Korea's only official MMOG/LE training providerAIAG-designated · since 2009
MMOG/LE:the assessment standard for global automotive supply chains
MMOG/LE is the supply chain management assessment standard that OEMs and Tier 1 suppliers require of their suppliers. Orcait stays with you through the whole assessment preparation, from training and self-assessment to process improvement on QAD ERP.
What is MMOG/LE
A tool for supply chain self-assessment and continuous improvement
MMOG/LE stands for Materials Management Operations Guideline / Logistics Evaluation. AIAG and Odette developed it together as a tool for supply chain self-assessment and continuous improvement.
Who creates it?
AIAG, the North American automotive industry association, and Odette, the European automotive logistics association, develop and revise it together.
Who requires it?
Global OEMs such as Ford, GM, Stellantis, Renault, Volvo and Jaguar Land Rover require their suppliers to be assessed. Tier 1 suppliers in turn require it of their own lower-tier suppliers.
Why does it matter?
The assessment result is the basis for supplier selection and for keeping the business. Failing to meet the key items (F3) raises the risk of supply disruption.
V6 (March 2023)
What changed in the latest V6
V6 brings the supply chain's crisis response and sustainability into the assessment scope and extends the assessment to lower-tier suppliers.
Risk and resilience
Strengthens the requirements for crisis management against supply disruption and for supply chain resilience.
ESG
Reflects strategy and KPI requirements from an environmental, social and governance perspective.
Digitalization and cybersecurity
Strengthens the requirements for system-based operations and information security.
Wider assessment scope
Extends the assessment to lower-tier suppliers such as EV battery and semiconductor suppliers.
Six chapters
Six chapters assess the whole supply chain
From strategy to the customer and supplier interfaces, they check every step of materials management and logistics.
- CH 01
Strategy and improvement
Vision, ESG, KPIs, continuous improvement, risk
- CH 02
Work organization
Processes, work standards, resources, crisis management
- CH 03
Capacity and production planning
Capacity planning, production planning, phase-out, system integration
- CH 04
Customer interface
Collaboration, packaging and labels, shipping, transport
- CH 05
Production and product control
Material identification, inventory, engineering changes, traceability
- CH 06
Supplier interface
Selection, SCM agreements, receiving, evaluation, resilience
Assessment and grades
How the assessment works, and the grades
The Full version assesses 176 items and the Basic version 96 items. Each item carries a weight, and whether the key items are met largely decides the grade.
F33 points
Key items. If they are not met, the risk of supply disruption is high.
F22 points
The number of unmet F2 items decides the grade band.
F11 point
Items with a weight of 1 point. They count toward the achievement rate.
| Grade | Criteria | Achievement rate |
|---|---|---|
| A | All F3 items met, fewer than 9 F2 items unmet | 95% or higher |
| B | All F3 items met, 9 to 15 F2 items unmet | 85% or higher |
| C | Any F3 item unmet, or 16 or more F2 items unmet | Below 85% |
The Basic version is for lower tiers and uses the grades ZA, ZB and ZC.
QAD standard functions
QAD standard functions for the records the assessment requires
QAD takes part in the MMOG/LE standards committee. QAD builds the Automotive process map and work instructions into the product. Much of the record keeping and traceability that the assessment items require can be handled with standard functions, without development.
| Chapter | What the assessment requires | Examples of QAD standard functions |
|---|---|---|
| CH 03 Capacity and production planning | Capacity planning and production planning that reflect customer demand | Demand forecasting, MPS, MRP and DRP, production schedulingSee the functions |
| CH 04 Customer interface | Receiving customer demand, packaging and labels, sending shipping information | Customer EDI (DELFOR, DELJIT), cumulative quantities (CUM), ASN, barcode labelsSee the functions |
| CH 05 Production and product control | Material identification, inventory accuracy, engineering changes, traceability | Forward and backward lot and serial tracing, real-time inventory, engineering change managementSee the functions |
| CH 06 Supplier interface | Sharing supplier schedules, receiving, supplier evaluation | Supplier Schedules, incoming inspection, supplier performanceSee the functions |
The functions in the table are examples. The functions and scope that apply are decided by the results of the self-assessment and consulting.
The strategy and organization requirements of CH 01 and CH 02 cannot be met by a system alone. Orcait prepares them with you through training and process consulting. For work that exchanges schedules and delivery information with suppliers, you can add Orcait's Supplier Portal. Supplier Portal is an Orcait SaaS product, not a QAD standard function.
Orcait support
One company supports you from training to improvement
Orcait is Korea's only AIAG-designated official MMOG/LE training provider. One company stays with you from the start of your assessment preparation through improvement.
Four steps follow in order: training, self-assessment, consulting and improvement.
- 01TrainingUnderstand the MMOG/LE V6 standard and its assessment items.
- 02Self-assessmentAssess your current level against the MMOG/LE assessment items.
- 03ConsultingAnalyze the unmet items and set improvement tasks.
- 04ImprovementMeet the requirements with QAD ERP functions and SCM processes.
Our MMOG/LE journey
- 2009Selected as the AIAG MMOG/LE training provider in Korea
- 2011Held a QAD ERP seminar on MMOG/LE, the global standard for materials management and logistics evaluation
- 2025Expanded MMOG/LE training and consulting
FAQ
Common questions before an MMOG/LE consultation
Why do we need an MMOG/LE assessment?
Global OEMs require their suppliers to be assessed, and Tier 1 suppliers in turn require it of their own lower-tier suppliers. The assessment result is the basis for supplier selection and for keeping the business. If the key items are not met, the risk of supply disruption rises.
What changed in the latest V6?
V6 was revised in March 2023. It strengthens the requirements for risk and resilience, ESG, and digitalization and cybersecurity. It also extends the assessment to lower-tier suppliers such as EV battery and semiconductor suppliers.
How do the Full and Basic versions differ?
The Full version assesses 176 items and the Basic version 96 items. The Basic version is for lower tiers and uses the grades ZA, ZB and ZC.
Where do we start preparing for the assessment?
Training helps you understand the MMOG/LE V6 standard and its assessment items, and you then assess your current level against those items yourself. Next, we analyze the unmet items to set improvement tasks, and meet the requirements with QAD ERP functions and SCM processes. Orcait is Korea's only AIAG-designated official MMOG/LE training provider.
If we use QAD ERP, will it meet every assessment item?
No. The strategy and organization requirements of CH 01 and CH 02 cannot be met by a system alone. Orcait prepares them with you through training and process consulting. The QAD standard functions in the table are examples. The functions and scope that apply are decided by the results of the self-assessment and consulting.