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Unleashing Operational Excellence in Manufacturing

Unleashing Operational Excellence in Manufacturing. Rob Rudder Executive Vice President Camstar Systems. Camstar Overview. Company At A Glance Privately Held Founded 1984 (targeting Hi-tech) Offices USA: HQ , Charlotte, NC San Jose, CA Tampa, FL Asia : Shanghai, China

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Unleashing Operational Excellence in Manufacturing

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  1. Unleashing Operational Excellence in Manufacturing Rob Rudder Executive Vice President Camstar Systems

  2. Camstar Overview Company At A Glance • Privately Held • Founded 1984 (targeting Hi-tech) Offices • USA: HQ, Charlotte, NC San Jose, CA Tampa, FL • Asia: Shanghai, China Singapore Industries • Medical Device and Diagnostics • Biotech • Semiconductor • Solar • Electronics Assembly • Storage Customer “Snap Shot” • Customers • 450+ Manufacturing sites • 75% are tier 1 > $1 Billion • 90% are using Microsoft “Front Office” • 80% are using Oracle or SAP for ERP

  3. High Tech Market Segmentation El Semiconductor Solar Electronics Storage Electronics Assembly Storage

  4. High Tech Market Segmentation El Semiconductor Solar Electronics Storage Electronics Assembly Storage Manufacturing Process • Wafer Bump • Wafer Test • Wafer Back grind • Die Preparation • Assembly • Module Test • Packaging

  5. The Challenge to Operational Excellence Mfg Ops MES Enterprise Efficiency Productivity Visibility into Production Proactive Quality Plant MES Efficiency Productivity Plant to Plant Flows Integration w/ Business Sys. Enterprise Manufacturing and Quality Systems providing operations-wide control, efficiency and intelligence. • Operational Challenges: • Speed of Innovation • Complexity of Products & Value Chain • Quality Expectations • Cost Pressures

  6. The Paradigm Shift 360 Collaboration 360 Coordination 360 Visibility 360 Compliance 360 Control Enterprise Manufacturing and Quality Systems providing operations-wide control, efficiency and intelligence. People Ready ProcessEmpowered Manufacturing 360 Platform Enabled

  7. Business Transformation Enterprise Manufacturing and Quality Systems providing operations-wide control, efficiency and intelligence. TransformYour Operations Transform YourOperations Low CostManufacturing& Quality Product Qualityand Risk ManufacturingAgility Time toVolume • Automaticallyenforce processes • Electronicmanufacturingaudit trail • Integrated rootcause analysis • Lean operations • Auto releaseelectronic Travelers • Improve yieldand cycle time • Quick processconfiguration • Flexible, small lots • Customize complexproducts • Remove all paper • Efficient processchange management • Synchronizeprocess/productdesign tomanufacturing Industry Best PracticesEnterprise Manufacturing and Quality Platform • Provides agility and control to maximize your revenue, • minimize risk exposure and achieve operational excellence.

  8. Unleashing Operational Excellence in Manufacturing Giri ChodavarapuDirector of Business ApplicationsFinisar Corporation, Sunnyvale, CA F I N I S A R C O R P O R A T I O N

  9. Finisar At A Glance • A market leader • Broad product offering of fiber optic transceivers/transponders and components • Experts in Fiber Channel test and monitoring systems • Focused on high-speed data communications • Local Area Networks (LANs) • Storage Area Networks (SANs) • Metropolitan Area Networks (MANs) • High-speed serial protocols • Powered by a sustainable business model • Vertical integration • Internal off-shore manufacturing capabilities • Annual Revenue: $419.2M – FY2007 • Our Customers: Majority of LAN, SAN & Telecom Equipment Manufacturers, such as, 3COM, Brocade, Cisco, Dell, IBM, HP, Intel, Juniper, Lucent, Nortel, and many others SAN/LAN/MAN Optical Transceivers Network Test and Monitoring

  10. Industry Growth Drivers: Bandwidth Demand The Digital Home Broad-band internet access (100M), video (IP TV), POTS Multiple set-top boxes per household Applications and content delivery (On-line gaming, Video on Demand, telecommuting, net meetings etc.) 30 minutes of video = 1 year of emails HDTV Increases bandwidth demand up by a factor of 5-10x over standard video Video over wireless networks 3G wireless Explosion in number of people able to afford wireless service (from 2 billion subscribers today to 4 billion in 2010) Global IP TV and IP Video Broadband penetration estimated at 18% in U.S. (35% in Europe) and growing to 29% by 2009 in U.S. (51% in Europe)

  11. Vertical Integration: The Critical Steps Step 1 Step 2 Step 3 Step 4 Step 5 Integrate the pieces Low-cost off-shore production (Ipoh, Malaysia) Genoa acquisition Honeywell VCSEL acquisition Infineon transceiver and transponder acquisition May 2001 March 2003 April 2004 Jan 2005 FY 2006-2007 R&D Investments

  12. Operator I/F PC PDA Our MES Vision Corporate Wide Design Information MES Traceability SCM ERP Enterprise WIP SYS Interface System Each Factory Manufacturing Data Collection SQL Reporting Services InSite IDS • Event track • Lot Tracking • Equip. Tracking • Defect Reason Production Control Equipment Management • Functions • Paper less • Prevention simple mistake QC & QA Failure Control Input WIP Output

  13. MES Business Requirements • Time to volume • Improve time-to-market of new products by making the transition from engineering through NPI process into volume production in one facility under a common process owner; • Cycle time • Improve cycle time to ensure that critical inventory reaches customers when they want to receive our products; • Flexibility / Agility • Provide capacity that can be adjusted to respond to demand fluctuations at the lowest possible cost configurations while maintaining short cycle time and meeting lowest possible cost targets; • Provide “on demand” assembly resulting in frequent changes

  14. MES Business Requirements • Quality • Fully Computerized Manufacturing Data Management • Material and Equipment Quality Data Traceability • Automated Operator Instruction • Automated Test/Inspection Instruction • Real-time SPC • Speed (Flexibility) • Shorter “Turn Around Time” and On-time “Delivery” • Faster New Product Introduction • Quicker Quality Feedback

  15. IT Requirements 1. MES system should handle over 4mil txn per day; 2. Integrates with AD (Active Directory) 3. Better architecture in terms of scalability; 4. Able to meet our deployment timeline; 5. Customizations might not be as extensive (and it is easier to find .Net developers than C++ developers); 6. XML technology, open and adaptable; 7. Cost of Ownership • 1 Business Analyst per site • 1 Corporate Report Writer managing all plants

  16. Insite 4.1 Benchmark Results Benchmark Environment: The Benchmark work is performed at Microsoft technology centre, Mountain view. Hardware: (4) HP DL360 Application Servers (4) HP DL380 Application Servers (4) HP DL580 Application Servers (4) Windows XP Pro Clients Storage: DB servers attached to a Hitachi SAN (8TB usable) Application Servers: Windows Server 2003 Camstar Insite 4.1 with hotfix 71 Clients: Camstar XML client C# application test client with 8 background workers * Data store replication enabled, 100GB Database Conclusion: Insite 4.1 running on SQL Server 2005 could handle 3x of our existing transaction volume 16

  17. MES Rollout Fremont Facility Initial Implementation – 2001 (prior to Finisar acquisition) Upgraded to Insite 3.4 – 04/2006 Sunnyvale Facility Initial Implementation (insite 3.2, SQLServer 2000) – 12/2003 Upgraded to Insite 4.1 scheduled for 04/2008 Ipoh Facility Initial Implementation (insite 3.2, SQLServer 2000) – 12/2003 Current txn volume – 2mil txn/day (projected to be 4mil txn/day by 2010) Current Database size – 2.4 TB (growing 25GB per week) Upgrade to Insite 4.1, SQL Server 2005 scheduled for 04/2008 Allen, TX Facility Phase 1 – Epi Line (all lots started after 8/2 now tracked in Camstar. Camstar interface to replace Oracle tracking 3rd week of August) Phase 2 – Rest of the FAB (scheduled for 12/2007) 17

  18. Key Benefits • Improved the yield by having better control over the throughput and curbing the losses on the production floor. • Improved reliability and failure analysis by having the broad vision on the critical test operations parameter. • Improved resource management by tracking the resource performance and ability to identify the issues related to the resources, which results into deliver the better quality product. • Improved cycle time by identifying the bottlenecks on the process workflows.

  19. Operational Excellence Award 200,000 ft2 clean room Cisco Operational Excellence Award Ipoh, Malaysia Acquired 2001 20 acres of land 640,000 ft2 facility 2005 Supplier Award For Excellence Finisar is one of select few optics companies to own assembly / mfg facilities 19

  20. Thank You

  21. Come Back At 2:45 pm

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