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Oracle Shop Floor Management with

Contract Manufacturer Integration
and USJade Extensions
Manoj Rathi, Principal Consultant
USJade Corp.

Jeff Lin, VP of Backend Operations

Silicon Storage Technology, Inc.
NorCal OAUG Training Day - January 21, 2009

Program Agenda
1.
2.
3.
4.
5.

Introductions
Fabless Semiconductors: Features and Challenges
Silicon Storage Technologys (SST) Challenges
USJade Solutions
Questions

2009 USJade Corp Proprietary and Confidential

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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.

2009 USJade Corp Proprietary and Confidential

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USJade Introduction
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

2009 USJade Corp Proprietary and Confidential

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USJade Introduction (Cont.)

Domain knowledge and Industry specialization
Successful track-record of customer satisfaction
Client-focused approach
From initial strategy to deployment that best meet our clients 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

2009 USJade Corp Proprietary and Confidential

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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

2009 USJade Corp Proprietary and Confidential

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
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Services Overview (cont.)

2009 USJade Corp Proprietary and Confidential

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Some of USJades Customers

XEROX INTERNATIONAL PARTNERS

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Silicon Storage Technology, Inc. (SST)

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

2009 USJade Corp Proprietary and Confidential

http://www.sst.com/

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SST & USJade: a Partnership

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

2009 USJade Corp Proprietary and Confidential

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Program Agenda
1. Introductions
2. Fabless Semiconductors- Features and
Challenges
3. SST Challenges
4. USJade Solutions
5. Questions

2009 USJade Corp Proprietary and Confidential

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Fabless Semiconductor
Features & Challenges
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

2009 USJade Corp Proprietary and Confidential

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Fabless Semiconductor
Features & Challenges (cont.)
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 writeoffs.

2009 USJade Corp Proprietary and Confidential

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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

2009 USJade Corp Proprietary and Confidential

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Agenda

Introductions
Fabless Semiconductors- Features and Challenges
SSTs Challenges
USJade Solutions
Questions

2009 USJade Corp Proprietary and Confidential

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SSTs Challenges
Previous Business Process & Challenges
Transactions
sent through
email

Error
Management

WFG
Sort

Error
Management

MBE
Copy on the GDrive + Run
formatting macros

Input transaction
Access databases

VTC

IC

Error
Management
Processing
databases

Error
Management

SWR

ARP

OJM

AVC

Checker
IV

LVC

Expense
PO

Ship Alert

Ship Alert

Flat
Files

EMTT

Oracle
Interface
table

Oracle

IC

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

2009 USJade Corp Proprietary and Confidential

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SSTs Challenges (cont.)

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

2009 USJade Corp Proprietary and Confidential

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SSTs 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

2009 USJade Corp Proprietary and Confidential

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Agenda

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

2009 USJade Corp Proprietary and Confidential

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USJade Solutions and Extensions

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

2009 USJade Corp Proprietary and Confidential

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OSFM Implementation
Project Overview
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

2009 USJade Corp Proprietary and Confidential

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OSFM Implementation
Project Overview (cont.)
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

2009 USJade Corp Proprietary and Confidential

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Integrated Lot Tracking System - B2B

GUI for User Admin, Customer and
Vendor Mapping, Error Correction,
and Reporting
B2B Transactions

Portal for

From

Customers

Manufacturing

to View and

Vendors

download
Manufacturing

B2B
Inbound/

B2B
Outbound/

Outbound/

B2B
Database

Middleware

Transactions

Customer
Portal

USJade Custom Adaptors

Oracle EBS with OSFM, ASCP,PO Manufacturing,
Financials, Order Management
2009 USJade Corp Proprietary and Confidential

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B2B Architecture

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B2B Key Features

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.

2009 USJade Corp Proprietary and Confidential

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B2B Events to Transaction Mapping

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B2B GUI- Error Correction

User Error Management and Corrections
Edit Manual Transactions

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B2B GUI- Reports and Audits

Exceptional Auditing and Reporting Capabilities

2009 USJade Corp Proprietary and Confidential

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B2B GUI- Admin and Setups

Vendor Management and Admin Capabilities

2009 USJade Corp Proprietary and Confidential

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Integrated Lot Tracking System- B2B

Key Benefits

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

2009 USJade Corp Proprietary and Confidential

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OSP Integrations

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

2009 USJade Corp Proprietary and Confidential

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Work In Process (WIP) Costing &

Job Close Process

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

2009 USJade Corp Proprietary and Confidential

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Enhanced Reports

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

2009 USJade Corp Proprietary and Confidential

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&

Q A
2009 USJade Corp Proprietary and Confidential

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Contact Us
Manoj Rathi
Principal Consultant
USJade Corp
mrathi@usjadecorp.com
Office: 408-436-8303 x48

USJade Corp
2001 Gateway Place,
Suite 570W
San Jose, CA 95110
http://usjadecorp.com
USJade Ltd.
E-Space IT Park, A-3, 2nd Floor,
102 D/E, Wadgaon Sheri,
Pune-Nagar Road, Pune 411014

2009 USJade Corp Proprietary and Confidential

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 2009 USJade Corp Proprietary and Confidential

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