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OEM Panel Weighs In on New MMOG/LE Version 5 Assessment at Upcoming Supply Chain Summit

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AIAG is launching its MMOG/LE Version 5, and long-time, award-winning AIAG volunteer Terry Onica has been on the frontlines in implementing updates and training on the new platform, which will replace the prior Excel assessment. The MMOG/LE Version 5 global volunteer workgroup was comprised of experts from AIAG, Odette, QAD, Volvo, ZF, Ford, FCA, Continental, GALIA, SMMT, General Motors, and VDA. Their revision of MMOG/LE took about 18 months to complete and was reviewed by 35 stakeholders.

“The scoring is tougher and it’s harder to achieve a Level A now,” says Onica. “You used to need to fulfill 90 percent of the criteria for Level A, and now you have to meet 95 percent. There were also an additional nine F3 criteria added to version 5.  If you miss just one F3 criteria, you automatically fall to Level C score. You truly have to be world class in every aspect of supply chain management.”

Organizations wishing to learn firsthand about the new platform and important changes to MMOG/LE Version 5 will have the opportunity at AIAG’s upcoming Supply Chain Summit, June 18, 2019, at the Laurel Manor Banquet and Conference Center in Livonia, Michigan. Attendees can engage with the panelists and get their questions answered.

MMOG/LE, which stands for Materials Management Operations Guidelines/Logistics Evaluation, was developed in 2001 by AIAG and Odette along with OEMs and suppliers, and Onica’s employer, QAD. It is an assessment tool to help automotive companies evaluate and select suppliers, comparing their supply chain capabilities against best practices. It scores plant performance and can be used for production or after sales. As an example, suppliers need to complete an MMOG/LE assessment annually for Ford and FCA every year between May 1 – July 31.  However, there are many other global OEMs and Tier 1 suppliers who also have MMOG/LE requirements.

The new Version 5 contains 187 criteria, which is down from 197 in the previous version, and is available as a Full or Basic assessment. The nine new F3 criteria are centered around automating/integrating the complete planning and scheduling process; striving to implement 100 percent supplier EDI/Web; aligning vision/strategies/objectives; and managing sub suppliers in risk management, contingency planning, supplier performance, and assessments. It has been translated into 11 languages.

“MMOG/LE Version 5 now aligns with IATF 16949,” adds Onica. “The best practices such as corrective actions, supplier performance, communication, and cascading best practices and standards through the supply chain on the quality side are now mirrored and required on the delivery side.”

Onica says the volunteer experts spent significant time in the Supplier Interface chapter. “We spent a lot of energy developing guidance around assessing sub-supplier performance using scorecards, risks identified, and assessments for new business, program launch, and ongoing evaluation,” she says.

“My advice is for people to start looking at the new Version 5 right away,” she says. The amount of changes in Version 5 are about the same number that were implemented in Version 4 nearly four years ago, but Onica notes that Version 5’s changes could have an impact on your current score. “With the tougher scoring and nine additional F3 questions, there could be a potential for your organization to fall to a Level C score, so you want to have plenty of time to prepare before your next MMOG/LE assessment that you will provide to your customer in 2020,” she says.

During the Supply Chain Summit session on June 18th, Onica and MMOG/LE Work Group colleagues from Odette, FCA, and Ford will be helping suppliers to understand all the new changes as well as introduce the new platform. In addition, the OEMs and Odette will be on hand to take questions regarding these updates during the panel discussion. Onica highly recommends attending the AIAG Supply Chain Summit to help organizations get started with the transition to the new version and platform.

Onica also recommends that suppliers who have an MMOG/LE requirement with their customers get training on the MMOG/LE changes and the new platform as soon as possible. “Don’t wait until the next report period,” she advises. AIAG will be hosting MMOG/LE training dates at its headquarters in Southfield, Michigan:

  • June 19, 2019
  • July 17, 2019
  • Sept 4, 2019
  • October 2, 2019
  • November 6, 2019

AIAG also provides on-site training.

The new MMOG/LE version 5 represents the next evolution in facilitating effective relationships between suppliers and OEMs in a period when the supply chain is undergoing a massive transformation. MMOG/LE is poised to help continue to drive the industry forward in the coming years to realize even further efficiencies and growth.