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

1)

•

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

3.1.1

Why?

3.1 Product Realization The MP&L function shall formally participate in, and sign off, the Product Realization process.

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: 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

Best practice Compliance to ALL Non compliance to < 6 No limit

B

Unstable or inconsistent processes

C

Deficient in key critical areas Compliance to ALL Non compliance to 6-12 No limit Not compliant to ANY Non compliance to > 13 No limit

Score

> 90% 75-89% < 75% 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

1 MMOG/LE: Tips for Satisfying the OEM Requirement

Areas Covered in MMOG/LE

2 3 4 5 6

11

MMOG/LE: Tips for Satisfying the OEM Requirement

MMOG/LE Customer Usage With Suppliers

OEMs Using

Chrysler CNH – Latin America Ford GM Iveco Jaguar/Land Rover PSA Renault Tofas Fiat (Turkey) Volvo Car Volvo Truck VW (US Pilot

Tier 1 Using

Autoliv Benteler Beru Bosch Brose Continental Gates Johnson Controls Lear MGI Coutier Pierburg Selzer Automotive

Tier 1 Using (cont)

SNOP Valeo Woco ZF

Under Review

BMW Daimler Honda NA 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

1) F3 2) F3 3) F3 Comparison of resources versus customer requirements shall be reviewed upon receipt of forecast requirements (e.g. 830/DELFOR/planning release), comparing every 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/ 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 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/ evidence questions Location on Process Map 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 [email protected]

Dave Doyle

Solutions Consultant, QAD [email protected]

36

www.qad.com

© QAD Inc 2012 37