MS-9000-Manual.doc

Benji’s Manufacturing
Materials Management Manual
This manual explains the plan for satisfying Ford Motor Company’s MS-9000 requirements.

This manual is intended to be used in seminar workshops. The format and content can be used to assist companies in developing their own materials management manual. If this manual is used as a “template” the user needs to be aware that this manual does purposely not address some MS-9000 requirements.
4.1 Management Responsibility
The responsibilities, authorities and interrelations for those that manage, perform and verify the materials management system will be identified through the use of procedures and work instructions. The activities to be performed will identify the manager who will establish and implement the required procedure for supporting the operations of the Material Planning and Logistics (MP&L).
The manufacturing system management representative is responsible for, implementing, maintaining, and ensuring that all persons involved with the material management system understand the objectives.
Benji’s Manufacturing is dedicated to achieving 100% on time delivery, ever improving the manufacturing cycle time (MCT), inventory turns and subcontractor delivery performance.
Job descriptions for all persons involved in the material planning and logistics functions are available in the human resource files.
The manufacturing system management representative is responsible for, providing an updated contact list (including top management), to the customer. Customer contacts will be available during all customer working hours.
The AQP procedure (100-ENGR-XX) includes the appropriate MP&L personnel. These individuals participate in and sign off on the AQP process. The AQP process evaluates Use ergonomics to assure efficient employee operations in materials management.
Key measurements, that verify the suitability and effectiveness of the materials management process, are included in Benji’s Manufacturing QOS. Benji’s Manufacturing performs annual self-assessments of the QOS using the Ford QOS Assessment and Rating Procedure. Records of the QOS reviews and annual self-assessments are maintained.
Benji’s Manufacturing has housekeeping practices that are covered with all employees during new employee orientation. These practices promote a safe, efficient work environment. Housekeeping process audits take place weekly. Records are available in the manufacturing system management representative’s files.

4.2 Materials Management System
Benji’s Manufacturing has established and documented this management manual that covers the requirements of MS-9000. The manual, related procedures, work instructions and records will be maintained to ensure that the customer receives the right quantity, right product, at the right time. This manual will index the materials management system procedures and work instructions. The related procedures will satisfy the requirements of MS-9000.
Place a current material flow diagram for the facility in this location of the manual.
Benji’s Manufacturing uses motion studies to optimize the material flow through the operation. The motion studies focus on non-value-added work and time delays. These studies are included in the continuous improvement efforts of the QOS.
4.3 Contract Review/Customer Interface
As part of the Contract Review Procedure (100-SM-CR-XX), Benji’s Manufacturing identifies potential delivery problems and communicates then to the customer when they are identified during the contract review activities. The customer is also contacted concerning all erroneous information that can affect the ability to meet requirements. Resolutions on all unresolved issues are required to be found and documented prior to the closing of contract negotiations.
During contract review, customer requirements concerning an interactive inventory materials management system such as Direct Data Link (DDL) is addressed. If an interactive inventory system is used, daily shortages and new model launch requirements are accurately answered in accordance with Ford procedures. Information is available to the customer throughout their operating hours.
The order entry procedure (order entry 111-SM-OE-XX) ensures that the method of customer approval is established ensure that initial shipments of new model materials are not made without customer approval. This procedure is also used to reconcile cumulative ship quantity disagreements with customer in a timely manner
The tooling management procedure (110-ENGR-TM-XX) requires that customer approval is received prior to disposing or reworking tooling.
4.4 Scheduling System
Electronic data interchange (EDI) system that inputs AIAG EDI 830 transactions and EDI 866 sequenced ship requirements are addressed as part of the advanced quality planning procedure. The EDI input enters directly into the scheduling system. The scheduling system is order driven. The scheduling system does allow the option of building to an inventory if required by the customer or the customer’s short term forecasting ability has proven to be untrustworthy. These options are controlled through the use of the production scheduling procedure (120-PC-PS-XX). The scheduling system maintains parameters (subcontractor lead times, manufacturing cycle times, shipping times, and resource requirements) to correlate manufacturing requirements with the customer’s ship requirements. The purpose of the system is to minimize the requirements for premium freight.
The system automatically performs comparisons of capacity and the customer’s requirement projections, by part during the order entry process. All files are batched and processed during the first shift to look at the entire system for material and processing constraints that might affect delivery. The system has planning capabilities for both continuous and discrete processes with a long term planning horizon of six months. The production scheduling procedure ensures that problems, which might affect capacity, are communicated to the customer. The procedure also assures that sufficient materials are available to cover customer orders during balance-out. It will guarantee that pre-Job 1 parts are available in a timely manner to support changeover and launch requirements. The scheduling process coordinates balance-outs and engineering changes to schedules in order to minimize obsolescence exposure. Functional build material must always be available in a timely manner for running changes (when requested).
When necessary, the scheduling process will release shipments of new model service parts prior to the initial shipment of production.
The shipping consolidation procedure (119-PC-SC-XX) provides the disciplines that prevent unauthorized over-shipments to the customer.
4.5 Document Control
The document and data control procedure (100-DDC-XX) is use to ensure that documents and data related to the materials system are reviewed and approved by appropriate personnel prior to issue. The procedure updates a master list to preclude the use of invalid and/or obsolete documents. The procedure ensures that:
* Issues of document are available at all locations where required.
* Invalid/obsolete documents are promptly removed from all points of issue.
* Obsolete documents that are retained for records are suitable identified.
* Information required for review must be available.
For changed documents the procedure ensures that those job functions that originally issued documents and data related to the material system must review any changes prior to issue.
4.6 Purchasing/Subcontractor Management
The purchased part release procedure (100-PPR-XX) allows for both EDI and manual releases to subcontractors. Releases to subcontractors via EDI are available for those subcontractors who have compatible systems. The frequency of transmissions (EDI and manual) to subcontractors is consistent for each product and the documented lead times. For customer products that exhibit frequent changes in volume requirements (low predictability) the minimum transmissions are daily. When ASN transmissions are not received, the procedure ensures accurate recording and verification of records. Emergency requirements are coordinate with subcontractors.
Subcontractor delivery performance is a measurement for Benji’s Manufacturing QOS. QOS summaries on performance (trend charts, Pareto charts and verification over-time-charts, corrective and preventive actions) are available for subcontractor delivery performance. This process consistently improves subcontractor delivery performance over time. Subcontractors are required by contract to strive for 100% on-time delivery for all releases, which respect their defined lead-times.
As part of the receiving material procedure (100-RM-MH-XX), incoming product is evaluated to verify quality of packaging. Corrective actions are requested from subcontractors when packaging problems are identified. Proper packaging standards are covered as part of the AQP procedure. Corrective actions are used to update the AQP procedure and packaging standards to prevent similar problems for future packaging standards. Returnable dunnage is selected whenever possible. The procedure includes bar-coded receiving information directly into the materials control system.
4.8 Product Identification and Traceability
The material packaging work instructions (1XX-MPWI-XX) will ensure that all containers are labeled to customer expectations. The packaging standards will ensure that shipping labels conform industry standard shipping labels (AIAG standard B-3 [USA], Odette standard [Europe]). When required, special labels for some transportation routings such as consolidation will be used.
The bar-code printers have special internal scanners to ensure readability of bar-coded data.
The material management system interfaces with the material packaging work instruction in order to direct special attention to new model part shipments to ensure proper labeling to customer requirements. New model parts will be clearly labeled to ensure segregation from current model parts.
Barcoding is used to track all material throughout the operation. This includes incoming, in process, and shipping consolidation. This guarantees that all quantities of materials are accounted for and tracked throughout the process.
Special barcodes are used to identify scrap, returned product and rejected product. This ensures appropriate identification of all unusable or damaged material. All storage areas are clearly marked. The barcoding and material management system ensure that all material records must be updated by the completion of each shift.
4.9 Shipping
The material management process and barcoding practices will guarantee that the appropriate fields of the ASN are accurate. Shipping units are consolidated at shipping staging area. The scanning process for shipping takes place at this last possible point in the shipment process. The programming of the system will guarantee that an ASN cannot be sent without all fields entered. ASNs are transmitted at the moment the carrier departs the shipping dock.
The traffic and shipping procedure (100-TS-MH-XX) ensures that outgoing shipments comply with applicable customs regulations. This process also provides an efficient method for generating required paperwork. Shipping documents are prepared to customer standards.
4.10 Manufacturing Flexibility / Inventory Management
Flexibility and responsiveness of the production process will be measured and improved through the use of QOS. The measurement will be manufacturing cycle time.
Both volume/mix flexibility and product/changeover flexibility are included in the advanced quality planning procedure. The AQP procedure is improved continuously to improve flexibility for each new launch.
Inventory turns are a QOS measurement, which ensures that they are optimized over time for raw materials, purchased parts, work-in-process and finished goods.
4.11 Inspection, Measuring and Test
The controls of the shipping quantity measurement systems are included in the Measurement Control Procedures (100-MC-QE-XX). The procedure guarantees calibration to an accuracy as defined by the customer. The procedure also requires periodic calibration to a recognized standard. The procedure requires that all measurement equipment is clearly identified to indicate the calibration status.
4.14 Corrective and Preventive Action
Benji’s Manufacturing uses a Team Problem Solving procedure (100-TPS-XX) to prevent delivery failures. This procedure assures the effective resolution of supply problems without cost penalties to the customer. The process requires that the organization reacts immediately to problems identified by the customer. The process identifies root cause, corrective action and actions to prevent recurrence. The process also develops short-term solutions to ensure customer satisfaction during emergency situations such as computer system failures, telephone line outages. The short-term solutions are verified to guarantee effectiveness.
4.15 Handling, Storage, Packaging, Preservation & Delivery
Material Handling procedures (XXX-MH-MC-XX) are used to ensure control for all phases of material handling of product and packaging materials. These controls prevent damage of both products and packaging materials. The processes also ensure that returnable containers and dunnage are returned in a timely manner and in an acceptable condition.
Authorized receipt and dispatch of material into and out of storage areas are used to track material throughout the manufacturing process. The authorized receipt process is initiated through the use of the barcode process.
Benji’s Manufacturing does not use external warehousing or storage facilities
The material management system has a monthly process that is used to verify information in the reference database. The EDI process ensures that accurate packaging data for all parts on release is confirmed in the customer’s system before a shipment is made. The accuracy of weight, quantity and dimensional data will be verified with the customer on an annual basis.
The shipping procedure notifies the outbound carrier of shipping requirements in a timely manner. The carriers are expedited through the use of appropriate equipment such as bracing and air bags to ensure that product are not damaged in transit.
4.16 Control of Material Records
Benji’s Manufacturing maintains and utilizes accurate records of in-process, finished goods, purchased parts and raw material available. These records serve as a basis for the materials management system. The barcoding process assures record integrity including cycle counting.
4.17 Internal Material Audits
Internal audits are managed through the use of the quality system Internal Auditing