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Materials Management Operations Guideline / Logistics Evaluation (MMOG/LE)

Objective

The Materials Management Operations Guidelines/ Logistics Evaluation (MMOG/LE) is a tool to assist organizations in developing and implementing a world-class material
logistics (MP&L) management system.

MMOG/LE Assessment is the result of a collaborative effort between work groups within Odette International Limited and the Automotive Industry Action Group to develop
evaluation that can be used globally. MMOG/LE was derived from the Odette Logistics Evaluation (OLE) and AIAG’s Materials Management Operations Guideline (MMOG),
originally published in 1999.

MMOG/LE provides a comprehensive set of business procedures within the materials management function of an automotive manufacturing organization. It was designed
ISO/TS 16949 by detailing materials management requirements. It is targeted for all tiers of the supply chain, including raw material suppliers, logistics providers, parts and
suppliers and re-packagers/ sequencers. For additional information on MMOG/LE, please visit the AIAG (http://www.aiag.org) and Odette (http://www.odette.org) websites.

Benefits of MMOG/LE
Establishes essential components of a materials management system for suppliers of goods and services within the automotive industry.
Drives material practices down through the tiers of the supply chain in order to achieve greater efficiencies and improved delivery performance.
Prepares basis for benchmarking activities and identifying best practice criteria of materials planning and logistics processes for driving continuous improvement plan
Provides an industry-accepted continuous improvement tool for self-assessment of the materials process. Identifies continuous improvement plans to be developed
thus allowing time to be spent on those activities that offer the greatest benefit.

A key requirement is compliance to MMOG (Material Management Operation Guideline), including:

Annual assessment
Adherence to Ford delivery rating requirements
Part identification and tracking
Lot traceability through shipping (lot traceability shall include sub-contracted components of an assembly/ module that are associated with compliance to any FMVS
Prevention of damage or deterioration
Maintenance of returnable dunnage
Use of Ford packaging requirements form 1271 (and maintenance of packaging screen DAIA/W in CMMS3), available through MP&L in a Box.

In all cases, if unsure of the MP&L requirements, contact the delivery analyst for the supplier site. The analyst contact information is available through SIM.

The MMOG/LE Assessment Document

The document has been divided into six chapters, 35 sub-chapters, and 176 criteria. By working through the criteria in each of these chapters, it is possible for organization
MP&L performance and capability and gain guidance towards best practice within the industry.

CHAPTER ONE - STRATEGY AND IMPROVEMENT

1.1 Vision & Strategy

1.2 Environmental, Social and Governance (ESG)
1.3 Objectives & Indicators
1.4 Measurement, Analysis, and Action Plans
1.5 Continual Improvement
1.6 Supply Chain Development and Collaboration

1.7 Risk Assessment and Development

CHAPTER TWO - WORK ORGANIZATION

2.1 Organizational Processes

2.2 Operating Procedures and Work Instructions
2.3 Resource Planning
2.4 Work Environment and Human Resources
2.5 Crisis Management

CHAPTER THREE – CAPACITY & PRODUCTION PLANNING

3.1 Product Realization

3.2 Capacity Planning
3.3 Production Planning
3.4 Phase out parts
3.5 Systems Integration

CHAPTER FOUR – CUSTOMER INTERFACE

4.1 Collaboration
4.2 Packaging and Labeling
4.3 Shipping

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4.4 Transportation
4.5 Customer Satisfaction and Feedback

CHAPTER FIVE – PRODUCTION & PRODUCT CONTROL

5.1 Material Identification

5.2 Inventory
5.3 Engineering Change Control
5.4 Traceability

CHAPTER SIX – SUPPLIER INTERFACE

6.1 Supplier Selection

6.2 Supply Compliance
6.3 Supply Chain Management Agreement
6.4 Collaboration
6.5 Packaging and Labelling
6.6 Transportation
6.7 Material Receipt
6.8 Supplier Assessment
6.9 Supply Chain Resilience

MMOG/LE Classifications

A scoring classification level will be generated on the Scoring Summary worksheet based on the assessment responses to all criteria.

MMOG/LE Requirements for Q1

Suppliers achieve an "A” classification on the MMOG/LE Assessment in order to receive and maintain the Ford MP&L Endorsement for Q1. All supplier manufacturing sites
current assessment information in GSDB Online (GSDBOL). The initial MMOG/LE score must be input to GSDBOL immediately once the supplier site has been added
Improvement Metrics (SIM). Suppliers are then required to reassess their organization(s) and update their MMOG/LE classification (A, B, or C) annually in GSDBOL. A blan
in GSDB, failure to achieve Level A, or failure to update the assessment by the end of the annual update period results in -10 points in the SIM Q1 score.

An individual MMOG/ LE Assessment must be completed for each manufacturing site that is currently doing business with Ford Motor Company for minimum of 6 months
note that it is the responsibility of the manufacturing site to champion and complete a joint assessment for each ship site within their supply chain for delivering parts to th
service centers. The Assessment(s) must also take into consideration every Ford region in which they supply production and service parts. The MMOG/ LE Assessment resu
performing site should then be reported in GSDB Online.

GSDBOL is accessible through the Covisint Ford Supplier Portal (FSP). See below for instructions on how to update the MMOG/LE classification in GSDB Online.

Additional Requirement

Suppliers shall verify the MMOG/LE score in GSDBOL by submitting the full self-assessment for each manufacturing site in the MMOG New Platform (NP). The failure to sub
assessment(s) in NP by the end of the annual update period will have a negative impact on the SUPER-G rating.

MMOG/LE Annual Update Timing ​

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The revised Global MMOG/LE assessment version 6 (v6) is published. This version is available through MMOG New Platform (NP), which is the new way of managing the se
communicate to customers and suppliers.

V5 assessments are not accepted anymore!

Suppliers need to acquire a v6 license to access and perform their mandatory self-assessment in NP. Information about how to acquire the license is available on the Odett

- MMOG/LE v6 announcement https://www.odette.org/news/story/mmog-le-version-6-is-here-act-now

As of 01 May 2023, all suppliers shall assess themselves annually against the v6 full catalogue. Suppliers must be compliant to level A requirement and submit their results

in GSDB Online score must be submitted during the annual update period, from 01 May until 31 July. Missing, expired, and less-than-level-A scores will negatively aff

In MMOG NP the assessment must be sent to Ford within the same update period, confirming GSDB Online score.​​

For IMG and CAF Regions: All suppliers should apply to the NP to access, perform and submit their mandatory self-assessment(s) to their respective SMRTs for review. On
approval, suppliers should update Level A in GSDB Online. Problem Report will be raised if suppliers update Level A without SMRT’s approval.

MMOG New Platform (NP)

Suppliers are required to register to the MMOG New Platform site to perform their global MMOG/LE self-assessment and to send it via NP. Information on how to register
Odette / AIAG websites.

- MMOG New Platform Website https://www.mmog-np.com/

- Odette Website https://www.odette.org /mmog/

- AIAG Website https://www.aiag.org/supply-chain-management/materials-management

Instructions of how to complete the MMOG/LE Assessment is available in NP under Help "User manuals". Furthermore, a.m. websites can be used for reference. ​

Mandatory setup before sending the assessment in NP​

​Customer: Ford Motor Company

Customer mailbox address ("MMOG.np mailbox address" field) : odette-5365@mail2.mmogle.com

Customer address: Ford World Headquarters, One American Rd, Dearborn, MI 48126.

The name of the assessment must include the 5-digit GSDB code of the assessed manufacturing site and the date of dispatch (YYYY/MM/DD) (see assessment

Manufacturing site field: 5-digit GSDB code of the assessed manufacturing site (capital letters required, no additional characters allowed). Only one site per a

Shipping site field: list the GSDB codes of all sites shipping material from the Manufacturing site assessed.

FULL MMOG/LE 6.0 Catalogue

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The Manufacturing site field must display the 5-digit GSDB code only. If you cannot set it correctly in the assessment mask you shall change it at the level of you
select "Sites" in the Edit Menu. There you can edit the details for the site and for your customer Ford Motor Company you can change the Manufacturing site code (s
below).​

MMOG/LE Non Applicable (N/A) Criteria

MMOG/LE is a best practice assessment tool that comprises the fundamental logistics activities required to be undertaken within an efficient and effective organization. Ho
be exceptional cases where an organization believes it does not undertake certain logistics activities because of the nature of its business and hence a particular criterion or
are considered irrelevant or non-applicable.

In the initial assessment, the assessor should identify which criteria are considered non-applicable by marking the criterion as N/A in the Assessment section. The assessor s
reasons why the criterion is considered non-applicable in the comment box alongside the criterion. Any N/A response is automatically transferred and displayed in the Scor
worksheet, including the total number of N/A criteria within the assessment.

Please note that N/A criteria are consi dered as non-compliant until approved by the customer, and hence the scori ng and resulting classification does not include the poin
each of the N/A criteria. All N/A criteria will be displayed in red on the Scoring Summary until customer approval is obtained.

Ford's MMOG Request for Non-Applicable Criteria (NAC) Approval Process

The N/A option should be used sparingly and must have prior concurrence from Ford. All N/A criteria are considered non-compliant until written approval is obtained from
region. Requests should be submitted for F3 criteria only. F1 and F2 criteria will not be considered for approval.

Suppliers must request approval by:

Completing the global MMOG/LE v6 assessment within the MMOG New Platform (NP).
Indicating the potential NAC criterion, incl. reason why the criterion is considered non-applicable in the "Current State" field of the New Platform mask (see bel
Submitting the request by email to mglobal@ford.com, incl. supporting evidence.

Subject of the email: GSDB code – MMOG Request for Non-Applicable Criteria Approval. In the text, a screen print or snipped picture of the criterion reque
provided.

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Confirmation of approval / rejection will be sent by email to the originator of the NAC request. This confirmation will include a NAC reference number (NAC ID).

If N/A approval is not obtained, the criterion must be updated to non-compliant.

Indicating the rejection, incl. action plan how to fill the gap in the "Action plan" field of the New Platform mask.​

If N/A approval is obtained, the following information shall be recorded in the MMOG/LE assessment for the corresponding criterion:​
Suppliers will receive the NAC details through SUPER-G Communication.
Please use this RM Communication no. as NAC ID and update the MMOG Self assessment.
Mark the criterion with N/A.
Enter the NAC ID in the "Current state" field and the date of approval from the email confirmation in the "Approval date" field.
Enter the Ford-designee in the "Customer Contact" field.

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For points associated with the "N/A" criteria to be included in the scoring and classification, the NAC must be approved by the region where the supplier manufacturing site
entering the required data, the organization will receive the associated points.

IMPORTANT NOTE: All N/A criteria NOT approved by Ford shall be changed by the assessor to a non-compliant status. If the responsible Ford region denies the request to
criterion as non-applicable, the criterion shall be assessed as non-compliant by the Ford MP&L Global Supplier Performance Team and the Global MMOG/LE Assessment m
submitted in GSDB Online accordingly.

To Update your MMOG/LE score in GSDB On-line, you will need the following:

A Covisint ID and password to access the Ford Supplier Portal (FSP).

The GSDB Online "Update" token.
Note: If you cannot see the buttons that allow an update, you probably do not have an "Update" token. The "Update" token is grated by your site's Corporate S
Administrator (CSA). If you don't know who your CSA is, you can look them up in Covisint under the Administration menu.

Token Rules for GSDB On-line:

For GSDB On-line, there are 3 tokens:

Read - View Only
Update - Make Updates
E-mail - Employee receives an e-mail when updates/changes are made in GSDB On-line
At least one employee must have the "Update" token. More than one employee can have the "Read" or "Update" tokens.
Only one employee can have the "E-mail" token but it must be someone who does NOT have the "Update" token
If one employee has both the "E-mail and "Update" tokens, it will cause a conflict with GSDB On-line and it will prevent your company from making updates in
For additional information regarding GSDB Online tokens, refer to Token Rules for GSDB Online (in the Additional Resources section below).
Click here for instructions on how to register for GSDB Online.

Steps to update GSDB online:

Go to the Covisint Portal and under Covisint Applications, Partner Portals... select Ford Supplier Portal.
Scroll down and select GSDB online.
From GSDB Online, select Quality Standards, then click the GO button.
Identify the site to be updated by clicking the button in the Site Code column.
Click the View/ Update button to the right of the MMOG/MS-9000/OD standard. If you do not see the View/ Update button, you do not have access to submit chang
Contact your CSA for access.
Update the required information. Click Submit.

Troubleshooting Tips:

Verify that you have updated the Certification Date and not the Expiry Date.
Verify that you have updated MMOG and not MS-9000.
Verify that you have updated the MMOG for the manufacturing site and not the ship site.
Try accessing GSDB Online via the Ford Supplier Portal (FSP) Applications Menu instead of by using the Update button on the Supplier Improvement Metrics (SIM) Su

For further assistance, please contact your Corporate Security Administrator (CSA).

The link to look up the CSA assigned to your parent code is available on the Supplier Improvement Metrics (SIM) Summary page.
If your CSA cannot correct the issue, contact the Ford Corporate Help Desk at
(888) 317-4957.

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AIAG -- Global MMOG/LE Implementation Training: Level 1

Please contact AIAG (http://www.aiag.org) or Odette (http://www.odette.org) regarding training.

QAD -- Risk Management Video

Click here for a risk management video.

For more information, please contact Terry Onica, Director Automotive: tjo@qad.com

Additional Resources

Documents
Name

Global MMOG LE v6 - Communication

Q1 MPL Requirements Checklist

Links
URL

Materials Management Operations Guideline / Logistics Evaluation (MMOG/LE)

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