MMOG Logistics English

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Master Global Materials Management Operations Guidelines /

Logistics EvaluationM-7 Version 1, Release 2 Date: 12/2004

International Copyright Information

This standard is subject to International Copyright, as shown herein and unauthorizedreproduction is not permitted. Contact one of the associations below to discuss

reproduction permission. If translated, this manual has been translated and published

for guidance only and is intended to help the understanding of the official English

version.

AIAG Copyright and Trademark Notice:

The contents of all published materials are copyrighted by the Automotive Industry

Action Group unless otherwise indicated. Copyright is not claimed as to any part of

an original work prepared by a U.S. or state government officer or employee as part

of the persons official duties. All rights are preserved by AIAG, and content may notbe altered or disseminated, published, or transferred in part of such content. The

information is not to be sold in part or whole to anyone within your organization or to

another company. Copyright infringement is a violation of federal law subject to

criminal and civil penalties. AIAG and the Automotive Industry Action Group are

registered service marks of the Automotive Industry Action Group.

2003 Automotive Industry Action Group

2003 Automotive Industry Action Group

2003 Odette International Ltd. All rights reserved

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AIAG

Cara Besh DaimlerChrysler Corporation

Morris Brown AIAG

Connie Harde American Axle & Manufacturing, Inc.

Michael Howard Ford Motor Company

Aidan Hughes Gates Corporation

Chuck Koehn DaimlerChrysler Corporation

Donna LeFaive JCI Corporation

Kevin Lockwood Universal Bearings Corporation

Eric Minehart Ford Motor Company

ODETTE

Roger Bergsten Volvo Car Corporation

Rob Brown SMMT Industry Forum

Jacky Cousin GALIA

Mark Evans SMMT Industry Forum

Gerard Graufogel PSA

Helena Holmgren Robert Bosch GmbH

Gerhard Paulinz Volvo Truck Corporation

Henry Rosten Volvo Powertrain Corporation

Aurelien Rouquet GALIA

Jeff Turner SMMT Industry ForumJoerg Vollmer Robert Bosch GmbH

AIAG and Odette would like to acknowledge and thank the representatives of all the companies listed for

their input and help in completing this document.

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Each question is multiplied by a weight factor:

F1 = Low (1 point each)

F2 = Medium (2 points each)

F3 = High (3 points each; any non-compliance will result in overall evaluation to be Level Cdue to critical competency factor.

Enter "X" in each check box if process is effectively implemented at your organization

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1. STRATEGY AND IMPROVEMENT

Objectives

Vision & Strategy

Measurement, Analysis and

Action Plans

Continuous Improvement

Supply Chain Development

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Each question is multiplied by a weight factor:

F1 = Low (1 point each)

F2 = Medium (2 points each)

F3 = High (3 points each; any non-compliance will result in overall evaluation to be Level C

due to critical competency factor.

Enter "X" in each check box if process is effectively implemented at your organization

1.1 Vision and Strategy

1.1.1The organization has a strategy that ensures the Materials Planning and Logistics vision is

achieved.

Why?For the Materials Planning and Logistics process to be efficient and effective, it needs to be

acknowledged as an important part of the operation and receive adequate resources.

Good knowledge of long-term strategy is a condition for employees to work consistently and be pro-

active.

Criteria:

F2 A documented vision exists for the Materials Planning and Logistics function.

F2A documented strategy exists with activities for implementing the Materials Planning and Logistics

vision.

F2The Materials Planning and Logistics vision and strategy is linked to the organization's overall

objectives, including customer requirements and continuous improvement.

F2The Materials Planning and Logistics vision and strategy is communicated and understood within

the organization.

Optional comments may be added here supporting the organization's current state.

1.2 Objectives

1.2.1Objectives relative to the Materials Planning and Logistics function are defined,

communicated and understood within the organization.

Why?Objectives allow departments and employees to focus on areas of importance to achieve customer

satisfaction and the organization's Materials Planning and Logistics strategy.

Criteria:

F2All objectives are measurable and consistent with the organization's Materials Planning and

Logistics strategy.

F2Objectives are accepted by all relevant functions and are clearly cascaded throughout the

organization.

F2 Objectives are reviewed with senior management at planned intervals.


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1.2.2 Key Performance Indicators (KPIs) shall cover objectives for all areas of the MaterialsPlanning and Logistics process.

Why? KPIs are used to identify the organization's current performance and areas for improvement.

Criteria: Minimum requirement (Additional KPIs to be covered by specific customer requirements).

Delivery

F3 Delivery performance to customer.

F3 Supplier delivery performance.

F3 Build-to-Schedule(productivity: plan vs. actual).

F2 Lead times for all supply chain processes (physical and information).

Quality

F2 Materials Planning and Logistics Quality (e.g., documentation, messages, packaging and labeling).

Cost

F2 Materials Planning and Logistics costs (e.g., Premium freight, packaging, handling and storage

F1 Stock levels / stock turn broken down into raw material, WIP, finished goods.


1.3 Measurement, Analysis and Action Plans

1.3.1 Objectives are measured, analyzed, and action plans created where necessary.

Why?Measurement and analysis is necessary to ensure awareness of current performance and to engage

employees in the improvement process.

Criteria:

F2Performance against objectives is monitored at planned intervals and reviewed with senior

management.


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F2 All relevant personnel/functions are informed about performance at planned intervals.

F2A structured problem solving method is used to determine root cause(s) and prevent recurrence of

material problems.

F1Graphical analysis tools, (e.g., Pareto graphs) displaying historical and trend data are used to track

critical areas over time.


1.3.2Corrective and preventive actions, identified by KPI analysis, to improve performance are

documented.

Why?Documentation helps to ensure that identified action plans have been successfully implemented and

results shared across similar processes.

Criteria:

F2The management prioritizes documented action plan items. The action plan should include the

action, responsibility, timing and allocated resource.

F2

Evaluations of corrective/preventive actions are performed at the conclusion of each action plan.

The review shall be used to determine the effectiveness, the application to similar processes and the

need for any further action.


1.4 Continuous Improvement

1.4.1Continuous improvement within the supply chain is driven through a well-established

process.

Why?Improvement activities throughout the supply chain are necessary in order to achieve overall

customer satisfaction.

Criteria:

F1A defined process supported by management for continuous improvement is used within the entire

organization and with all supply chain partners.

F1Employees have a documented responsibility for and are allowed time to work on continuous

improvement tasks.

F1 The organization encourages employee involvement through an active suggestion program.



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1.4.2There shall be a process to identify and take corrective actions on deficiencies and/or

unstable processes found during internal assessments.

Why?For organizations to remain competitive and reduce cost, specific areas of improvement need to be

identified.

Criteria: Minimum requirement (Additional areas to be covered by specific customer requirements).

F3 Bottle neck processes.

F2 Production batch/lot sizes.

F2 Set-up/Change-over times.

F2 Throughput time.

F1 Reduction of complete physical inventories.


1.5 Supply Chain Development

1.5.1 Actions are taken to improve the relationship between all parties in the supply chain.

Why?A strong and successful relationship requires mutual trust and understanding. Supply chain

optimization relies on organizations working together.

Criteria:

F1 A structured approach is in use for development of all relationships.

F1 Action plans, processes and relationships of the parties in the supply chain are documented.

F1Methods of analysis are used to assess the supply chain: {e.g. SWOT analysis (Strengths,

Weaknesses, Opportunities, Threats), Benchmarking, Business Networks}


1.5.2Internal customer satisfaction objectives related to Materials Planning and Logistics are

identified, measured and communicated within the organization.

Why?Internal customer satisfaction is important for facilitating continuous improvement in response to

customer requirements.

Criteria:


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F2 Clear understanding of internal customer requirements.

F2 Internal customer satisfaction is measured (e.g., press shop parts supplied to the assembly area).

F2 Measurements are fully implemented, used and communicated to relevant functions.



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2. WORK ORGANIZATION

Organizational

Processes

Organizational Procedures

Resource Planning

Work Environment & Human Resources


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2.1 Organizational Processes

2.1.1Materials Planning and Logistics processes are described starting from customer interface,

through internal production until supplier interface.

Why?

It is vital to gain an overall view and understanding of your own and your business partners

processes in order to provide a good foundation for continuous improvement.

Criteria:

F1

There is a documented organizational structure in place to ensure appropriate focus (e.g., direct

reporting to the senior management) and resources for all Materials Planning and Logistics

processes.

F1Documentation exists (e.g., flow charts) describing the information flow of all Materials Planning and

Logistics processes, including interfaces with other functions and business partners.

F1Documentation exists (e.g., flow charts) describing the physical flow aspect of all Materials Planning

and Logistics processes, including interfaces with other functions and business partners.

F1 There is an active document control procedure in place. (as defined within TS 16949/QS9000)


2.2 Organizational Procedures

2.2.1 Organizational procedures exist for all functions within Materials Planning and Logistics.

Why? To ensure a standard way of working and help facilitate learning, it is important to have documentedprocedures.

Criteria:

F2The organization has procedures, which are evaluated and implemented to ensure compliance with

the Materials Planning and Logistics vision.

F2

Documented procedures for all customer interface aspects of the Materials Planning and Logistics

process exist (e.g., customer order planning, stock control, packaging procedures and transport

management).

F1

Documented procedures for all internal aspects of the Materials Planning and Logistics process exist

(e.g., assembly and production planning, material handling, stock control and warehousing including

MRO inventory).

F1

Documented procedures for all supplier interface aspects of the Materials Planning and Logistics

process exist (e.g., supplier performance assessment, receipt of material, stock control and

requirement calculations).



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2.3 Resource Planning

2.3.1 Resource flexibility and availability are optimized.

Why?It is essential that resources are optimized to fulfill capacity requirements of all the Materials

Planning and Logistics operations.

Criteria:

F2The organization has the ability to adapt its human resources in order to manage and balance

workload (e.g., flexibility agreements, peak hours, absenteeism and different industrial calendars).

F2The organization conducts periodic reviews to ensure sufficient resources (e.g., space and

equipment) are allocated for all Materials Planning and Logistics processes.

F1 Overtime is not used as a long-term solution for staffing requirements.


2.3.2Contingency plans shall exist to avoid disruptions when something unexpected happens in

the supply chain

Why?Without contingency plans, any disruption within the Materials Planning and Logistics process might

endanger deliveries to the customer (including e.g., assembly lines, workshops).

Criteria:

F3

The organization's contingency plans shall be implemented by a pre-determined function when an

emergency occurs and the system shall be tested and validated periodically.

F3 Personnel shall be trained in contingency procedures.

F2

Documented and proven procedures for all potential disruptions are identified with appropriate

action and recovery plans, including production and data recovery (e.g., computer/communication

failures, industrial disputes, transport and production disruption).


2.3.3A system exists for highlighting and communicating with both customers and suppliers

within the plant, any incident or deviation from the production plan.

Why?Appropriate management of internal customers and suppliers should rely upon communication

upstream and downstream of any incidents that could affect the normal production process.

Criteria:

F1

There are procedures in place to highlight and communicate incidents or deviations, (e.g., schedule

information, early warning of delays and stoppages), from the production plan, (e.g., regular

meetings, reporting and ad-hoc meetings).


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2.4 Work Environment & Human Resources

2.4.1 Plans exist for the control and improvement of the work environment.

Why?People are organizations' main asset, and the organization is responsible for providing safe and

healthy working conditions.

Criteria:

F2All applicable safety and environmental regulations (including respective certification) have been

identified and met.

F1Management are actively responsible for providing and improving the work environment (e.g., 5S/C

program, ergonomic principles).


2.4.2The roles and responsibilities within the Materials Planning and Logistics function are clearly

documented.

Why? Clearly defined roles and responsibilities reduce the risk of conflicts and define ownership of issues.

Criteria:

F1

Clearly defined job descriptions/skills matrices exist and are regularly reviewed and updated for each

key function within Materials Planning and Logistics.

F1All key tasks have employee backups designated to manage workflow when the primary employee is

not available.


2.4.3 There is a process identifying current and required skills within the organization.

Why? Understanding the competence gap within the organization is important for improvement.

Criteria:

F1The competence required for each position and function within the Materials Planning and Logistics

department have been identified and documented.

F1The current competence level for each employee and function within the Materials Planning and

Logistics department have been identified and documented.


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F1The procedure for identifying training needs based on a gap analysis of current versus required

skills, is documented, appropriately distributed and used for training recommendations.

F1Training objectives are clearly defined within the Materials Planning and Logistics strategy,

understood by all employees concerned and monitored by management.


2.4.4A training and development program exists for each employee in the Materials Planning and

Logistics function.

Why? A flexible and effective organization requires competent personnel.

Criteria:

F2There is a process to ensure sufficient resources (e.g., relief cover/backup) are available to support

and implement the training needs identified.

F1 Individual training and development plans exist for each employee.

F1Documented training and development plans are documented and regularly revised (minimum

once/year).

F1There is a process between employee and management to monitor the effectiveness of training and

to derive necessary actions.


2.4.5Actions are taken to improve employee motivation and empowerment in the Materials

Planning and Logistics function.

Why?To ensure employees are motivated to perform at their best, they need encouragement and to feel

that their efforts are worthwhile.

Criteria:

F1The performance of the organization and Materials Planning and Logistics function is communicated

to employees on a regular basis.

F1 Regular appraisal review and feedback is given to each employee (minimum once/year).

F1Follow-up from appraisal review leading to the identification of improvement opportunities and action

plans exists on a regular basis.



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3. CAPACITY & PRODUCTION PLANNING

Product

Realization

Capacity Planning

Production Planning

Systems Integration


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3.1 Product Realization

3.1.1The organization's Materials Planning and Logistics function shall formally participate in, and

sign off on, the Product Realization process.

Why?

The material organization's physical sign off verifies their involvement in the early stages of the

Product Realization process and therefore are prepared to support the organization at the start of

production.

Criteria:

F3 Material's function shall participate in and sign off on the Product Realization process.


3.2 Capacity Planning

3.2.1

The organization shall perform a comparison of its resources against the customer's long,

medium and short-term requirements. A process shall be in place that ensures prompt

communication to the customer of any risk that could affect their operations.

Why?

A major goal of the scheduling system shall be to review customer requirements far enough in

advance to detect potential problems in meeting those customer requirements. This process must

occur in a timeframe that allows for corrective action and minimizes the impact to the customer.

Criteria:

F3

Comparison of resources versus customer requirements shall be reviewed upon receipt of forecast

requirements (e.g., 830/DELFOR), comparing every week of the forecast (e.g., from week 3 tomonth 6 of the planning horizon) sent by customers.

F3

Resources versus customer requirements shall be reviewed upon receipt of shipping requirements

(e.g., 862/DELJIT), comparing daily ship requirement (usually current week and week 2) sent by

customers.

F3There shall be a process in place to notify customers of any significant resource limitations in

meeting the requirements.

F1

Time and cost for administrative, (e.g., receiving, planning and despatch), and physical (e.g.,

loading, unloading of trucks) operations of the Materials Planning and Logistics function are

quantified.


3.2.2

The organization's capacity planning process has the flexibility to ensure that the Product

Approval Process (PAP) requirements are available in a timely manner to support customer

change-overs/launches.


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Why?The organization's capacity planning process needs to be able to account for regular production, as

well as PAP requirements to ensure that production requirements are met.

Criteria:

F1 PAP requirements are prioritized accordingly within the scheduling system.

F1There is a process for building an inventory buffer of current parts prior to production time needed

for new model parts approval/evaluation.

F1PAP reviews are held with the participation of Scheduling, Production, Material Control, Engineering,

etc. on a regular basis to resolve any issues with meeting customer requirements.


3.2.3The organization implements measures to minimize obsolescence of Raw Material, WIP and

Finished Goods.

Why?For obsolescence claims purposes, a process exists for recording and maintaining maximum

material authorization from the customer.

Criteria:

F1

The organization has a process in place to communicate running change and balance-out parts for

final production runs to ensure no over-production and outside purchased items are ordered to the

piece.

F1Scheduling system will not generate production orders above customer requirements for balance-out

items.


3.2.4 There is a process to ensure the availability of service/spare parts.

Why? To satisfy the customer's need for spare parts without jeopardizing the production of current parts.

Criteria:

F2Requirements for non-current parts are calculated and ensured for the entire life cycle of the product

as required by the customer.

F1Quantities are communicated and managed throughout the organization, based on customer

requirement orders to ensure on-time deliveries.

F1Documented agreements exist to ensure the supply of service/spare parts (e.g., minimum order

quantity, standard pack size).



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3.3 Production Planning

3.3.1A process shall exist to plan production requirements and to maintain the parameters of the

production planning system.

Why?

A production planning and monitoring system contributes to both efficient information and material

flow.

Criteria: If your processes are automated then "check" both the manual and automated criteria below.

F3The scheduling system shall consider customer requirements when generating production

schedules.

F3

A set of parameters, (e.g., transport time, lead times, inventory levels, packaging), and internal

production requirements, (e.g., supplier constraints, scrap rates set-up times), shall be integrated

into the production planning system manually.

F1

A set of parameters, (e.g., transport time, lead times, inventory levels, packaging), and internal

production requirements, (e.g., supplier constraints, scrap rates set-up times), are integrated into

the production planning system automatically.

F1 A flexible production planning system is synchronized with all relevant internal and external systems.

F1The production planning system and its parameters, (e.g., scrap rate, set-up time, lot size, etc.), are

updated at planned intervals by a clearly defined responsibility.


3.3.2 The production scheduling system supports lean manufacturing (e.g., pull systems).

Why? To ensure production schedules reflect customer releases and shipping schedules.

Criteria:

F1Pull system concepts are integrated within the production planning process as seen on the shop

floor.

F1A daily forecast schedule of part numbers and quantities due by date is utilized, integrating pull

system techniques into the production planning process.

F1 Pull system automatically offsets losses or gains based upon inventory verification.


3.4 Systems Integration


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3.4.1The customer information shall be processed directly into the organization's planning and

scheduling systems.

Why?Direct electronic transfer of data will improve the transfer speed, reduce the possibility of error and

reduce the cost.

Criteria:

F3

Customer schedule information shall be automatically integrated into the organization's releasing

system to avoid manual transference of data by using ODETTE/AIAG electronic communication

standards or any other web based electronic standard.


3.4.2The organization sets the timing of the Material Requirements Planning System (MRP)

process to coincide with the receipt of the expected customer requirements.

Why?The MRP system should calculate the schedule based on the most current information available

from the customer.

Criteria:

F2MRP receives the expected customer requirements prior to the actual MRP run to calculate daily

production operating plans.



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4.1 Communication

4.1.1The 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:

F2There are agreed contingency plans established between both parties to maintain permanent

communication during bottle-neck situations.

F2The customers' goals regarding Materials Planning and Logistics performance are clearly defined

(e.g., Customer delivery instructions/schedules), visualized and followed-up by the organization.

F1

A contact list exists containing 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 Materials Planning and Logistics function from its customers.

F1 The contact list must support the entire scheduled operating hours of all customers.

F1There is a documented process (including process owner) for maintaining contact information

internally and updating the contact information on the customers' system.


4.1.2The organization shall receive requirements planning and shipping information

electronically, when available from the customer.

Why?

Electronic data transfer reduces the possibility of a typographical error or incorrect translation ofdata when human intervention is involved. Speed is increased by the electronic/mechanical transfer

of data while reaction time updates in customer requirements for pre-production, production and

service parts is improved.

Criteria:

F3Electronically communicated delivery forecasts (e.g., 830/DELFOR/planning releases) shall be

received and processed without manual entry.

F3Electronically communicated call off's (e.g., 862/DELJIT, shipping schedules, sequenced shipping

schedules) shall be received and processed without manual entry.

F1

Receipt and understanding of electronic communication should be in accordance with international

automotive guidelines (e.g., AIAG/Odette.)


4.1.3The organization shall have a process to ensure that any potential problems that could

impact the customer operation are communicated as soon as they are identified.


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Why?For the supply chain to remain uninterrupted at all times, any problems with the customer must be

resolved in a timely manner.

Criteria:

F3

There shall be documented procedure in place for the Materials Planning and Logistics personnel to

notify the customer and respond immediately to any situation whether identified by the organization

or the customer, that could negatively impact the customer's business.

F3

Differences shall be resolved with the appropriate customer contact prior to shipment time if the

agreed requirement cannot be met (e.g., transportation mode, quantity-shipped discrepancies,

packaging, etc).

F3The organization shall use interactive inventory management systems where they are available from

the customer (e.g., DDL, Smart, other VMI systems).


4.2 Packaging and Labeling

4.2.1The organization shall have a procedure for packaging development, coordinated with the

Product Approval Process.

Why?To ensure that the packaging efficiently supports material flow requirements as handling and

distribution.

Criteria:

F3

The organization shall have a process and supporting documentation to define standard packaging,

(usually reusable container), and back-up packaging (usually expendable containers), and pack size

before start of production (e.g., agreements about packaging type and rules for use with customer,

involvement of all internal departments connected with the packaging process).

F2 Requirements for packaging development/specification is agreed and documented.

F2The organization periodically audits shipments and conducts a physical review of packaging to

ensure compliance with defined packaging requirements.

F1Customer specific packaging should be developed for integration into the manufacturing process

(e.g., max. use of transportation conveyance, transport optimization).

F1When shipping runoff, pilot, PAP parts, the organization makes all shipments in assigned containers

so that the customer can validate the container use in their material system.


4.2.2The organization manages the container process to ensure that the availability of

returnable/non-returnable containers is adequate to support the material flow requirements.

Why?Adequate quantity and quality of returnable/non-returnable containers need to be available to keep

material protected as well as support any production needs.


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Criteria:

F2A documented control system exists for the procurement, allocation and monitoring of all packing

material (e.g., returnable containers, expendable packaging, dunnage, spacers).

F2

A documented and implemented process exists to ensure that returnable container inventory and

their availability in quantity and quality is adequate to cover customer requirements.

F2A documented, customer approved process exists in case of missing, damaged, dirty or otherwise

unsuitable packaging.

F2There is a process to notify the customer for each shipment when alternative or back-up packaging

is used.

F1A documented process for the storage of customer-supplied packaging is available and followed

(e.g., suitable storage and cleaning facilities for returnable containers).


4.3 Shipping

4.3.1The organization controls its processes to assure that the physical shipments correspond

with the customer demand.

Why?To ensure accurate shipment, container and label information and any other necessary

documentation will fulfill customer requirements.

Criteria:

F2The implemented and documented process to detect quantity shipped discrepancies is automated

(e.g., scan based shipment and loading control systems).

F2The organization ensures that any quantity-shipped disagreements with the customer are detected

and reconciled in a timely manner without cost penalties to the customer.

F2

Dock operations (e.g., capacity of preparation areas, loading bays, limits of loading and unloading,

rules of freight capacity, schedule of dispatch handling) are optimized, using scheduled window

times and carrier on-time performance is tracked.


4.3.2The organization shall have a process to ensure complete and accurate data content and

timely transmission of all Advanced Shipping Notices (ASN).

Why?Advanced Shipping Notices (ASN) transmits relevant information to the customer so they are aware

of what the supplier has shipped and can plan accordingly.

Criteria:

F3

The organization shall verify the data contents of shipping labels, (the use of electronic based

support systems such as RFID or scanning is mandatory for some customers), to assure

consistency between container content, labels and documentation.


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F3The organization shall ensure that the data content of all ASN's is complete and accurate in

accordance with customer requirements.

F3All shipments, including documentation and labeling, shall be prepared to customer, industry and

government standards and requirements (e.g., customs handling) including carrier routings.

F3The shipment process shall ensure that each ASN is transmitted a the time of conveyance

departure.


4.3.3The organization inspects and calibrates all shipment quantity-determination equipment at

planned intervals to an acceptable accuracy level, as defined by the customer.

Why?

To ensure accurate shipment to the customer, all shipment determination equipment must be

calibrated at planned intervals.

Criteria:

F2There is a procedure describing the proper use of shipment quantity-determination equipment (e.g.,

scales, counters).

F2 All quantity-determination equipment is calibrated to a recognized standard at planned intervals.

F1The inspection status and date for all quantity-determination equipment is clearly displayed on the

equipment.

F1 An inspection schedule is created and one person has the responsibility of equipment calibration.


4.4 Transportation

4.4.1The organization shall assure the transport of finished goods satisfies customer

requirements (e.g., carrier, mode, special equipment, cost responsibility).

Why?To ensure transport to the customer according to agreed delivery agreements/conditions with

customer.Criteria:

F3For organization managed transportation the carrier/Lead Logistics Provider is selected and shall be

assessed regarding logistics, f lexibility and quality parameters.

F2Appropriate equipment (e.g., bracing, banding) is used to ensure the product is delivered to the

customer damage-free.

F1Transportation planning is included from beginning of the products life cycle and the carrier/Lead

Logistics Provider is involved as early as possible (e.g., product development process).


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F1The organization has a process to plan transportation capacity together with the carrier/Lead

Logistics Provider in line with its own processes and their capacities.

F1The organization has established documented contingency plans in the event of failure of transport,

including quantified alternative methods of transport.


4.4.2Optimization of transportation capacity should be considered during the supply chain design

phase.

Why?Permanent management of transportation utilization will lead to cost reduction opportunities as well

as environmental savings.

Criteria:

F1The organization regularly explores opportunities to reload inbound conveyances with outbound

product.

F1Disposition of all empty transportation capacities (both inbound and outbound) should be done on a

daily basis to ensure that FIFO is occurring to minimize detention and demurrage related charges.


4.5 Customer Satisfaction and Feedback

4.5.1The organization has a process to assess customer satisfaction whether or not the customer

provides feedback.

Why?Superior Materials Planning and Logistics performance will ensure customer satisfaction, which will

lead to a long-term business relationship.

Criteria:

F2

Based on the customer's feedback or industry standards, the organization develops measures to

improve customer satisfaction. Where feedback is not automatically given from the customer, the

organization solicits this information.

F1 The organization has a process to regularly assess its performance to all of its customers.

F1

The measures are regularly reviewed internally by the management (e.g., warning of unfilled

requirements) and externally (e.g., Logistics performance measures), as required with the customer.

An adequate visualization method (e.g., customer satisfaction monitor, charts, graphs) is used.



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Global MMOG/LE

5. PRODUCTION & PRODUCT CONTROL

Material

Identification

Inventory

Engineering Change Control

Traceability


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5.1 Material Identification

5.1.1There shall be a process/method in place to ensure all parts are labeled accurately and

identified easily.

Why?

Material that is improperly identified could result in misplaced material, lost time and/or production

disturbances.

Criteria:

F3The organization shall have a process to correctly identify all material, including in-process material

and including direct marking when needed.

F3The organization shall have a process to ensure part's labels are available at the appropriate time

and are applied correctly.

F3 The organization shall have a process to clearly identify all storage locations accurately.

F3The organization shall have a process to assure the appropriate identification of all unusable or

damaged material (scrap, returns, rejections, etc).

F1 Bar codes are used to identify and trace material where appropriate.


5.2 Inventory

5.2.1 The organization has one integrated system encompassing both perpetual inventory andassociated financial functions (e.g., "one set of books").

Why? To ensure that inventory transactions and balances are accounted for properly.

Criteria:

F1The organization has one integrated system encompassing both perpetual inventory and associated

financial functions.


5.2.2 There are systems in place that facilitate access to and management of all types of inventory -finished goods, Works-in-Process (WIP), and raw material.

Why?To properly support the planning process stock management systems must be in place to ensure

ready access to material.

Criteria:

F2The organization has a process that facilitates management of all types of inventory, in-house and

off-site.


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F1The organization has visual controls in place to support inventory management (designated storage,

minimum and maximum levels).

F1The storage environment is appropriately controlled for material on hand, ensuring that all parts

have sufficient protection.

F1 The organization has a process to safeguard easily damaged material and high theft material.

F1Obsolete material is stored in designated areas and is reviewed at defined intervals for potential

rework, salvage and for claims purposes, and disposed of in a timely manner.


5.2.3 The organization has a process to optimize the material flow.

Why?

The primary objective of a lean manufacturing/material flow process is to efficiently and effectively

support the needs of the organization. As long as there is a need to move parts from one location to

another there will be the opportunity to eliminate waste in the material flow process.

Criteria:

F2 The organization's material flow is designed to support FIFO where applicable.

F1The organization has a process to optimize the material flow for new and current parts and

production processes.

F1 The organization's material flow is designed to facilitate accurate tracking.

F1 The organization's material flow is designed to minimize handling and transportation costs.


5.2.4The organization has a process that ensures that all material records are maintained and

accurate, and deviations investigated and corrected.

Why?

To ensure customer product availability and to minimize stock errors it is necessary to have a stock

control system. Efficient stock control procedures reduce the risk of obsolescence, stock balance

errors and the costs of administration and quality problems. A correct stock balance is a prerequisite

for reliable material supply to production.

Criteria:

F2

There is a process in place to ensure accurate stock balance of all inventory types (e.g., finished

goods, scrap) and that these stock balance figures are accurately updated in the organization's

systems in a timely manner.


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F2

The organization has a process that ensures the structure of the Bill of Material (BOM) records are

maintained and are accurate. Any deviations are investigated and reflected accurately in perpetual

inventory records.

F1

Records are maintained, compared to schedule, and information supplied to all appropriate persons,

for evaluations of important material processes for the organization.

F1

The organization has a process to ensure physical inventory counts, when performed, are done

accurately and reported in inventory records. These inventory counts are performed with an

adequate frequency for every part, depending on volume value, waste percentage, etc.

F1

The organization has, and periodically evaluates, error reduction tools (e.g., visual controls, bar

coding, elimination of manual entry), for part storage, part movement and accurate inventory

records.

F1The organization shall archive material records for the appropriate length of time (retention

requirements). These records must be retrievable and readable.


5.2.5

The organization has a process in place to coordinate "phased out" inventories (e.g., those

affected by engineering changes and programs that are being phased out) with both supplier

and customer.

Why? To manage risk and avoid obsolescence costs.

Criteria:

F2 The organization has a process in place to coordinate accurately "phased out" inventories withsuppliers.

F2The organization has a process in place to coordinate accurately "phased out" inventories with

customers.

F2The scheduling system automatically considers phased out items in order to schedule to the

customer's final release (e.g., piece vs. standard pack) to avoid over-run.


5.2.6 The organization has a process to continuously evaluate and optimize inventory buffers.

Why?

To ensure both customer satisfaction and cost efficiency, the levels of inventory should be carefully

considered for every part to ensure that stock levels can be kept at a low level without any risk to

deliveries to customers.

Criteria:

F1 The organization has a process to continually evaluate, and adjust if necessary, inventory buffers.


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Global MMOG/LE

F1

The evaluation process considers all factors influencing the need for inventory buffers, (e.g.,

demand variability, process capabilities, internal transport and warehousing situation, customer

safety stock requirements, different industrial calendars, etc...).


5.2.7

The organization shall have a process to identify and route defective/obsolete material in a

timely manner. This process shall ensure that defective/obsolete material is segregated and

disposed of properly (e.g., reworked or scrapped).

Why? To ensure that any defective/obsolete parts are segregated from production material.

Criteria:

F3The organization shall have a process that ensures defective/obsolete material is contained,

segregated, reworked or disposed of properly.

F1 Determinations and material movements are made in a timely manner.


5.3 Engineering Change Control

5.3.1The organization shall manage engineering revision levels with documented procedures for

customer, supplier, and internal changes.

Why?Parts changes can disrupt normal production flow and delivery to the customer if not properly

managed.

Criteria:

F3

A formal engineering change/sign-off review shall exist to ensure that all changes which affect the

materials planning and Logistics process are planned, performed and communicated in a

synchronized manner, (e.g., process sign-off sheet with Bill of Material (BOM) review, routing

changes, effective dates, notification to suppliers, scheduling, shipping).

F2There is a formal review process for proposed engineering changes to evaluate the impact on

manufacturing operations, physical material flow and delivery.

F1 All affected parties are represented in the review (e.g., Materials, Engineering, Suppliers, Customer)and the results are communicated to all affected parties.

F1

All affected personnel understand engineering change procedures internally, and at the supplier and

customer facilities. These procedures are reviewed on a regular basis for effectiveness and potential

process improvements.

F1There is a process for ensuring that inbound material has adequate revision control, including labels

with revision level if applicable, and all material personnel understand the process.


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Global MMOG/LE


5.3.2 The organization manages the life cycle of tools to ensure customer requirements at allstages of production.

Why?In order to support customer orders for service/spare parts, tools must be capable of producing past

model parts.

Criteria:

F2There is a documented, implemented and periodically evaluated process, which tracks a tool's

lifecycle (e.g., current status, rework history, ownership, authorizations, BOM item link).

F1 There is a sub-process for evaluating tool disposition when related to past models or inactive parts.

F1 There is a sub-process, which tracks customer authorizations for reworking or disposing of tools.


5.3.3

The organization shall use a process to obtain written customer authorization for deviation

whenever the product or process is different from that currently approved through Product

Approval Process (PAP).

Why?Both parties approve material produced during the initial PAP. Form, f it and function requirements

can be affected by changes to the product or process changes.

Criteria:

F3 There shall be a process in place to obtain documented authorization from the customer wheneverthe product or process deviates from that, which was approved through PAP.

F1There is a process in place to ensure that all appropriate material personnel are aware of the

expiration date for the deviation.

F1Each time a deviation is requested, there is a clear plan to ensure eventual compliance with the

original or superseding specifications.


5.4 Traceability

5.4.1Where regulation and/or the customer requires traceability, a system that supports lot and/or

serial traceability shall be in place.

Why?When failures occur, it is vital to be able to contain the issue to protect the customer, establish the

cause and apply corrective measures in a timely manner.

Criteria:


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Global MMOG/LE

F3There shall be a process in place that supports government mandated traceability, including

reporting to the customer, for all affected parts (e.g., TREAD Act)

F2There is a process for controlling partial lots, which are identified appropriately and accounted for

accurately, (e.g., separated from other products).

F1There is a process in place to support lot and serial traceability for individual part/pallet/batches

throughout the process.

F1The lot and serial traceability process supports historical tracking to the level required by regulation

or the customer.



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Global MMOG/LE

6. SUPPLIER INTERFACE

Supplier

Selection

Materials Planning &

Logistics - Agreement/

Instruction

Communication

Packaging & Labeling

Material Receipt

Transportation

Supplier Assessment


Replaces: Dated:


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Global MMOG/LE

6.1 Supplier Selection

6.1.1Materials Planning and Logistics criteria is considered when selecting suppliers or other

business partners for new or existing products or services.

Why?

A strong supply chain requires well-functioning organizations not only in the first tier, but also in

every link of the chain. All important aspects, including quality, cost and delivery is necessary for a

well-functioning supply chain.

Criteria:

F2The Global MMOG/LE should be used as part of the selection process of suppliers, sub-contractors,

logistic providers and the results should be communicated to all involved.

F2The purchasing decision process includes participation from the Materials Planning and Logistics

function including the results from this evaluation document.


6.2 Materials Planning and Logistics Agreement/Instruction

6.2.1Documented agreement/instruction shall exist with suppliers and sub-contractors/outside

processors regarding Materials Planning and Logistics.

Why?To avoid misunderstandings and to make expectations and responsibilities clear among the parties

involved.

Criteria:

F3Procedures shall exist where any deviations from the Materials Planning and Logistics instructions

are immediately investigated, communicated and rectified by the supplier.

F2

A regularly revised document exists for all suppliers, sub-contractors and logistic providers,

specifying the responsibilities and procedures of the relationship, agreed by all parties before the

first delivery.

F2The agreement specifies communication procedures including language and contacts within all

functions.

F2The agreement specifies capacity, flexibility demands and delivery conditions, (e.g., unit loads,

packaging, transportation, transportation costs, batch sizes and documentation).


6.3 Communication

6.3.1A method of communication exists between suppliers, sub-contractors and logistic providers

covering day to day issues and emergency situations.

Why?For the supply chain to remain uninterrupted at all times, it is important that empowered personnel

from key areas can be contacted at all times.


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Criteria:

F2A list of contacts, including back-ups, exists covering all logistics functions and availability of

contacts is guaranteed according to agreement.

F2

There is a procedure to ensure that the suppliers, sub-contractors, and logistics providers give

warning if there is a risk that requirements cannot be fulfilled; all significant changes are

communicated as soon as they are identified.

F2Methods of communication, including contingency, have been agreed upon (e.g., phone call, e-mail,

etc).

F1 Information on inbound shipment is used to detect material shortages.


6.3.2 Procedures for data exchange shall be implemented with Suppliers and Logistics providers.

Why?A fast, reliable, integrated, exact and standardized information flow is necessary to reduce lead

times both in the physical and the administrative flow.

Criteria:

F3The organization shall have the capability to send and receive electronic communication in

accordance with customer requirements and relevant industry standards.

F3

Electronic communication shall be implemented, including sending and receiving capabilities with

all suppliers, sub-contractors and logistics providers. There is a timeline in place, (in accordance

with customer requirements), to establish electronic communications with suppliers, sub-contractors

and logistics providers that are not currently able to send and receive an electronic format.

F2Electronic communication includes shipment notification messages, which are integrated in the

receiving system without human intervention.

F2The quality of information transmitted and received is verified and corrective actions taken if

necessary.

F2Transmission frequency and planning horizons are adequate for the commodity produced and

accounts for the lead times of purchased parts and material.


6.4 Packaging and Labeling

6.4.1 There is a documented procedure for packaging development.


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Global MMOG/LE

Why?Appropriate packaging and unit loads ensure transport handling and cost efficiency, quality, a better

environment and enables the respect of lead times.

Criteria:

F1

Design and development responsibility is agreed between partners; packaging design requirements

(e.g., standard packaging, pack size, back-up packaging) are documented in a detailed procedure

and communicated to the supplier before the start of production and covers the entire product life

cycle.

F1Existing standards are used; returnable, reusable or recyclable containers are considered as a part

of environmental guidelines.

F1Optimization of transport, variety of packaging, material receiving, and handling until point of use is

considered.


6.4.2 Packaging management and control is organized in an efficient way.

Why?Appropriate packaging management ensures quality, cost efficiency, availability and delivery

performance.

Criteria:

F2

A documented control system exists for the procurement, allocation and monitoring of all packing

material (e.g., standard packaging & back-up packaging) and the responsibilities are clearly defined

between partners.

F2 There is a documented procedure to control the return of empty packaging in quality and quantity.

F1Packing material is considered and optimized as a part of the total Materials Planning and Logistics

costs.


6.5 Transportation

6.5.1 Procedures exist regarding management and cost optimization of inbound transportation.

Why?A transportation policy that focuses on cost-efficiency, timing, lead-time and environmental issues is

a key factor in ensuring reliable material supply.

Criteria:

F2

Transportation set-up is considered as part of the product development process, including

transportation specification, (e.g., lead time), optimization and environmental consideration together

with carriers and Lead Logistics providers.


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Global MMOG/LE

F2

Documented procedures for the follow-up of transportation issues relating to quality (damages), cost

(normal, premium freight and detention/demurrage costs), and delivery (ordering and on-time

performance) exists.

F2

The organization tracks and traces in-bound material from time of supplier shipment through to

receipt of material.

F1Transportation function supplies the scheduling function with information on in-bound transportation

modes and associated transit times (e.g., lead-time, window times).


6.6 Material Receipt

6.6.1 Sufficient capacity and appropriate equipment in the material receiving function is ensuredand optimized.

Why? Without sufficient capacity and/or the right equipment, material receipt could become a bottleneck.

Criteria:

F2A planning function exists to allocate resources to ensure adequate capacity (personnel, equipment,

maintenance and layout/space).

F1All variables that affect the receiving activit ies are considered to balance the utilization of the docks

and space (e.g., scheduling, fixed time slots).


6.6.2A process exists to verify labeling and documentation against Materials Planning and

Logistics requirements for procured parts.

Why?Reliable material supply requires assurance that the parts and associated documentation delivered

meet the specified Materials Planning and Logistics requirements.

Criteria:

F2The organization ensures shipping labels are accurate and comply with AIAG/Odette labeling

standards.

F1The organization compares shipping documents with actual goods received to ensure accuracy and

compliance to organization's requirements/standards.

F1

A procedure exists for the correction and follow-up of any discrepancies in the receipt of material

(e.g., quality and quantity verification [including packaging]). The organization ensures that each

receiving transaction has a unique identifier to support problem resolution.

F1 When material is received by authorized third parties, all of the above criteria apply.


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Global MMOG/LE

F1 The organization uses visual controls to assist the receiving process.


6.7 Supplier Assessment

6.7.1Partners (suppliers, sub-contractors and logistics service providers) in the supply chain are

assessed regularly according to a defined procedure.

Why?

A strong supply chain requires well-functioning organizations not only in the first tier, but also in

every link of the chain. Follow-up of performance allows parties to focus on areas of importance to

achieve the Materials Planning and Logistics strategy and customer satisfaction.

Criteria:

F2The Global MMOG/LE is used for evaluating all suppliers, sub-contractors, logistic providers on a

regular basis and communicated to all involved functions.

F2

The organization has a process to review supplier performance levels on a regular basis.

Summarized information about the suppliers' performance is provided to the purchasing function

and the supplier on a regular basis, according to industry standards where they exist.



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1 Weight. 2 Weight. 3 Weight. 4 Weight. 5 Weight. 6 Weight. 7 Weight.

1 1.1.1 F2 F2 F2 F2 0 8

1.2.1 F2 F2 F2 0 6

1.2.2 F3 F3 F3 F2 F2 F2 F1 0 16

1.3.1 F2 F2 F2 F1 0 7

1.3.2 F2 F2 0 4

1.4.1 F1 F1 F1 0 3

1.4.2 F3 F2 F2 F2 F1 0 10

1.5.1 F1 F1 F1 0 3

1.5.2 F2 F2 F2 0 6

Chapter summary Total Chapter 1 0

MAX Score 63

% 0%


2 2.1.1 F1 F1 F1 F1 0 4

2.2.1 F2 F2 F1 F1 0 62.3.1 F2 F2 F1 0 5

2.3.2 F3 F3 F2 0 8

2.3.3 F1 0 1

2.4.1 F2 F1 0 3

2.4.2 F1 F1 0 2

2.4.3 F1 F1 F1 F1 0 4

2.4.4 F2 F1 F1 F1 0 5

2.4.5 F1 F1 F1 0 3


MAX Score 41

% 0%


3 3.1.1 F3 0 3

3.2.1 F3 F3 F3 F1 0 10

3.2.2 F1 F1 F1 0 3

3.2.3 F1 F1 0 2

3.2.4 F2 F1 F1 0 4

3.3.1 F3 F3 F1 F1 F1 0 9

3.3.2 F1 F1 F1 0 3

3.4.1 F3 0 3

3.4.2 F2 0 2


MAX Score 39

% 0%


4 4.1.1 F2 F2 F1 F1 F1 0 7

4.1.2 F3 F3 F1 0 7

4.1.3 F3 F3 F3 0 9

4.2.1 F3 F2 F2 F1 F1 0 9

4.2.2 F2 F2 F2 F2 F1 0 9

4.3.1 F2 F2 F2 0 6

4.3.2 F3 F3 F3 F3 0 12

4.3.3 F2 F2 F1 F1 0 6

4.4.1 F3 F2 F1 F1 F1 0 8

4.4.2 F1 F1 0 2

4.5.1 F2 F1 F1 0 4


MAX Score 79

% 0%

Global MMOG/LE

Global Materials Management Operations Guide / Logistics Evaluation results sheet

ChapterQuestion

number

Result (Criteria score x Weighting of criteria)Act.

Score

Max.

Score

S=self

assessed

V=verified

assessed

F3 F2 F1

Fulfilled 0 0 0

Not fulfilled 4 21 9

ChapterQuestion

number

Result (Criteria score x Weighting of criteria) Act.

Score

Max.

Score

S=self

assessed

V=verified

assessed

F3 F2 F1

Fulfilled 0 0 0


ChapterQuestion

number


Score

Max.

Score

S=self

assessed

V=verified

assessed

F3 F2 F1

Fulfilled 0 0 0


ChapterQuestion

number


Score

Max.

Score

S=self

assessed

V=verified

assessed

F3 F2 F1

Fulfilled 0 0 0


Cha terQuestion Result (Criteria score x Weighting of criteria) Act. Max. S=self V=verified


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Global MMOG/LE


5 5.1.1 F3 F3 F3 F3 F1 0 13

5.2.1 F1 0 1

5.2.2 F2 F1 F1 F1 F1 0 6

5.2.3 F2 F1 F1 F1 0 5

5.2.4 F2 F2 F1 F1 F1 F1 0 8

5.2.5 F2 F2 F2 0 6

5.2.6 F1 F1 0 2

5.2.7 F3 F1 0 4

5.3.1 F3 F2 F1 F1 F1 0 8

5.3.2 F2 F1 F1 0 4

5.3.3 F3 F1 F1 0 5

5.4.1 F3 F2 F1 F1 0 7


MAX Score 69

% 0%


6 6.1.1 F2 F2 0 4

6.2.1 F3 F2 F2 F2 0 9

6.3.1 F2 F2 F2 F1 0 7

6.3.2 F3 F3 F2 F2 F2 0 12

6.4.1 F1 F1 F1 0 3

6.4.2 F2 F2 F1 0 56.5.1 F2 F2 F2 F1 0 7

6.6.1 F2 F1 0 3

6.6.2 F2 F1 F1 F1 F1 0 6

6.7.1 F2 F2 0 4


MAX Score 60

% 0%

TOTAL score 0

Maximum Score 351 0

% 0% 206

206

Company name: ______________________________________________

Plant/Location : _______________________________________________

Name of self-assessor: __________________ Name of verified-assessor: __________________

Date: _ Date: ___

Signature : _________________________ Signature : _________________________

Scoring : = Criteria fulfilled

= Criteria not fulfilled

Weighting : F1 = 1 (If requirements are not met, the organizations competitiveness will be adversely affected)(If requirements are not met, customer satisfaction and the

organizations performance will be seriously affected)

(If requirements are not met, there is a high risk of interruption to customer operationswith additional costs to be incurred in the short term)

number Score Score assessed assessed

F3 F2 F1

Fulfilled 0 0 0


ChapterQuestion

number


Score

Max.

Score

S=self

assessed

V=verified

assessed

F3 F2 F1

Fulfilled 0 0 0


SUMMARY

F3 F2 F1 A, B or CFulfilled 0 0 0

96

X


C

F3 = 3

blank

F2 = 2

35 75


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Global

MM

OG/LE

Question#

Criteria

Weight

Element

DesiredState

CurrentState

Gap

ActionRequired

Timeto

Complete

Responsibility

Cost

1)

F2

1.1

Visionand

Strategy

Ado

cumentedvisionexistsfor

theMaterialsPlanningand

Logisticsfunction.

2)

F2

1.1

Visionand

Strategy

Ado

cumentedstrategyexists

with

activitiesforimplementing


Logisticsvision.

3)

F2

1.1

Visionand

Strategy

The

MaterialsPlanningand

Logisticsvisionandstrategyis

linke

dtotheorganization's

over

allobjectives,

including

customerrequirementsand

cont

inuousimprovement.

4)

F2

1.1

Visionand

Strategy

The


Logisticsvisionandstrategyis

com

municatedandunderstood

withintheorganization.

1)

F2

1.2

Objectives

Allo

bjectivesaremeasurable

and

consistentwiththe

orga

nization'sMaterials

Plan

ningandLogistics

strat

egy.

2)

F2

1.2

Objectives

Obje

ctivesareacceptedbyall

relevantfunctionsandare

clearlycascadedthroughout

theorganization.

3)

F2

1.2

Objectives

Obje

ctivesarereviewedwith

seniormanagementatplanned

inter

vals.

1)

F3

1.2

Objectives

Deliveryperformanceto

customer.

2)

F3

1.2

Objectives

Supplierdeliveryperformance.

3)

F3

1.2

Objectives

Build-to-Schedule(productivity:

plan

vs.actual).

4)

F2

1.2

Objectives

Leadtimesforallsupplychain

proc

esses(physicaland

infor

mation).

5)

F2

1.2

Objectives


LogisticsQuality(e.g.,

docu

mentation,messages,

pack

agingandlabeling).

6)

F2

1.2

Objectives


Logisticscosts(e.g.,

Premium

freig

ht,packaging,

handling

and

storagespace).

M-7

Iss

ue:v1,

Release2,

Dated12/04

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Global

MM

OG/LE

Question#

Criteria

Weight

Element

DesiredState

CurrentState

Gap

ActionRequired

Timeto

Complete

Responsibility

Cost

7)

F1

1.2

Objectives

Stoc

klevels/stockturnbroken

downintorawmaterial,WIP,

finishedgoods.

1)

F2

1.3

Measurement,

Analysisand

ActionPlans

Performanceagainstobjectives

ismonitoredatplanned

inter

valsandreviewedwith

seniormanagement.

2)

F2

1.3

Measurement,

Analysisand

ActionPlans

Allrelevantpersonnel/functions

areinformedabout

performanceatplanned

inter

vals.

3)

F2

1.3

Measurement,

Analysisand

ActionPlans

Astructuredproblemsolving

methodisusedtodetermine

root

cause(s)andprevent

recu

rrenceofmaterial

prob

lems.

4)

F1

1.3

Measurement,

Analysisand

ActionPlans

Grap

hicalanalysistools,

(e.g.,

Pare

tographs)displaying

histo

ricalandtrenddataare

used

totrackcriticalareasover

time

.

1)

F2

1.3

Measurement,

Analysisand

ActionPlans

The

managementprioritizes

docu

mentedactionplanitems.

The

actionplanshouldinclude

theaction,responsibility,

timing

and

allocatedresource.

2)

F2

1.3

Measurement,

Analysisand

ActionPlans

Evaluationsof

corrective/preventiveactions

areperformedatthe

conc

lusionofeachactionplan.

The

reviewshallbeusedto

dete

rminetheeffectiveness,

theapplicationtosimilar

proc

essesandtheneedforany

furth

eraction.

1)

F1

1.4

Continuous

Improvement

Ade

finedprocesssupported

bym

anagementforcontinuous

impr

ovementisusedwithinthe

entir

eorganizationandwithall

supp

lychainpartners.

2)

F1

1.4

Continuous

Improvement

Emp

loyeeshaveadocumented

resp

onsibilityforandare

allow

edtimetoworkon

cont

inuousimprovementtasks.

M-7

Iss

ue:v1,

Release2,

Dated12/04

Replaces:Dated


50/85

GlobalMMOG/LE

Global

MM

OG/LE

Question#

Criteria

Weight

Element

DesiredState

CurrentState

Gap

ActionRequired

Timeto

Complete

Responsibility

Cost

3)

F1

1.4

Continuous

Improvement

The

organizationencourages

emp

loyeeinvolvementthrough

ana

ctivesuggestionprogram.

1)

F3

1.4

Continuous

Improvement

Bottleneckprocesses.

2)

F2

1.4

Continuous

Improvement

Prod

uctionbatch/lotsizes.

3)

F2

1.4

Continuous

Improvement

Set-up/Change-overtimes.

4)

F2

1.4

Continuous

Improvement

Thro

ughputtime.

5)

F1

1.4

Continuous

Improvement

Reductionofcompletephysical

inventories.

1)

F1

1.5

SupplyChain

Development

Astructuredapproachisinuse

ford

evelopmentofall

relationships.

2)

F1

1.5

SupplyChain

Development

Actionplans,processesand

relationshipsofthepartiesin

thesupplychainare

docu

mented.

3)

F1

1.5

SupplyChain

Development

Methodsofanalysisareused

toassessthesupplychain:

{e.g.

SWOTanalysis

(Stre

ngths,

Weaknesses,

Opportunities,

Threats),

Benchmarking,

Business

Netw

orks}

1)

F2

1.5

SupplyChain

Development

Clea

runderstandingofinternal

customerrequirements.

2)

F2

1.5

SupplyChain

Development

Internalcustomersatisfactionis

mea

sured(e.g.,pressshop

partssuppliedtotheassembly

area

).

3)

F2

1.5

SupplyChain

Development

Mea

surementsarefully

implemented,usedand

com

municatedtorelevant

func

tions.

1)

F1

2.1

Organizational

Processes

Thereisadocumented

orga

nizationalstructurein

placetoensureappropriate

focu

s(e.g.,

directreportingto

theseniormanagement)and

reso

urcesforallMaterials

Plan

ningandLogistics

proc

esses.

M-7

Iss

ue:v1,

Release2,

Dated12/04

Replaces:Dated


51/85

GlobalMMOG/LE

Global

MM

OG/LE

Question#

Criteria

Weight

Element

DesiredState

CurrentState

Gap

ActionRequired

Timeto

Complete

Responsibility

Cost

2)

F1

2.1

Organizational

Processes

Documentationexists(e.g.,

flow

charts)describingthe

infor

mationflowofallMaterials

Plan

ningandLogistics

proc

esses,

includinginterfaces

with

otherfunctionsand

businesspartners.

3)

F1

2.1

Organizational

Processes

Documentationexists(e.g.,

flow

charts)describingthe

phys

icalflowaspectofall


Logisticsprocesses,

including

inter

faceswithotherfunctions

and

businesspartners.

4)

F1

2.1

Organizational

Processes

Thereisanactivedocument

cont

rolprocedureinplace.

(as

defin

edwithinTS

16949/QS9000)

1)

F2

2.2

Organizational

Procedures

The

organizationhas

proc

edures,whichare

evaluatedandimplementedto

ensu

recompliancewiththe


Logisticsvision.

2)

F2

2.2

Organizational

Procedures

Documentedproceduresforall

customerinterfaceaspectsof


Logisticsprocessexist(e.g.,

customerorderplanning,stock

cont

rol,packagingprocedures

and

transportmanagement).

3)

F1

2.2

Organizational

Procedures


inter

nalaspectsofthe



asse

mblyandproduction

plan

ning,materialhandling,

stockcontrolandwarehousing

inclu

dingMROinventory).

4)

F1

2.2

Organizational

Procedures


supp

lierinterfaceaspectsof



supp

lierperformance

asse

ssment,receiptof

material,stockcontroland

requ

irementcalculations).

M-7

Iss

ue:v1,

Release2,

Dated12/04

Replaces:Dated


52/85

GlobalMMOG/LE

Global

MM

OG/LE

Question#

Criteria

Weight

Element

DesiredState

CurrentState

Gap

ActionRequired

Timeto

Complete

Responsibility

Cost

1)

F2

2.3

Resource

Planning

The

organizationhastheability

toadaptitshumanresourcesin

orde

rtomanageandbalance

work

load(e.g.,

flexibility

agre

ements,peakhours,

abse

nteeismanddifferent

indu

strialcalendars).

2)

F2

2.3

Resource

Planning

The

organizationconducts

periodicreviewstoensure

sufficientresources(e.g.,

spac

eandequipment)are

alloc

atedforallMaterials

Plan

ningandLogistics

proc

esses.

3)

F1

2.3

Resource

Planning

Overtimeisnotusedasalong-

term

solutionforstaffing

requ

irements.

1)

F3

2.3

Resource

Planning

The

organization'scontingency

plan

sshallbeimplementedby

apre-determinedfunction

whenanemergencyoccurs

and

thesystemshallbetested

and

validatedperiodically.

2)

F3

2.3

Resource

Planning

Pers

onnelshallbetrainedin

cont

ingencyprocedures.

3)

F2

2.3

Resource

Planning

Documentedandproven

proc

eduresforallpotential

disru

ptionsareidentifiedwith

appropriateactionand

reco

veryplans,

including

prod

uctionanddatarecovery

(e.g.,computer/communication

failures,

industrialdisputes,

transportandproduction

disru

ption).

1)

F1

2.3

Resource

Planning

Thereareproceduresinplace

tohighlightandcommunicate

incid

entsordeviations,

(e.g.,

sche

duleinformation,early

warn

ingofdelaysand

stoppages),fromthe

prod

uctionplan,

(e.g.,regular

mee

tings,reportingandad-hoc

mee

MMOG Logistics English

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