Semiconductor Industry Value Network Executive Round Table

Transcription

1 Semiconductor Industry Value Network Executive Round Table November Harmony & 9 th Performance 2007, Palo in Alto, the CA Semiconductor Supply Chain Bill White Former CIO Amkor Technology Former Chairman RosettaNet SEAL Consulting

2 Metaversal Elephant Blind Men and the Elephant by John Godfrey Saxe It was Six Blind Men of Indostan To learning much inclined, Who went to see the Elephant Though all of them were blind, That each by observation Might satisfy his mind Observations: A Wall A Spear A Snake A Tree A Fan A Rope The Story Continues: And so these men of Indostan Disputed loud and long, Each in his own opinion Exceeding stiff and strong, Though each was partly in the right, And all were in the wrong! Moral: So oft in metaversal wars, The disputants I ween, Rail on in utter ignorance Of what each other mean, And prate about an Elephant Not one of them has seen!

3 Metaversal Semiconductor Elephant We all seek Harmony in the Electronics Supply Chain Fabless, IDM, OEM, ODM, EMS, Matl Supply, Equip Mfr However Much like the men of Indostan We rail on information data format frequency integration visibility etc. Component Suppliers Procurement Control Purchase Orders N-Tier Visibility & Status My Company Management Wants: Dashboard Visibility Electrical Test Assembly Wafer Sort Process in SAP* Contract Manufacturing Manufacturing Visibility Production Orders Costs, Yields, Status Instructions Supply Chain Org Wants: Increased Visibility & Control Wafer Bumping Wafer Fabrication Silicon Wafer Allow me to rail on

4 Observations: holding the rope (Back end Assy & Test) Amkor (Nasdaq: AMKR) is one of the world s largest providers of advanced semiconductor assembly and test services. Electrical Test Assembly Wafer Sort Wafer Bumping Wafer Fabrication Silicon Wafer Process in SAP* Many Customer specific requirements; order, work-in-process, ship, etc. assembly & test billing, etc. EDI, RN, Web Input, Terminals, etc. 9% Customer / Revenue Profile More than 150 companies

5 RosettaNet Councils Arms Around the Elephant CCE Council represents the Consumer Products supply chain, including Original Equipment Manufacturers (OEM), distributors, retailers and service providers. EC Council represents the Electronics Components supply chain, including semiconductor suppliers, passive suppliers, connector suppliers, distributors and customers. LG Council represents the Logistics sector including manufacturers, third-party logistics providers, freight forwarders, distributors, sea ports, ocean liners and airlines. SM Council represents the Semiconductor Manufacturing supply chain, including integrated device manufacturers, fabless device manufacturers, foundries, materials suppliers, and assembly, test and probe companies. SP Council represents the Solution Provider community, including enterprise application developers, solution integrators, and consultancies. TC Council represents the Telecommunications supply chain, including global network operators and equipment suppliers. Freight Invoicing Payment RosettaNet Partner Interface Processes (PIPs). Engineering Information Mgmt Product Change Notification/ End of Life ecustoms Declaration Service Contract Mgmt Shipment Booking & Status Shipment Notification Mgmt Design Payment Demand Creation Order Logistics Forecast Manufacture Material Release Fulfillment Details Ordering Installation Svcs Sales Reporting RosettaNet Automated Enablement Automated Ticketing Material Composition Semiconductor In-Line Process Data Exchange Semiconductor Test Data Exchange Motive On Target Community Interactive Total Cost of Ownership A Bit High The Challenge Continues

6 Bringing Harmony to the Supply Chain 1800 Overall SAP R&D Investment Millions 1,737 A Great Investment / Return Example ,114 1,125 1,183 1,236 1,326 1,524 Engineering Information Mgmt Product Change Notification/ End of Life Freight Invoicing Payment Design Demand Creation Order Forecast Material Release Fulfillment Details Ordering Installation Svcs Sales Reporting RosettaNet Automated Enablement ecustoms Declaration Service Contract Mgmt Shipment Booking & Status Shipment Notification Mgmt Payment Logistics Manufacture Automated Ticketing Material Composition Semiconductor In-Line Process Data Exchange Semiconductor Test Data Exchange A significant amount of SAP R&D investment is dedicated to the Semiconductor industry: Manufacturing Visibility & Control Design Win Opportunity Mgt. Channel Management Collaborative demand & supply planning Multi-level ATP, CTP Master Data Management Regulatory compliance (SOX, Trade compliance) Environmental product compliance RosettaNet User Interaction SAP SNC 5.1 Web-Based User Interface Business Processes Supplier Dynamic Managed Replenishment Inventory Purchase Order Process Work Order Collaboration Demand Collaboration Release Process Supply Network Inventory Responsive Replenishment Basic Services Exception Master Data Management RFID Powered by SAP NetWeaver XML Message Exchange Kanban Process Invoice Collaboration Engineering Change Collaboration* Other Demand Data Validation

7 Semiconductor Industry Value Network Executive Round Table November 9 th 2007, Palo Alto, CA Performance in the Semiconductor Supply Chain CEO / Senior Mgmt Agenda Stratify the Business

8 CEO / Senior Mgmt Agenda Stratify the Business EVP Sales Manufacturing Minimize cost of inventory produced Strategy Be - First Be - Best Be - Lowest Cost VP Marketing Maximize customer satisfaction by reducing backorders VP Finance Minimize inventory to manage cash flow Maximize sales of new products Partners Top Customer What I really need is higher quality products The process of developing and executing Operations a strategy is Marketing plagued by lack of insight, miscommunication, and misalignment CEO & Board Sales LOB EXECUTIVES (Strategic) MID-MANAGERS (Operational) Finance Marcom Director On-time launch of new marketing campaign Lead Supplier I could increase quality by using a new type of raw material EXECUTION LEVEL (Tactical) Customers Sales Manager Field Sales Exec Financial Analyst Suppliers High price point sales Maximize pipeline Inventory costs are up

9 Benchmarking the Elephant(s) Unlike the men of Indostan our Elephant(s) are not standing still Areas Evaluated Value Gap User Acceptance Overall * Eyes on Africa Travel Safaris SUPPLY CHAIN MANAGEMENT Demand Planning (Forecasting & S&OP) Supply Network Planning and Inventory Management Production Planning and Detailed Scheduling Global ATP Benchmarking: Process Organization Technology Road-mapping & Alignment SUPPLIER RELATIONSHIP MANAGEMENT Strategic Sourcing (Spend analysis, RFX, Auction) Catalog Management Operational Procurement (Self Service) PRODUCT LIFE CYCLE MANAGEMENT Design Collaboration (cfolders) Change and Configuration Management (LCDM) Document and Product Structure Management (ERP) Quality Engineering (ERP) Transportation Planning Supply Chain Visibility Supplier Portal (Supplier Self Service) CAD Integration PLM Program Management Strategic Enterprise Management * Criteria Weighting: Value (30%), Gap (30%), User acceptance (40%) Solution not proposed due to low priority High Priority Low A Value Added SAP Service

10 Enjoy the IVN