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MMUG Spring 2014
Introducing MMOG/LE v4…
Terry Onica, Director, Automotive
March 24, 2014
MMUG Spring 2014
Agenda
• MMOG/LE Overview
• Introducing MMOG/LE v4
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Introduction and Instruction Worksheet
Assessment Profile Worksheet
Assessment & Gap Analysis Worksheet
Scoring Summary Worksheet
Progression Chart Worksheet
Radar Chart & Radar Chart – by Chapter Worksheet
• Next Steps
MMUG Spring 2014
MMOG/LE Overview
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MMUG Spring 2014
What is MMOG/LE?
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Materials
Management
Operations
Guideline
Logistic
Evaluation
MMUG Spring 2014
What is MMOG/LE?
• Developed by AIAG/ Odette with OEMs and
Suppliers
• Assessment tool to evaluate/select suppliers
− Supply chain capabilities against best practice
− Used for production and after market/sales
• Provides plant score (e.g., A, B or C)
MMOG/LE = Delivery
ISO/TS-16949 = Quality
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MMUG Spring 2014
A B C Classification Definition
A B C Classification
Classifications
A
Best practice
B
Unstable or inconsistent processes
C
Deficient in key critical areas
MMUG Spring 2014
What is MMOG/LE?
• Excel spreadsheet highlights:
− Six chapters
− Full and Basic Assessment
− Answer responses: Yes, No, N/A
− Criteria weighting: F3
F2
F1
− Scoring and Classification Summary
− Tools to help track and summarize progress
MMUG Spring 2014
MMOG/LE Customer Usage with Suppliers
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
Under Review
PSA
Gates
Fiat
Renault
Johnson Controls
Honda
Tofas Fiat (Turkey)
Lear
Qoros
Volvo Car
Magna Powertrain
VDA: BMW, Daimler, VW
Volvo Truck
MGI Coutier
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MMUG Spring 2014
Introducing MMOG/LE v4
MMUG Spring 2014
Two Assessments
Full
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197 criteria
Six chapters
Used by OEM with Tier 1
A,B and C Levels
World Class
34 F3 questions
Basic
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106 criteria
Six chapters
Used with Tier 2-N
ZA, ZB and ZC Levels
Fundamentals in place
• 34 F3 questions
MMUG Spring 2014
Basic Assessment Goals
• A tool for lower tier suppliers to verify that the ”basic”
and most critical components of SCM are in place
• Provides a path for organizations to progressively
migrate to the Full assessment and world-class
practices
• Used to establish a quick diagnosis critical areas (e.g.
capacity planning, inventory management)
• Enables a targeted assessment
MMUG Spring 2014
Introduction and Instruction Worksheet
MMUG Spring 2014
Introduction and Instructions Worksheet
• PDF printable formatted versions
• Appears as a link on key worksheets for quick access
• Be sure you read it!
Download in PDF
MMUG Spring 2014
MMOG/LE Chapters
CHAPTER 1 - STRATEGY AND IMPROVEMENT
1.1
1.2
1.3
1.4
1.5
Vision & Strategy
Objectives
Measurement, Analysis, and Action Plans
Continual Improvement
Supply Chain Development
CHAPTER 2 - WORK ORGANIZATION
2.1 Organizational Processes
2.2 Operating Procedures and Work Instructions
2.3 Resource Planning
2.4 Work Environment & Human Resources
2.5 Risk Assessment and Management
CHAPTER 3 – CAPACITY & PRODUCTION
PLANNING
3.1
3.2
3.3
3.4
Product Realization
Capacity Planning
Production Planning
Systems Integration
CHAPTER 4 – CUSTOMER INTERFACE
4.1
4.2
4.3
4.4
4.5
Communication
Packaging & Labeling
Shipping
Transportation
Customer Satisfaction & Feedback
CHAPTER 5 – PRODUCTION & PRODUCT CONTROL
5.1
5.2
5.3
5.4
Material Identification
Inventory
Engineering Change Control
Traceability
CHAPTER 6 – SUPPLIER INTERFACE
6.1
6.2
6.3
6.4
6.5
6.6
6.7
Supplier Selection
Supply Chain Management Agreement
Communication
Packaging & Labeling
Transportation
Material Receipt
Supplier Assessment
MMOG/LE Supply Chain Process Model
QAD Auto Process Map will appear in MMOG/LE v4
in the Introduction and Instructions Worksheet
MMUG Spring 2014
Assessment Profile Worksheet
MMUG Spring 2014
Assessment Profile
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Contains Company, Assessment and Customer Information
Worksheets allows toggling between the Full or Basic setting
Establish workbook setting in the Assessment Profile worksheet
Warning appears if you are not in the opposite setting
If required fields (*) are not entered, the classification will not show
Workbook
Setting
Instructions
Warning
Customer
Required
Setting
MMUG Spring 2014
Assessment and Gap Analysis Worksheet
MMUG Spring 2014
Assessment & Gap Analysis Worksheet
• Now ONE worksheet
• All criteria updated to reflect current best practices
- Criteria added, combined, changed and reordered
- Leverage Changes Summary & Detail worksheets
Assessment
Gap Analysis
MMUG Spring 2014
Assessment Reponses
• Yes
• No
• N/A
O
Symbol changed from

X
N/A
Not approved by customer
N/A
Approved by customer
in v3
MMUG Spring 2014
Worksheet Header
Workbook, Header and Filter
Compliant/Non Compliant Summary
Non Applicable Criteria
MMOG/LE Version 4
Display/Hide Headers
• Display
Chapter Heading & Why Statement
• Hide
MMUG Spring 2014
Filter Options
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All Criteria
Lookup Requirement (e.g., 2.3.2, 6.3.2)
Lookup Business Function (e.g., IT, Purchasing, Supply Chain)
Lookup Responsibility (e.g., John Smith, Mary Jones)
Non Compliant Criteria
Compliant Criteria
Non Applicable Criteria (NAC)
NAC Criteria – Approved
NAC Criteria – Not Approved
Missing/Past Due Target Date
Missing/Past Due Completion Date
Missing Action Plan
F3, F2, or F1 Criteria
Chapter 1, 2, 3, 4, 5 or 6
MMUG Spring 2014
Assessment & Gap Analysis Worksheet
Columns G - Q
New Feature
Current State &
Supporting Evidence
Added reminder to note evidence
Gap/Continual
Improvement
Note a gap or continuous
improvement
Filter
Action Plan

Target Date

Completion Date
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Business Function
Department responsible (e.g., SCM)
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Responsibility
Person responsible for the criteria
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Customer Response
Used
for NAC management
Note customer feedback/response
NAC
Customer Contact
Required for N/A approved
NAC
Approval Date
Required for N/A approved
NAC
Cost
MMUG Spring 2014
Special Lookup Features
• Additional columns to help manage reviews
Requirement/
Criterion No
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Business
Function
Responsibility
1.2.1.2
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Exec Mgmt
Don
1.2.2.1
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Customer Service
Tyese
1.2.2.2
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Purchasing
Al
1.2.2.3
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Materials Manager
Alisa
1.2.2.4
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IT
Aidan
MMUG Spring 2014
Non Applicable Criteria Management
• Non Applicable – Not Approved
• Non Applicable - Approved
MMUG Spring 2014
Risk Assessment & Management
• New Sub Chapter 2.5.1
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Expands beyond 2.3.2 Contingency Planning in v3
New F3 criteria based in industry trends
Criteria weighting may get further elevated in v5
2.3.2 Contingency Planning from v3 is now 2.5.2
MMUG Spring 2014
Scoring Summary Worksheet
MMUG Spring 2014
Scoring Summary Worksheets
• Available for Full and Basic
• Worksheet Sections
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Scoring summary
Customer approval for non applicable criteria
Definitions – scoring, weights and classifications
Scoring summary – chapter details
MMUG Spring 2014
Scoring Summary Worksheets
MMOG/LE Version 4
Scoring Summary Worksheets
Progress
towards
Full
O
MMUG Spring 2014
Criteria and Scoring Comparison Full versus Basic
Full
Basic
F3
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34
Scoring Classification Full
F2
83
59
F1
80
13
Total
197
106
Scoring Classification Basic
MMUG Spring 2014
Scoring Summary Worksheets
• Classification definitions (example showing Full)
MMUG Spring 2014
Classification Definitions Full Versus Basic
• Classifications definitions are different between the two
• MMOG/LE Basic
1) Compliance to all F3 criteria
2) Non-compliance to fewer than 10 F2
ZA
criteria
3) Total score not considered in
classification
The fundamentals of supply chain management are in place and the
organization demonstrates evidence of process controls and
continuous improvements efforts. However, the full version of the
MMOG/LE Assessment would have to be completed in order to fully
understand if industry best practices have been met.
1) Compliance to all F3 criteria
2) Non-compliance of 10 to 15 F2
ZB
criteria
3) Total score not considered in
classification
Although most of the fundamentals of supply chain management
are demonstrated, the organization is deficient in several areas that
compromises the efficiency of internal performance and may impact
its ability to support the needs of the customer. An action plan
should be developed and implemented in a timeframe that meets
the needs of the business and its customer(s). To fully understand
the level of risk and opportunities for improvement, it is
recommended that the organization completes the full version of the
assessment.
1) Non-compliance to any F3 criterion
2) Non-compliance to 16 or more F2
ZC
criteria
3) Total score not considered in
classification
The organization is deficient in one or more key areas of supply
chain management. This situation creates a high risk of disruption
to customers and demonstrates a lack of efficiency and control of
internal processes within the existing supply chain strategy.
Management commitment will be required to create, prioritize and
implement action plans in a timely manner to avoid serious or
prolonged issues with the customer.
MMUG Spring 2014
Progression Chart Worksheet
MMUG Spring 2014
Visual Representation of the Gap Analysis
• Tracked monthly
• Summarized beyond 12 month horizon, as applicable
• Chart displays the results of either the Full or Basic
MMUG Spring 2014
Progression Chart
• Data used to generate the chart
• Alert: Criteria with NO action plan
• Does not impact the Progression Chart
MMUG Spring 2014
Radar Chart & Radar Chart – by Chapter Worksheets
MMUG Spring 2014
Radar Charts
• Chart views
- Chapter
- Overall subchapter
- Individual subchapter
• Percentages remain
- Chrysler suppliers
• Radar Chart settings
- Full
- Basic
- Combined
MMUG Spring 2014
Next Steps
MMUG Spring 2014
QAD Solution Support
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MMOG/LE Q-Scan
QAD MMOG/LE Answer Sheet for v4
Automotive Process Maps
Business Process Management (BPM)
Cebos
QAD Supplier Portal
Visit the QAD App Store
MMUG Spring 2014
Recommended Next Steps
• Verify with existing MMOG/LE customers
- What version should be submitted?
- When will MMOG/LE v4 be required?
• Obtain a copy of MMOG/LE v4 as early as possible
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Get familiar with the new version
Read the Introduction and Instructions worksheet
Review the Changes Summary & Detail worksheets
Ensure new/updated criteria do not impact your score
• AIAG MMOG/LE Level 1 Class
- Not necessary to retake the class
- Covers v3 and v4 through July 2014
- Only v4 will be offered starting August 2014
MMUG March 2014
OEM Adoption of MMOG/LE v4
• Chrysler, Ford and GM
- Annual assessment period from May 1 – July 31 each year
• Chrysler
- MMOG/LE v3 required in through April 2014
- MMOG/LE v4 required in May 2015 and beyond
• Ford
- MMOG/LE v3 in 2014, unless petitioning for Q1
- MMOG/LE v4 required in 2015
• GM
- MMOG/LE v3 required through August 2014
- MMOG/LE v4 required August 2014 and beyond
MMUG March 2014
Why Come to Explore
• May 5-10, 2014
• New Orleans, LA
• 650+ Attendees
"The benefit of attending Explore for me is to be able
to see not only where the organization is today but
where it's going in the future."
Toni Clubb, CFO, VitaTech
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MMUG March 2014
Come to Explore - Focus
• Learn
- 40+ Sessions
- Hands-on Training
- APICS Continuing Education Credits
• Network
- Sharing Best Practices
- Personal Interaction / Networking
• Discover
- Not Just ERP
- New Functionality
- Leveraging QAD Investment
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QAD Explore Customer Conference
May 5-8, 2014 | New Orleans, LA
explore.qad.com
MMUG Spring 2014
www.qad.com
© QAD Inc
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