Transcript MMOG/LE - Version 4 - Midwest User Group
MMUG Spring 2014
Introducing MMOG/LE v4…
Terry Onica, Director, Automotive March 24, 2014
MMUG Spring 2014
Agenda
• • • MMOG/LE Overview Introducing MMOG/LE v4 ‒ Introduction and Instruction Worksheet ‒ Assessment Profile Worksheet ‒ ‒ ‒ ‒ Assessment & Gap Analysis Worksheet Scoring Summary Worksheet Progression Chart Worksheet Radar Chart & Radar Chart – by Chapter Worksheet Next Steps
MMUG Spring 2014 MMOG/LE Overview
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MMUG Spring 2014
• • • • • •
What is MMOG/LE?
Materials Management Operations Guideline Logistic Evaluation
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What is MMOG/LE?
Developed by AIAG/ Odette with OEMs and Suppliers Assessment tool to evaluate/select suppliers − Supply chain capabilities against best practice − Used for production and after market/sales Provides plant score (e.g., A, B or C)
MMOG/LE = Delivery ISO/TS-16949 = Quality
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A B C Classification Classifications
A Best practice B Unstable or inconsistent processes C Deficient in key critical areas
MMUG Spring 2014
What is MMOG/LE?
• Excel spreadsheet highlights: − Six chapters − Full and Basic Assessment − Answer responses: Yes, No, N/A − Criteria weighting: F3 F2 F1 − Scoring and Classification Summary − Tools to help track and summarize progress
MMUG Spring 2014 MMOG/LE Customer Usage with Suppliers OEMs Using
Chrysler CNH – Latin America
FAW-VW
Ford GM Iveco Jaguar/Land Rover PSA Renault
Tofas Fiat (Turkey)
Volvo Car Volvo Truck
Tier 1 Using
Autoliv Benteler Beru Bosch Brose Continental Faurecia Gates Johnson Controls Lear Magna Powertrain MGI Coutier
Tier 1 Using (cont)
Pierburg Selzer Automotive SNOP Valeo
Wabco ZF Under Review Fiat
Honda
Qoros
VDA: BMW, Daimler, VW 8
MMUG Spring 2014 Introducing MMOG/LE v4
MMUG Spring 2014
Two Assessments
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Full
197 criteria Six chapters Used by OEM with Tier 1 A,B and C Levels World Class 34 F3 questions • • • • • •
Basic
106 criteria Six chapters Used with Tier 2-N ZA, ZB and ZC Levels Fundamentals in place
34 F3 questions
MMUG Spring 2014
Basic Assessment Goals
• • • • A tool for lower tier suppliers to verify that the ”basic” and most critical components of SCM are in place Provides a path for organizations to progressively migrate to the Full assessment and world-class practices Used to establish a quick diagnosis critical areas (e.g. capacity planning, inventory management) Enables a targeted assessment
MMUG Spring 2014 Introduction and Instruction Worksheet
MMUG Spring 2014 Introduction and Instructions Worksheet
• • • PDF printable formatted versions Appears as a link on key worksheets for quick access Be sure you read it!
Download in PDF
MMUG Spring 2014
MMOG/LE Chapters
CHAPTER 1 - STRATEGY AND IMPROVEMENT
1.1 Vision & Strategy 1.2 Objectives 1.3 Measurement, Analysis, and Action Plans 1.4 Continual Improvement 1.5 Supply Chain Development
CHAPTER 2 - WORK ORGANIZATION
2.1 Organizational Processes 2.2 Operating Procedures and Work Instructions 2.3 Resource Planning 2.4 Work Environment & Human Resources 2.5 Risk Assessment and Management
CHAPTER 3 – CAPACITY & PRODUCTION PLANNING
3.1 Product Realization 3.2 Capacity Planning 3.3 Production Planning 3.4 Systems Integration
CHAPTER 4 – CUSTOMER INTERFACE
4.1 Communication 4.2 Packaging & Labeling 4.3 Shipping 4.4 Transportation 4.5 Customer Satisfaction & Feedback
CHAPTER 5 – PRODUCTION & PRODUCT CONTROL
5.1 Material Identification 5.2 Inventory 5.3 Engineering Change Control 5.4 Traceability
CHAPTER 6 – SUPPLIER INTERFACE
6.1 Supplier Selection 6.2 Supply Chain Management Agreement 6.3 Communication 6.4 Packaging & Labeling 6.5 Transportation 6.6 Material Receipt 6.7 Supplier Assessment
MMOG/LE Supply Chain Process Model
QAD Auto Process Map will appear in MMOG/LE v4 in the Introduction and Instructions Worksheet
MMUG Spring 2014 Assessment Profile Worksheet
MMUG Spring 2014
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Assessment Profile
Contains Company, Assessment and Customer Information Worksheets allows toggling between the Full or Basic setting Establish workbook setting in the Assessment Profile worksheet Warning appears if you are not in the opposite setting If required fields ( * ) are not entered, the classification will not show Workbook Setting Warning Instructions Customer Required Setting
MMUG Spring 2014 Assessment and Gap Analysis Worksheet
MMUG Spring 2014
Assessment & Gap Analysis Worksheet
• • Now ONE worksheet All criteria updated to reflect current best practices Criteria added, combined, changed and reordered Leverage Changes Summary & Detail worksheets Assessment Gap Analysis
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Assessment Reponses
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Yes
O
•
No
X
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N/A
N/A
Not approved by customer
N/A
Approved by customer
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Worksheet Header
Workbook, Header and Filter Compliant/Non Compliant Summary Non Applicable Criteria
MMOG/LE Version 4
Display/Hide Headers
• Display Chapter Heading & Why Statement • Hide
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• • • • • • • • • • • • • •
Filter Options
All Criteria Lookup Requirement (e.g., 2.3.2, 6.3.2) Lookup Business Function (e.g., IT, Purchasing, Supply Chain) Lookup Responsibility (e.g., John Smith, Mary Jones) Non Compliant Criteria Compliant Criteria Non Applicable Criteria (NAC) NAC Criteria – Approved NAC Criteria – Not Approved Missing/Past Due Target Date Missing/Past Due Completion Date Missing Action Plan F3, F2, or F1 Criteria Chapter 1, 2, 3, 4, 5 or 6
MMUG Spring 2014 Assessment & Gap Analysis Worksheet Columns G - Q
Current State & Supporting Evidence Gap/Continual Improvement Action Plan Target Date Completion Date Business Function Responsibility Cost Customer Response Customer Contact Approval Date
New Feature
Added reminder to note evidence Note a gap or continuous improvement Department responsible (e.g., SCM) Person responsible for the criteria Required for N/A approved Required for N/A approved
Filter
NAC NAC NAC
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Special Lookup Features
• Additional columns to help manage reviews
Requirement/ Criterion No
1.2.1.2
1.2.2.1
1.2.2.2
1.2.2.3
1.2.2.4
…
… … … … …
Business Function
Exec Mgmt Customer Service Purchasing Materials Manager IT
Responsibility
Don Tyese Al Alisa Aidan
•
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Non Applicable Criteria Management
Non Applicable – Not Approved • Non Applicable - Approved
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MMUG Spring 2014
Risk Assessment & Management
New Sub Chapter 2.5.1
Expands beyond 2.3.2 Contingency Planning in v3 New F3 criteria based in industry trends Criteria weighting may get further elevated in v5 2.3.2 Contingency Planning from v3 is now 2.5.2
MMUG Spring 2014 Scoring Summary Worksheet
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MMUG Spring 2014
Scoring Summary Worksheets
Available for Full and Basic Worksheet Sections Scoring summary Customer approval for non applicable criteria Definitions – scoring, weights and classifications Scoring summary – chapter details
MMUG Spring 2014
Scoring Summary Worksheets
MMOG/LE Version 4
Scoring Summary Worksheets
Progress towards Full
O
MMUG Spring 2014 Criteria and Scoring Comparison Full versus Basic
Full Basic
F3
34 34 Scoring Classification Full
F2
83 59
F1
80 13
Total
197 106 Scoring Classification Basic
MMUG Spring 2014
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Scoring Summary Worksheets
Classification definitions (example showing Full)
MMUG Spring 2014
Classification Definitions Full Versus Basic
• • Classifications definitions are different between the two MMOG/LE Basic
ZA ZB ZC 1) Compliance to all F3 criteria 2) Non-compliance to fewer than 10 F2 criteria 3) Total score not considered in classification
The fundamentals of supply chain management are in place and the organization demonstrates evidence of process controls and continuous improvements efforts. However, the full version of the MMOG/LE Assessment would have to be completed in order to fully understand if industry best practices have been met.
1) Compliance to all F3 criteria 2) Non-compliance of 10 to 15 F2 criteria 3) Total score not considered in classification 1) Non-compliance to any F3 criterion 2) Non-compliance to 16 or more F2 criteria 3) Total score not considered in classification
Although most of the fundamentals of supply chain management are demonstrated, the organization is deficient in several areas that compromises the efficiency of internal performance and may impact its ability to support the needs of the customer. An action plan should be developed and implemented in a timeframe that meets the needs of the business and its customer(s). To fully understand the level of risk and opportunities for improvement, it is recommended that the organization completes the full version of the assessment. The organization is deficient in one or more key areas of supply chain management. This situation creates a high risk of disruption to customers and demonstrates a lack of efficiency and control of internal processes within the existing supply chain strategy. Management commitment will be required to create, prioritize and implement action plans in a timely manner to avoid serious or prolonged issues with the customer.
MMUG Spring 2014 Progression Chart Worksheet
MMUG Spring 2014
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Visual Representation of the Gap Analysis
Tracked monthly Summarized beyond 12 month horizon, as applicable Chart displays the results of either the Full or Basic
MMUG Spring 2014
Progression Chart
• • • Data used to generate the chart Alert: Criteria with NO action plan Does not impact the Progression Chart
MMUG Spring 2014 Radar Chart & Radar Chart – by Chapter Worksheets
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MMUG Spring 2014
Radar Charts
Chart views Chapter Overall subchapter Individual subchapter Percentages remain Chrysler suppliers Radar Chart settings Full Basic Combined
MMUG Spring 2014 Next Steps
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MMUG Spring 2014
QAD Solution Support
MMOG/LE Q-Scan QAD MMOG/LE Answer Sheet for v4 Automotive Process Maps Business Process Management (BPM) Cebos QAD Supplier Portal Visit the QAD App Store
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MMUG Spring 2014
Recommended Next Steps
Verify with existing MMOG/LE customers What version should be submitted?
When will MMOG/LE v4 be required?
Obtain a copy of MMOG/LE v4 as early as possible Get familiar with the new version Read the Introduction and Instructions worksheet Review the Changes Summary & Detail worksheets Ensure new/updated criteria do not impact your score AIAG MMOG/LE Level 1 Class Not necessary to retake the class Covers v3 and v4 through July 2014 Only v4 will be offered starting August 2014
MMUG March 2014
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OEM Adoption of MMOG/LE v4
Chrysler, Ford and GM Annual assessment period from May 1 – July 31 each year Chrysler MMOG/LE v3 required in through April 2014 MMOG/LE v4 required in May 2015 and beyond Ford MMOG/LE v3 in 2014, unless petitioning for Q1 MMOG/LE v4 required in 2015 GM MMOG/LE v3 required through August 2014 MMOG/LE v4 required August 2014 and beyond
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MMUG March 2014
Why Come to Explore
May 5-10, 2014 New Orleans, LA 650+ Attendees
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Toni Clubb, CFO, VitaTech
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MMUG March 2014
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MMUG Spring 2014
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