What changes does the current version 6 of MMOG/LE bring to the automotive supply chain?

CATEGORY
Vocational trainings
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AUTHOR
Ingrid Ďuricová, MBA

 

In the current era affected at first by the COVID crisis, global chip shortage and the war conflict in Ukraine, when the resilience of the supply chain is being tested more than ever, AIAG members and Odette - together with established industry partners and stakeholders - have decided to release a new version of MMOG/LE, in order to support the following objectives for a more stable and predictable supply chain:

  • increasing the visibility of risks and threats within supplier networks at a lower level
  • increasing awareness of the organization's social responsibility 
  • increasing readiness for crisis management 
  • accelerating digital transformation 
  • improving capacity planning 
  • strengthening cyber security measures

 

What means MMOG/LE ?

  • Materials Management Operations Guideline / Logistics Evaluation 
  • developed in 2004 by the Automotive Industry Action Group (AIAG) and Odette International on the basis of agreed business processes between OEMs and their suppliers 
  • Global MMOG/LE is i.e. a self-assessment of the level of fulfillment of requirements led by the supply chain management, not a classic audit

 

Which OEM´s require suppliers to implement MMOG/LE? 
The list of OEM´s requiring MMOG/LE implementation and self-assessment is growing every year. It is currently required by several car manufacturers, e.g. FORD, STELLANTIS, VOLVO, JAGUAR LANDROVER, GENERAL MOTORS, NISSAN, RENAULT, VAUXHALL, DACIA.


The relation between Global MMOG/LE, IATF 16949 and CSR OEM.
IATF 16949 is presenting the Global MMOG/LE in Annex B, in the section of "Production control". OEM's within their CSR to IATF e.g. FORD, STELLANTIS also define the requirement for performance of MMOG/LE self-assessments.

 

How to select the correct version of the assessment of MMOG/LE requirements in the organization? 
The BASIC version of the assessment was developed with a focus on small businesses that are Tier 2-n suppliers to OEMs, defining 96 criteria.

The FULL version of the assessment is applicable for the Tier 1 suppliers with OEMs, it contains 176 criteria.

What changes does the current version of MMOG/LE V6 bring?
In the latest version of MMOG/LE V6, the number of criteria was reduced from the original 187 to 176, although 11 new criteria were introduced. This version is strategic as it emphasizes on the strategy and strategic planning, the process of selecting suppliers within Supply Chain management, social and environmental requirements related to E.S.G.. Due to the crisis that the automotive segment has overcome, the need for continuous development of suppliers and the resilience of the supply chain has also been emphasized.

If you want to learn more about the requirements of MMOG/LE, please register at our professional public course "Training to interpret the requirements of the MMOG/LE V6 manual" https://www.cems.sk/skolenie/534-skolenie-ku-vykladu-poziadaviek-mmog-le-v6-prirucky