Unleashing Operational Excellence in Manufacturing

Rob Rudder

Executive Vice President

Camstar Systems

©2007 Camstar Systems. All rights reserved. CONFIDENTIAL 22

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

Customers

450+ Manufacturing sites

75% are tier 1 > $1 Billion

90% are using Microsoft “Front Office”

80% are using Oracle or SAP for ERP

Customer “Snap Shot”

©2007 Camstar Systems. All rights reserved. CONFIDENTIAL 3

High Tech Market Segmentation

Electronics AssemblyStorage

Semiconductor Solar Storage

El

Electronics

©2007 Camstar Systems. All rights reserved. CONFIDENTIAL 4

High Tech Market Segmentation

Electronics AssemblyStorage

Semiconductor Solar Storage

El

Electronics

• Wafer Bump

• Wafer Test

• Wafer Back grind

• Die Preparation

• Assembly

• Module Test

• Packaging

Manufacturing Process

©2007 Camstar Systems. All rights reserved. CONFIDENTIAL 5

The Challenge to Operational Excellence

Plant

Efficiency

Productivity

MES

Enterprise

Proactive

Quality

Integration w/

Business Sys.

Plant to

Plant Flows

Visibility into

Production

Mfg Ops

Efficiency

Productivity

MES

Operational Challenges:

Speed of Innovation

Complexity of Products & Value Chain

Quality Expectations

Cost Pressures

Enterprise Manufacturing and Quality Systems providing operations-wide control, efficiency and

intelligence.

©2007 Camstar Systems. All rights reserved. CONFIDENTIAL 6

The Paradigm Shift

Enterprise Manufacturing and Quality Systems providing operations-wide control, efficiency and

intelligence.

Manufacturing

360

360

Collaboration360

Coordination

360

Visibility

360

Compliance

360

Control

People Ready

Process Empowered

Platform Enabled

©2007 Camstar Systems. All rights reserved. CONFIDENTIAL 7

Business Transformation

TransformYour Operations

Product Quality

and Risk

Manufacturing

Agility

Time to

Volume

Low Cost

Manufacturing

& Quality

Automatically

enforce processes

Electronic

manufacturing

audit trail

Integrated root

cause analysis

Quick process

configuration

Flexible, small lots

Customize complex

products

Remove all paper

Efficient process

change management

Synchronize

process/product

design to

manufacturing

Lean operations

Auto release

electronic Travelers

Improve yield

and cycle time

Industry Best Practices

Enterprise Manufacturing and Quality Platform

Transform Your

Operations

Provides agility and control to maximize your revenue,

minimize risk exposure and achieve operational excellence.

Enterprise Manufacturing and Quality Systems providing operations-wide control, efficiency and

intelligence.

F I N I S A R C O R P O R A T I O N

Unleashing Operational Excellence in Manufacturing

Giri Chodavarapu

Director of Business Applications

Finisar Corporation, Sunnyvale, CA

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 HomeBroad-band internet access (100M), video (IP TV), POTS Multiple set-top boxes per householdApplications and content delivery (On-line gaming, Video on Demand, telecommuting, net meetings etc.)30 minutes of video = 1 year of emails

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)

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)

11

R&D Investments

Vertical Integration: The Critical Steps

May 2001 March 2003 April 2004 Jan 2005

Low-cost off-

shore

production

(Ipoh,

Malaysia)

Genoa

acquisition

Honeywell

VCSEL

acquisition

Infineon

transceiver

and

transponder

acquisition

Step 1 Step 2 Step 3 Step 4

FY 2006-

2007

Integrate

the pieces

Step 5

Our MES VisionERP

Enterprise WIP SYS

SCM

InSiteEvent track

• Lot Tracking

• Equip. Tracking

• Defect Reason

SQL

Reporting

Services

Production ControlIDS

MES

TraceabilityDesign

Information

Manufacturing

Data Collection

PDA

PC

Operator I/FEquipment Management

QC & QA

Interface System

Failure Control

Input OutputWIP

Functions

• Paper less

• Prevention simple

mistake

Corporate

Wide

Each Factory

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

MES Business Requirements

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

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 easierto 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

17

MES RolloutFremont 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)

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.

18

19

Operational Excellence Award

200,000 ft2 clean room Cisco Operational Excellence Award

Ipoh, MalaysiaAcquired 200120 acres of land640,000 ft2 facility

Finisar is one of select few optics companies to own assembly / mfg facilities

2005 Supplier Award

For Excellence

20

Thank You

Come Back At 2:45 pm