MMOG/LE Requirement 1.3.2
MMOG/LE Requirement 1.3.2 version 6.0 indicates that the organization shall have Key Performance Indicators (KPIs) defined and in place for key areas of the supply chain management (SCM) process that support meeting the organization’s business objectives, customer requirements and to drive the continual improvement process.
How Does AIM Help Automotive Suppliers Meet This Requirement?
Automotive suppliers utilize AIM Vision ERP software to define, collect and analyze key performance indicators (KPIs) that measure and assess the efficiency and effectiveness of the supply chain operations. This process helps identify and correct deficiencies in order to achieve the organization’s business objectives and support customer satisfaction.
You can use AIM to help with these key performance indicators:
- Customer supply chain performance metrics
- Supplier performance metrics
- Internal performance metrics
And to manage these key supply chain processes:
- Lead time
- Costs related to SCM processes and costs associated with inefficiencies
- Inventory levels and turns
MMOG/LE Requirement 1.2.2 has a number of sub-requirements.
MMOG/LE Requirement 1.3.2.1 – Evaluate Customer Supply Chain Performance Metrics
Supply chain managers can measure and report on customer supply chain performance metrics with AIM Vision Shipment Delivery Performance. Track time and quantity analytics such as quantity and percentage of early, late and on time shipments, and quantity and percentage of over shipments, under shipments and ship to schedule shipments.
MMOG/LE Requirement 1.3.2.2 – Assess Supplier Performance Metrics
Purchasing managers can measure and report on supplier performance metrics with AIM Vision Vendor Analysis. Track percentage of material rejected, material accepted, early deliveries, late deliveries, and on-time deliveries by item number, vendor and date range.
MMOG/LE Requirement 1.3.2.3 – Analyze Internal Performance Metrics
Material managers can utilize the Labor Efficiency and Scrap Accounting reporting functions within AIM Vision to evaluate and analyze key internal performance metrics.
MMOG/LE Requirement 1.3.2.4 – Manage Lead Time
Organizations can ensure and account for lead time in all aspects of the supply chain process. Lead Time Days is a major component of AIM Vision and used in calculating master production schedules, and generating material requirements planning (MRP) that in turn are used to create supplier (vendor) release and electronic orders. Transportation lead time is managed via Transit Days that can be defined at the Control Source, Destination or Blanket Order Detail level.
MMOG/LE Requirement 1.3.2.6 – Track Standard and Extraordinary Cost
Your accounting team can track costs related to the SCM process (e.g. freight, labor, packaging) and extraordinary costs associated with inefficiencies (e.g. premium freight, overtime, damaged packaging) to be used in continuous improvement process with the AIM Vision Shipping, Labor Efficiencies, and Manufacturing Costing modules.
Next Steps
Are you looking to meet Global Materials Management Operations Guidelines / Logistical Evaluation (MMOG/LE) requirements, or need help improving a process? Contact us to discuss your needs, or to schedule a demo of the AIM Vision software solution.
