Let Us Help You Pave the Way How

Let Us Help You Pave the Way How

Let Us Help You Pave the Way How to Conquer MMOG/LE Terry Onica Director, Automotive, QAD Sharon Wood Corporate Delivery/MMOG Champion, SGroup Automotive | Building the Effective Enterprise Let Us Help You Pave the Way - How to Conquer MMOG/ LE Safe Harbor Statement 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 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 QADs products remains at the sole discretion of QAD. | Building the Effective Enterprise 2 Let Us Help You Pave the Way - How to Conquer MMOG/

LE Session Agenda MMOG/LE overview OEM expectations & best practices QAD support S Group automotive case study | Building the Effective Enterprise 3 Let Us Help You Pave the Way - How to Conquer MMOG/LE

MMOG/LE Overview | Building the Effective Enterprise Let Us Help You Pave the Way - How to Conquer MMOG/ LE What is MMOG/LE?

Materials Management Operations Guideline Logistic Evaluation | Building the Effective Enterprise Let Us Help You Pave the Way - How to Conquer MMOG/ LE What is MMOG/LE? Developed by AIAG/ Odette with OEMs and Suppliers Assessment tool to select & evaluate suppliers

Provides site score (e.g., A, B or C) MMOG/LE = Delivery ISO/TS-16949 = Quality | Building the Effective Enterprise 6 Let Us Help You Pave the Way - How to Conquer MMOG/ LE Focuses on Supply Chain Management Organizations capabilities against best

practice in handling: Customer volume fluctuations Capacity constraints Contingency planning Sub supplier capability Resource allocation Employee skills and much, much more | Building the Effective Enterprise 7 Let Us Help You Pave the Way - How to Conquer MMOG/ LE

What is MMOG/LE? Excel spreadsheet with: Six chapters 206 criteria Answer responses: Yes, No, N/A F Criteria weighting: F F 3 2 1 F3

Supplier delivery performance metrics (e.g. on-time delivery, receipt discrepancies, ASN accuracy) shall be defined and measured. | Building the Effective Enterprise Let Us Help You Pave the Way - How to Conquer MMOG/ LE A B C Classification Definition Classification A

Best practice B Unstable or inconsistent processes Level A F3 criteria = 35 F3 require ERP usage Level C Spreadsheets C

Deficient in key critical areas | Building the Effective Enterprise 9 Let Us Help You Pave the Way - How to Conquer MMOG/ LE MMOG/LE Chapters 1. 2. 3. 4.

5. 6. Strategy & improvement Work organization Capacity & production planning Customer interface Production & product control Supplier interface | Building the Effective Enterprise 10 Let Us Help You Pave the Way - How to Conquer MMOG/

LE 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 PSA Gates Under Review Renault Johnson Controls

BMW Tofas Fiat (Turkey) Lear Daimler Volvo Car Magna Powertrain Honda NA Volvo Truck MGI Coutier | Building the Effective Enterprise

VW 11 Let Us Help You Pave the Way - How to Conquer MMOG/ LE OEM Submission Requirements Submissions Supplier selection Annual update Chrysler by March 31, Ford and GM by July 31 Audits

Poor supplier performance New business Growing suppliers New product launch Potential impact to risk for customers business Not achieving a Level A Not submitting an MMOG/LE assessment | Building the Effective Enterprise 12 Let Us Help You Pave the Way - How to Conquer MMOG/LE OEM Assessment Expectations

& Best Practices | Building the Effective Enterprise Let Us Help You Pave the Way - How to Conquer MMOG/ LE Is MMOG/LE Being Driven by Management? Driven by operations Executive management teams Corporate delivery champion (CDC) Championed by materials management | Building the Effective Enterprise

Let Us Help You Pave the Way - How to Conquer MMOG/ LE Are You Relying on Spreadsheets? Planning Scheduling Sub-suppliers A | Building the Effective Enterprise 15 Let Us Help You Pave the Way - How to Conquer MMOG/

LE Who is Leading the Assessment? Quality | Building the Effective Enterprise Materials Manager 16 Let Us Help You Pave the Way - How to Conquer MMOG/ LE

Is the Right Person Answering the Question? Top management Materials manager Corporate delivery champion Purchasing Production Engineering | Building the Effective Enterprise Program manager Human resources

Quality It Logistics Sales Customer service 17 Let Us Help You Pave the Way - How to Conquer MMOG/ LE Have You Documented Customer Specifics? Global terms and conditions Supplier manuals

Customer web sites and applications EDI portals Delivery rating Capacity Packaging and labeling Container management Customer training

| Building the Effective Enterprise 18 Let Us Help You Pave the Way - How to Conquer MMOG/ LE Are You Thoroughly Documenting Comments? Record evidence Work instructions

Customer specifics Notes Non applicable Annual review Competition | Building the Effective Enterprise 19 Let Us Help You Pave the Way - How to Conquer MMOG/ LE Poor Assessment Comments?

Why?Criteria Comments 1 2 Delivery performance to customer (e.g. customer performance rating, ship-to-schedule, shipping discrepancies) shall be measured. Resources versus customer requirements shall be reviewed upon receipt of shipping requirements (e.g.

862/DELJIT/shipping schedules) comparing daily ship requirement sent by customers. | Building the Effective Enterprise JIT and daily meeting Let Us Help You Pave the Way - How to Conquer MMOG/ LE Best Practice Assessment Comments. Why? Criteria Comments

Only documentation required is the packing slip (50.6.4) and the All shipments, including shipper (50.6.8); ASN export documentation and labeling, shall be screen is (50.6.22). Labeling is prepared to customer, industry, and covered in MMOG/LE 4.3.2.1. government/international standards Ford labeling specs are listed in and requirements (e.g. customs MP&L In A Box as indicated in handling, C-TPAT, PIP, AEO) Work instruction for ASN including carrier routings.

process is WI-ASN-0030-EM-FORD Menu item in ERP (50.6.4, etc.) Customer specifics (Ford MP&L in a Box Work instruction (WI-ASN-0030-EM-Ford) Cross reference to other criteria (MMOG/LE 4.3.2.1) | Building the Effective Enterprise 21 Let Us Help You Pave the Way - How to Conquer MMOG/ LE Are Your Work Instructions Detailed Enough?

Used for training & backups Instructions should Include: Purpose/scope Person(s) responsible Explanation of acronyms MMOG/LE criteria Step by step instructions Obtaining user logins Customer specifics Errors & contingencies Metrics Document version control

| Building the Effective Enterprise 22 Let Us Help You Pave the Way - How to Conquer MMOG/LE QAD Support | Building the Effective Enterprise

Let Us Help You Pave the Way - How to Conquer MMOG/ LE QAD MMOG/LE Answer Sheet Update Criteria Answer Recently added: Q-Scans and Cebos! | Building the Effective Enterprise Q-Scan Let Us Help You Pave the Way - How to Conquer MMOG/

LE QAD Automotive Process Map | Building the Effective Enterprise 25 Let Us Help You Pave the Way - How to Conquer MMOG/ LE Project Health Check Op Metrics | Building the Effective Enterprise

Let Us Help You Pave the Way - How to Conquer MMOG/ LE Schedule Variances Op Metrics <- Customer Supplier -> | Building the Effective Enterprise 27 Let Us Help You Pave the Way - How to Conquer MMOG/ LE

MMOG/LE Q-Scan Review critical questions & top OEM criteria Review processes, procedures, work instructions and assessment comments Present findings to management | Building the Effective Enterprise 28 Let Us Help You Pave the Way - How to Conquer MMOG/ LE Cebos Modules to Support MMOG/

LE Documents Training management Problem solver Customer management Supplier management APQP Auditing Gage Work manager | Building the Effective Enterprise 29

Let Us Help You Pave the Way - How to Conquer MMOG/LE S Group Automotive Case Study | Building the Effective Enterprise Webberville Manufacturing Facility Sgroup Automotive Small to mid-size company (aprox. 175 employees) Owosso Manufacturing Facility including Shea Interiors

SK Automotive, Puebla, Mexico Tier 1 supplier to Ford & Chrysler Tier 2 supplier to JCI & Faurecia Products Produced Load Floors Spare Tire Covers Headliners Seat Backs QAD Version Service Pack 1

SGroup QAD Implementation Go-Live January 2013 QAD EOB process on premise 3 sites in 4 months Why QAD? To better align ourselves to become MMOG/LE compliant with our customers: Better Inventory Control (5.2.2.1) EDI Compliance (4.1.2.3) Consistent communication with our suppliers through Supply Chain Portal (6.3.2.1) Ease of Production Scheduling (3.3.1.1) QAD Easy-On-Boarding

As you click on the down arrow, you will see the Work Instruction for that procedure. It will also take you to the screen of the procedure, in this case Confirm Shipper. Supplier Performance MMOG/LE F3 Critical The compliance button takes you to all MMOG/LE elements of Receiving. Each element is clickable and brings up the MMOG/LE compliance with the QAD answer. What QAD has done for me in the present: Ease of training end-users with the process maps QAD EOB came ready to use. No custom enhancements needed

for go-live Customer specifics were already loaded in QAD for MMOG/LE compliance Work instructions for most processes were already written just needed to be Sgrouped What QAD will do for me in the future: Set up a cycle count program at all 3 plants Pull and review reports for scrap, downtime and production efficiencies Tracking of supplier performance through Supply Chain Portal The use of operational metrics within QAD With the use of CEBOS Preventative Maintenance module, this software enables us to be compliant with these four MMOG/LE requirements pertaining to the inspection and calibration of all

equipment used to satisfy customer requirements. Next steps using CEBOS: Gage Calibration APQP & PPAP Document Control Layer Process Audits Corrective Actions for Quality & Delivery Let Us Help You Pave the Way - How to Conquer MMOG/ LE Summary | Building the Effective Enterprise

45 Let Us Help You Pave the Way - How to Conquer MMOG/ LE Summary Ford & GM annual assessments due 7/31/13 OEM assessment expectations How does your organization stack up QAD can help you meet customer expectations

QAD Answer Sheet MMOG/LE Q-Scan Cebos Quality module Process maps with work instructions & op metrics EOB process for new implementation and upgrades MMOG/LE Version 4 | Building the Effective Enterprise 46

Let Us Help You Pave the Way - How to Conquer MMOG/ LE To Down Load Automotive Process Maps Available for download at QAD App Store for customers on maintenance Automotive Process Maps (107) Easy On Boarding Bundle includes: Work instructions (600+) Training courses (115) Compliance points (206) | Building the Effective Enterprise

47 Let Us Help You Pave the Way - How to Conquer MMOG/ LE Questions & Answers Terry Onica: [email protected] Sharon Wood: [email protected] | Building the Effective Enterprise 48 www.qad.com QAD Inc. 2013

| Building the Effective Enterprise 49

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