MMOG/LE - Global Materials Management Operations Guidelines/Logistics Evaluation
Streamline your supply chain best practices with compliance to MMOG/LE
Align with Your Customers
As an automotive manufacturer, you are expect to align with the industry supply chain best practices. Ensure that your procedures and capabilities are in alignment with MMOG/LE for effective relationships with automotive original equipment manufacturers (OEMs).
At a Glance
Assess and align with MMOG/LE supply chain best practices, as developed and maintained by Automotive Industry Action Group (AIAG) and Odette International, for continuous improvement.
Whether required by your customer or not, MMOG/LE is an ideal set of guidelines for automotive supply chain, materials management planning and logistics operations to identify areas of improvement.
Leverage the MMOG/LE global assessment to measure your internal processes.
Document and comply with the criteria in MMOG/LE.
Ensuring that required materials and components are delivered to automakers in a timely and efficient fashion is critical to the ever accelerating pace of production demanded by the global consumer market. From digital transactions via electronic data interchange (EDI) to just in time (JIT) delivery of components for sequenced assembly lines, the automotive industry operates in a complex choreography guided by well-defined processes in the MMOG/LE assessment. Global OEMs use the MMOG/LE assessment to align with their supply chains and to make sourcing decisions that drive performance and reduce risk.
The MMOG/LE assessment has broad coverage and is organized into the following chapters:
- Strategy and Improvement
- Work Organization
- Capacity & Production Planning
- Customer Interface
- Production & Product Control
- Supplier Interface
Companies who have implemented MMOG/LE (according to AIAG) enjoy as much as 85% reduction in premium freight, up to 80% reduction in obsolescence costs and typically 40% or better reduction in inventory carrying costs. Whether or not you are required to conduct an MMOG/LE assessment as part of an OEM’s requirements, Plex is ideally suited to support the criteria in the MMOG/LE assessment and will bring value to any manufacturing organization. Regardless of where you start, it is an ideal tool to enable continuous improvement.
MMOG/LE seeks to ensure the efficient flow of data and material throughout the supply chain. It is designed as a self-assessment supported by interaction with customers to validate compliance. Holistic in nature, MMOG/LE requires a cross-functional approach for success.
Plex and MMOG/LE
The Plex Manufacturing Cloud enterprise solution supports all aspects of a manufacturing business, and is designed to enable the best practices embodied in MMOG/LE and provide required evidence of compliance. Below is a sample (not exhaustive) list of ways that Plex supports each chapter of the MMOG/LE assessment
Strategy and Improvement
Plex includes built-in functionality for capturing and displaying delivery performance to protect against supply chain bottlenecks. It includes a supplier scorecard to assist in making sourcing decisions and a continuous improvement module to track relevant activities.
Plex maintains the required skills matrix for keeping track of resources and capabilities as well as any required training. The key to this chapter is maintaining sufficient trained personnel available for critical activities and having contingencies in place to mitigate high-risk functions. In addition, Plex includes robust workflow capabilities to enable continuous improvement activities such as revising work instructions.
Capacity & Production Planning
Plex facilitates the product realization process with robust a program launch capabilities. The program management capabilities work hand-in-hand with built-in workflows to ensure that all relevant departments are participating in the development of procedures and associated work instructions. These functions and the included PPAP (Production Part Approval Process) tools support the capacity and production planning requirements detailed in the assessment. Plex integrated Materials Requirement Planning (MRP) and customer EDI facilitate lean manufacturing in support of customer delivery requirements.
All procedures for communicating with customers can be stored in the Plex Document Control System (DCS) with associated work instructions and appropriate workflows to support standard operations. This includes customer-specific packaging and labeling requirements as well as automatic and accurate ASNs (Advanced Shipping Notifications). Should any change to expected requirements occur, the Plex Deviation Tracking System (DTS) works with standard workflow to communicate and resolve the deviation. The Plex system’s customer portal further streamlines customer communications for improved customer satisfaction.
Production & Product Control
Fundamental to the Plex Manufacturing Cloud is a serialized inventory tracking system with built-in barcode printing and scanning to monitor virtually every step in material movement from incoming materials to outgoing finished goods. This enables “high resolution” traceability that identifies source, location and status (raw, WIP, non-compliant, etc.) of any material at any point in its history, stored in the database indefinitely. Material identified as unusable can be flagged to prevent its use anywhere in production.
Plex DCS manages all documents with revision control and built-in change control functionality. Robust workflow and approvals ensure that a change made anywhere is reflected everywhere to eliminate revision errors.
Similar to the customer interface, electronic communication with suppliers is enhanced through management of well-defined procedures and workflows. All aspects of material ordering, labeling and transportation are handled within the system and remain part of the permanent transaction record for continual improvement, auditing and/or recall management.
Compliance with MMOG/LE Global Assessment can directly impact your competitiveness as a business. Adhering to MMOG/LE guidelines can make you a better, more effective supplier. World-class automotive suppliers depend on world-class systems like Plex that are purpose built for automotive. Plex is a proven platform for MMOG/LE compliance and an essential tool for competing effectively in the automotive supply chain.
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Manufacturing ERP software is not all the same. Historical ERP software solutions involve painful implementation projects followed by challenging periodic updates – often forcing companies to go years without updating their ERP system. Meanwhile, these same companies lose value day after day as new features and functions elude them, only implemented with the next painful ‘big bang’ upgrade.
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