Moving in to the Middle East: A new frontier for MMOG/LE

Which country has a deep pool of technology expertise and strong recent GDP growth tracking ahead of global growth? And which country has been attracting the interest of global automotive OEMs as an alternative supply source, not just for parts, but also for smart car technology.

By Terry Onica
Director Automotive
QAD

The answer is Israel. Consider, for example, electrek’s recent article reporting on Tesla CEO Elon Musk Visiting Tel Aviv-based Mobileye to test a new autopilot system installed on a Tesla Model 6.

On March 29 2016 the Export Institute of Israel hosted an automotive manufacturing seminar in Tel Aviv, which was attended by 25 suppliers from the rapidly expanding Israeli automotive manufacturing sector.

Mr. Amos Nevo, Vice President of Business Development at Foamotive, an Israeli company that manufacturers thermo-compressed molded polyethylene-based foam parts for various automotive companies (including GM), had attended an MMOG/LE seminar at the Odette Conference in 2015. This inspired him to organise an automotive seminar in Israel and he asked Odette if they could arrange a presentation on MMOG/LE. Odette asked me if I would be willing to help out with this and I gladly accepted the opportunity. So, in March, I travelled to Tel Aviv to explain the background to the MMOG/LE assessment and share in detail the key concepts and best practices in each of the six chapters that make up MMOG/LE.

The seminar covered other topics, including EDI and lean manufacturing, but MMOG/LE was the highest priority item on the agenda. Having completed the assessment in order to supply to GM, Foamotive has had direct recent experience with MMOG/LE and Mr. Nevo  emphasised the need for other Israel-based automotive manufacturers to pay close attention to the tool. To drive the point home, Florian Haas, purchasing manager at GM Israel, spoke about what GM expects from suppliers in respect of MMOG/LE.

Mr. Nevo said that, “Going to Odette opened my eyes about the importance of MMOG/LE to our customers. It makes sense for OEMs, and therefore is a must-have for automotive parts and technology suppliers. I decided to initiate this seminar as a wake-up call for my colleagues in the supplier community in Israel.

Odette and AIAG have taken the lead in educating industry OEMs and suppliers about MMOG/LE. As Odette says on its website, “… the Global MMOG/LE tool has become the de-facto standard for evaluating supply chain processes in the automotive industry; it is widely used for internal assessments, organisation benchmarking and improving supply chain performance.”

I found it strange that, for all of Israel’s investments in technology, MMOG/LE had not yet become common knowledge in the automotive supply sector, but I believe that this situation will now quickly be remedied. Indeed, companies at the seminar expressed a real interest in the tool and exhibited a readiness to move quickly to begin to apply it. Will Israel be successful? Technological expertise gives the country a major advantage as it tries to penetrate deeper into automotive. As automotive manufacturing becomes increasingly digital, in terms of not only the manufacturing, supply chain and distribution processes, but also in terms of the components themselves, Israel can compete with any nation on earth. The one tool, however, that ties the quality of the automotive value chain together from supplier to consumer is MMOG/LE. Commitment to this global standard will without doubt be essential to Israel’s success.

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