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Taking a Proactive Approach to Effective Supply Chain Management

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Global Semiconductor Alliance LEADERSHIP THROUGH GLOBAL COLLABORATION IS YOUR SUPPLY CHAIN READY FOR AN ECONOMIC RECOVERY? HIDDEN LOGISTICS AND FULFILLMENT COSTS IN THE SEMICONDUCTOR SUPPLY CHAIN WHAT’S YOUR RETURN ON DEVELOPMENT? IDENTIFYING THE KEY LEVERS AND MOVING THE NEEDLE INTERNATIONAL CHALLENGES IN ENVIRONMENTAL COMPLIANCE AND SUPPLY CHAIN SUSTAINABILITY Taking a Proactive Approach to Effective Supply Chain Management Vol.17 No.3 Sept. 2010 Published by GSA $60 (U.S.) 1 The First Truly Global Foundry Congratulations to the new GLOBALFOUNDRIES, the merged operations of GLOBALFOUNDRIES and Chartered. To our continued mutual success from your Global Customers and Partners ARTICLES CONTENTS 2 Leadership through Global Collaboration Kerry Enright, President, Enright Enterprise Consulting Solutions LLC ACCELERATE THE 6 Is Your Supply Chain Ready for an Economic Recovery? GROWTH AND Jim Takach, Director, PRTM INCREASE THE 11 Hidden Logistics and Fulfillment Costs in the Semiconductor Supply Chain Marta Garcés, Vice President, Operations, ADD Semiconductor RETURN ON 15 International Challenges in Environmental Compliance and Supply Chain INVESTED CAPITAL Sustainability Tom Krawczyk, Compliance Manager, Conexant Systems Inc. OF THE GLOBAL Bob Warren, Director, Packaging Engineering & Assembly Manufacturing, Conexant Systems Inc. SEMICONDUCTOR 19 What’s Your Return on Development? Identifying the Key Levers and Moving the Needle INDUSTRY BY Mark Davis, Principal, Deloitte Consulting LLP John La Bouff, Senior Manager, Deloitte Consulting LLP FOSTERING A MORE 23 Getting the Most out of a Yield Management System EFFECTIVE FABLESS Nancy K. Tsai, President, Nancy K. Tsai Consulting ECOSYSTEM 27 Hardware Emulation Proven to Reduce the Cost of Bringing a Chip to Market Lauro Rizzatti, General Manager, EVE-USA THROUGH 30 How Semiconductor Companies Are Helping Counterfeiters COLLABORATION, Chris Jensen, Vice President, New Momentum INTEGRATION AND 32 Cost Realities in Bringing a Chip to Market Sanjay Krishnan, Business Manager, High-performance Analog Group, Maxim Integrated Products INNOVATION. 35 On-demand Tool and IP Grid: Examining the Merits of Fully Leasable On-demand Engineering Utility Resourcing ▪ Address the Camille Kokozaki, President, Design Rivers challenges and 37 The Future of Mobile Electronics Interconnectivity enable industry-wide Hezi Saar, Senior Manager, SiPro Advanced Interface IP Product Line, Virage Logic solutions within the supply chain, including intellectual IN EVERY ISSUE property (IP), electronic design 4 Semiconductor Member News automation 8 Foundry Focus (EDA)/design, wafer 13 Back-End Alley manufacturing, test and packaging 17 Supply Chain Chronicles Provide a platform 21 Global Market Trends ▪ for meaningful 25 Industry Reflections global collaboration 28 Global Insights ▪ Identify and 34 Private Showing articulate market opportunities 39 Innovator Spotlight ▪ Encourage and support entrepreneurship ▪ Provide members INTERESTED IN CONTRIBUTING TO THE GSA FORUM? with comprehensive To contribute an article, contact: Chelsea Boone, GSA Forum Executive Editor, [email protected]. To advertise, contact: Monica and unique market Dominguez, Advertising Executive, [email protected] ▪ GSA ▪ 12400 Coit Road, Suite 650, Dallas, TX 75251 ▪ intelligence phone 888.322.5195 ▪ fax 972.239.2292 MISSION AND VISION STATEMENT Leadership through Global Collaboration Kerry Enright, President, Enright Enterprise Consulting Solutions LLC he semiconductor industry leads the world in innovation, ▪ The document state: draft, preliminary, approved and released. leveraging global partnerships as one of its keys to success. Yet ▪ The document version: V1.0 – Vn.n. is the industry really living up to its potential? To surmount T The document status: in development, idle, in approval and in current economic difficulties, the industry struggles to regain its ▪ momentum in leadership solutions through its various partnerships, rework. but often these results fall short. The real problem, it appears, is that ▪ The document location: physical and logical. the industry focuses on partnerships but not true collaboration. What is the difference? Without these basics, partners struggle as if they are working on Working my way through college, I earned money by partnering opposite sides of a high wall. on construction projects. In the first project, my partner and I started Similarly, data is a fundamental material of exchange. While a block wall from different ends and worked towards each other. some partners succeed in creating common data dictionaries using Upon meeting in the middle, we discovered that we had created a naming conventions and formats, the challenges do not end there. Equally important, partners must facilitate data access. Eliminating disaster. We changed our approach so that we always started at the “data rummaging” requires systems to capture, store and transfer fab same end, alternating mortaring and setting the block along our process data to the right users based on who owns what data, what mutual guideline. As the wall rose, we arranged our staging to enable data is to be shared and what remains proprietary. us to remain face to face and task to task through completion. This typified the essence of collaboration. A Mutual Guideline Our collaboration succeeded on the following elements: In construction, a taut guideline aligns processes to produce correct ▪ Standardized material of exchange. results. The same applies to the semiconductor industry, but the guideline contents are more complex—ground rules, specifications, A mutual guideline. ▪ intellectual property (IP) and assets. ▪ A common, real-time and interactive process. Partnerships often fail to create common guidelines that produce the right results. How often do partners fail to agree on whether How can semiconductor executives create such collaboration on a to use industry-standard design ground rules versus their own global basis, when in their own buildings their engineers on the first proprietary rules, when even something as simple as standardizing floor do not share processes with their engineers on the second? Since built-in self-test (BIST) greatly enhances a design? Guidelines on programs falter on the basics, how can collaborators deliver the right which design tool to use are likewise critical since different tools can process to the right people at the right time? produce different results to the same design problem. Controlling specifications is a multi-headed task of creation, The Shortcomings of Partnerships management and use. All specifications must reflect end-client needs, Partnerships are plentiful in the semiconductor industry, but these and since partners have different client views, they must create a partnerships struggle with execution challenges. coherent client advocacy within a joint management structure. This structure must compile and codify specifications before design start. Standardized Material of Exchange Finally, a mutual guideline must decompose, disseminate and insert The most basic material of exchange, the document, can create the specifications into each branch and level of design. execution barriers. There was a case where the engineer of a foreign As with specifications, IP requires acquisition with the end client partner sent the U.S. partner a design document that the U.S. partner in mind. Since IP acquisition requires very extensive lead times, it believed to be approved. Based on this, they commenced their must be planned far in advance. Individual companies typically field development. When the foreign partner’s executives later denied that more requests for IP than they can afford, so partners working in the design document was approved or supported, the U.S. partner conjunction need to coordinate their IP strategic plans if IP is to backtracked on their development, losing months of development. arrive just in time. Likewise, partners must support IP providers with Document exchange with multiple partners through team rooms standardized and common business engagement processes. creates similar vulnerabilities. Partnerships imply sharing; and the more the partners share, Partnerships seldom standardize their medium of exchange by the more critical becomes the relationship. But whenever sharing defining the following: is involved, issues of value arise. Consider this. When multiple 2 companies come together, they naturally attach a value to the assets Process Standardization they bring to the common table. How then do the partners assess the Step one is to create simplicity in the face of complexity. value of what they and their partners offer so that all parties believe Standardization of building materials enabled the efficient they received an equitable deal? This question escalates as the number construction of homes and offices from worldwide product sources. of participants goes up. It also arises with IP acquisitions where the The same principle applies to collaborative business processes. perceived value varies among the partners. Companies can standardize processes in the following manner: A Common, Real-Time and Interactive Process ▪ Radically reduce process logic into the simplest model that Global partnerships exist to deliver converged products at a quality always delivers complete, correct and timely execution. and cost attractive to clients. Unfortunately, many programs fail ▪ Create a building block out of that model by embedding at the very beginning because of shortcomings in execution.
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