appliedmicro's use of sap solutions to optimize …s use of sap solutions to optimize supply...
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1 © AppliedMicro Proprietary & Confidential
AppliedMicro's use of SAP Solutions to optimize Supply Chain
Chet Gandhi & Animesh Jhalani
May 15th 2013
2 © AppliedMicro Proprietary & Confidential
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