日月光半導體 ｅ 化 之 進程與問題之分享

1. 日月光半導體ｅ化之進程與問題之分享 日月光高雄廠資訊中心 盛敏成 Nov. 23, 2006

2. Agenda • ASE Group • Our business models • Our IT strategy • A follower, a partner and a leader • 由服務中學習,由學習中改善服務 • ASEKH IT system evolution • Case study • 晶采計劃 • Smart customer SAP II project • Experience sharing • Conclusion

3. ASE MISSION ASE offers the Best Design Manufacturing Services for IC Packaging, IC Substrates, IC Testing, and Systems. ASE will act as an Extension of Our Customers’ Own Operations in Achieving the Maximum Business Objectives with Minimum Resources.

4. ASE VISION: THE COMPLETE SOLUTION • DMS (Design Manufacturing Services) • Board Assembly • Hybrids & Electronic • Packaging • Logistic Management • Substrate Design • Manufacturing Service • Modeling & Simulation Material System ASE Group • Package & Module Design • IC Assembly • Multi-chip Assembly • Micro & Hybrid Module • Program Development • Wafer Probing • IC & Module Test • Burn-In • Warehousing • Drop-Shipment Test Assembly

5. ASE VISION: THE COMPLETE SOLUTION Module, Board Assembly & Test (DMS) • Operation sites • ASEKH(A/T/M), ASECL(A/T/M), ASEKr(A/T), ASEM(A/T), ASESg(T), ISE(T) • USI Final Test Assembly Wafer Bumping/Probing Foundry Materials Circuit Design Engineering Test

6. Electronics Industry Supply Chain 180+ suppliers customers GST 1200+ other suppliers 100+ suppliers customers Japan, US, Taiwan 15+customers Other suppliers 50+ suppliers customers suppliers Customer OEM EMS Sub-Assembly Components Foundry, Pkging & Test

7. Our Business Model • Engineering/Manufacturing service provider • Make the parts upon customer specification and instruction • Key success factor: operation excellence and quality • Compete with other service provider and customers’ MFG teams • Without ERP system until 2004 • Business guideline • Easy for customer to do business with ASE • Seamless integration with customers’ process flow • Quality, Flexibility, Efficiency

8. Supply Chain & Quality Strategy Environmental Conditions Demand Uncertainty Launch Phenomenon Cost Pressure High Quality Expectations Speed & Flexibility Security of Supply Efficient Supply Chain Proactive & Responsive Best Customer Experience

9. Customers’ Supply Chain Objectives “Building sustainable competitive advantage into the collective supply chain” LEAN SPEED FLEXIBILITY • Collaborative forecast, order and inventory management solution connected with key suppliers. • Exception basedmanagement • Scalable business process integration with suppliers • Centralized visibility to business processes • Performance metrics for supplier management

10. Multi-Company Process Management enables a synchronized Supply-Chain Business Value Multi-tier Execution Decision Support Exception Management Data Aggregation ExceptionAlerts Multi-tier Visibility Exception Management Across Multiple Tiers of the Value Chain Synchronized Processes, Timely and Quality Information Multi-Company Process Management Closed-loop, Positive Response With Exception Alerts Two-way Information Exchange One-way Information Posting Data Exchange Process Breadth, Number of Trading Partners

11. Customers’ Goal Sub Con Assemblers Consignment Materials Suppliers Allentown Shipping Notices Thailand Forecasts Purchase Orders I-BOX Singapore Indirect Materials Suppliers Shipping Notices Orlando Foundries Twin Cities

12. Approach for I-Box Client-Server Architecture “Thick at the Edge” “Point-to-Point” Service Oriented Architecture “Thin at the Edge” “Intelligent Network” Partner A Partner B Partner B Partner A Intelligent Network Partner C Partner F Partner F Partner C Partner E Partner D Partner E Partner D Functionality at the edge • Point-to-Point Integration • One trading partner at a time Functionality in the network • Connect once and leverage • Shared service economics

13. Our IT Strategy • A follower Learn • Leverage the best practice from customers, competitors, and industry leaders • ASE has the fortune to work with the most competitive companies in the IC supply chain • Research: Re-Search • A partner Do • Build up quality information links with customer • Provide process integration solution model to customers • A leader Continuous Improvement • Identify the core function of information integration process • Develop systematic approach to identify the critical information links to make business model successful

14. ASE IT System Evolution • Home grown legacy systems • Two independent operation company for different services (Assembly and Test) • Did not build up integrated process with well-organized information links • IRS system build up for short term solution • Big-Bang Approach • Driving force: to provide turnkey service to customers • GRP project: kicked off on March, 2002 • System went live Jan/5/2004 • Material operation: KH/CL Jan/2005; SH Sep/2005 • Continuous Improvement • Separated instance for Material operation: Aug/2006 • PLM system go live Dec/2006 • SAP/e project kicked off Dec. 2005

15. ASE_Assy_ IT 系統關聯圖(~2003) Interface Packing Instruction 工程 資料庫 (PEDB) 晶片庫 系統 Wafer Bank M E S 保稅系統 Sales Report Data Flow Forecast Shipping Plan 成本系統 Reference 出口系統/Price (Export/Price) 成品庫管理 Finish Goods Stock Notes AP 投料 系統 (T/T) VB+ Oracle 獎工系統 (Bonus) HR 總帳 (G/L) 應收帳款 (A/R) 出口 成品 系統 Other System 保稅系統 (Bond) 產品成本系統 (Product COST) SAP T/T 出口系統 成品系統 固定資產 (A/M) 進口系統 (Import) 採購管理 (Purchase) 應付帳款 (A/P) Controlling (CO) Cobol+ Informix SPEC/ECN 庫存管理 (Inventory) IQA 系統 IMQR Access

16. ASE_Test_ IT 系統關聯圖 (~2003) TDRP ASRS Setup Procedure Shipping PT Plan Price Label MES PO E-PR MM PEDB SAP HR E-HR Invoice Packing GUI AOL Intranet Internet Equ Time Record Spare Parts Tooling Others : Cost Bonus FCST Extricity TSMC Ship Instr. MES Menu Hold Bank TEV CAR SPEC TesterConfig Hold Lot

17. Sales • •Order taking • Pricing • Production Plan • Forecast • MRP Quotation • Purchase • Wafer pur. plan • Purchasing Quotation PR PO Order to production Final test Wafer Sort Assembly Wafer consume Finish Goods Inventory Vendor Customer Receive Transfer Pick/Pack Ship 發料記錄 Validation Billing Inventory Documents Invoice Invoice Invoice Invoice • Financial • GL • AR• AP • Fixed asset • Budget/Cost • Cash management Payment Payment GRP=ERP+SCM SCM Capacity optimization, Material planning and production plan optimization ERP

18. Plant 1 Plant 2 Package Plant 9 Final Test Wafer Sort Internal Business Flow WIP/ENG/Billing(ASSY/TK) Finish Goods(ASSY) • ASEKH • - ASSY Customer Bumping Order ASSY TEST $$$ WIP/ENG/Billing Turnkey Wafer • ASEKH-TEST Plant 1 Plant 2 Central OT Central Planning Finish Goods (TEST/Turnkey) In Fab Planning WIP/ENG/Billing(TEST) Manufacture

19. Phase I Ship Goal of ASE GRP Project • Business processes Included： • Ass’y & Test in KH site • System To Be Implemented • ERP(Enterprise Resource Planning) • SCM(Supply Chain Management) • Middleware (System Integration) Order Tacking Order fulfillment Cost Down ASE Group Ship Ship Ship Ship Ship ASE-CL ASE-China ASE-Korea ASE- Malaysia ASE- others ASET ASEK Test Ass’y Test Ass’y Test Ass’y Test Ass’y Test Ass’y Procurement Procurement Procurement Procurement Procurement Procurement Procurement Integration System ERP System SCM System

20. Current IT Architecture Notes(w/f) MES PDM HRS Legacy System ASSY Customer Vendor Interface Order taking and Execution, MM, and FI/CO Integrated Customer Interface For CRP and MRP Middleware SCM ERP IRS Data Center Enterprise Application Integration Interface Middleware Notes(w/f) MES PEDB HRS Legacy System TEST

21. GRP System (1/5/2004) • ERP: SAP R3 • SD (Sales and Distributions) • PP (Production Planning) • MM (Material Management) • CO (Controlling) • FI (financial) • SCM: Adexa • SCP (Supply Chain Planning) with CRP and MRP for monthly and weekly planning • PP (Plant planning) for daily planning • System Integration • Tibco BW (Business Work)

22. Application Architecture

24. Future Plan • Strategy • Align with our Group strategy • Provide same information service for customers • Integrate cross operations and cross departments information for quality operation and efficient management • Approach • Continuous process improvements with internal customers • Refine IT system architecture to enhance management information provision • Leverage best practice from customers, partners and competitors

25. Future Plan - 1 • Phase 1.1 • Include Material operation into GRP system • Project kick off on July/2004 • Best practice deployment, including ASECL Material • More customer B2B enhancement • To facilitate the information links with customers • Proactive initiator for ASN and W/O B2B projects • Analytic information standardization and provision • Business intelligence data warehouse project • Provide more integrated information for SCPM

26. Continuous Improvement • Customer portal enhancement • Phase 1: July/2004; phase 2: Mar/2006 • Phase 3: Dec/2006 • Sales IT function support • Sales management: opportunity/quotation/forecast/order/revenue/profit • Customer activity management • SCM system enhancements • Planning/Scheduling/Dispatching • Supply management enhancement • Group ENG data architecture • PLM and more • Central vs. Distributed vs. Hybrid

27. Case Study • TSMC ePO, Work order project • Document transfer handling • Smart customer SAP II project • WIP transaction message

28. Mail or FAX Mail or FAX Create Work Order ERP ( SAP) Buyer Customer Process Transaction Process ASE Process WO Request Flow Work Order Business Flow (Before) WO Reply Flow New WO Request Work Order • 衍生問題 : • 流程中人為操作錯誤 • Batch人工操作,作業時間過長 • 不易確認資料傳送成功性 • 缺乏資料傳送的不可否認性

29. Spec. WOs Manually key in WO & Spec. data to system Mail or FAX Mail or FAX Create Work Order ERP ( SAP) ERP Buyer Planner Customer Process Transaction Process ASE Process WO Request Flow Work Order Business Flow (Before) WO Reply Flow New WO Request Work Order • 衍生問題 : • 登打資料錯誤頻繁 • 規格參照錯誤 • 人工操作時間過長 • 過於依賴人為判斷

30. Spec. WOs Manually key in WO & Spec. data to system Mail or FAX Mail or FAX Investigate can meet the Order or not Contact with ASE for SOD & key in system Create Work Order Check the WO status Follow up the Work Order Follow up the Work Order Telephone Telephone ERP ( SAP) ERP Buyer Planner Customer Process Transaction Process ASE Process WO Request Flow Work Order Business Flow (Before) WO Reply Flow New WO Request Work Order • 衍生問題 : • 溝通時間過長 • 人為溝通造成達交率降低 • - 雙方認定標準不同

31. Create Work Order Firewall Firewall Internet Pip7B5 ERP ( SAP) RosettaNet Gateway Buyer Customer Process ASE Process Transaction Process ( RosettaNet ) WO 7B5 Flow Work Order Business Flow (Current) WO 7B6 Flow A New WO Request • 解決問題 : • 自動化,減少流程中人為操作錯誤 • 無紙化,無須人工列印傳真 • 提高資料傳送確實性 • 減少人為判斷錯誤 • 標準化規格溝通容易 • - 大大減少資料溝通時間

32. Confirm SOD and release to production line Create Work Order Planner Firewall Firewall New WO Notice Internet Pip7B5 MES ERP ( SAP) ERP RosettaNet Gateway RosettaNet Gateway Buyer Customer Process ASE Process Transaction Process ( RosettaNet ) WO 7B5 Flow Work Order Business Flow (Current) WO 7B6 Flow A New WO Request • 解決問題 : • 減少流程中人為操作錯誤 • WO資料直接進入系統,無須人工介入 • 減少大量登打資料,人力節省 • 減少人為錯誤判斷

33. Issue to WIP according to WO & PDM Reply WO according to SCM system Create Work Order Planner Query WO reply by vendor Firewall Firewall New WO Notice Internet Pip7B5 Pip7B6 MES ERP ( SAP) ERP RosettaNet Gateway RosettaNet Gateway Buyer Customer Process ASE Process Transaction Process ( RosettaNet ) WO 7B5 Flow Work Order Business Flow (Current) WO 7B6 Flow A New WO Request • 解決問題 : • 回覆資料直接進入系統 • 回覆登打資料錯誤減少 • 縮短資料覆核時間

34. Send PO through Fax to suppliers Supplier received PO through Fax PO Purchasing Officer creates PO in ERP ERP ASE PO Process (Before) PO Request Flow PO Reply Flow A New PO Request • 衍生問題 : • 流程中人為操作錯誤 • Batch人工操作,作業時間過長 • 不易確認資料傳送成功性 • 缺乏資料傳送的不可否認性 Vendors

35. Send PO through Fax to suppliers Supplier received PO through Fax A New PO Request PO Purchasing Officer creates PO in ERP PO 1. Entry the PO into system 2. Manually file the document ERP Sales Order System / Spreadsheet Manually files it ASE PO Process (Before) PO Request Flow PO Reply Flow • 衍生問題 : • 流程中人為操作錯誤 • 人工操作時間過長 • 登打資料錯誤頻繁 • 過於依賴人工判斷 • 檔案保存不易 Vendors

36. Send PO through Fax to suppliers Supplier received PO through Fax A New PO Request PO Purchasing Officer creates PO in ERP Reply the PO confirmation Purchasing Officer follow-up with suppliers manually Review inventory and confirm SOD ERP Backend System Supplier deliver goods ASE PO Process (Before) PO Request Flow PO Reply Flow • 衍生問題 : • 溝通時間過長 • 雙方認定標準不同 • 人為溝通造成達交率降低 • 資料正確性易產生糾紛 • 易產生斷料危機 PO 1. Entry the PO into system 2. Manually file the document Sales Order System / Spreadsheet Manually files it Vendors

37. PO created in customer’s ERP Firewall Firewall PO Internet B2B Server 3A4/8/9 PIP Transport, Translate, Map & Load ERP ASE Process (Private Process) Transaction Process Vendors Process (Private Process) (RosettaNet) RN PO 3A4/7/8/9 with Vendors (Current) RN PO Request Flow RN PO Reply Flow A New PO Request Vendors • 解決問題 : • 自動化,減少流程中人為操作錯誤 • 無紙化,無須人工列印傳真 • 提高資料傳送確實性 • 減少人為判斷錯誤 • - 大大減少資料溝通時間 • - 標準化規格溝通容易

38. A New PO Request POs appear in supplier’s ERP System PO created in customer’s ERP Firewall 3A4/8/9 Notification Firewall PO Confirm PO Data Internet B2B Server B2B Server 3A4/8/9 PIP Transport, Translate, Map & Load Transport, Translate, Map & Load ERP ERP ASE Process (Private Process) Transaction Process Vendors Process (Private Process) (RosettaNet) RN PO 3A4/7/8/9 with Vendors (Current) RN PO Request Flow RN PO Reply Flow • 解決問題 : • 減少流程中人為操作錯誤 • PO資料直接進入系統,無須人工介入 • 減少大量登打資料,人力節省 • 減少人為錯誤判斷 • 資料系統化 Vendors

39. Supplier deliver goods A New PO Request POs appear in supplier’s ERP System PO created in customer’s ERP Firewall 3A4/8/9 Notification Firewall PO Confirm PO Data 3A7 Notification Internet B2B Server B2B Server 3A4/8/9 PIP 3A7 PIP Transport, Translate, Map & Load Transport, Translate, Map & Load ERP ERP ASE Process (Private Process) Transaction Process Vendors Process (Private Process) (RosettaNet) RN PO 3A4/7/8/9 with Vendors (Current) RN PO Request Flow RN PO Reply Flow • 解決問題 : • 回覆資料直接進入系統 • 回覆登打資料錯誤減少 • 減少人為判斷錯誤 Vendors

40. Supplier deliver goods A New PO Request POs appear in supplier’s ERP System PO created in customer’s ERP Firewall 3A4/8/9 Notification Firewall PO Confirm PO Data 3A7 Notification Internet B2B Server B2B Server 3A4/8/9 PIP 3A7 PIP Transport, Translate, Map & Load Transport, Translate, Map & Load ERP ERP ASE Process (Private Process) Transaction Process Vendors Process (Private Process) (RosettaNet) RN PO 3A4/7/8/9 with Vendors (Current) RN PO Request Flow RN PO Reply Flow Vendors Touch-less, seam-less and trading partners information in your own system

42. Result • TSMC provide turnkey service to customers • ASE provide turnkey service to customers, too • Most complete data link among our customers • Frontier project and benchmarking • More variants of turnkey model coming up • Material flow, information flow, cash flow

43. Project Objective – SAP II Project • A Fabless customer started the WIP tracking project • Can consolidate WIP data from global sub-contractor sites, with multiple data formats. • Allows quick reporting and analysis using data from one system, which is SAP. • Has been particularly challenging for virtual manufacturing companies. The company is looking forward to building a strategic alliance with its manufacturing partners. This venture should be mutually beneficial to all parties. • Took this opportunity to establish an end-to-end business process tying together its operations, costing, purchasing, and accounting departments. This is expected to give the company more finance and purchasing control.

44. System Dual Customer Vendors SAP PP Txn Record Biz Talk ABR/MBR BC Txn Record PP MES WIP Txn MM MM SHIP SD SD D/N

45. Subcon Customer W0 W0 T1 W1 W1 T2 Wi Wi Ti+1 Wi+1 Wi+1 System Dual in WIP Tracking . . . . . . . . . : Represent the WIP status at time=0. W0 : Represent the WIP transaction during that period. Ti

46. Results • Come from behind • Reach 98.5% accurate for consecutive 3 month • A generic WIP-TS system model • Build up for other three customers • Fast deployment, reliable system performance

47. Experience Sharing • Product consultant vs. Business consultant • Learn from SAP project • Your project vs. Our project • Expectation management • Training and coaching • The way • Methodology • Discipline • Management

48. Experience Sharing • System • The output from project: the least important • Loading test, stress test • Process • Business process review, re-engineer • Integration test, user acceptance test • People • Teaming, vendor selection • Change management, expectation management, training, coaching, change enablement • Data • Data conversion, legacy system integration • Time • Schedule control, scope control, environmental factors

49. Conclusion • PDCA-embedded IT system • Plan/Operation/Comparison/Action, instead of operation support only • Build up business intelligence to support Strategic Enterprise Management (SEM) • Process centric information links • Business process is the key • IT vs. domain knowledge • Customer-oriented • Rigid, but flexible, architecture to fulfill different business model

50. Integrated Management Processes External communication Strategy update Define objectives, Set targets, Launch initiatives Strategic Planning Mid-term planning B/S, I/S, Cash Flow 3-5 year strategic planning Cascade targets to lower Bus.Units Strategy analysis and assessment Evaluate scenarios Risk estimation Strategy and Business Management Forecast Detailled operational planning Performance Management Measure performance Adjust operations Business process optimization