| building the effective enterprise let us help you pave the way how to conquer mmog/le terry onica...

| Building the Effective Enterprise

Let Us Help You Pave the WayHow to Conquer MMOG/LETerry Onica – Director, Automotive, QADSharon Wood – Corporate Delivery/MMOG Champion, SGroup Automotive

| Building the Effective Enterprise 2

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.

Safe Harbor Statement

Let Us Help You Pave the Way - How to Conquer MMOG/LE


■MMOG/LE overview■OEM expectations & best practices■QAD support■S Group automotive case study

Session Agenda



MMOG/LE Overview



• Materials• Management • Operations• Guideline• Logistic • Evaluation

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)

What is MMOG/LE?


MMOG/LE = DeliveryISO/TS-16949 = Quality


■Organizations capabilities against best practice in handling:■ Customer volume fluctuations■ Capacity constraints■ Contingency planning■ Sub supplier capability■ Resource allocation■ Employee skills■ …and much, much more

Focuses on Supply Chain Management



• Excel spreadsheet with:−Six chapters−206 criteria−Answer responses: Yes, No, N/A−Criteria weighting:

What is MMOG/LE?


F3 Supplier delivery performance metrics (e.g. on-time delivery, receipt discrepancies, ASN accuracy) shall be defined and measured.

F3

F2

F1


Classification

ABest practice

BUnstable or inconsistent

processes

CDeficient in key

critical areas

■Level A F3 criteria = 35 F3 require ERP

usage

■Level C Spreadsheets

A B C Classification Definition



1. Strategy & improvement2. Work organization3. Capacity & production planning4. Customer interface5. Production & product control6. Supplier interface

MMOG/LE Chapters



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 VW 11

MMOG/LE Customer Usage with Suppliers



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

OEM Submission Requirements



OEM Assessment Expectations & Best Practices



Is MMOG/LE Being Driven by Management?

■Driven by operations ■Executive management teams■Corporate delivery champion (CDC)■Championed by materials management



■Planning■Scheduling■Sub-suppliers

Are You Relying on Spreadsheets?

A



Quality

16

Who is Leading the Assessment?

Materials Manager



■Top management ■Materials manager■Corporate delivery

champion■Purchasing■Production■Engineering

■Program manager■Human resources■Quality■It■Logistics■Sales■Customer service

Is the Right Person Answering the Question?



■Global terms and conditions■Supplier manuals■Customer web sites and applications

EDI portals Delivery rating Capacity Packaging and labeling Container management

■Customer training

Have You Documented Customer Specifics?



■ Record evidence Work instructions Customer specifics Notes Non applicable

■ Annual review■ Competition

Are You Thoroughly Documenting Comments?



Poor Assessment Comments? Why? 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.

JIT and daily meeting

Criteria Comments

1

2



■ 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)

Best Practice Assessment Comments. Why?

All shipments, including documentation and labeling, shall be prepared to customer, industry, and government/international standards and requirements (e.g. customs handling, C-TPAT, PIP, AEO) including carrier routings.

Only documentation required is the packing slip (50.6.4) and the shipper (50.6.8); ASN export screen is (50.6.22). Labeling is covered in MMOG/LE 4.3.2.1. Ford labeling specs are listed in MP&L In A Box as indicated in Work instruction for ASN process is WI-ASN-0030-EM-FORD

Criteria Comments



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


QAD Support



QAD MMOG/LE Answer Sheet Update

Criteria Answer Q-Scan

Recently added: Q-Scans and Cebos!



QAD Automotive Process Map



Project Health Check – Op Metrics



Schedule Variances – Op Metrics

<- Customer

Supplier ->



■Review critical questions & top OEM criteria

■Review processes, procedures, work instructions and assessment comments

■Present findings to management

MMOG/LE Q-Scan



■Documents■Training management■Problem solver■Customer management■Supplier management■APQP■Auditing■Gage■Work manager

Cebos Modules to Support MMOG/LE



S Group Automotive Case Study


Sgroup Automotive

● Small to mid-size company (aprox. 175 employees)

● Tier 1 supplier to Ford & Chrysler

● Tier 2 supplier to JCI & Faurecia

Products Produced● Load Floors● Spare Tire Covers● Headliners● Seat Backs

Webberville Manufacturing Facility

Owosso Manufacturing Facility including Shea Interiors

SK Automotive, Puebla, Mexico

QAD Version Service Pack 1

SGroup QAD Implementation Go-Live January 2013

QAD EOB process – on premise3 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:

● 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


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 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

Summary



■ 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)

To Down Load Automotive Process Maps



■Terry Onica: [email protected]■Sharon Wood: [email protected]

Questions & Answers


mailto:[email protected]

mailto:[email protected]

| building the effective enterprise let us help you pave the way how to conquer mmog/le terry onica...

Documents

mmogle mmogle

mmogle slide

mmogle customer usage

quality slide

f3f2f1 slide

sgroup automotive slide

mmogle terry onica director

f3 criteria