1 materials management operations guideline/logistics evaluation november 2007 mmog/le
TRANSCRIPT
![Page 1: 1 Materials Management Operations Guideline/Logistics Evaluation November 2007 MMOG/LE](https://reader033.vdocuments.net/reader033/viewer/2022061618/56649d975503460f94a80ac2/html5/thumbnails/1.jpg)
1
Materials Management Operations Guideline/Logistics Evaluation
November 2007
MMOG/LE
![Page 2: 1 Materials Management Operations Guideline/Logistics Evaluation November 2007 MMOG/LE](https://reader033.vdocuments.net/reader033/viewer/2022061618/56649d975503460f94a80ac2/html5/thumbnails/2.jpg)
2
Agenda
• Why MMOG/LE?• What is MMOG/LE?• Completing the Self-Assessment• Who is Requiring MMOG/LE?• MMOG/LE Key Criteria• AIAG/Odette MMOG/LE Benefits Survey• Customer Success Stories• Supporting Training and Documents Available
![Page 3: 1 Materials Management Operations Guideline/Logistics Evaluation November 2007 MMOG/LE](https://reader033.vdocuments.net/reader033/viewer/2022061618/56649d975503460f94a80ac2/html5/thumbnails/3.jpg)
3
Why MMOG/LE?
![Page 4: 1 Materials Management Operations Guideline/Logistics Evaluation November 2007 MMOG/LE](https://reader033.vdocuments.net/reader033/viewer/2022061618/56649d975503460f94a80ac2/html5/thumbnails/4.jpg)
4
Improving Supply Chain Delivery Performance
• Gain control of processes– Reduce inventory carrying
costs, premium freight, rework, line stoppages, lead times
• Gain control of supply chain– Increase inventory visibility– Reduce supply chain risk
• Support continuous improvement • Increase customer satisfaction• Increase competitiveness
Actionline Magazine, Fall 2006
![Page 5: 1 Materials Management Operations Guideline/Logistics Evaluation November 2007 MMOG/LE](https://reader033.vdocuments.net/reader033/viewer/2022061618/56649d975503460f94a80ac2/html5/thumbnails/5.jpg)
5
Who is implementing MMOG/LE?
• Suppliers to comply with OEM requirements• Suppliers in emerging markets• Companies looking to
– Reduce supply chain risks– Improve supply chain compliance and – Increase delivery and long distance performance
• Regional industry associations– Brazil, Romania, China, etc.
![Page 6: 1 Materials Management Operations Guideline/Logistics Evaluation November 2007 MMOG/LE](https://reader033.vdocuments.net/reader033/viewer/2022061618/56649d975503460f94a80ac2/html5/thumbnails/6.jpg)
MMOG/LE Outside the Automotive Industry
• Universities• High Schools• Other non-automotive industries
– Hospitals– Construction– Aerospace– Chemistry– Electronics– Industrial– Retail
![Page 7: 1 Materials Management Operations Guideline/Logistics Evaluation November 2007 MMOG/LE](https://reader033.vdocuments.net/reader033/viewer/2022061618/56649d975503460f94a80ac2/html5/thumbnails/7.jpg)
7
What is MMOG/LE?
![Page 8: 1 Materials Management Operations Guideline/Logistics Evaluation November 2007 MMOG/LE](https://reader033.vdocuments.net/reader033/viewer/2022061618/56649d975503460f94a80ac2/html5/thumbnails/8.jpg)
8
Principles of Global MMOG/LE
• Recommended standard for materials and logistics• Self-assessment tool for identifying gaps in processes• Based on agreed business processes
– By OEMs and suppliers Ford, Chrysler, PSA, Renault, Volvo Car, Volvo Truck, etc.
• Based on extensive, best practices– 6 chapters– 206 criteria
• Determine current level of plant performance
![Page 9: 1 Materials Management Operations Guideline/Logistics Evaluation November 2007 MMOG/LE](https://reader033.vdocuments.net/reader033/viewer/2022061618/56649d975503460f94a80ac2/html5/thumbnails/9.jpg)
9
Scoring Summary (ABC Classification)A Level Supplier is considered to be at or near “world class”
standards (90% or higher).
B Level Supplier is deficient in two or more aspects of a given category or multiple categories (75% < 90%). An action plan should be put in place and the corrective action should not require a significant amount of time to implement.
C Level Supplier is deficient in one or more critical or high impact aspects (75% or less). Action plans required to ensure deficiencies do not result in serious or prolonged issues to the customer.
![Page 10: 1 Materials Management Operations Guideline/Logistics Evaluation November 2007 MMOG/LE](https://reader033.vdocuments.net/reader033/viewer/2022061618/56649d975503460f94a80ac2/html5/thumbnails/10.jpg)
10
MMOG/LE Self Evaluation Categories
• Strategy and Improvement• Work Organization• Production and Capacity Planning• Customer Interface• Production and Product Control• Supplier Interface
![Page 11: 1 Materials Management Operations Guideline/Logistics Evaluation November 2007 MMOG/LE](https://reader033.vdocuments.net/reader033/viewer/2022061618/56649d975503460f94a80ac2/html5/thumbnails/11.jpg)
MMOG/LE Translations
• Available in 10 languages including:English French GermanSpanish Portuguese ChineseRomanian Czech Russian
• Over 2000 trained users in 16 different countries
![Page 12: 1 Materials Management Operations Guideline/Logistics Evaluation November 2007 MMOG/LE](https://reader033.vdocuments.net/reader033/viewer/2022061618/56649d975503460f94a80ac2/html5/thumbnails/12.jpg)
What Does this Mean to Me?
1. Attend AIAG/Odette MMOG/LE standard training Understanding and building a team to complete assessment
2. Complete self-assessment Attend self-assessment education and review Develop gap analysis and action plan customer, internal, and
sub suppliers
3. Implement Action Plan Internal processes and systems Sub suppliers (e.g, Tier 2)
4. Customer certifies self-assessment score
![Page 13: 1 Materials Management Operations Guideline/Logistics Evaluation November 2007 MMOG/LE](https://reader033.vdocuments.net/reader033/viewer/2022061618/56649d975503460f94a80ac2/html5/thumbnails/13.jpg)
13
Completing the Self-Assessment
![Page 14: 1 Materials Management Operations Guideline/Logistics Evaluation November 2007 MMOG/LE](https://reader033.vdocuments.net/reader033/viewer/2022061618/56649d975503460f94a80ac2/html5/thumbnails/14.jpg)
Download the Self Assessment odette.org or aiag.org
ENGLISH
FRENCH
CHINESE
![Page 15: 1 Materials Management Operations Guideline/Logistics Evaluation November 2007 MMOG/LE](https://reader033.vdocuments.net/reader033/viewer/2022061618/56649d975503460f94a80ac2/html5/thumbnails/15.jpg)
15
1.2 Objectives
1.2.1Objectives relative to the Materials Planning and
Logistics function are defined, communicated and understood within the organization.
Why?
Objectives allow departments and employees to focus on areas of importance to achieve customer satisfaction and the organization's Materials Planning and Logistics strategy.
Criteria
F2 XAll objectives are measurable and consistent with the
organization's Materials Planning and Logistics strategy.
EQOS - Inventory accuracy is measured by the cycle count program, supplier delivery performance, customer delivery performance.
F2 xObjectives are accepted by all relevant functions and are
clearly cascaded throughout the organization.
EQOS reviewed by operations and at staff meetings and posted monthly for all employees to review.
F2Objectives are reviewed with senior management at
planned intervals.
Complete the FormEach Question is Yes (“X”) or No (Blank)
Populates the gap analysis tab
![Page 16: 1 Materials Management Operations Guideline/Logistics Evaluation November 2007 MMOG/LE](https://reader033.vdocuments.net/reader033/viewer/2022061618/56649d975503460f94a80ac2/html5/thumbnails/16.jpg)
16
Each Question is Weighted
F1
F2 Missing six results in “C” level
F3 Missing one results in “C” level
![Page 17: 1 Materials Management Operations Guideline/Logistics Evaluation November 2007 MMOG/LE](https://reader033.vdocuments.net/reader033/viewer/2022061618/56649d975503460f94a80ac2/html5/thumbnails/17.jpg)
17
Submit Scoring Summary
![Page 18: 1 Materials Management Operations Guideline/Logistics Evaluation November 2007 MMOG/LE](https://reader033.vdocuments.net/reader033/viewer/2022061618/56649d975503460f94a80ac2/html5/thumbnails/18.jpg)
Submit Gap Analysis List of All Unanswered Questions (Blank)
![Page 19: 1 Materials Management Operations Guideline/Logistics Evaluation November 2007 MMOG/LE](https://reader033.vdocuments.net/reader033/viewer/2022061618/56649d975503460f94a80ac2/html5/thumbnails/19.jpg)
19
Who is requiring MMOG/LE?
![Page 20: 1 Materials Management Operations Guideline/Logistics Evaluation November 2007 MMOG/LE](https://reader033.vdocuments.net/reader033/viewer/2022061618/56649d975503460f94a80ac2/html5/thumbnails/20.jpg)
20
OEM EMEANorth
AmericaSouth
AmericaAsia/
PacificFrequency of Submission
MMOG/ LE v2 Usage
Comments
Europe Yes TBD Yes AnnuallyNext submittal
Yes YesBy Jan.
2008Yes
Annually. This is a requirement for Q1.
Next submittal
Currently, all regions using MMOG/LE for Q1 require Level A except Europe and Asia Pacific, which currently accepts Level B.
Western Europe and Central and Eastern Europe only
YesNew vehicle project
Next submittal
Strong involvement of the plant management is required in order to make sure that progress is in place.
Yes Yes Yes YesRequired all suppliers
Next submittal
Volvo Car
Yes Yes Yes YesAnnually. This is a requirement for Q1
Next submittal
Volvo Group
Europe, a few suppliers in the Middle East
YesYes, Brazil
India, China
Annually self-audit submission and follow-up to be implemented
Next Submittal
![Page 21: 1 Materials Management Operations Guideline/Logistics Evaluation November 2007 MMOG/LE](https://reader033.vdocuments.net/reader033/viewer/2022061618/56649d975503460f94a80ac2/html5/thumbnails/21.jpg)
21
OEM Supplier Audit Policy
Supplier evaluations are completed by Chrysler personnel using the Supply Process Analysis (SPA) for new suppliers, new supplier locations, and problem suppliers. The SPA encompasses elements inclusive of the MMOG self-assessment. Additional audits will be conducted on suppliers that have a significant variance in the self-assessment ranking and their actual Chrysler Supply performance rating.
North America and Europe only. Potential suppliers, new suppliers, and problem suppliers. All suppliers will eventually get an audit. Major and problem suppliers will be prioritized.
Suppliers are consulted on the Global MMOG/LE in the Project Phase. Annual audits are not required annually, only during the project phase. In the Trial phase, evaluations are carried out if there are problems with the supplier.
New and problem suppliers
Volvo Car
An attempt is made to visit all new suppliers and big volume suppliers. For potential suppliers self-assessment is the first step.
Volvo Group
Potential suppliers, new suppliers, and problem suppliers
![Page 22: 1 Materials Management Operations Guideline/Logistics Evaluation November 2007 MMOG/LE](https://reader033.vdocuments.net/reader033/viewer/2022061618/56649d975503460f94a80ac2/html5/thumbnails/22.jpg)
22
OEM Focus During MMOG/LE Audits
• Strategy and Improvement– Management commitment
• Capacity and Production Planning• Supplier Interface (Tier 2)
– Performance measurement– Sub-tier supplier communication– Sub-tier suppliers in emerging markets
• Improvement Plan• Self-Assessment Quality
![Page 23: 1 Materials Management Operations Guideline/Logistics Evaluation November 2007 MMOG/LE](https://reader033.vdocuments.net/reader033/viewer/2022061618/56649d975503460f94a80ac2/html5/thumbnails/23.jpg)
23
Key MMOG/LE Criteria
![Page 24: 1 Materials Management Operations Guideline/Logistics Evaluation November 2007 MMOG/LE](https://reader033.vdocuments.net/reader033/viewer/2022061618/56649d975503460f94a80ac2/html5/thumbnails/24.jpg)
24
MMOG/LE Processes
![Page 25: 1 Materials Management Operations Guideline/Logistics Evaluation November 2007 MMOG/LE](https://reader033.vdocuments.net/reader033/viewer/2022061618/56649d975503460f94a80ac2/html5/thumbnails/25.jpg)
![Page 26: 1 Materials Management Operations Guideline/Logistics Evaluation November 2007 MMOG/LE](https://reader033.vdocuments.net/reader033/viewer/2022061618/56649d975503460f94a80ac2/html5/thumbnails/26.jpg)
26
Key Criteria
Materials Management Objectives–Analyzed, measured (action plans if necessary)–Defined, documented, communicated and understood – Identify continuous improvement opportunities–Corrective action for bottleneck processes–Job descriptions, work instructions and training plans
![Page 27: 1 Materials Management Operations Guideline/Logistics Evaluation November 2007 MMOG/LE](https://reader033.vdocuments.net/reader033/viewer/2022061618/56649d975503460f94a80ac2/html5/thumbnails/27.jpg)
27
Key Criteria
Key Performance Metrics– Delivery Performance– Supplier Performance– Internal performance (plan versus actual)
![Page 28: 1 Materials Management Operations Guideline/Logistics Evaluation November 2007 MMOG/LE](https://reader033.vdocuments.net/reader033/viewer/2022061618/56649d975503460f94a80ac2/html5/thumbnails/28.jpg)
KPI’s for MMOG/LE*
ASN Message
KPI4GMML 1ASN Performance
KPI4GMML 5Production Disruption
Schedule Modifications
Incomplete unitsLine Stops
KPI4GMML 4Material Handling &
Identification
or
KPI4GMML 2Delivery
Accuracy
or
KPI4GMML 6 Supplier Communication
& Cooperation Criteria : Self-sufficiency, Reliability,
Responsiveness Supplier problem notification, Availability, Flexibility
Delivery Requirements
Supplier
Plant Customer Plant
Warehouse
Assembly Line DOCK
DOCK
KPI4GMML 3“VMI”
*Key Performance Indicators for Global Materials Management and Logistics
![Page 29: 1 Materials Management Operations Guideline/Logistics Evaluation November 2007 MMOG/LE](https://reader033.vdocuments.net/reader033/viewer/2022061618/56649d975503460f94a80ac2/html5/thumbnails/29.jpg)
29
Key Criteria• Resource Planning
–Flexibility and availability are optimized–Contingency plans and emergency procedures exist
Employees are trained • Capacity Planning
–Long, medium, short-term plans reviewed regularly Process in place to notify of shortages Support all requirements for all customers
–Minimize inventory Obsolescence Raw material WIP Finished goods
![Page 30: 1 Materials Management Operations Guideline/Logistics Evaluation November 2007 MMOG/LE](https://reader033.vdocuments.net/reader033/viewer/2022061618/56649d975503460f94a80ac2/html5/thumbnails/30.jpg)
30
Key Criteria
• Communication – Scheduling automatically integrated into system without
manual intervention» 830/DELFOR/Planning Releases» 862/DELJIT/Shipping Releases
– System compares resources versus requirements– Process in place to notify of resource limitations
• Material Identification– Segregate good/bad material– Packaging and bar code labeling
![Page 31: 1 Materials Management Operations Guideline/Logistics Evaluation November 2007 MMOG/LE](https://reader033.vdocuments.net/reader033/viewer/2022061618/56649d975503460f94a80ac2/html5/thumbnails/31.jpg)
31
Key Criteria
• Production and Product Control–Process to monitor inventory levels
» Safety stock, minimum stock, etc.–Count Accuracy–Product structure accuracy–Control and handling of WIP, scrap, rejects, returns–Traceability
![Page 32: 1 Materials Management Operations Guideline/Logistics Evaluation November 2007 MMOG/LE](https://reader033.vdocuments.net/reader033/viewer/2022061618/56649d975503460f94a80ac2/html5/thumbnails/32.jpg)
32
Key Criteria
• Engineering Change Control− Participate and formal sign off− New parts/past models/inactive parts
• Shipping– Timing, contents and accuracy of shipping labels– Labels match customer requirements– Data content of ASN is 100% accurate– Controls in place to prevent shipping discrepancies– Customs clearing process (if applicable)
![Page 33: 1 Materials Management Operations Guideline/Logistics Evaluation November 2007 MMOG/LE](https://reader033.vdocuments.net/reader033/viewer/2022061618/56649d975503460f94a80ac2/html5/thumbnails/33.jpg)
33
Key Criteria
• Supplier Communication− Process to ensure sub-tier suppliers can support
production on-time with the right quantities− Electronic communication (EDI or Internet)
» Releases, schedules and ASNs» Planning horizon is appropriate » In-transit visibility from ASNs
− Customs clearing process (if applicable)− Process for suppliers to notify of shortages
![Page 34: 1 Materials Management Operations Guideline/Logistics Evaluation November 2007 MMOG/LE](https://reader033.vdocuments.net/reader033/viewer/2022061618/56649d975503460f94a80ac2/html5/thumbnails/34.jpg)
34
Key Criteria
• Supplier Packaging
−Bar code labels
−Process in place to define packaging and pack size
−Ensure sufficient packaging material is available
![Page 35: 1 Materials Management Operations Guideline/Logistics Evaluation November 2007 MMOG/LE](https://reader033.vdocuments.net/reader033/viewer/2022061618/56649d975503460f94a80ac2/html5/thumbnails/35.jpg)
35
Key Criteria
• Supplier Assessment
– Methodology to select and evaluate suppliers
– Continuous improvement process for sub-suppliers
– Supplier performance metrics
![Page 36: 1 Materials Management Operations Guideline/Logistics Evaluation November 2007 MMOG/LE](https://reader033.vdocuments.net/reader033/viewer/2022061618/56649d975503460f94a80ac2/html5/thumbnails/36.jpg)
36
AIAG/Odette Benefits Survey
![Page 37: 1 Materials Management Operations Guideline/Logistics Evaluation November 2007 MMOG/LE](https://reader033.vdocuments.net/reader033/viewer/2022061618/56649d975503460f94a80ac2/html5/thumbnails/37.jpg)
AIAG and Odette MMOG/LE Survey
• Survey administered in March/April 2007• Over 160+ survey respondents
– North America– Europe– China
• Respondent demographics– Tier 1, Tier 2, Tier 3 and Aftermarket– Large, Midsize and Small Companies– Implementation time was from 1 to 3+ years
• Management commitment was not measured
![Page 38: 1 Materials Management Operations Guideline/Logistics Evaluation November 2007 MMOG/LE](https://reader033.vdocuments.net/reader033/viewer/2022061618/56649d975503460f94a80ac2/html5/thumbnails/38.jpg)
Top Five Performance Improvements: Tier 1 and Tier 2-3
1. Ability to meet ISO TS-16949
2. Ability to keep existing business
3. Data accuracy
4. Ability to support lean (Tier 1)
4. Overall supplier rating (Tier 2-3)
5. Inventory Control
Regardless of Tier:
![Page 39: 1 Materials Management Operations Guideline/Logistics Evaluation November 2007 MMOG/LE](https://reader033.vdocuments.net/reader033/viewer/2022061618/56649d975503460f94a80ac2/html5/thumbnails/39.jpg)
Top Five Performance Improvements: Large, Midsize and Small Companies
1. Data accuracy2. Ability to meet ISO TS-169493. Ability to keep existing business
• Large suppliers also indicated – Delivery accuracy and inventory control
• Midsize suppliers also indicated – Supports lean implementation and new business
• Small suppliers also indicated – Overall supplier rating and new business
Regardless of Size:
![Page 40: 1 Materials Management Operations Guideline/Logistics Evaluation November 2007 MMOG/LE](https://reader033.vdocuments.net/reader033/viewer/2022061618/56649d975503460f94a80ac2/html5/thumbnails/40.jpg)
Top Five Performance Improvements: by Time Implemented
1. Data accuracy2. Ability to meet ISO TS-169493. Ability to keep existing business
Also indicated:• < 1year: Ability to support lean and inventory control• 1-2 years: Inventory control• 2-3 years: Delivery accuracy and line shortages• 3+ years: Reduced manual entry and inventory control
Regardless of Time Implemented:
![Page 41: 1 Materials Management Operations Guideline/Logistics Evaluation November 2007 MMOG/LE](https://reader033.vdocuments.net/reader033/viewer/2022061618/56649d975503460f94a80ac2/html5/thumbnails/41.jpg)
Data Accuracy Positive Performance Improvement Mean Score Over Time
58
60
62
64
66
68
70
<1 Year 1-2 Years 2-3 Years 3+ Years
Notes:
• On a 100 point scale• Over 60 is considered a strong positive response
![Page 42: 1 Materials Management Operations Guideline/Logistics Evaluation November 2007 MMOG/LE](https://reader033.vdocuments.net/reader033/viewer/2022061618/56649d975503460f94a80ac2/html5/thumbnails/42.jpg)
General Findings
• Meeting customer requirements and data accuracy
are consistent benefits regardless of time, size or tier
• MMOG/LE usage continues to improve year after year– MMOG/LE is an investment in first year of implementation– Continuous improvement is a journey, not a destination
• Minimal differences between N.A. and Europe– Performance improvements were consistent
![Page 43: 1 Materials Management Operations Guideline/Logistics Evaluation November 2007 MMOG/LE](https://reader033.vdocuments.net/reader033/viewer/2022061618/56649d975503460f94a80ac2/html5/thumbnails/43.jpg)
43
MMOG/LE Results Identified by OEMS
![Page 44: 1 Materials Management Operations Guideline/Logistics Evaluation November 2007 MMOG/LE](https://reader033.vdocuments.net/reader033/viewer/2022061618/56649d975503460f94a80ac2/html5/thumbnails/44.jpg)
44
Global MMOG/LE Benefits
• Renault requires the use of Global MMOG/LE in
project phase (vehicles or engines)
• In July 2007 for the “Twingo” program:– For 28 suppliers using Global MMOG/LE
Service Rate = 91 %– For the others :
Service Rate = 80 %
![Page 45: 1 Materials Management Operations Guideline/Logistics Evaluation November 2007 MMOG/LE](https://reader033.vdocuments.net/reader033/viewer/2022061618/56649d975503460f94a80ac2/html5/thumbnails/45.jpg)
45
Delivery Rating Improvements
• 1641 suppliers in N.A. completed MMOG/LE 2006/2007– As of October 2007, 93% are >80– 15% improvement in past 10 years – 85% of suppliers are at MMOG/LE Level “A”
![Page 46: 1 Materials Management Operations Guideline/Logistics Evaluation November 2007 MMOG/LE](https://reader033.vdocuments.net/reader033/viewer/2022061618/56649d975503460f94a80ac2/html5/thumbnails/46.jpg)
Benefits of Using MMOG/LE China Tier 1 Supplier’s Opinions
• Reduction in raw material, work-in-process and finished inventory• More efficient process from receiving raw material to shipping
inventory• Visible signs on shop floor identifying manufacturing operations• Use of metrics to capture failure in process• Importance of appropriate packaging• More organized warehouse: FIFO process used more effectively• More control and accountability in the material ordering process• More warehouse space• Ease of production planning and scheduling process• Less errors• Ability to compare material received versus material shipped • Ability to see ASN’s from tier 1’s and pay tier 1’s electronically• Improved communications within the supply chain
![Page 47: 1 Materials Management Operations Guideline/Logistics Evaluation November 2007 MMOG/LE](https://reader033.vdocuments.net/reader033/viewer/2022061618/56649d975503460f94a80ac2/html5/thumbnails/47.jpg)
47
Delivery Score Improvements
• 602 suppliers completed MMOG/LE 2006-2007– 54% improved in Chrysler delivery rating– Average improvement to Chrysler rating = 30%– 36% improved MMOG/LE score– 85% are at “A” level
![Page 48: 1 Materials Management Operations Guideline/Logistics Evaluation November 2007 MMOG/LE](https://reader033.vdocuments.net/reader033/viewer/2022061618/56649d975503460f94a80ac2/html5/thumbnails/48.jpg)
48
MMOG/LE, Volvo Group, update Sept ‘07
• All new suppliers are requested to submit the document• A Requirement for existing major and poor performing suppliers • A Criteria of Volvo Group Key Elements Procedures, Logistics • > 850 assessments received, > 230 verified with Volvo internal personnel
(most often on location)• Linked to supplier relationship development process• Example N-America: Self-assessed 44% of suppliers on A-level
After verification 37% of suppliers on A-level
• Example S-America: Adherence to supply instructions (Mar to Aug) Total local suppliers average 89.0% correct day/quantity Total self-assessed suppliers 86.7% All verified level A-suppliers 96.7% All verified level C-suppliers 85.8%
not included: Volvo Car Corporation
![Page 49: 1 Materials Management Operations Guideline/Logistics Evaluation November 2007 MMOG/LE](https://reader033.vdocuments.net/reader033/viewer/2022061618/56649d975503460f94a80ac2/html5/thumbnails/49.jpg)
MMOG/LE Benefits and Success Stories from Suppliers
![Page 50: 1 Materials Management Operations Guideline/Logistics Evaluation November 2007 MMOG/LE](https://reader033.vdocuments.net/reader033/viewer/2022061618/56649d975503460f94a80ac2/html5/thumbnails/50.jpg)
JCC Company Background
• Company size $50 million USD– Supplier in Fuzhou, China
• Parts produced– Aluminum alloy pistons– Motor air compressors– Diesel engines– Outboard engines
• OEM and aftermarket supplier
![Page 51: 1 Materials Management Operations Guideline/Logistics Evaluation November 2007 MMOG/LE](https://reader033.vdocuments.net/reader033/viewer/2022061618/56649d975503460f94a80ac2/html5/thumbnails/51.jpg)
Results• Reduced raw material and finished
goods inventory by 50%• Ability to achieve 100 points for monthly
delivery rating• Decreased premium freight• Improved overall rating by 20%• Obtained a competitive advantage • Obtained new customers• Enterprise visibility into customer
requirements drives business• Gained efficiencies in productivity, quality
and delivery
![Page 52: 1 Materials Management Operations Guideline/Logistics Evaluation November 2007 MMOG/LE](https://reader033.vdocuments.net/reader033/viewer/2022061618/56649d975503460f94a80ac2/html5/thumbnails/52.jpg)
• Products include pulleys, dampers and idlers• Approximately $55 million in sales• Supplies to OEMs and major Tier 1s• Major customers include:
– Ford– General Motors– Nissan– Automotive Component Holdings (Visteon)
London, Ontario Operations Background
![Page 53: 1 Materials Management Operations Guideline/Logistics Evaluation November 2007 MMOG/LE](https://reader033.vdocuments.net/reader033/viewer/2022061618/56649d975503460f94a80ac2/html5/thumbnails/53.jpg)
• Physical Inventory– Reduced frequency from monthly to annually
• Inventory Value– Reduced 50% in past years
• Delivery Performance– On time shipping performance to customers in 2006 was 99.7%– Delivery ratings to customers providing feedback was 100
• Supplier Performance– On time delivery from suppliers is 100% on date required– 97% of material requirements are communicated electronically to suppliers– 95% of incoming material shipments are transmitted via ASNs
London, Ontario Operations Results
![Page 54: 1 Materials Management Operations Guideline/Logistics Evaluation November 2007 MMOG/LE](https://reader033.vdocuments.net/reader033/viewer/2022061618/56649d975503460f94a80ac2/html5/thumbnails/54.jpg)
54
Global MMOG/LE Projects
• North America– TRW – Freudenberg – Akebono – Plastech – Gates - Schefnacker – Georg Fischer –
General Bearing – Wagon Automotive – Lear – Schefenacker
• Europe– ArvinMeritor - Tower Automotive - SNOP - recia - Mecaplast - MGI Coutier - Magneti
Marelli - Treves – Robert Bosch - Rieter Automotive - Hutchinson – SIEMENS VDO Automotive – Behr France – Metaldyne International France – TRW France - Edscha France – Beru Eyquem SAS – Amis (Sifcor) – APM – Autoliv France – Continental – Cooper Standard – Dunlop roues – Electrofil – Fabri – Freudenberg – GKN Driveline – Gris Découpage - Mahle – Mann Hummel – Alps – Fuji Koyo …
• China– Changhua – Chaoli – Jiaxuan – JCC – Xiyuan – Zhongyi – Zongshen
• South America– Mueller
![Page 55: 1 Materials Management Operations Guideline/Logistics Evaluation November 2007 MMOG/LE](https://reader033.vdocuments.net/reader033/viewer/2022061618/56649d975503460f94a80ac2/html5/thumbnails/55.jpg)
Supporting Training and Documents Available
![Page 56: 1 Materials Management Operations Guideline/Logistics Evaluation November 2007 MMOG/LE](https://reader033.vdocuments.net/reader033/viewer/2022061618/56649d975503460f94a80ac2/html5/thumbnails/56.jpg)
Harmonized Global Training 1-Day standardized global AIAG/Odette training
Training Slides &Instructor Manual
ParticipantManual
ImplementationToolkit
Odette/AIAGMMOG/LEWork Group
![Page 57: 1 Materials Management Operations Guideline/Logistics Evaluation November 2007 MMOG/LE](https://reader033.vdocuments.net/reader033/viewer/2022061618/56649d975503460f94a80ac2/html5/thumbnails/57.jpg)
MMOG/LE Course Objectives
• Continuous Improvement Tool
• What is the MMOG/LE?
• Assessment
• Gap Analysis
• Implementation
MMOG/LE
![Page 58: 1 Materials Management Operations Guideline/Logistics Evaluation November 2007 MMOG/LE](https://reader033.vdocuments.net/reader033/viewer/2022061618/56649d975503460f94a80ac2/html5/thumbnails/58.jpg)
5858
MMOG/LE Training and Seminars World WideAmerica’s Europe Others
177 people
130 people
180 people
50 people
480 people
160 people
700 people
200 people
100 people
6 people 4 people
55 people
25 people
15 people
13 people
United States of America
Canada
Mexico
Brazil
United Kingdom
Sweden
Germany
France
Spain
Czech Republic
Slovac Republic
Romania
Poland
Russian Federation
China
Iran
*
• India (training Fall 2007)
Additional Seminars held:• Japan• Taiwan• Hong Kong• Thailand
15 people
Turkey
![Page 59: 1 Materials Management Operations Guideline/Logistics Evaluation November 2007 MMOG/LE](https://reader033.vdocuments.net/reader033/viewer/2022061618/56649d975503460f94a80ac2/html5/thumbnails/59.jpg)
59
Related Guidelines and Best Practices
• M-7: Materials Management Operations Guideline/Logistics Evaluation (MMOG/LE)
• M-8: Key Performance Indicators for Global Materials Management and Logistics (KPI4GMML)
• Trading Partner Agreement for Global Materials Management and Logistics (available March 2008)
• E-17: Joint Automotive Industry Forum China B2B Recommendation
• EDI/XML Project Planner • Global Evaluation for Carriers and Logistics Service
Providers
Available at www.aiag.org or www.odette.org
![Page 60: 1 Materials Management Operations Guideline/Logistics Evaluation November 2007 MMOG/LE](https://reader033.vdocuments.net/reader033/viewer/2022061618/56649d975503460f94a80ac2/html5/thumbnails/60.jpg)
60
MMOG/LE Seminars held Globally
• Americas– US – Mexico – Brazil
• Asia– Japan – Taiwan – China - Hong Kong – Thailand – India
• Central and Eastern Europe– Poland - Czech Republic – Slovakia – Turkey – Russia – Romania
• Europe– France – UK - Spain