Materials Management Operations Guideline

SUPPLIER QUALITY MANUAL Effective Date
Global Materials Management Operations

April 2013
Guideline/Logistics Evaluation
The Global Materials Management Operations Guideline/Logistics Evaluation (MMOG/LE) is a

comprehensive set of business practices and procedures within the materials management/ logistics
function. Developed by members of the automotive industry but it can be used by any industry as a tool
to conduct internal assessments, benchmarking current state/best practices, driving continuous
improvement, evaluating and improving supplier performance. MMOG/LE establishes the essential
components of materials management system for suppliers of goods and services. It provides criteria for
materials procedures for driving implementation of continuous improvement plans, both internally in the
facility and externally as a supplier development tool. The benefits realized by suppliers who
implemented the guidelines and by their customers include:
• A standard supplier evaluation.
• Global document.
• Efficient support for internal/external communication.
• Better performance due to logistics integration.
• Improved customer delivery ratings.
• Significant reduction of internal materials management and logistics cost.
• Reduction of premium freight costs.
• Improved customer relations.
The document is in Microsoft Excel file that includes a series of tabs dividing the self assessment into
six chapters. Each chapter is divided into four to seven sub-chapters that contain a number of questions.
• Chapter 1: Strategy and Improvement

Vision and Strategy
Objectives
Measurement, Analysis and Action Plans
Continuous Improvement
Supply Chain Development
• Chapter 2: Work Organization
Organization Processes
Organization Procedures
Resource Planning
Work Environment and Human Resources
• Chapter 3:Capacity and Production Planning
Product Realization
Capacity Planning
Production Planning
Systems Integration
• Chapter 4: Customer Interface
Communication
Packaging and Labeling
Shipping
Transportation
Customer Satisfaction and Feedback
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April 2013
• Chapter 5: Production and Product Control

Material Identification
Inventory
Engineering Change Control
Traceability
• Chapter 6: Supplier Interface
Supplier Selection
Materials Planning and Logistics – Agreement/Instruction
Communication
Packaging and Labeling
Transportation
Material Receipt
Supplier Assessment
Although every question in the document is of great importance to develop Materials Planning and
Logistics performance, a weighted scoring system has been designed to identify areas, which should be
given higher priority. This will allow focus on urgent issues to avoid the risk of not meeting customer
requirements.
• F1 requirements: If not met, the organization’s competitiveness will be adversely affected.

• F2 requirements: If not met, customer satisfaction and the organization’s performance will
be seriously affected.
• F3 requirements: If not met, there is a high risk of interruption to customer operations with
additional costs to be incurred in the short term.
Scoring summary is automated and weights of the questions are included in the calculation and scoring.
For every requirement that has been determined to be fulfilled by the assessment team, a score is
triggered and the scoring summary is updated.
• A-Level: is achieved if 90% or higher is obtained overall.
1) The supplier far surpasses minimum standards in every aspect.
2) The supplier can be considered near “world class” standard.
• B-Level: is achieved if a score greater than 75% and less than 90% is obtained overall.
1) The supplier is deficient in two or more aspects of given category or multiple
categories.
2) An action plan should be in place, and the corrective action should not require more
than three months to implement.
• C-Level: is achieved if a score of less than 75% is obtained.
1) The supplier is deficient in one or more critical aspects or high impact aspects of a
given category.
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April 2013
2) Action plans are required to ensure deficiencies do not result in serious or prolonged
issues to the customer.
Customers of AMC have required us to perform these self-assessments annually for all of our
manufacturing facilities. As we proceed with our self-assessment and continual improvement activities,
we may be requesting your participation and submission of your logistics activities. AMC is dedicated to
improvement of our supplier base to improve the performance and delivery of our suppliers and enhance
communication.
Your Point of Contact at AMC for further information is:
Todd Greenlee
Manager, Corporate Sustainability
2945 Three Leaves Drive
Mt. Pleasant, Michigan 48858
(989) 779-4949
[email protected]
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SUPPLIER QUALITY MANUAL Effective Date

Global Materials Management Operations

The Global Materials Management Operations Guideline/Logistics Evaluation (MMOG/LE) is a

• Chapter 1: Strategy and Improvement

• Chapter 5: Production and Product Control

• F1 requirements: If not met, the organization’s competitiveness will be adversely affected.

• C-Level: is achieved if a score of less than 75% is obtained.

Your Point of Contact at AMC for further information is:

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