Varian / RapidResponse Overview

agreementkittensSemiconductor

Nov 2, 2013 (4 years and 2 months ago)

229 views

Varian Semiconductor is the market leader in Ion Implantation tools for the Semiconductor and Solar industries


A capital equipment manufacturer with over 3000 systems in production world wide


Varian’s tools implant more than 5 Million wafers every day


In process of merging with Applied Materials as announced earlier this year











Varian has been using Rapid Response for 7 years


Originally brought in to the company just to manage ECO phase in and phase out dates


Currently supports or enables over 20 processes at the company


Output from the tool is used by 7 functional groups throughout the company

Varian / RapidResponse Overview

RapidResponse at VSEA

Monitoring Liability

Agreements

Background/Setup

Varian has entered into contractual agreements with 49 different suppliers where:


Supplier agrees to hold some level of finished goods or WIP


Varian agrees to pay for the material if not consumed


The lead time of the components to Varian can then be reduced


Needed a way to monitor how well these suppliers ACTUAL inventory and WIP
quantities were aligned to the contractual levels:


A glass pipeline view would have been ideal but would be impossible to set
up with so many suppliers in a reasonable time frame


Rapid Response’s Advance Alert functionality provided a method to collect
the desired data on a regular basis (currently every other week)


Data is updated daily as part of the Rapid Response refresh


Additional benefit: the data can now be used to perform additional analysis


One time setup:


The maximum contractual liability level was already being tracked in an SAP
“Z” table (could be any source)


This table was mapped to a Rapid Response user defined table


User “Alert” accounts were set up for each supplier


A profile variable was set up for each supplier that keyed off of supplier #

Monitoring Liability

Agreements

Process

This is the workbook view that is sent to each supplier:

It is filtered with the profile

variable that defines the
supplier’s parts

So each supplier
will only see the
data associated
with their supplier
number

Monitoring Liability

Agreements

Process

Then an Advanced Alert is used to send a “customized report” to each supplier with
just their data every other week

(All of these techniques are covered in the Kinaxis training course “Authoring Advanced”)


The suppliers send their current stocking / WIP levels back to our contact person
and/or the buyer for the parts and they update the Z table in SAP so the next day’s
Rapid Response refresh reads in the latest data


44 of the 49 suppliers actively participate in this feedback process, (The others have
no parts with a prescribed finished goods level so the process does not apply.)


Adjusting the level and utilizing the data

The supplier feedback form not only shows the current contractual finished goods level
but also out “desired” level for the future

After the supplier fills in the middle 2 yellow columns, we ask that they comment in the
last column on any parts that are not between the current and desired levels

Then by comparing their
stocking levels to the
planned orders for the
parts in Rapid Response
we’re able to put
together this dashboard
view


The Dashboard

Here is a closer view of the dashboard

After the supplier fills in the middle 2 yellow columns, we ask that they comment in the
last column on any parts that are not between the current and desired levels

Then by comparing their
stocking levels to the
planned orders for the
parts in Rapid Response
we’re able to put
together this dashboard
view

The color coding indicates how the FG Qty will
be consumed:



Yellow = between contractual and desired level



Green = at or below desired level



Blue = all supply consumed

Using these burn off calculations for our off book liability (see prior slide) we have
developed at VSEA
the view
below to summarize the
dollars that are not forecasted to burn off by various points in time
. We use this
data to make inventory reserve decisions and to review this liability with auditors at the end of each quarter.


Forecasting Consumption of Off Book Liability for

Quarterly Inventory Obsolescence Review

The $’s remaining at the end of each of the time periods for the obso review are
summarized

Then in a separate scenario in Rapid Response we change all of our outsourced sub
-
assemblies from buys to makes so we can see any parts that may get consumed by our
subcontract manufacturers

Any parts that are not consumed fully are reviewed by Supply Line Management for accuracy and then the supplier is
contacted for potential settlement of the liability

Analyze Our Ability to Support New Drop
-
In Demands

We also use the liability data to analyze our ability to support drop
-
in demand, inside of lead time


Below is our FlatBOMDown
-
DropIns tool that we use to analyze these demands:


After entering the assembly number that is being requested on the left


The table shows the gating components and their best ARO date based on LT


Parts which have finished goods quantities are highlighted in brown


The data can then be filtered to account for excess on hand or on order and improve the date


If the date is still not soon enough, this supply consumption can be used to make trade
-
offs


Let’s work through an example!!!!!!

Assy to be added

Best date ARO based on LT of this component

Any Finished Goods Qty’s are highlighted in brown

Filter Here

We have
developed at VSEA

these graphs to summarize our material commitment, tool by tool, for several of our product models.
This view leverages a version of the Supply Consumption view and a scenario which has the parts on Liability agreements image
d
as on order. The data is extracted with an alert and run through an access database to merge the latest tool data from Notes
.

Sample output


Our commitment is bucketed for each tool:


On Hand


On Order


Liability Agreement


Planned Order


Material not consumed at all is bucketed in the last bar


Inventory Commit By Product line Graphs

Sample output for Platform XXX