Terry Onica Director Automotive QAD Dave Doyle Solutions Consultant QAD QAD Explore 2012 2 The following is intended to outline QADs general product direction It is intended for information purposes only and may not be incorporated into any contract It is not a commitment to del ID: 805533
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MMOG/LE: Tips for Satisfying the OEM Requirement
Terry Onica, Director, Automotive, QADDave Doyle, Solutions Consultant, QAD
QAD Explore 2012
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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
MMOG/LE: Tips for Satisfying the OEM Requirement
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MMOG/LE overview Answering the assessment Assessment pitfalls QAD support Summary Presentation Agenda
MMOG/LE: Tips for Satisfying the OEM Requirement
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QAD’s manufacturing solution supports the Effective Enterprise by:Meeting industry best practice processesSatisfying customer requirementsDelivering products/services to address MMOG/LE compliance
Session Overview
MMOG/LE: Tips for Satisfying the OEM Requirement
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MMOG/LE OverviewMMOG/LE: Tips for Satisfying the OEM Requirement
Slide6Materials
Management OperationsGuideline
L
ogistic
E
valuation
What is MMOG/LE?
MMOG/LE: Tips for Satisfying the OEM Requirement
6
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Assessment tool to evaluate/select suppliers according to:Supply chain capabilitiesIndustry best practices
Provides plant score (e.g., A, B or C)
What is MMOG/LE?
MMOG/LE: Tips for Satisfying the OEM Requirement
MMOG/LE = Delivery
ISO = Quality
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Excel spreadsheet with:Six chapters 206 criteria
Answer responses: Yes, No, N/A
What is MMOG/LE?
MMOG/LE: Tips for Satisfying the OEM Requirement
3.1
Product Realization
X
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).
Criterion: 1)F3üThe 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.
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A B C Classification DefinitionMMOG/LE: Tips for Satisfying the OEM Requirement
Classification
F3
F2
F1
Score
A
Best
practice
Compliance
to ALL
Non-compliance
to < 6
No
limit
> 90%
B
Unstable or inconsistent processes
Compliance to ALL
Non-compliance to 6-12
No
limit
75-89%
C
Deficient in key critical areas
Not compliant to ANY
Non-compliance to > 13
No limit
<
75%
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Developed by:AIAGOdetteAutomotive OEMs & Tier 1 SuppliersContributions from QAD:Member & author
Leader of work group efforts
Lead speaker at worldwide events
Trainer
Provider of software that meets requirements
MMOG/LE Authors
MMOG/LE: Tips for Satisfying the OEM Requirement
Slide111
2
3
4
5
6
11
Areas Covered in MMOG/LE
MMOG/LE: Tips for Satisfying the OEM Requirement
Slide12OEMs 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 CoutierDaimlerVolvo TruckPierburgHonda NAVW (US PilotSelzer AutomotiveVW12MMOG/LE Customer Usage With SuppliersMMOG/LE: Tips for Satisfying the OEM Requirement
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Answer the AssessmentMMOG/LE: Tips for Satisfying the OEM Requirement
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Let’s Take a Look at a Set of CriteriaMMOG/LE: Tips for Satisfying the OEM Requirement
1)
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.
2)
F3
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.
3)
F3
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
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What Role or Title would you interview?What questions would you ask to determine compliance?What objective evidence would you expect to see?
How Would You Respond to the Criteria?
MMOG/LE: Tips for Satisfying the OEM Requirement
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What role or title would you interview?How Would You Respond to the Criteria?
MMOG/LE: Tips for Satisfying the OEM Requirement
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What role or title would you interview?Top management Supply chain
Purchasing
Production
Engineering
Human resources
Quality
It
Sales
Others, as required
How Would You Respond to the Criteria?
MMOG/LE: Tips for Satisfying the OEM Requirement
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What questions would you ask to determine compliance?How Would You Respond to the Criteria?
MMOG/LE: Tips for Satisfying the OEM Requirement
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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?
How Would You Respond to the Criteria?
MMOG/LE: Tips for Satisfying the OEM Requirement
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What objective evidence would you expect to see?How Would You Respond to the Criteria?
MMOG/LE: Tips for Satisfying the OEM Requirement
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What objective evidence would you expect to see?Work instructions including how capacity is negotiated, how customer EDI is integratedReports from QAD that shows anything out-of-toleranceHow the customer is alerted of significant resource limitationsComparative report
Current release, shipping, 2-5 year trend
Meeting minutes including action items
Training
Job descriptions
How Would You Respond to the Criteria?
MMOG/LE: Tips for Satisfying the OEM Requirement
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Would the OEM consider your ‘yes’ to be a yes?Rate your answer on a 1 – 10 scaleWould a 6 still be a yes? Would a 4?Better way to see gapsJustify projects with ‘points’ that can be improved
Improve Your “Yes”
MMOG/LE: Tips for Satisfying the OEM Requirement
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.Net UIProcess maps and work instructionsBrowsesOperational MetricsAlertsRough cut capacity planning
CRP reports
MRP Exceptions
MSW/PSW
BI
Leverage QAD to Improve Your Answer
MMOG/LE: Tips for Satisfying the OEM Requirement
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QAD Has Responses for All 206 CriteriaMMOG/LE: Tips for Satisfying the OEM Requirement
QAD
answer
Probing/
evidence
questions
Location on
Process
Map
MMOG/LE
criteria
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Assessment PitfallsMMOG/LE: Tips for Satisfying the OEM Requirement
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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?
Assessment Pitfalls
MMOG/LE: Tips for Satisfying the OEM Requirement
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ISO/TS 16949, is a technical specification for quality managementMMOG/LE is similar, but focuses on supply chain processes.MMOG/LE has adopted the same process approach as ISO/TS 16949
Example: Scrap process
Who is Leading the Assessment?
MMOG/LE: Tips for Satisfying the OEM Requirement
Quality
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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
Is the Right Person Answering the Question?
MMOG/LE: Tips for Satisfying the OEM Requirement
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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
Have You Documented Customer Specifics?
MMOG/LE: Tips for Satisfying the OEM Requirement
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Are Your Work Instructions Detailed Enough?MMOG/LE: Tips for Satisfying the OEM Requirement
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
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Are You Thoroughly Documenting Responses
?
MMOG/LE: Tips for Satisfying the OEM Requirement
Comments box
best practices
Evidence
Comments
Work instructions
Non applicable
Annual review
Customer specifics
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Review critical questions & top criteriaReview processes, procedures & work instructions Present findings to management
MMOG/LE Q-Scan
MMOG/LE: Tips for Satisfying the OEM Requirement
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Summary MMOG/LE: Tips for Satisfying the OEM Requirement
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Process Maps and Work InstructionsQAD MMOG/LE Answer SheetWhite PaperSolutions BrochureMMOG/LE Q-Scanwww.qad.com/mmogleAIAG/Odette MMOG/LE Level 1 TrainingRegister at
www.aiag.org
or www.odette.org
QAD Support
MMOG/LE: Tips for Satisfying the OEM Requirement
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What is MMOG/LEOEM expectations for MMOG/LE submissionsAnswering the assessmentAre you really compliant?Ability “to do” versus “discipline doing”Common pitfallsHow QAD can help
Summary
MMOG/LE: Tips for Satisfying the OEM Requirement
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Terry Onica Director, Automotive, QADtjo@qad.comDave Doyle Solutions Consultant, QAD
dfd@qad.com
Questions & Answers
MMOG/LE: Tips for Satisfying the OEM Requirement
Slide37www.qad.com
© QAD Inc 2012
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