MMOG/LE Requirement 3.3.2
MMOG/LE Requirement 3.3.2 indicates that the internal production planning process supports lean manufacturing through the use of pull systems that regulate the flow of material in a manufacturing process.
According to the Association for Supply Chain Management, the emphasis of Lean Manufacturing is to eliminate the waste generated through various supply chain processes, this includes minimizing the amount of all the resources (including time) used in the various activities of the enterprise. It involves identifying and eliminating non-value-adding activities in design, production, supply chain management, and dealing with customers. It contains a set of principles and practices to reduce cost through the relentless removal of waste and through the simplification of all manufacturing and support processes.
The five principles of Lean Manufacturing are:
- Value
- Value Stream
- Flow
- Pull
- Perfection
MMOG/LE Requirement 3.3.2 focuses on the Pull principle of lean manufacturing.
With this principle you work to establish a pull system that eliminates waste by only triggering the production of items when there is demand for them. With appropriate planning and part of a comprehensive strategy, pull systems work to eliminate waste at each stage of the process. The organization needs to ensure that they are able to accurately forecast demand so that manufacturing never actually stops but instead stays constant throughout demand fluctuations.
How Does AIM Help Automotive Suppliers Meet This Requirement?
Suppliers utilize AIM features and functionality to meet MMOG/LE Requirement 3.3.2, and the following sub-requirements.
MMOG / LE Requirement 3.3.2.1 – Pull System Concepts
The production planning process can be configured to support lean manufacturing through the use of pull system concepts (e.g. Kanban, min-max) that regulate the flow of material within the shop floor production planning process. You can set the Pull Schedule indicator in the AIM Vision Scheduling Parameters to ensure production schedules reflect customer releases and shipping schedules. Additionally, this flag is used in conjunction with the WIP in Use flag when MRP calculations are determined, to pull WIP quantities forward, and consider WIP in calculating requirements before beginning new production quantities.
MMOG / LE Requirement 3.3.2.2 – Forecast Demand Used in Pull System
Using the forecast demand in the design of the pull system helps companies meet MMOG/LE Requirement 3.3.2.2. You can set the Calculate Production Schedule flag in the AIM Vision Scheduling Parameters to calculate the production schedule based on customer demands, finished goods inventory, safety stock and minimum run quantity. MRP and CRP backward schedules these quantities to provide suggested start dates to ensure items are completed by the production schedule dates.
MMOG / LE Requirement 3.3.2.3 – Pull Planning Process Extends to Suppliers
Companies can extend the pull planning process to its suppliers by using the MRP to PO Interface functions in AIM Vision. This feature creates Replacement Type Releases in the AIM Vision Purchasing application from Planned Orders in the Material Requirements Planning application based on a Primary Vendor defined in the Item Master. The Generate MRP process will use the Lead Time Days and Safety Days and Days per Week to determine the due date for the purchase order. The planned order quantity is adjusted by settings such as the minimum order quantity, order lot size, and standard pack quantity. These purchase order releases are then sent to suppliers, which can be done through the AIM Vision Supplier EDI process.
Next Steps
Do you need help with ensuring your production plan is based on customer demand? Are you struggling implementing key lean manufacturing principles such as establishing a pull system? Contact us to discuss how we can help you meet MMOG/LE Requirement 3.3.2 and all your Global Materials Management Operations Guidelines / Logistical Evaluation (MMOG/LE) requirements.
