1 Shop Floor Manager (OSFM) and Business to Business (B2B) Guidelines Jerry Edwards

2 Cowboy’s Guide to Life : The first thing to do when you get up in the morning is to put on your Stetson. The 2nd thing to do when you get up in the morning is to put on your boots. Talk low, talk slow, and don’t say too much You don’t need decorated words to make your meanin’ clear. Say it plain and save some breath for breathin’.

3 Definitions : Shop Floor Manager (OSFM): Lot centric and lot/serial number centric manufacturing product Stage: Product physical state and unit of measure. Semiconductor stages include: FAB, BUMP, SORT, DIE, ASSEMBLY, TEST, FGI Adaptor: Custom code to generate Oracle application transactions based on vendor reported events

4 Definitions : …continued Event: Action affecting a product lot that vendor must report Data element: specific data to support B2B communication and a specific Oracle application transaction Business to Business Communications (B2B): Subcontractor manufacturing event communication and processing into Oracle purchasing, inventory, and OSFM application modules

5 Scope: OSFM Suggestions Product structure Network routing Mapping subcontractors into OSFM Single inventory organization for all vendors Vendor specific inventory organizations Business to Business (B2B) Functional Requirements

6 OSFM Product Structure Suggestions Separate part numbers for each stage FAB/SORT/DIE/ASSEMLED DIE/TESTED DIE/FINISHED DIE Network routing scope: start and complete work orders at the same vendor for a single part number (stage) Keep routings simple Define alternate rework paths if required

7 Mapping subcontractors to OSFM Single inventory organization for all vendors One Inventory organization per vendor Hybrid: Separate inventory organizations for major vendors Single inventory organization for smaller volume vendors

8 Mapping subcontractors to OSFM –Single inventory organization for all vendors Represent vendors via subinventory names to represent vendor / product stage Setup an intransit subinventory to track lots moving between vendors + for monthly close –One inventory organization to close - For Advance Supply Chain Planning –Sourcing rules apply to inventory organizations so ASCP cannot recommend vendors via sourcing rules –Excludes product transit time among vendors

9 Mapping subcontractors to OSFM Separate inventory organizations for each vendor Subinventories represent product stage - for product costs (more complex) - for monthly close (multiple organizations to close) + for Advanced supply chain planning – Sourcing rules for vendor inventory organization –Explicit transit times

10 Business to Business Communications B2B Subcontractor manufacturing event communication and processing into Oracle purchasing, inventory, and OSFM application modules

11 B2B Process Outline 1.Collecting vendor event data 2.Vendor event database 3.Vendor event processing 4.Vendor B2B performance measurement 5.Backup Processes 6.Vendor bring-up for manual and automated reporting 7.B2B Project suggestions

12 B2B Process Outline 1.Collecting vendor event data tasks Define stages and events within each stage by product line Define product lines: Product line scope: same stage sequence same events within each stage

13 B2B Process Outline 1.Collecting vendor event data tasks Define stage and event matrix Define event data elements Oracle transaction data elements B2B data elements

14 B2B Process Outline 1.Collecting vendor event data tasks Stage and Event Matrix

15 B2B Process Outline 1.Collecting vendor event data tasks Define data elements for each stage and event combination

16 B2B Process Outline 1.Collecting vendor event data tasks Stage and event example: SHIP at FAB EVENT CODE SHIP Vendor ID This field represents the Partner’s DUNS number and needs to be reported by every partner. Vendor Location ID This field represents the Location DUNS number for Vendor Site location at which the respective manufacturing stage is being processed. To Vendor ID This field represents the ship-to vendor’s Location DUNS number.

17 B2B Process Outline 1.Collecting vendor event data tasks SHIP at FAB: Stage and event Example continued… Transaction ID Vendors need to report a transaction identifier that will be unique for all the events that are being reported by the vendor. This field eliminates confusion between NetLogic and vendor when errors occur with a transaction. Transaction Date and Time Vendors need to report all the transactions in GMT time and in 24 hr format. Code the value as per xml format ‘YYYYMMDDThhmmssZ’. Part Number This field represents a NetLogic Microsystems part number being purchased as per PO line provided to the FAB vendor. Manufacturer Part Number: This field represents the FAB part number assigned by the Wafer Foundry that cross references to the Netlogic part number.

18 B2B Process Outline 1.Collecting vendor event data tasks SHIP at FAB: Stage and event Example continued Lot Stage Identifier This field represents physical location of the lot in the manufacturing cycle. This is a hardcoded field and needs to be reported as “FAB” all the time for all transactions being reported as shipment from the Fab vendors. Lot Type Classification This field represents the classification of the Lot and has two possible choices, Engineering Production This is needed if vendors cannot omit engineering lots from reporting. Lot Number This field represents the FAB assigned lot number to the lot that is being shipped by the FAB vendor. Each event requires a unique lot number. Do not report the same part number, lot number for multiple shipments.

19 B2B Process Outline 1.Collecting vendor event data tasks SHIP at FAB: Stage and event Example continued Lot Quantity This field represents the full lot quantity being shipped for the purchased part number. PO Number This field represents the NetLogic PO number for the purchased wafer. and lot. PO Line Number (optional) This field represents the NetLogic assigned PO Line number for the purchased part number and lot. Note: automation will be easier if the FAB vendor can supply the PO line number in addition to the PO number. REPEAT FOR ALL PRODUCT LINE STAGE/EVENTS

20 B2B Process Outline 1.Collecting vendor event data tasks Generate vendor reporting requirements document to include: Reporting rules by stage Stage and event data elements with explicit definitions

21 B2B Process Outline 1.Collecting vendor event data tasks Generate Network Routing Flow document Routing flow for each product line and stage Enables vendors to map their routings to OSFM network routings Multiple vendor operations occur for each OSFM operation OSFM operations are based on pay points and product status requirements

22 B2B Process Outline 1.Collecting vendor event data tasks Generate vendor communications bring up document: Manual reporting Automated reporting

23 B2B Process Outline 1.Collecting vendor event data tasks Manual Reporting Require event reporting that builds foundation for automated reporting Do not derive Oracle application transactions from vendor snapshots Error prone User accepts ownership for playing the correct transaction rather than the vendor accepting responsibility to report events in correct sequence

24 B2B Process Outline 1.Collecting vendor event data tasks: Select data collection process and event data format and language Data Collection Process Options File Transfer Protocol (FTP) or secure FTP Vendor places file on a server User retrieves the file from the server B2B Software (Web Services) TIBCO, BEA, IBM, etc. Vendor communicates specific data package B2B software authenticates, validates, and passes event to a B2B database

25 B2B Process Outline 1.Collecting vendor event data Event Data Formats and language. CSV files, comma delimited flat files matching user proscribed format and text language RosettaNet Partner Interface Process (PIP) by mapping event data elements to pre-defined columns for a PIP event (7B1) Distribute WIP Each PIP specification includes a business document and a detailed business process that includes interaction, data transmission, security and error-handling requirements. Language: usually XML

26 B2B Process Outline 1.Collecting vendor event data tasks –Data Formats and language Extensible Markup Language (XML) XML was designed to describe data and to focus on what data is. The Main Difference Between XML and HTML XML was designed to carry data. XML is not a replacement for HTML. XML and HTML were designed with different goals: XML was designed to describe data and to focus on what data is. HTML was designed to display data and to focus on how data looks. HTML is about displaying information, while XML is about describing information.

27 B2B Process Outline 1.Collecting vendor event data tasks XML Example: Tove Jani Reminder Don't forget me this weekend! The note has a header and a message body. It also has sender and receiver information. But still, this XML document does not DO anything. It is just pure information wrapped in XML tags. Someone must write a piece of software to send, receive or display it.

28 B2B Process Outline 1.Collecting vendor event data tasks Data Formats RosettaNet 7B1 Simple Object Access Protocol (SOAP) 1.1 XML based protocol that consists of three parts: an envelope that defines a framework for describing what is in a message and how to process it, a set of encoding rules for expressing instances of application- defined datatypes, and a convention for representing remote procedure calls and responses. ebXML Business Process Specification Schema (BPSS) ebXML (Electronic Business using eXtensible Markup Language), is a modular suite of specifications that enables enterprises of any size and in any geographical location to conduct business over the Internet.

29 B2B Process Outline 1.Collecting vendor event data tasks Generate a trading partner agreement (TPA) with each vendor. Communication process (FTP, Web Service, etc.) Event content Communication frequency (daily, per shift, etc.) Error Handling Level 1: format Level 2: content Vendor bring up and certification process

30 B2B Process Outline 1.Collecting vendor event data tasks  If you’re ridin’ ahead of the herd, take a look back every now and then to make sure it’s still there.  Don’t re-invent the wheel. Take advantage of existing software and standards.

31 B2B Process Outline 2. Vendor event database Event Processing Level 1 Validation of vendor events File Format Data file uniqueness File Parsing (corrupt data) Successful insert to vendor data base Send response to vendor for each reported event

32 B2B Process Outline 2. Vendor event database Event storage Convert vendor reported event into an input record for the vendor database. Insert vendor reported events into a common database independent of the manner in which vendors reported the event. This is often referred to as a canonical database.

33 B2B Process Outline 2. Vendor event database Event storage…continued Store events as reported but enable error correction process to change event data elements PRIOR to generating and uploading Oracle applications transactions. Generally vendors resend events for level 1 errors only Vendors resend events with new transaction ID’S for a level 2 (content) errors.

34 B2B Process Outline 2. Vendor event database Maintain event status codes (details in next section) Event archive and purge: Provide process to archive data and reduce active database size.

35 B2B Process Outline 3. Vendor event processing Event status: Maintain vendor reported event processing status codes per event New: Loaded into vendor data base Error: Data content (based on level 2 validation) Pending: Event is out of sequence based on Product line, stage, and event pre-defined matrices Ready for Upload to Oracle applications Error: Upload error in Oracle open interface Successful Upload: Loaded successfully through open interface into Oracle application

36 B2B Process Outline 3. Vendor event processing Error Checking: Design Level 2 (content) validation to ensure generated Oracle applications transactions will process successfully through Oracle application open interface tables. Design level 2 error checks by product line, stage, and event. (samples follow)

37 B2B Process Outline 3. Vendor event processing Receipt Validate correct event sequence (check last successful event and pre-defined event sequence table) Valid part#/Lot#/Quantity Correct vendor mapping ( INV ORG and vendor subinventory mapping) Report lot attributes if required at reported stage

38 B2B Process Outline 3. Vendor event processing Split/Merge processing Validate correct event sequence (check last successful event and pre-defined event sequence table) Valid part#/Lot#/Quantity Required fields available Meets pre-defined split and merge business rules

39 B2B Process Outline 3. Vendor event processing Start: Work order start Validate correct event sequence (check last successful event and pre-defined event sequence table) Valid part#/Lot#/Quantity Required fields available Valid bill of material and routing Valid component part#, lot, quantity, or component lots (multiple components) Report lot attributes if required at reported stage

40 B2B Process Outline 3. Vendor event processing Map events to Oracle transactions: Adaptor will generate appropriate Oracle transactions or series of transactions for successful event. Examples follow: Receipt: Inventory receipt Split: Inventory lot or work order lot split Merge: Inventory lot or work order lot merge Start: work order start Move: work order move Complete: work order move/complete Ship: Inventory lot transfer or inter-org transfer

41 B2B Process Outline 3. Vendor event processing Error correction process requirements Track errors in the vendor event database by maintaining error codes and explanations Link appropriate error code to vendor event records where errors are identified

42 B2B Process Outline 3. Vendor event processing Error correction process requirements...continued Develop user form based interface to: Query errored events and enter data corrections. The goal is to correct errors rather then deleting records and having vendors resend. Each vendor input event is a unique transaction regardless of transaction data. User resets event status code so that adaptor next run will recheck this event and if successful generate Oracle transaction and upload to Oracle applications

43 B2B Process Outline 3. Vendor event processing Event sequencing requirements: Sequence events by maintaining product line and stage allowed event sequence matrices. This is a key process. For some events multiple predecessor and successor events are possible. Generate Oracle applications transactions for events that pass level 2 validation.

44 B2B Process Outline 3. Vendor event processing Load transactions to Oracle interfaces Identify errors in Oracle interface: Record data and remove errored records from Oracle open interfaces. Report errors so that users can correct input data or address and Oracle software based problem. Event status changes: Update event status as event is processed into Oracle applications

45 B2B Process Outline 4. Vendor B2B performance measurement Generate reports that measure vendor reporting results Timely reports Accuracy by stage and event and part#. Report comparing vendor system on hand balances and open work orders with Oracle application on-hand balances and open work orders.

46 B2B Process Outline 5. Backup Processes Vendor reporting: alternate reporting method if automated reporting is down. May be possible depending on volume Vendor event processing if automated system is down for extended period. Playing transactions directly into Oracle applications. Holding events when ERP system is down.

47 B2B Process Outline 6. Vendor bring-up for manual and automated reporting Key Documents for vendors B2B MFG Vendor reporting requirements document Reporting rules by stage and event Event reporting details by stage and event User Product Routing flows Vendor communications process

48 B2B Process Outline 7. B2B Project suggestions Vendors understand user part numbers, product structures, and network routings Generate consistent reporting process across all vendors Allow time for rigorous testing of all events Parallel testing with real data is wise particularly if volume is high Expect high error volume at first Go live when you can correct errors within one day Error correction is effective Vendors respond quickly to reported errors

49 B2B Process Outline Makin’ it in B2B is kinda like bustin’ broncs: your gonna get thrown a lot. The simple secret is to keep getting’ back on.

50 B2B Process Outline Contact Information Jerry Edwards