CEITEC: Slashing Process Work by 50% with SAP S/4HANA

Transcription

1 Picture Credit Shutterstock/Cake78. Used with permission. SAP Business Transformation Study High Tech CEITEC CEITEC: Slashing Process Work by 50% with SAP S/4HANA Brazil-based CEITEC S.A. Semiconductors needed a better enterprise resource planning (ERP) solution for running its integrated circuit design and manufacturing business. By choosing SAP S/4HANA, CEITEC cut costs while improving internal and external integration, strengthening business processes, and delivering moreaccurate data in real time.

2 Company CEITEC S.A. Semiconductors Headquarters Porto Alegre, Brazil Industry High tech integrated circuit (IC) design and manufacturing Products and Services RFID ICs for passports, automobiles, ATM cards, and cattle ear tags Employees 200 Web Site BUSINESS TRANSFORMATION Objectives Integrate processes internally and with the government Achieve material traceability throughout production Strengthen business processes and increase information accuracy Cut costs for IT infrastructure and services Selected SAP S/4HANA as its digital core Adopted SAP Best Practices for Semiconductor and Photovoltaic Companies Used SAP Fiori apps to provide real-time data on mobile devices Benefits Helped bring Brazil into the 21st century by serving as gatekeeper to the Internet of Things (IoT) Integrated financial processes directly with the government system, avoiding duplication of effort Delivered more-accurate data in real time to speed up period-end closing and accelerate reporting Automated production processes, resulting in lower labor costs Attained traceability, thereby facilitating problem diagnosis across the assembly line Anticipated material shortages in time to head them off Read more 50% Less work for the finance department Zero Delay in month-end closing, down from 3 weeks Minimal Total cost of ownership (TCO) compared with the previous system Our use of SAP S/4HANA will definitely help our company grow faster. Ireneo Alfaro Demanarig Junior, CIO, CEITEC S.A. Semiconductors 2 / 6

3 Improving quality of operations while containing costs CEITEC S.A. Semiconductors, owned by the Brazilian government, designs and manufactures RFID integrated circuits that are embedded for identification purposes into passports, cars, ATM bank cards, and cattle ear tags. For running its business, CEITEC started with homegrown ERP software. It soon became apparent that the company needed something much better a strong, comprehensive ERP solution that integrated all aspects of the business. One particularly glaring need was to electronically integrate production control and material purchasing to take the guesswork out of buying materials. The integration requirements were not just internal: CEITEC also needed its ERP solution to integrate with financial application software used by the Brazilian government so that financial operations would no longer have to be performed separately in each system. CEITEC wanted to be able to better trace materials as they flow through production, an error-prone, manual process that is critically important in the integrated circuit (IC) business. The new solution had to be easier to learn and use, and reporting had to be less time-consuming for the administrative team. It was essential to improve overall process quality and information accuracy to avoid, for example, receiving invoices for contracts that had already been completed. By making improvements in all these areas, CEITEC knew it could improve its overall operations and positively impact not only its own business but also that of its suppliers and customers. CEITEC also wanted to do a better job of containing costs, especially in IT infrastructure and services. 3 / 6

4 A company-wide software and best practices solution After carefully researching the ERP industry, CEITEC found that SAP S/4HANA clearly satisfied its needs. We were looking for a single system that through integration would provide accurate information on product cost while connecting us electronically with the government s system, says Daniel Brod Oliveira da Rosa, advanced electronic technology specialist for CEITEC. We got all that and a lot more with SAP. By choosing SAP S/4HANA, CEITEC addressed its cost conservation goals as well. We found the savings to be amazing, explains Ireneo Alfaro Demanarig Junior, CEITEC s CIO. We got rid of our old database and avoided the cost of servers, storage, and software licenses. And not once since we went live have we had to call in consultants to help deal with errors. That s because we haven t had any errors. CEITEC was pleased to see another important benefit that the SAP solution could deliver help in optimizing its business processes. We simply copied the semiconductor industry best practices that were free from SAP and adapted our business processes to them, Demanarig says. No more reinventing the wheel. For implementation assistance, CEITEC engaged a local SAP partner as the system integrator. The solution center organization from SAP Brazil provided help as needed, as did experts from the SAP Early Adopter Care program. We use SAP S/4HANA for the entire IC business of CEITEC, from purchasing, finance, and accounting to the factory shop floor and contract management. Ireneo Alfaro Demanarig Junior, CIO, CEITEC S.A. Semiconductors 4 / 6

5 First to integrate with the government s systems CEITEC has become the first government-owned company to establish direct integration with the Brazilian government system, cutting financial process work in half. Its business processes are much stronger, which means no more problems like receiving invoices for already finished contracts. CEITEC s IT people sleep well knowing that they won t receive calls in the middle of the night. The solution is easier to learn and more efficient for reporting. Since data is delivered in real time, there is no longer a three-week delay in the monthly closing. Real-time data is available to CEITEC employees and managers, its board, the government, suppliers, and customers. And with help from SAP Fiori apps, it is available instantly on their mobile devices. In the factory, CEITEC has achieved complete traceability at the individual chip level, providing the data necessary for analyzing root causes of yield problems and developing solutions. Production process automation avoids duplication of data and eliminates human error. With the SAP solution, I can forecast production demands months earlier than before, says Andre Doerr, a process engineer for CEITEC. It s a far better system for planning plant operations. All these improvements mean that CEITEC is doing better than ever at satisfying the needs of its customers. Ranchers, for example, are receiving all the RFID chips they need for ear tags to comply with government regulations for identifying cattle pedigrees and histories. 5 / 6

6 CEITEC Fulfilling the potential as South America s only IC supplier Successful as it has been, CEITEC is far from finished with its SAP solution implementation. One very important step in the plan is to move the entire organization completely to SAP S/4HANA as its digital core. The company believes this move will deliver further benefits to all its departments by making the IT environment even more digitalizationfriendly. Studio SAP (16/12) CEITEC is currently the only IC producer in South America, which means it has a competitive edge throughout the continent in all the large markets it serves. Think about how many digital passports our government issues, how many cars we produce, how many ATM cards our banks provide, and how many of our cattle need ear tags, says Demanarig. Our move to SAP solutions is a big part of our ability to take advantage of this opportunity. In five years, CEITEC will be a remarkable business. 6 / 6 Picture Credit Shutterstock/Cake78. Used with permission.

7 No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP SE or an SAP affiliate company. SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP SE (or an SAP affiliate company) in Germany and other countries. Please see for additional trademark information and notices. Some software products marketed by SAP SE and its distributors contain proprietary software components of other software vendors. National product specifications may vary. These materials are provided by SAP SE or an SAP affiliate company for informational purposes only, without representation or warranty of any kind, and SAP SE or its affiliated companies shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP SE or SAP affiliate company products and services are those that are set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional warranty. In particular, SAP SE or its affiliated companies have no obligation to pursue any course of business outlined in this document or any related presentation, or to develop or release any functionality mentioned therein. This document, or any related presentation, and SAP SE s or its affiliated companies strategy and possible future developments, products, and/or platform directions and functionality are all subject to change and may be changed by SAP SE or its affiliated companies at any time for any reason without notice. The information in this document is not a commitment, promise, or legal obligation to deliver any material, code, or functionality. All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates, and they should not be relied upon in making purchasing decisions.