Semiconductor Supply Chain
SUPPLY STATUS
© Ericsson AB 2009 | Ericsson Internal | X (X) | Date
Semiconductor Supply Chain
SEC Aug 24 2011
© Ericsson AB 2009 | Ericsson Internal | X (X) | Date
Supplier situation: total 91 suppliers
Via Arrow:28
Non-Arrow:63 (on plan to Arrow:7)
On Plan
Will change model
© Ericsson AB 2009 | Ericsson Internal | X (X) | Date
Supplier Lead time-
Non Arrow Supplier
Avago has longest LT
Delta and Hitach 102-133 days
With forecast
Without forecast
© Ericsson AB 2009 | Ericsson Internal | X (X) | Date
Supplier Lead time-
Arrow Supplier
Infineon extremely
Long 172-182 days
Vishay has contract
36 days LT.
© Ericsson AB 2009 | Ericsson Internal | X (X) | Date
Actual LT VS Contract: NON-Arrow
Core supplier has extended LT
Will into Arrow HUB
in Q4 2011
*Lacking Arrow report on Arrow Supplier for actual LT
© Ericsson AB 2009 | Ericsson Internal | X (X) | Date
Actual LT VS Contract: Arrow
*Lacking Arrow report on Arrow Supplier for actual LT, but some info as below:
Infineon 10 RYN parts prolong from 40 to170 days
NXP 8 RKZ parts prolong from 28 to 160 days
Vishay 3 RYR parts prolong from 35 to 133 days
© Ericsson AB 2009 | Ericsson Internal | X (X) | Date
Forecast, Capacity & Actual Delivery
Acutal Delivery 2011
© Ericsson AB 2009 | Ericsson Internal | X (X) | Date
Current Constraint Suppliers
Vishay
Coilcraft
TDK
Delta
Delta
Pulse
ETAL
© Ericsson AB 2009 | Ericsson Internal | X (X) | Date
Delivery Booking Forecast
Acutal Delivery 2011
Order
Forecast
© Ericsson AB 2009 | Ericsson Internal | X (X) | Date
Forecast, Capacity & Actual Delivery
Acutal Delivery 2011
3E Pola
Order
Forecast
© Ericsson AB 2009 | Ericsson Internal | X (X) | Date
Forecast, Capacity & Actual Delivery
Acutal Delivery 2011
Forecast
Order
© Ericsson AB 2009 | Ericsson Internal | X (X) | Date
Inventory Situation
Raw Material Stock
for Volume production
73M RMB
Raw Material PO
for Volume production
44M RMB
Risk Stock
23M
Risk PO
10M
Direct Risk Stock( No Demand)
Potential Risk (has demand in 6 month)
Direct Risk PO ( No Demand)
Potential Risk PO (has demand in 6 month)
Potential Risk Stock (has demand in 6 month)
Caused by Demand Change, Forecast VS Order Accuracy
© Ericsson AB 2009 | Ericsson Internal | X (X) | Date
Direct Risk Stock( No Demand)
Direct Risk PO ( No Demand)
© Ericsson AB 2009 | Ericsson Internal | X (X) | Date
Potential Risk Stock (has demand in 6 month)
Potential Risk PO (has demand in 6 month)
© Ericsson AB 2009 | Ericsson Internal | X (X) | Date
buffer LEVEL IN arrow
WK32-WORST 9 SUPPLIERS
Buffer consumed due to Demand upside
© Ericsson AB 2009 | Ericsson Internal | X (X) | Date
SEC Lead Time updated Jul 2011
© Ericsson AB 2009 | Ericsson Internal | X (X) | Date
Shorten Lead Time & Long Term Mind set
Long Term Mind Set
Value Stream Mind
Capacity Flexibility
EMS management enhancement
Send Source
Improve understanding of Customer demand
Shorten Lead Time
SEC FG in Arrow
Moving Safety Stock Model Applied on Raw Material
Special Supply Prepration for Key Products (TBD)
Action on Risk Components
© Ericsson AB 2009 | Ericsson Internal | X (X) | Date
cancellation process
Cancellation category
Operation mistake caused cancellation
Customer demands change caused cancellation
Operation mistake caused cancellation
Customer demand change caused cancellation
© Ericsson AB 2009 | Ericsson Internal | X (X) | Date
Rules
SEC need a copy from sales region for Key Account Reschedule & Cancellation term in agreement.
All of cancellation/reschedule window cannot against SEC’s window
The order cannot be cancelled when rescheduled more than 3 times
The order cannot be further push out or cancelled if rescheduling time accumulated over 6 month
All of cancellation and liability negotiation with customers should be closed within two weeks (TBD).
Accept R&C
Need get Approval Regional Heard and SEC SCM manager
Can Not Cancel
Traffic Light Means
© Ericsson AB 2009 | Ericsson Internal | X (X) | Date
Operation mistake caused cancellation
Cancellation Request from Customer
Analysis cost of cancellation
SEC Order& Delivery
Sales Manager
Approval
Rejection
Order handling officer discuss how to charge cost with Sales manager
Head of Sales region
Final discussion to customer
Cost check list
SEC Order handling officer
Sales
Order & Delivery manager
SEC . manager
Approval
Approval
Approval
© Ericsson AB 2009 | Ericsson Internal | X (X) | Date
Customer demands change caused cancellation
Sales Manager
SEC Order & Delivery
Rejection
Analysis cost of cancellation
SEC manager
Head of Sales Region
OPM
SEC order & delivery manager
Check replacement demands
Check forecast change
Order handling officer discuss how to charge cost with Sales manager
Final discussion to customer
Reject
Cost Check list
SEC Order handling officer
OPM
Cancellation Request from Customer
Cancellation Request
Approval
Suggestion if needed
Approval
Approval
© Ericsson AB 2009 | Ericsson Internal | X (X) | Date
© Ericsson AB 2009 | Ericsson Internal | X (X) | Date
