let Us Help You Pave the Way - How to Conquer MMOG/LE
Questions & Answers
■ Terry Onica: tjo@qad.com
■ Sharon Wood: swood@sgroupautomotive.com
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www.qad.com
©QAD Inc. 2013
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