Global MMOG/LE Materials Management Operations Guideline & Logistics Evaluation Cara Besh Morris Brown DaimlerChrysler AIAG Co-Chair Program Manager MMOG Work Group Materials Management
Chrysler Group Launches in 2004
9 New Product Launches
2-3 Per Year is the Average
Let’s take a look!
We Need Help! Goal is NO supplier disruptions to production Utilize all tools available MMOG/LE is one of those tools!
What is the Global MMOG/LE?
Who is the Work Group?
Who is the
Automotive Industry Action Group
Industry Trade Association
1,400 Member Companies
Automotive, Truck, Heavy Equipment Manufacturers
Suppliers – Production & Non Production
Founded in 1982
Mission is to develop standards and implementation strategies that improve the global automotive supply chain
Only place in North America where all OEMs, suppliers and service providers can assemble to address issues and resolve problems that affect the global automotive supply chain.
Reduce cost and complexity
Improve product quality, employee health and safety and the environment
Who is Odette?
Odette is a non-profit organization run by automotive people for automotive people.
The principal areas of activity are: -E-Business Communications -Logistics Management -Engineering Data exchange
Member countries: Benelux, Czechia, France, Germany, Spain, Sweden, UK
OEMs and Automotive Suppliers
MAP Study - Identified the Problem
Surveys and self-assessments from different customers
Too busy filling out forms
No consensus on what was important
Purpose of the Project
Industry accepted benchmark in Materials Management
Create common terminology
Gain consensus on what is important
What is the MMOG/LE “Process?”
Professional Development Overview of the MMOG/LE Process A Continuous Improvement Cycle + Delivery Rating MMOG Self Assessment MMOG Self Assessment Supplier Development/ Audit Team Training Needs Customer Interface 1 Executive Sponsor 2 Assemble Team Self-Assess 3 Identify Gaps 4 Set Goals 5 Develop Action Plan 6 Measure Progress 7 Evaluate effectiveness 8 + Delivery Rating
MMOG/LE Self Evaluation Categories
Strategy and Improvement
Production and Capacity Planning
Production and Product Control
Structure of Global MMOG/LE Question Why-Statement Criteria to be evaluated with specific weighting 4.1 COMMUNICATION 4.1.1 The organization maintains a process to ensure a co- operative communication based on actual and adequate information for both parties. Why? To maintain customer relations, prevent misunderstandings and ensure continued business based on co-operative communication. Criteria: (F2) There are agreed contingency plans established between both parties to maintain permanent communication during bottleneck situation(s). (1.4.2) (F2) The customers’ goals regarding Material Planning and Logistics performance are clearly defined (e.g. Customer delivery instructions/schedules), visualised and followed-up by the organization (3.1.4) (F1) A contact list exists conta ining name, function, method of communication (e.g. phone number, fax number, e-mail address, language spoken, etc.), hours of availability and deputies/back-ups for each Material Planning and Logistics function from its customers (1.4.2/16) (F1) The contact listing must support the entire scheduled operating hours of all customers (18) (F1) There is a documented process (incl. process owner) for maintaining contact information internally and updating the contact information on the customer's system (17) Change to ODETTE Logistics Evaluation : Evaluation no more on question level but on criteria level
Scoring : Scoring Summary
Scoring : ABC-Classification
Gap Analysis Tool Global MMOG/LE
Where Do We See the Most Nonconformances?
Bar code labels are inaccurate
Inability to communicate requirements electronically throughout the supply chain
Lack of control of Work-In-Process
Lack of control of First In/First Out (FIFO)
Where Do We See the Most Nonconformances?
Identify customer shipping discrepancies
ASN data is not generated automatically
Responding to unexpected changes in demand
Inadequate storage location labeling
Behind schedule checks are not automatic
How will the Global MMOG/LE be Implemented?
MMOG/LE Implementations OEMs Suppliers
Required of all launch suppliers to North American DCX Plants
Required by product launch
One time submission
What are we doing with the scores?
Compare MMOG w/past delivery performance
Potential on-site assessment
MMOG is used as a tool
Global MMOG/LE @
North America Q1 Award - requires Level “A”
Self assessments required annually
Timing of rollout - either document will be accepted for self assessment in 2004
Global MMOG/LE @ Supplier Locations
MMOG MMOG MMOG OUR GOAL: Supplier Development through the Supply Chain MMOG MMOG MMOG Ratings Ratings Ratings MMOG (Milliken) OEM (Ford, DCX) Tier 1 (JCI) Tier 2 Tier n
How Can I Gain Management Support? Why SHOULD Management Support this Effort? What’s in it For Me?
Improved Delivery Ratings/Scores
Meeting Customer Requirements
Increase Customer Satisfaction
Better understanding of customer requirements
What’s in it for Me?
What Happens When I Implement MMOG/LE?
Using the MMOG internally Case Studies
Simco Automotive used MMOG to develop action plans