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AppliedMicro's use of SAP Solutions to optimize …s use of SAP Solutions to optimize Supply Chain...
Transcript of AppliedMicro's use of SAP Solutions to optimize …s use of SAP Solutions to optimize Supply Chain...
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AppliedMicro's use of SAP Solutions to optimize Supply Chain
Chet Gandhi & Animesh Jhalani
May 15th 2013
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AppliedMicro Overview (NASDAQ: AMCC)
• Founded – 1979
• Headquartered in Sunnyvale, CA Company
• Fabless Semiconductor
• Processors and Connectivity chips Industry
• ~1200 customers with ~ 800 active products Customers
• ~ 650 Worldwide Employees
• Implemented SAP - 1996 ERP
• ECC 6.0, CRM, SCM, BW, BO Landscape
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Supply Chain - Path to Excellence
Foundation – Execution
Planning & Optimization
Analytics
Modeling
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Supply Chain - Path to Excellence - Foundation
Execution
• Migrating from In-house Mfg to Outsource environment
• Increase data accuracy through automation
W.O. Simplification
Project
B2B Project
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Work Order Simplification & B2B Project
Bump Sort Assembly + Laser Mark
Test /CO-Pdt
Ship to 3PL Backend
(for Co-pdt)
GI GRs GI GR GI GRs
PO+BWO PO+WO PO+AWO PO+WO PO+WO PO to Foundry
GR GI GRs GI
Confns Confns Confns Yield
Adj
Yield
Adj
Bump Sort Assembly + Laser Mark
Test + Backend Ship to 3PL
GI
WO+PO
GR GI GR
Confns Confns
GR
WO+PO
Confns Confns
GR GR GR
Solid triangles = manual steps, Hollow triangles = automated steps
PO to Foundry
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Supply Chain - Path to Excellence - Optimization
Execution
• Simplified & Automated Transactions
• B2B Automation
New BU
Ability to Scale
Planning
• Build Plan planning through Excel
• Manual bin substitutions
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Business Drivers for Planning Project
Complex Processor Binning New BU
• Support multi-level Binning ~64 products from 1 wafer
• Support Postponement Strategies at die bank and post test
Planning to double in 12-18 months Scalability
• Support “What if” scenario analysis
• Minimum extra master data maintenance
• Solution to allow capacity planning in future
• Reports for easier preparation of build plan meetings
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High Level Business Requirements
• Minimum extra master data set up in APO
• Continue to use ECC the same way Usability
• Automatically handle bin substitutions
• Handle “what-if” analysis
• Master data to be maintained in ECC
Solution
• All ECC reports must work
• Provide real time reporting across products
• Capture historical MRP snapshots
Reporting
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Planning Options in APO - SNP
• Planning similar to MRP
• Cannot account for constraints
• Supports Long term planning
Heuristics
• Cost based Heuristics planning
• Requires accurate cost data to derive reliable solution
Optimizer
• Multi-level supply & Demand matching
• Utilizes constraints and priorities
• Supports Material substitutions
CTM
Capable-to-Match
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SNP Planning Solvers Comparison
Focus Areas Heuristics CTM Optimizer
Functional Coverage
Viability of Plan Obtained
Difficulty of Configuration
Maintenance
Ease of Analyzing Planning Output
Performance
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CTM – Process Flow
SAP APO SAP ECC
SNP – CTM Engine
Planning Results
Transaction Data Master Data
Sales Orders Material Master
Supply Orders BOM + Routings
Inventory Production Versions
Substitution
Parameterization
Supply categorization
Results Analysis:
Planned Orders
Purchase Requisitions
Wafer Starts
Assembly Starts
Fuse & Mark Starts
BPS
Forecast
CIF
CT
M
Run
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Master Data: Only Substitution Rules in APO
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Real Time Reporting: APO Planning Book
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Project Success Factors
Show & Tell from the beginning User
Engagement
• Installed SCM DEV environment integrated with ECC sandbox for ‘real’ data
• Business user engaged regularly from proof of concept phase in SCM Dev
Phased Go-Live approach agreed Scope Control
• Users were available part time only
• Documented Requirements for each phase