Oracle Shop Floor Management with Contract Manufacturer Integration and USJade Extensions

1
Oracle Shop Floor Management with Contract
Manufacturer Integration and USJade Extensions

• Manoj Rathi, Principal Consultant
• USJade Corp.
• Jeff Lin, VP of Backend Operations
• Silicon Storage Technology, Inc.
• NorCal OAUG Training Day - January 21, 2009

2
Program Agenda

1. Introductions
2. Fabless Semiconductors Features and Challenges
3. Silicon Storage Technologys (SST) Challenges
4. USJade Solutions
5. Questions

3
Presenters

• Jeff Lin VP of Backend Manufacturing
• Silicon Storage Technology (SST)
• Project Sponsor LIMO (Long-term Integrated Mfg
  Operations )
• Manoj Rathi, CSCP Principal Consultant, USJade
  Corp.
• 15 years in Manufacturing, Costing and Supply
  Chain.
• Worked with Cummins for 10 years before
  completing his MBA.
• Worked with SST as lead manufacturing consultant
  for 18 months
• Implemented OSFM/B2B and continued supporting SST
  as their acting Cost Accounting Manager for 1
  year.
• Played expert role implementing OSFM/B2B at
  Telegent Systems, Inc.
• Currently is Solution Architect and Project Mgr.
  for implementation of Lot Based Manufacturing
  Solution at Exar Corp.

4
USJade Introduction

• USJade provides mission critical business
  solutions, delivering cost effective,
  revenue-impacting results
• Enterprise System Integration Consulting firm
• Founded in year 2000 by former BIG4 consultants
  and industry experts
• Corporate Headquarters San Jose, CA
• Offshore Center of Excellence in Pune, India
• Right Shore Delivery Model
• Experience with Global Implementations
• Over 160 Consultants Worldwide
• Certified Oracle Partner
• Oracle Business Accelerator Exclusive Solution
  Provider for Fabless Semiconductor

5
USJade Introduction (Cont.)

• Domain knowledge and Industry specialization
• Successful track-record of customer satisfaction
• Client-focused approach
• From initial strategy to deployment that best
  meet our clients needs
• Vendor-neutral Methodology
• With ability to make unbiased recommendations
  based exclusively on client's individual needs,
  objectives and technology environment
• Cost-effective, no compromise, revenue-impacting
  solutions
• Unparalleled passion for quality, dedication, and
  innovation
• Highly qualified and experienced team
• Committed to exceeding customer expectations
• Global Project Collaboration Model
• Utilizing cost effective Offshore Consulting
  resources

6
Services Overview

• Supply Chain Planning
• Manufacturing
• Warehouse Mgmt. System
• Purchasing, Inventory, Costing
• Order Management
• Product Lifecycle Mgmt.
• Financials HRMS
• Enterprise Process Management
• Oracle CRM Applications
• Oracle Data Warehousing
• Business Intelligence

• Information Management Services
• Strategic Services
• Enterprise Application Integration
• Independent Testing
• Technical Implementation
• Infrastructure Support Services
• Business Continuity Disaster Recovery
• IT Optimization / Green IT
• IT Security Identity Management

7
Services Overview (cont.)
8
Some of USJades Customers
9
Silicon Storage Technology, Inc. (SST)

• Founded in1989
• Headquartered in Sunnyvale, CA
• 700 Employees in offices worldwide
• Manufacturing outsourced to 40 vendors
• Customers include Apple, HP, Infineon, IBM
  Motorola Nintendo, NEC, Philips and Sony

http//www.sst.com/
10
SST USJade a Partnership

• Guidance on Best Practices
• Implementation of ERP and other Systems
• Integration of IT Systems
• Customization of IT Systems
• Development of Process and IT Solutions
• Ongoing Production Support
• SST-USJade relationship 3 years and going strong

11
Program Agenda

1. Introductions
2. Fabless Semiconductors- Features and Challenges
3. SST Challenges
4. USJade Solutions
5. Questions

12
Fabless Semiconductor Features Challenges

• Dynamic market conditions with high fragmentation
  on both supply and demand side.
• Very short Product Life and Time to Market.
• High product lead times- 3 months
• Lower margins and fierce competition
• Globally dispersed operations
• Too many channels to manage
• Lot traceability issues

13
Fabless Semiconductor Features Challenges
(cont.)

• Inadequate and delayed information in ERP systems
• Web of sundry systems and reports outside ERP
• Wide range of vendor communication (reporting)
  needs.
• Various, dispersed communication channels
• Poor visibility of lots in ERP system
• lower inventory accuracy
• delayed transaction processing
• Poor supply-chain planning
• Frequent lost sales opportunities and/or
  inventory write-offs.

14
Fabless Semiconductor Features Challenges
(cont.)

• Inadequate controls on OSP charges and vendor
  payments
• Complex cost accounting
• Different OSP charges for different vendors
• Operation Yield Costing and WIP Accounting
• Inadequate variance analysis tools
• Complex inventory reserve requirements
• Complex auditing and compliance requirements

15
Agenda

• Introductions
• Fabless Semiconductors- Features and Challenges
• SSTs Challenges
• USJade Solutions
• Questions

16
SSTs ChallengesPrevious Business Process
Challenges

• Too Many intermediate island of systems to manage
• Very complex and distributed error management
• Near impossible lot tracking towards actual
  vendor events
• Complex and inconsistent reporting

17
SSTs Challenges (cont.)

• Separate systems for Operations and Financials
• Separate product structures used for operations
  and standard costing
• Redundancies and data-consistency issues
• High job close variances
• Manufacturing variances across stages were hard
  to identify
• Poor lot traceability across vendors
• Inadequate support for dynamic changes to job
  (e.g. vendor selection)
• Splits, Merges and lot updates not/poorly
  supported
• Additional lot information maintenance/propagation
  not supported

18
SSTs Challenges (cont.)

• Additional lot information maintenance/propagation
  not supported
• High discrepancy between vendor and system data.
  High PI error rates
• Lot Genealogy and transactions were hard to trace
• Rework was paid using expense POs- no
  traceability to lot/job
• AP accrual discrepancies were very high.
  Reconciliation of liabilities would span across
  years
• Job close process was a big issue as completed
  jobs were hard to identify due to leftover
  quantities in one of the operations
• Material Weakness identified in Inventory
  Management area by PWC
• Mainly related to PI, Reserves and standard
  Costing
• Employee morale was low due to system issues

19
Agenda

• Introductions
• Fabless Semiconductors- Features and Challenges
• SST Challenges
• USJade Solutions
• Questions

20
USJade Solutions and Extensions

• Low risk Oracle Shop Floor Mgmt (OSFM)
  Implementation
• B2B Integrated lot tracking system
• Automated and enhanced OSP purchasing and AP
  system
• Single report OSP verification from WIP moves to
  AP invoice
• Enhanced WIP accounting review and job-close
  process
• Enhanced Lot Genealogy Report
• Wafer level (sublot ) details
• Streamlined and fast standard costing easy
  validations
• Streamlined Inventory reserves
• Manufacturing variance capitalization
• POS solution

21
OSFM Implementation Project Overview

• Coupled with B2B, OSP automation, Part number
  changes, conversion and changes to other systems
• Manufacturing flow converted from 2 stage to 5
  () stages
• Standardized product structure and part numbers
• WIP routings converted to Network routings
• Created BOMs for new product structure
• Operation Yields entered to enable yield costing
  and accounting
• New Sub-inventories created to allow for
  additional stages
• New variance/valuation accounts created for
  granularity
• Reports created for users to verify items/ BOMs/
  Routings load
• Costs rolled up and updated for new items

22
OSFM Implementation Project Overview (cont.)

• Old and New product cost reports.
• Dynamic data conversion (lot level)
• All lots in INV and WIP converted to new
  parts/stages.
• Child lots created with vendor support wherever
  needed.
• Reports created to compare before and after lot
  qty/values.
• Lot attributes added to lots/jobs.
• OSFM interfaces used to process vendor reported
  manufacturing events (part of B2B solution)
• OSP automations
• Implemented USJade OSP verification report to
  trace OSP from OSFM move transaction to AP invoice

23
Integrated Lot Tracking System - B2B
GUI for User Admin, Customer and Vendor Mapping,
Error Correction, and Reporting
B2B Transactions From Manufacturing Vendors
Portal for Customers to View and download
Manufacturing Transactions
B2B Inbound/ Outbound/ Middleware
B2B Database
B2B Outbound/ Customer Portal

USJade Custom Adaptors
Oracle EBS with OSFM, ASCP,PO Manufacturing,
Financials, Order Management
24
B2B Architecture
25
B2B Key Features

• Automation and Single Error correction console
• Automated file processing for business
  transactions (WIP, INV, SO, PO, AP etc)
• File Loader (Manual, FTP, B2B, EDI others)
• Canonical Mapping
• Custom Adapter for Oracle
• HTMLDB/R12 ADF Web application for error
  management
• Vendor Reporting Guide
• The solution can be scaled to a fully automated
  real-time B2B/EAI solution using middleware
  technologies like Oracle SOA Suite, TIBCO,
  Gentran, Web Methods, Oracle EDI/XML gateway etc.

26
B2B Events to Transaction Mapping
27
B2B GUI- Error Correction

• User Error Management and Corrections
• Edit Manual Transactions

28
B2B GUI- Reports and Audits

• Exceptional Auditing and Reporting Capabilities

29
B2B GUI- Admin and Setups
Vendor Management and Admin Capabilities
30
Integrated Lot Tracking System- B2BKey Benefits

• Greater visibility into the supply chain
• Lot traceability by manufacturing stage (wafer,
  sorted wafer, etc.)
• Lot movement between Vendors easily traced
• Quick reporting of Manufacturing Transactions
• Faster processing of Manufacturing Transactions
• Realistic vendor WIP
• Standardized reporting format
• Scalable solution
• Centralized Error Management
• Improved Vendor reporting accuracy
• B2B foundation for automating additional processes

31
OSP Integrations

• WIP lot movements mapped and integrated with
  Purchasing, WIP costing and AP in a closed loop
  system
• Automatic PO Release functionality
• Automatic receiving on OSP charges in the job
  based on completion of operation
• Changes in lot due to split, merge or other WIP
  lot transaction are automatically propagated to
  purchasing.
• Reports to identify discrepancies in OSP
  activities.
• Enhanced vendor payment process and automated AP
  Invoice matching
• High productivity improvements in purchasing and
  AP

32
Work In Process (WIP) Costing Job Close Process

• In depth understanding of Oracle WIP costing and
  job close process including estimated yield
  accounting
• USJade extension to Oracle standard functionality
  to validate jobs and analyze variance.
• Reports unusual and missing expected
  transactions.
• Easy communication between cost-accounting and
  operations
• Potential to improve cost-accounting team
  productivity and minimize errors/discrepancies.
• Efficient and clean auditing features

33
Enhanced Reports

• USJade lot genealogy
• Provides additional information in a customized
  format
• Provides information about all lots related to
  queried lot within and across inventory orgs
• OSP verification WIP-move to PO and AP links.
• Standard costing verification Reports
• Good die per wafer- actual vs. standard
• Operation yield performance report
• Historical and expected PPV for on-hand and open
  PO qty.
• Inventory reserves Report
• Manufacturing Variance Capitalization

34

A
Q
35
Contact Us
Manoj Rathi Principal Consultant USJade
Corp mrathi_at_usjadecorp.com Office 408-436-8303
x48
USJade Corp 2001 Gateway Place, Suite 570W San
Jose, CA 95110 http//usjadecorp.com USJade
Ltd. E-Space IT Park, A-3, 2nd Floor, 102 D/E,
Wadgaon Sheri, Pune-Nagar Road, Pune 411-014
36
(No Transcript)