Global MMOG/LE Revision to Bring About Greater Acceptance

Portions of the following article were reprinted with permission from the March/April issue of AIAG's Actionline Magazine.

AIAG and its European sister organization, Odette, will update the Global Materials Management Operations Guideline/Logistics Evaluation (MMOG/LE) to make the guideline more user friendly and easier to understand. Changes to the MMOG/LE were reviewed with Odette in a March 26 meeting in Paris . Representatives from AIAG included Morris Brown, AIAG materials management program manager, and MMOG/LE Work Group members Aidan Hughes, Gates Corp.; Terry Onica, QAD; and Tim Piniatoglou, Ford Motor Co. Representatives from Europe included Odette, Renault, Volvo Car, Volvo Truck and SMMT.

The changes to the document will only affect the wording and not the scoring portion. Daimler Chrylser AG and Ford Motor Co. require completion of the MMOG/LE of their production part suppliers. Both OEMs will accept completion of the current version dated December 2003 or the new revision, which is planned for release in July 2006.

The guideline is gaining wider industry adoption; more than 1,000 global supplier visits have been conducted to assess MMOG/LE compliance. Companies are exploring implementation in markets like China and Eastern Europe . The MMOG/LE has been translated into French, Spanish, German and Chinese.

Additionally, Odette has developed the Logistics Key Performance Indicator (LKPI) document, which is complementary the Global MMOG/LE. The goal of the LKPI document is to define and promote common indicators between trading partners in the automotive supply chain. The use of standard indicators is expected to reduce cost and save time. The Global MMOG/LE supports the evaluation of a plant's logistics capabilities while the LKPIs measure the effectiveness of the materials management and logistics processes between parties. Odette has asked AIAG to review the document and discuss the potential to make this a global document. The timing for a Global MMOG/LE KPI document is summer 2006.

For more information on MMOG/LE, you can contact Terry Onica at tjo@qad.com, Morris Brown at mbrown@aiag.org or Thierry Koscielniak at koscielniak@galia.com . Additional information can also be found by visiting the AIAG's Web site at www.aiag.org and Odette's Web site at www.odette.org.