Enterprise Mashups in Outsourced Manufacturing

Mashing your Shipments and Processes

Serus Corporation

Jeffrey RisbergVP of Research and Development

Prepared forEnterprise 2.0 Mashup SummitSeptember 28, 2007

Introduction

• “Outsourced Manufacturing” defined:– The use of contract manufacturers, semiconductor fabs,

assembly houses, and logistic organizations outside your business

• Significantly increased in last 10 years– By 2010, analysts estimate that $1 trillion of manufacturing will

be outsourced– Cisco, for instance, never touches its inventory– There are 238 fabless semiconductor firms in Silicon Valley alone

• As described in “The World is Flat” by Friedman, outsourced manufacturing has generated a new set of challenges and complexities

• Over 50% of the information needed for today’s manufacturing resides outside an individual company – It is with the company’s Partners, Customers, Vendors, and

in the Public Ecosystem

Ideal Case for Enterprise Mashups

The challenge is to deliver the Right Information, to the Right Place at the Right Time.

Required is a Knowledge Multiplier for Outsourced Manufacturing Operations

Operations Management - Challenges

“Global Outsourcing” has generated a unique set of operational challenges:– Lack of Visibility to Financial Exposure– Lack of Consistent Operational Data– Lack of Execution Management with Partners– Difficulty in Collaborative Decision Making with

Partners

Content Used in Outsourced Manufacturing

PrivateProduct Manufacturing SpecificationsCustomer InformationForecast and Order InformationActivity records

PublicTransportation linksWeather/GeographyCurrency InformationCompliance Information (RoHS)

EcosystemScores, Behavior, Prior Experience

Note:Starbucks locations are not

part of the data set!

Architecture of the Serus Solution

Mashup Server

Architecture of the Serus Solution

Traditional Scope of Mashup Servers

Architecture of the Serus Solution

Serus Definition of Mashup Servers

Processes

Data

Example of Mashups Applied to Manufacturing

Knowledge with Ability to Act

Knowledge with Ability to Act

Knowledge with Ability to Act

Knowledge with Ability to Act

Knowledge with Ability to Act

Partial List of Vendors/Partnersalready supported by Mashup Server

Fab/Assembly Contract Mfg Distributors

Enterprise 2.0 Definitions and Implementation

• Collaboration: sharing of quantitative information• Options generation: system generated suggestions• Notifications: alerting• Tags and content: marking most relevant content, allowing

users to mark• Real-time data: dynamic fetching (JDBC, FTP, HTTP) • Open system: use of standards for data fetching (WS, XML)• Links: navigate through a cohesive data model• Scenarios: user-controlled “what-ifs”

Andrew McAfee: SLATES Serus: CONTROLS

Serus Implementation• Java-based web application, supported by multiple back-end

processes

Foundations of Architecture

Key Architecture Components

• SOA – Service Oriented Architecture– Serus application invokes and orchestrates services using remote protocols such as

Web Services, RMI, JMS

• EII – Enterprise Information Integration– Serus mashup server extracts, transforms and loads from multiple data sources– Serus mashup server resolves information conflicts between sources

• BPM – Business Process Management– Processes can be defined using workflow, and rule sets– Processes can carry out validation and be audited

• Scenario-based Analytics– Analytics such as KPIs– Analytics evaluated within what-if scenarios

From inception, the Serus Architecture has been built on the following four cornerstones:

Solution Architecture

Enterprise MashupExample: Order Resolution

Common locations table

Cisco Dock1Solectron Facility 1

Avnet Recv 1Spansion Dock 1

TSMC Ship 2Customer 1Customer 2

Geographic Information

Currency Information

Compliance Information

Weather Forecast: London – ptly cloudy, high 80, low 65

Weather Information

Multi-tenant data model

AMD Case Study

• $7.4 Billion Dollar Semiconductor Supplier

• Global Manufacturing; Captive and Outsourced

• Fragmented Manufacturing Specification

• Complex Bill of Materials and Supply Chain

• Manual Reconciliation between Mfg and Business

Systems

AMD/INCA System Data Flow

High Frequency Fault Tolerant B2B data transmission platform

Standardized WIP formats across all sources resulting in improved quality of data and reduces the number of transaction errors

Standardized Product and Manufacturing Specification format to target systems for efficient operations management

Direct B2B transaction based connections to many major suppliers.

AMD Case Study

Benefits Acknowledged:Reduced by 50% the time to close the quarter end financial recordsReduced variances in inventory valuations to less than 1%Provided the “System of Record” SOX compliant Inventory RecordsIntegrated Manufacturing specifications with execution system eliminated

costly manual errors and annual scrap costsEliminated $4M annual support cost managing disparate legacy systemsProvided support for new manufacturing complexities and business rules explosions

Sunnyvale, CA

Austin, TX

Dresden, Germany

SingaporePenang

Taiwan

Conclusion

• Enterprise Mashups are Critical to Outsourced Operations Management

Look us up at www.serus.com