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Oracle Shop Floor Management with Contract Manufacturer Integration and USJade Extensions

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Title: 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
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