Oracle Shop Floor Management with Contract Manufacturer Integration and USJade Extensions Manoj Rathi, Principal Consultant USJade Corp. Jeff Lin, VP of

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Oracle Shop Floor Management with Contract Manufacturer Integration and USJade Extensions

Manoj Rathi, Principal ConsultantUSJade Corp.

Jeff Lin, VP of Backend OperationsSilicon Storage Technology, Inc.

NorCal OAUG Training Day - January 21, 2009

Page 2© 2009 USJade Corp – Proprietary and Confidential

1. Introductions

2. Fabless Semiconductors: Features and Challenges

3. Silicon Storage Technology’s (SST) Challenges

4. USJade Solutions

5. Questions

Program Agenda


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.


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

USJade Introduction


• Domain knowledge and Industry specialization • Successful track-record of customer satisfaction • Client-focused approach

• From initial strategy to deployment that best meet our client’s 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

USJade Introduction (Cont.)


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


Services Overview (cont.)


XEROX INTERNATIONAL PARTNERS

Some of USJade’s Customers


• 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

Silicon Storage Technology, Inc. (SST)

http://www.sst.com/


• 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

SST & USJade: a Partnership


1. Introductions

2. Fabless Semiconductors- Features and Challenges

3. SST Challenges

4. USJade Solutions

5. Questions

Program Agenda


• 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

Fabless Semiconductor Features & Challenges


• 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.

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

Fabless Semiconductor Features & Challenges (cont.)


Agenda

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


• 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

OJM

Expense PO

Ship Alert

Processing databases

Oracle Interface

tableOracle

Flat Files

Transactions sent through

email

Copy on the G-Drive + Run

formatting macros

VTC

Ship Alert

Input transaction Access databases

Error Management

Error Management

Error Management

Error Management

WFG

Sort

MBE

IC

ARP

EMTT IC

Checker IVAVC

LVC

SWR

OJM

Expense PO

Ship Alert

Processing databases

Oracle Interface

tableOracle

Flat Files


email


formatting macros


email


formatting macros

VTC

Ship Alert

Input transaction Access databases

Error Management

Error Management

Error Management

Error Management

WFG

Sort

MBE

IC

ARP

EMTT IC

Checker IVAVC

LVC

SWR

SST’s ChallengesPrevious Business Process & Challenges


• 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

SST’s 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

SST’s Challenges (cont.)


Agenda

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


• 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

USJade Solutions and Extensions


• 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

OSFM Implementation Project Overview


• 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

OSFM Implementation Project Overview (cont.)


B2B Database

Oracle EBS with OSFM, ASCP,PO Manufacturing, Financials, Order Management

Oracle EBS with OSFM, ASCP,PO Manufacturing, Financials, Order Management

GUI for User Admin, Customer and Vendor Mapping, Error Correction,

and Reporting

B2B Inbound/

Outbound/

Middleware

USJade Custom Adaptors

B2B Outbound/

Customer

Portal

Portal for

Customers

to View and

download

Manufacturing

Transactions

B2B Transactions

From

Manufacturing

Vendors

Integrated Lot Tracking System - B2B


B2B Architecture


• 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.

B2B Key Features

Page 26© 2009 USJade Corp – Proprietary and Confidential Standard Flow -Sort

FAB House SORT House

Inventory

WIP

Information Flow

FAB Wafer Bank

Subinventory

Intransit Subinventory

SORT vendor Wafer Bank (unsorted )

Sort vendor Sorted Wafer

Bank

Wafer to Die

conversion

N2 Receipt

Wafer lot in transit

N1 Fab Ship alert N3 Start N5 Complete

Move to QUEUE of

SOUT Operation.

SOUT(20)

Job Complete

OUT (9999)

Job Completes into Inventory (N5)

Transfer (N2)Transfer (N1)

Kit Unsorted wafer Lot to job (N3)

N6 Sort-Ship

N3

N4

N6

N4 Move

Move

Move/ scrap

10IN

9999OUT

20SRT

Routing

W2D conversion

N5

PO Release PO Release

Receive OSP

Receive OSP

Sort

Create sort Job and move to QUEUE of IN Operation.

IN (10)

Move

B2B Events to Transaction Mapping


•User Error Management and Corrections•Edit Manual Transactions

B2B GUI- Error Correction


B2B GUI- Reports and Audits

•Exceptional Auditing and Reporting Capabilities


B2B GUI- Admin and Setups

Vendor Management and Admin Capabilities


• 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

Integrated Lot Tracking System- B2BKey Benefits


• 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

OSP Integrations


• 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

Work In Process (WIP) Costing & Job Close Process


• 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

Enhanced Reports


&AQ


Contact Us

Manoj RathiPrincipal ConsultantUSJade [email protected]: 408-436-8303 x48

USJade Corp2001 Gateway Place, Suite 570WSan Jose, CA 95110http://usjadecorp.com

USJade Ltd.E-Space IT Park, A-3, 2nd Floor,102 D/E, Wadgaon Sheri, Pune-Nagar Road, Pune 411-014


Documents

Oracle Shop Floor Management with Contract Manufacturer Integration and USJade Extensions Manoj Rathi, Principal Consultant USJade Corp. Jeff Lin, VP of