OSFM and a Manufacturing Execution System: Compatible Partners

1. OSFM and aManufacturing Execution System: Compatible Partners Training Day January 17, 2007

2. Objectives • Outline the mechanics of PI’s interface project • Communicate the challenges encountered • Discuss the solution components employed • Share some tips and pitfalls

3. Agenda • Introduction - Power Integrations • Background on the Project • Overview of PI Supply Chain • Overview of OSFM Integration • Challenges and Considerations • Interface Components • Lessons Learned • Questions and Answers

4. Power Integrations Innovation in Power Conversion • Fabless Semiconductor Manufacturer • Headquartered in San Jose • Founded in 1988 • Leading supplier of high-voltage analog integrated circuits (ICs) used in power conversion. • Enable compact, lightweight power supplies that are simpler to design and manufacture, more reliable, and more energy-efficient than those made with competing technologies. • Power a vast range of consumer and industrial electronics—computers, DVD players, TV set-top boxes, cell phone chargers, home appliances, telecom networking equipment, and many others.

5. Project Background – Business Considerations Issues: • Camstar MESA used for tracking production only • WIP/Inv Cost – done on massive spreadsheets • Extraordinarily long and painful month end close Solution: • Implement OSFM & Inventory to manage WIP valuation • In process Sort, Assembly, Test, Tape & Reel, etc • Wafer Bank, Die Bank, Untested, etc

6. Upgrade to 11.5.10 from 11.0.3 Project Background - Timetable • Order Management • Inventory • Purchasing • Financials (GL/AP/AR/CM/FA) • Human Resources Develop interface engine (eFabless) Install interface engine, develop and test interfaces Replace Spreadsheet Cost Accounting with OSFM • Receiving • Inventory • OSFM 2006 2007

7. Overview – Supply Chain

8. OSFM Integration

9. Challenges and Considerations • MESA uses single item number for multiple operations: • Wafer number for Wafer Bank, Sort, and Die Bank • FG number for Assembly, Test, and Finished Goods • Multiple Organizations with changes in inventory asset ownership • Not every transaction in MESA is necessary for Cost Accounting • Must avoid prematurely processing a “downstream” transaction for a given lot before “upstream” transaction is successfully played

10. Components – Getting Started - Tables The necessary tables for each transaction were identified

11. Components – Getting Started - Columns • Every required column for each table was planned. • eFabless rules were created for each (see Appendix for examples)

12. Components – Simplified Overview

13. Components – Example of Transactions

14. Components – Example of Transactions

15. Lessons Learned • API user guides are not always clear for example… • Initially used rcv_lots_interface for Receiving Deliver • Learned via TAR should be mtl_transaction_lots_interface • TRM Column descriptions are not always clear for example… • Column Name = PRODUCT_CODE • TRM description = Stores the product name to identify the source transaction for the record • Mandatory = No • Discovered it is required for Receiving Delivery (RCV)

16. Lessons Learned • Error messages are not always accurate for example… • RCV_TP_ACCT_PERIOD_CLOSED error caused by values unrelated to accounting periods. • Transactions set to ERROR status with no error message • Mapping the right rules and data values took longer than expected. • Need to be on the latest patchset • Recognize the need to properly staff for on-going monitoring of the transactions

17. Questions and Answers Presenter Contact Information Clark Stockard (408) 414-8879 clark.stockard@powerint.com Travis Cox (925) 786-1230 travis.cox@oacsi.com

18. Appendix – Example of eFabless Rule

19. Appendix – Example of eFabless Rule

20. Appendix – Example of eFabless Rule

21. Appendix – Example of eFabless Rule

22. Appendix – Example of eFabless Rule