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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
Page 3© 2009 USJade Corp – Proprietary and Confidential
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.
Page 4© 2009 USJade Corp – Proprietary and Confidential
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
Page 5© 2009 USJade Corp – Proprietary and Confidential
• 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.)
Page 6© 2009 USJade Corp – Proprietary and Confidential
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
Page 7© 2009 USJade Corp – Proprietary and Confidential
Services Overview (cont.)
Page 8© 2009 USJade Corp – Proprietary and Confidential
XEROX INTERNATIONAL PARTNERS
Some of USJade’s Customers
Page 9© 2009 USJade Corp – Proprietary and Confidential
• 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/
Page 10© 2009 USJade Corp – Proprietary and Confidential
• 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
Page 11© 2009 USJade Corp – Proprietary and Confidential
1. Introductions
2. Fabless Semiconductors- Features and Challenges
3. SST Challenges
4. USJade Solutions
5. Questions
Program Agenda
Page 12© 2009 USJade Corp – Proprietary and Confidential
• 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
Page 13© 2009 USJade Corp – Proprietary and Confidential
• 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.)
Page 14© 2009 USJade Corp – Proprietary and Confidential
• 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.)
Page 15© 2009 USJade Corp – Proprietary and Confidential
Agenda
• Introductions• Fabless Semiconductors- Features and Challenges• SST’s Challenges• USJade Solutions• Questions
Page 16© 2009 USJade Corp – Proprietary and Confidential
• 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
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
Transactions sent through
Copy on the G-Drive + Run
formatting macros
Transactions sent through
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
SST’s ChallengesPrevious Business Process & Challenges
Page 17© 2009 USJade Corp – Proprietary and Confidential
• 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.)
Page 18© 2009 USJade Corp – Proprietary and Confidential
• 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.)
Page 19© 2009 USJade Corp – Proprietary and Confidential
Agenda
• Introductions• Fabless Semiconductors- Features and Challenges• SST Challenges• USJade Solutions• Questions
Page 20© 2009 USJade Corp – Proprietary and Confidential
• 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
Page 21© 2009 USJade Corp – Proprietary and Confidential
• 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
Page 22© 2009 USJade Corp – Proprietary and Confidential
• 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.)
Page 23© 2009 USJade Corp – Proprietary and Confidential
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
Page 24© 2009 USJade Corp – Proprietary and Confidential
B2B Architecture
Page 25© 2009 USJade Corp – Proprietary and Confidential
• 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
Page 27© 2009 USJade Corp – Proprietary and Confidential
•User Error Management and Corrections•Edit Manual Transactions
B2B GUI- Error Correction
Page 28© 2009 USJade Corp – Proprietary and Confidential
B2B GUI- Reports and Audits
•Exceptional Auditing and Reporting Capabilities
Page 29© 2009 USJade Corp – Proprietary and Confidential
B2B GUI- Admin and Setups
Vendor Management and Admin Capabilities
Page 30© 2009 USJade Corp – Proprietary and Confidential
• 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
Page 31© 2009 USJade Corp – Proprietary and Confidential
• 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
Page 32© 2009 USJade Corp – Proprietary and Confidential
• 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
Page 33© 2009 USJade Corp – Proprietary and Confidential
• 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
Page 34© 2009 USJade Corp – Proprietary and Confidential
&AQ
Page 35© 2009 USJade Corp – Proprietary and Confidential
Contact Us
Manoj RathiPrincipal ConsultantUSJade Corpmrathi@usjadecorp.comOffice: 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
Page 36© 2009 USJade Corp – Proprietary and Confidential