QAD Explore 2012
MMOG/LE:
Tips for Satisfying the OEM Requirement
Terry Onica, Director, Automotive, QAD
Dave Doyle, Solutions Consultant, QAD
MMOG/LE: Tips for Satisfying the OEM Requirement
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.
2
MMOG/LE: Tips for Satisfying the OEM Requirement
Presentation Agenda
•
•
•
•
•
MMOG/LE overview
Answering the assessment
Assessment pitfalls
QAD support
Summary
3
MMOG/LE: Tips for Satisfying the OEM Requirement
Session Overview
• QAD’s manufacturing solution supports the
Effective Enterprise by:
- Meeting industry best practice processes
- Satisfying customer requirements
- Delivering products/services to address
MMOG/LE compliance
4
MMOG/LE: Tips for Satisfying the OEM Requirement
MMOG/LE Overview
5
MMOG/LE: Tips for Satisfying the OEM Requirement
What is MMOG/LE?
•
•
•
•
•
•
Materials
Management
Operations
Guideline
Logistic
Evaluation
6
MMOG/LE: Tips for Satisfying the OEM Requirement
What is MMOG/LE?
• Assessment tool to evaluate/select suppliers
according to:
− Supply chain capabilities
− Industry best practices
• Provides plant score (e.g., A, B or C)
MMOG/LE = Delivery
ISO = Quality
7
MMOG/LE: Tips for Satisfying the OEM Requirement
What is MMOG/LE?
• Excel spreadsheet with:
− Six chapters
− 206 criteria
− Answer responses: Yes, No, N/A
3.1 Product Realization
3.1.1
The MP&L function shall formally participate in, and sign
off, the Product Realization process.
Why?
The material organization is involved in each stage (e.g.,
quoting, engineering) of the Product Realization process to
ensure supply chain issues are addressed and parts are
available for all phases of production (e.g. prototypes,
preproduction, production).
X
Criterion:
1)
F3

The MP&L function shall participate in the Product Realization
process to ensure all material planning and logistics
requirements are addressed and all changes which affect the
supply process are planned, executed and communicated in a
synchronized manner (e.g. bill of material (BOM), routings,
effectivity dates, supplier notification, scheduling, shipping).
Back-up plans shall be in place to ensure continuity of supply.
The engineering change process is outline in
WMM- 3111. Engineering Change meetings are
held weekly. The materials manager is involved
in the meeting. See WMM-3111 for an example
of the meeting minutes and invited participants
as well as what is included in the organization's
engineering change checklist.
8
MMOG/LE: Tips for Satisfying the OEM Requirement
A B C Classification Definition
Classification
F3
F2
F1
A
Score
Compliance
to ALL
Noncompliance to
<6
No limit
> 90%
Unstable or
inconsistent
processes
Compliance
to ALL
Noncompliance to
6-12
No limit
75-89%
C
Not
compliant to
ANY
Noncompliance to
> 13
No limit
< 75%
Best practice
B
Deficient in key
critical areas
9
MMOG/LE: Tips for Satisfying the OEM Requirement
MMOG/LE Authors
• Developed by:
- AIAG
- Odette
- Automotive OEMs & Tier 1 Suppliers
• Contributions from QAD:
-
Member & author
Leader of work group efforts
Lead speaker at worldwide events
Trainer
Provider of software that meets requirements
10
MMOG/LE: Tips for Satisfying the OEM Requirement
Areas Covered in MMOG/LE
1
2
3
4
5
6
11
MMOG/LE: Tips for Satisfying the OEM Requirement
MMOG/LE Customer Usage With Suppliers
OEMs Using
Tier 1 Using
Tier 1 Using (cont)
Chrysler
Autoliv
SNOP
CNH – Latin America
Benteler
Valeo
Ford
Beru
Woco
GM
Bosch
ZF
Iveco
Brose
Jaguar/Land Rover
Continental
PSA
Gates
Renault
Johnson Controls
Under Review
Tofas Fiat (Turkey)
Lear
BMW
Volvo Car
MGI Coutier
Daimler
Volvo Truck
Pierburg
Honda NA
VW (US Pilot
Selzer Automotive
VW
12
MMOG/LE: Tips for Satisfying the OEM Requirement
Answer the Assessment
13
MMOG/LE: Tips for Satisfying the OEM Requirement
Let’s Take a Look at a Set of Criteria
Comparison of resources versus customer requirements
shall be reviewed upon receipt of forecast requirements
(e.g. 830/DELFOR/planning release), comparing every
1) F3
week of the forecast sent by customers. Capacity planning
volumes negotiated with the customer shall also be
incorporated in the capacity planning process.
Resources versus customer requirements shall be reviewed
upon receipt of shipping requirements (e.g. 862/DELJIT/
2) F3 shipping schedules, 866/DELJIT/sequenced shipping
schedules), comparing daily ship requirement sent by
customers.
There shall be a process in place to notify customers of any
3) F3
significant resource limitations in meeting the requirements.
Criteria for 3.2.1 Capacity and Resources
14
MMOG/LE: Tips for Satisfying the OEM Requirement
How Would You Respond to the Criteria?
• What Role or Title would you interview?
• What questions would you ask to determine
compliance?
• What objective evidence would you expect to see?
15
MMOG/LE: Tips for Satisfying the OEM Requirement
How Would You Respond to the Criteria?
• What role or title would you interview?
16
MMOG/LE: Tips for Satisfying the OEM Requirement
How Would You Respond to the Criteria?
• What role or title would you interview?
─
─
─
─
─
─
─
─
─
─
Top management
Supply chain
Purchasing
Production
Engineering
Human resources
Quality
It
Sales
Others, as required
17
MMOG/LE: Tips for Satisfying the OEM Requirement
How Would You Respond to the Criteria?
• What questions would you ask to determine
compliance?
18
MMOG/LE: Tips for Satisfying the OEM Requirement
How Would You Respond to the Criteria?
• What questions would you ask to determine
compliance?
How is capacity negotiated with the customer?
How are resources versus customer EDI analyzed?
Does analysis include all areas of the business?
Does analysis include production, prototype,
preproduction and after sales?
- How often is capacity reviewed and when?
- Are contingency plans in place for capacity constraints?
- Are resources for administrative and containers included?
-
19
MMOG/LE: Tips for Satisfying the OEM Requirement
How Would You Respond to the Criteria?
• What objective evidence would you expect to see?
20
MMOG/LE: Tips for Satisfying the OEM Requirement
How Would You Respond to the Criteria?
• What objective evidence would you expect to see?
- Work instructions including how capacity is negotiated,
how customer EDI is integrated
- Reports from QAD that shows anything out-of-tolerance
- How the customer is alerted of significant resource
limitations
- Comparative report
• Current release, shipping, 2-5 year trend
- Meeting minutes including action items
- Training
- Job descriptions
21
MMOG/LE: Tips for Satisfying the OEM Requirement
Improve Your “Yes”
• Would the OEM consider your ‘yes’ to be a
yes?
- Rate your answer on a 1 – 10 scale
• Would a 6 still be a yes? Would a 4?
• Better way to see gaps
• Justify projects with ‘points’ that can be improved
22
MMOG/LE: Tips for Satisfying the OEM Requirement
Leverage QAD to Improve Your Answer
• .Net UI
-
•
•
•
•
•
Process maps and work instructions
Browses
Operational Metrics
Alerts
Rough cut capacity planning
CRP reports
MRP Exceptions
MSW/PSW
BI
23
MMOG/LE: Tips for Satisfying the OEM Requirement
QAD Has Responses for All 206 Criteria
MMOG/LE
criteria
QAD
answer
Probing/ Location on
evidence Process Map
questions
24
MMOG/LE: Tips for Satisfying the OEM Requirement
Assessment Pitfalls
25
MMOG/LE: Tips for Satisfying the OEM Requirement
Assessment Pitfalls
• Who is leading the assessment?
• Is the right person answering the question?
• Are you thoroughly documenting your
responses?
• Have you documented customer specifics?
• Are your work instructions detailed enough?
26
MMOG/LE: Tips for Satisfying the OEM Requirement
Who is Leading the Assessment?
• ISO/TS 16949, is a
technical
specification for
quality management
• MMOG/LE is similar,
but focuses on supply
chain processes.
• MMOG/LE has
adopted the same
process approach as
ISO/TS 16949
• Example: Scrap
process
Quality
27
MMOG/LE: Tips for Satisfying the OEM Requirement
Is the Right Person Answering the Question?
• Process owners, including management
• All facilities and shifts
• Areas with vital involvement in the assessment process
include:
─
─
─
─
─
─
─
─
─
─
─
─
Top management
Supply chain
Corporate delivery champion
Purchasing
Production
Engineering
Program manager
Human resources
Quality
IT
Logistics
Sales
28
MMOG/LE: Tips for Satisfying the OEM Requirement
Have You Documented Customer Specifics?
• Where will you find customer specifics?
• Customer training
• Global terms and conditions
• Materials planning and logistics agreements
• Supplier manuals
• Customer web sites and applications
− EDI portals
− Delivery rating
− Capacity
− Packaging and labeling
− Container management
29
MMOG/LE: Tips for Satisfying the OEM Requirement
Are Your Work Instructions Detailed Enough?
• Used for training and back-ups
• Instructions should Include:
− Step by step instructions
− Person(s) responsible
− Customer specifics
− Customer references
− Metrics
− Error handling
− Contingencies
− Document version control
− Last date tested
− Explanation of any acronyms
− Obtaining user logins
30
MMOG/LE: Tips for Satisfying the OEM Requirement
Are You Thoroughly Documenting Responses?
Comments box
best practices
• Evidence
− Comments
− Work
instructions
− Non
applicable
− Annual review
− Customer
specifics
31
MMOG/LE: Tips for Satisfying the OEM Requirement
MMOG/LE Q-Scan
• Review critical questions & top criteria
• Review processes, procedures & work
instructions
• Present findings to management
32
MMOG/LE: Tips for Satisfying the OEM Requirement
Summary
33
MMOG/LE: Tips for Satisfying the OEM Requirement
QAD Support
•
•
•
•
•
•
•
Process Maps and Work Instructions
QAD MMOG/LE Answer Sheet
White Paper
Solutions Brochure
MMOG/LE Q-Scan
www.qad.com/mmogle
AIAG/Odette MMOG/LE Level 1 Training
- Register at www.aiag.org or www.odette.org
34
MMOG/LE: Tips for Satisfying the OEM Requirement
Summary
• What is MMOG/LE
• OEM expectations for MMOG/LE submissions
• Answering the assessment
- Are you really compliant?
- Ability “to do” versus “discipline doing”
• Common pitfalls
• How QAD can help
35
MMOG/LE: Tips for Satisfying the OEM Requirement
Questions & Answers
Terry Onica
Director, Automotive, QAD
tjo@qad.com
Dave Doyle
Solutions Consultant, QAD
dfd@qad.com
36
www.qad.com
© QAD Inc 2012
37