Post on 07-Mar-2016
description
Page 1 04/28/2010 Page 1
Supply Chain – A Competitive Advantage via SCOR based Processes and Supply Chain Innovation Stefan Heilmayer November, 8th 2011
Page 2 Copyright © Infineon Technologies 2011. All rights reserved.
Table of contents
Infineon – Who we are and what us challenges
Decision: Transparency via SCOR based processes
Staying Ahead: Supply Chain Innovation
Summary
SC³
Supply Chain Academy
Execution: Flexibility and Speed
Page 3 Copyright © Infineon Technologies 2011. All rights reserved.
Table of contents
Infineon – Who we are and what us challenges
Decision: Transparency via SCOR based processes
Staying Ahead: Supply Chain Innovation
Summary
SC³
Supply Chain Academy
Execution: Flexibility and Speed
Copyright © Infineon Technologies 2011. All rights reserved.
Infineon at a Glance
The Company
Infineon provides semiconductor and system solutions, focusing on three central needs of our modern society: Energy Efficiency, Mobility and Security
Revenue in FY 2010*: 3.295 billion EUR
25,119 employees worldwide (as of April 2011)
Strong technology portfolio with about 15,400 patents and patent applications (as of Feb. 2011)
More than 20 R&D locations
Germany’s largest semiconductor company
*Note: Figures according to IFRS with Wireline and Wireless as discontinued operations; as of September 30, 2010
Page 4
Copyright © Infineon Technologies 2011. All rights reserved. Page 5
Focus on Our Target Markets
Core Competencies
Analog/Mixed Signal
Power
Embedded Control
Manufacturing Competence
Focus Areas
Energy Efficiency
Mobility
Security
Our Target Markets
Automotive
Industrial Electronics
Chip Card & Security
Copyright © Infineon Technologies 2011. All rights reserved.
Chip Card & Security
Automotive
Industrial & Multimarket
Revenue Split by Division
ATV € 354m
CCS € 98m
3-months FY11 revenue split
IMM € 423m
Page 6
Copyright © Infineon Technologies 2011. All rights reserved. Page 7
Infineon’s Key Customers and Partners
Key Customers
Main channel partners (distributors): Arrow, Avnet, Beijing Jingchuan, Rutronik, Tomen, Toyotsu, WPG Holding
Electronic
Manufacturing Services (EMS): Celestica, Flextronics, Foxlink, Hon Hai, Jabil, Sanmina-SCI
Automotive Autoliv Bosch Continental Delphi
Denso Hella Hyundai Kostal
Lear Mitsubishi TRW Valeo
Industrial & Multimarket
ABB Alstom Cisco Converteam Dell Delta Emerson Ericsson
HP LG Electronics Microsoft Nokia Panasonic Philips RIM Samsung
Schneider Electric
Siemens SMA Technology Sony
Chip Card & Security
Beijing Watch Data Cisco Gemalto
Giesecke & Devrient
Oberthur
Sagem Orga US Government
Printing Office
Distribution Centre Asia CLM pool location CLM pool service area in-house and production partner sites
We manage >400 ship-to addresses and more than 25 production sites in Asia through the Corporate Supply Chain functions (~80HC) :
Customer Logistics Management (CLM) Operations (Disposition & Ramp Up) Volume Planning for Assembly & Test Business Services, Project Management Master Data Management Manufacturing Automation Logistics, Custom, Export Control
11/14/11 Page 8 Copyright © Infineon Technologies 2011. All rights reserved.
Singapore is Infineon's Supply Chain Hub
Semiconductor Supply Chain Science Center (SC³) Singapore
Develops innovative improvements
For production partner related supply chain processes
Based on scientific research
In collaboration with a local university.
Distribution Center Asia (DCA)
Distributes finished goods globally (>16 countries)
~200 HCs Export Value
~1.5 bn Euro/y Regional
competence centre: Custom, Export Control
Supply Chain Hub Singapore
learn from theory...
... and turn it
into value
Copyright © Infineon Technologies 2011. All rights reserved.
10.02.2010
Page 9
Semiconductor Market Moore’s Law: “The number of transistors on a chip doubles every 18 months”
Innovation
103
104
105
106
107
108 64 Mbit
1975 1970 1980 1985 1990 1995 2000 2005 2010
♦ ♦
♦ ♦
♦
♦
♦
♦ 4004
80286
80386 80486
Pentium ®
Pentium II
♦ ♦ Pentium III
Pentium IV
8080
8086 68000
16 Mbit
4 Mbit "
"
"
"
"
"256 Mbit
109
512 Mbit "
♦
If the automotive and aircraft industries developed at the same rates as semiconductors in the past 30 years:
A Rolls Royce would cost $2.75 and make 3 million miles a gallon
A Boeing 747 would cost $500 and circle the globe within 20 minutes on five gallons of gas.
Copyright © Infineon Technologies 2011. All rights reserved. 11/14/11
The Semiconductor Market
Steep Product Ramps Short Lifecycle
100 m
1000 m
1950 1960 1970 1980 1990 2000 2010
2 % 12 % 30 % 35-40 %
% of semiconductors of final product:
VCR TV b&w
TV color PC
iPod
GSM
1 m
10 m
Sources : Dataquest, ST shown at IEF 2005, Malta (some wording changed)
Long Lead Time Early in Value Chain
Suppliers Customer Semiconductor Industry Customer of
our Customer
~ 3 months
~ 4 months
Copyright © Infineon Technologies 2011. All rights reserved. 11/14/11
The Semiconductor Market – Inventory Risks
Source: WSTS data for historical data; Forecast: ∅ of VSLI, Gartner,iSuppli, WSTS
Steep product ramps
Short life cycles Early in value chain
Long lead time
Bullwhip Stocking/Destocking
Revenue 2010: 298 billion USD
Page 12 Copyright © Infineon Technologies 2011. All rights reserved.
Table of contents
Infineon – Who we are and what us challenges
Decision: Transparency via SCOR based processes
Staying Ahead: Supply Chain Innovation
Summary
SC³
Supply Chain Academy
Execution: Flexibility and Speed
Copyright © Infineon Technologies 2011. All rights reserved.
Infineon Supply Chain - SCOR Model
SORT
Wafertest Sawing
DIE BANK ASSEMBLY
Sawing
Die Bonding Wire Bonding
Molding Trim & Form
FAB
Furnace Implanting Deposition Stepper Etching Wetting
Chiptest (Burn In)
TEST Wafer stock DC
Up to 500 process steps
Buffer / Stock
Buffer / Stock
Buffer / Stock
Buffer / Stock
Consi
Source Deliver Return Return
Make Plan
Infineon Supplier
Customers
Holistic SC-Management; Systematic via SCOR
Operations: Efficient use of resources Capital cost reduction idle costs/excess inventory no scrap, damage & relocation
Market: diversification small batches fast time-to-customer/market
12.0 0.0 12.0 8.9
7.18 7.18
6.40
6.20
6.40
6.80 6.80
6.20
5.00 5.00
9.20 9.20
8.60 8.60
Copyright © Infineon Technologies 2011. All rights reserved. Page 14
Supply Planning
Capa & Supply Provision
Capacity Planning
Demand Planning
Production Management
Order Management
Demand & Supply
Consumption
Identify, Assess and Aggregate Supply Chain requirements
Identify, Assess and Aggregate Supply Chain resources
Balance Supply Chain resources and requirements
Establish and communicate supply chain plans Establish and communicate
supply chain plans
The SC master planning follows the SCOR plan process
12.0 0.0 12.0 8.9
7.18 7.18
6.40
6.20
6.40
6.80 6.80
6.20
5.00 5.00
9.20 9.20
8.60 8.60
Copyright © Infineon Technologies 2011. All rights reserved. Page 15
PPOS
FP
FPOS
RfP
SP Sales Product can be ordered by a customer
Plan Position capacity and demand planning element
Fabrication Position product & manufacturing route, Where we produce - coarse
Die-Representative Supply element; where the package is not yet
decided
Finished Product independent of storage location
Required for Plan planning product being not capacity relevant DREP
SKU: finished product by storage location Sales and Marketing view
Production View ~ 1000
~ 10 000 ~ 30 new/d
Plan processes are enabled by IT Tool independent Master Data – Key product structures
1:N
1:N
1:N
1:N
1:N
1:N
1:N
SKU
12.0 0.0 12.0 8.9
7.18 7.18
6.40
6.20
6.40
6.80 6.80
6.20
5.00 5.00
9.20 9.20
8.60 8.60
Copyright © Infineon Technologies 2011. All rights reserved. Page 16
Sales Demand
Marketing Demand
Sales Forecast
Demand & Supply Consumption Tools
Unconstrained Production Request
Manufacturing Capacities
M. Capa. Promise
Capa & Supply Provision Tools
Stocks coarse
Stocks fine APS coarse
Operational Demand
Product Capacities
P. Capa Promise
(fine)
Min Stock
Demand Fulfillment
Order Management
Orders / EDI Forecast
Confirmation
Target Allocation
(AATP)
Allocation
Orders / EDI Forecast
Request
Promise
System from I2 System from SAP Other vendors IFX own system
Forecast
Orders / EDI Forecast
Supply Plan
APS fine
Production Starts
Commit
Lot Tracking
Prod. Requests
Min Stock
An integrated IT Tool landscape supports further the implementation of the Plan processes
WIP
Technical release
Unconstrained Forecast
P. Capa. Promise (coarse)
(ATP)
Prod
. C
omm
it
PPOS RfP
FPOS
SKU
FP
SP
Orders / EDI Forecast
APS = Advanced Planning sytem for (semi) automated Supply Demand Balancing
Target Inventory Profile
Copyright © Infineon Technologies 2011. All rights reserved.
SCOR based processes Best of breed IT Tools Supportive Basic Data
Infineon’s Plan Process
11/14/11
Infineon’s
comprehensive
state-of-the-art
IT supported
process landscape
Copyright © Infineon Technologies 2011. All rights reserved.
One Web interface to access all Supply Chain related reports
Inventories (different views)
Delivery Reliability
Delivery Performance
Order Backlog
Supply Chain Cockpit
For SC experts
Drill down functionality to
individual product portfolio
Transparency of key performance
parameters
Transparent KPIs are key for a successful controlling of the SC network.
Page 19 Copyright © Infineon Technologies 2011. All rights reserved.
Table of contents
Infineon – Who we are and what us challenges
Decision: Transparency via SCOR based processes
Staying Ahead: Supply Chain Innovation
Summary
SC³
Supply Chain Academy
Execution: Flexibility and Speed
12.0 0.0 12.0 8.9
7.18 7.18
9.20 9.20
8.60 8.60
6.40
6.20
6.40
6.80 6.80
6.20
5.00 5.00
Page 20 Copyright © Infineon Technologies 2011. All rights reserved.
-5% -4% -3% -2% -1% 0% 1% 2% 3% 4% 5%
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 '10
-70% -60% -50% -40% -30% -20% -10% 0% 10% 20% 30% 40% 50% 60% 70% Global real GDP
Global Semi Market
We have to manage two extreme BIZ cycles.
Up Turn Down Turn
Time
BIZ
cycl
e
Copyright © Infineon Technologies 2011. All rights reserved. Page 21
-5% -4% -3% -2% -1% 0% 1% 2% 3% 4% 5%
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 '10
-70% -60% -50% -40% -30% -20% -10% 0% 10% 20% 30% 40% 50% 60% 70% Global real GDP
Global Semi Market
The Down Turn is simple to manage: you react when it comes, a delay of detection has a linear impact on the savings.
Up Turn Down Turn
Time
BIZ
cycl
e
We have to manage two extreme BIZ cycles. Both are an issue of detection, but…
12.0 0.0 12.0 8.9
7.18 7.18
9.20 9.20
8.60 8.60
6.40
6.20
6.40
6.80 6.80
6.20
5.00 5.00
Page 22 Copyright © Infineon Technologies 2011. All rights reserved.
Supply chain flexibility is key in down and up turns
Forecast are too often reflecting hope and prevent the organization to adjust to the new situation
Top down management adjustments are required and must be strong to change the mindset of the organization
forecasts
CALP
Development of CMOS capacity during downturn
Copyright © Infineon Technologies 2011. All rights reserved. Page 23
Tough and time limited resource adjustments
Short time work & unpaid leave 20% across all functions and sites
0% 5% 10% 15% 20% 25% 30%
Overall PD MNT POH FM So. OH Plan KU share per employee ACT KU share per employee Plan KU share overall ACT KU share overall
Partial switch off „Cold steel“ Maximum of ~ 45% tools
Reduce invest Reduce Invest to absolute
minimum – down to 30%
Optimize inventory Finished goods and diebank
inventory reduced to minimum reaches
Copyright © Infineon Technologies 2011. All rights reserved. Page 24
-5% -4% -3% -2% -1% 0% 1% 2% 3% 4% 5%
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 '10
-70% -60% -50% -40% -30% -20% -10% 0% 10% 20% 30% 40% 50% 60% 70% Global real GDP
Global Semi Market
We have to manage two extreme BIZ cycles. Both are an issue of detection, but…
The Up Turn is challenging: you have to foresee it by weeks or even months, a delayed detection has an exponential effect.
Up Turn Down Turn
Time
BIZ
cycl
e
12.0 0.0 12.0 8.9
7.18 7.18
9.20 9.20
8.60 8.60
6.40
6.20
6.40
6.80 6.80
6.20
5.00 5.00
Page 25 Copyright © Infineon Technologies 2011. All rights reserved.
Supply chain flexibility is key in down and up turns
Flexibility is key!
Development of CMOS capacity during upturn
forecasts
CALP
12.0 0.0 12.0 8.9
7.18 7.18
9.20 9.20
8.60 8.60
6.40
6.20
6.40
6.80 6.80
6.20
5.00 5.00
Page 26 Copyright © Infineon Technologies 2011. All rights reserved.
(allocation) in an upturn or excess inventory in a downturn“
Postponement
Reduce confirmable lead time.
Faster Response to demand changes
Diversification in BE
More cost flex in BE
significant value add in BE
BE Investment lead times ½ shorter than FE CT Frontend: 2-3 Months CT Backend: 3-5 Weeks
Diebank (Semi finished Goods
Finished Goods
Raw Material
Increase Speed from DB
Value of SPEED: 1d saving >0.1% cost of sales
Wafer stock DC
Buffer/ Stock
Buffer/ Stock
DIE BANK
Buffer/ Stock
Build to Forecast Make to Order
Page 27 Copyright © Infineon Technologies 2011. All rights reserved.
Table of contents
Infineon – Who we are and what us challenges
Decision: Transparency via SCOR based processes
Staying Ahead: Supply Chain Innovation
Summary
SC³
Supply Chain Academy
Execution: Flexibility and Speed
10.02.2010 Page 28 Copyright © Infineon Technologies 2011. All rights reserved.
The Importance of Collaboration in the Supply Chain Collaboration = Information Sharing
Sharing information across company boundaries enables win-win outcomes: Collaboration
increases responsiveness and smoothes fluctuations (“bullwhip”) along the supply chain.
Supply chains compete,
not companies!
Sources: Webinar GTNexus; Dr. Hau L. Lee
Page 29 Copyright © Infineon Technologies 2011. All rights reserved.
Table of contents
Infineon – Who we are and what us challenges
Decision: Transparency via SCOR based processes
Staying Ahead: Supply Chain Innovation
Summary
SC³
Supply Chain Academy
Execution: Flexibility and Speed
Page 30 Copyright © Infineon Technologies 2011. All rights reserved.
Infineon‘s SemiConductor Supply Chain Centers
WP 1: Information:
Collaboration with
Customers
WP 2: People:
Logistic staff knowledge
development
SC logistic business performance
WP 3: Technology
July 09 to Aug 11
Focus on Customer Interface
SC³ Ireland Achievements
WP1:• CustomerFCbehaviourandsalesFCbehaviourunderstood(UniversityofAppliedScienceMunich)
• Ongoingcollabora:onwithcustomeronCustomerFCbehaviour
WP2:• Diplomainsupplychain–BachelorandMasterlevel(UniversityofLimerick)
• CLMselec:onprocess• CLMtrainingsincl.Emo:onalInteligence(LMUMunich)
• SeriousGaming(MDHMunich)
WP3:• Webbasedtoolforprocesssupporte.g.:blockedstock(UniTech)
• Implementwebbasedprocessforcollabora:on
WP 1: Information:
Forecast Accuracy towards suppliers
WP 2: People:
Supplier collaboration process and know-how creation
SC logistic business performance
WP 3: Enabler: B2B IT Solution
Start October 10
Focus on Production Partner Interface
SC³ Singapore
12.0 0.0 12.0 8.9
7.18 7.18
9.20 9.20
8.60 8.60
6.40
6.20
6.40
6.80 6.80
6.20
5.00 5.00
Page 31 Copyright © Infineon Technologies 2011. All rights reserved.
SC³ bridges the gap
• Operations Research
• Scientific Papers
• University cooperation
• Conferences
• ...
• Inhouse/ production partner balancing
• Production partner capacity reservation
• Demand uncertainty
• ...
learn from theory...
... and turn it into value
SC³ Singapore
“SC³ Singapore” focuses on Collaboration & Information Sharing
Excellence with our production partner.
12.0 0.0 12.0 8.9
7.18 7.18
6.40
6.20
6.40
6.80 6.80
6.20
5.00 5.00
9.20 9.20
8.60 8.60
Copyright © Infineon Technologies 2011. All rights reserved. Page 32
START SORT
FURNACE IMPLANT Defect Density ETCHING PVD
CVD LITHOGRAPHY METROLOGY W E T C M P
In the past it was required to mainly manage internal Frontend SC fast and cost efficient
Fab Dresden - GE
Supply Chain at Infineon evolved from managing fabs to managing complex networks of manufacturing partners and customers
Prof. Zangl
Set date Page 33 Copyright © Infineon Technologies 2011. All rights reserved.
Semiconductor Supply Chain Science Center Network
Michael Hennessy
Prof. Martin Grunow Prof. Rainer Kolish Dr. Anulark Naber
Prof. John Fowler Prof. Lars Mönch
Prof. Hoppe
Prof.Detlef Urhahne & Jens van Scherpenberg
Joe Francis & Douglas Kent
Prof. Hau Lee
Prof. Brüggemann-Klein
Dr. Holly Ott
Singapore Institute of Management
Dr. Robert de Souza
Page 34 Copyright © Infineon Technologies 2011. All rights reserved.
Table of contents
Infineon – Who we are and what us challenges
Decision: Transparency via SCOR based processes
Staying Ahead: Supply Chain Innovation
Summary
SC³
Supply Chain Academy
Execution: Flexibility and Speed
12.0 0.0 12.0 8.9
7.18 7.18
9.20 9.20
8.60 8.60
6.40
5.00 5.00
6.40
6.80 6.80
6.20 6.20
Supply Chain Academy
The next generation of learning, teaching and knowledge gaining:
Training modules for the needed Know How for all personnel Globally same Processes, Tools and Know How Common understanding of the entire Supply Chain based on SCOR
12.0 0.0 12.0 8.9
7.18 7.18
9.20 9.20
8.60 8.60
6.40
6.20
6.40
6.80 6.80
6.20
5.00 5.00
Page 36 Copyright © Infineon Technologies 2011. All rights reserved.
The concept – IFX Supply Chain Academy (SCA)
SCM – an Infineon Competitive Advantage
Customer Logistics
Global Planning Demand-Capa
Planning Basics
Academic Bachelor
Experts
SC-Expert
Master
E-learning & OJT
University Partnership
Class Training Serious Gaming
12.0 0.0 12.0 8.9
7.18 7.18
9.20 9.20
8.60 8.60
6.40
6.20
6.40
6.80 6.80
6.20
5.00 5.00
Page 37 Copyright © Infineon Technologies 2011. All rights reserved.
eLearning modules provide training on demand supported by a state of the art IT platform
Status as of September 2011
Within 18 months: • more than 500 employees took advantage of the supply chain academy e-learning platform
SCA
Copyright © Infineon Technologies 2011. All rights reserved. Page 38
Classroom training supported by Serious Games for SC
Example: The Coffeegame used for training purposes makes the bullwhip effect tangible
SCA
12.0 0.0 12.0 8.9
7.18 7.18
9.20 9.20
8.60 8.60
6.40
6.20
6.40
6.80 6.80
6.20
5.00 5.00
Page 39 Copyright © Infineon Technologies 2011. All rights reserved.
Bachelor/Master program lifts supply chain education onto an academic level
Diploma in Supply Chain Management – joint bachelor program of Infineon and the University of Limerick: • End of 2010 the first group of students finished the one year distance learning program • The second group will graduate in a few weeks
SCA
Page 40 Copyright © Infineon Technologies 2011. All rights reserved.
Table of contents
Infineon – Who we are and what us challenges
Decision: Transparency via SCOR based processes
Staying Ahead: Supply Chain Innovation
Summary
SC³
Supply Chain Academy
Execution: Flexibility and Speed
Copyright © Infineon Technologies 2011. All rights reserved.
Executive Summary
Long production lead times and the bullwhip effect are two main challenges of semiconductor supply chains
Transparency and Speed help to master these challenges
Transparency is reached via IT supported SCOR based processes on an appropriate basic data structure
Speed is gained via reduction of planning overhead and transit lane optimization
To stay ahead of our competitors, know how distribution and innovation in Supply Chain are crucial
Page 41