Mika Aho Seppo Orsila Modulight, Inc. Holistic database for management of data including operational metrics

Outline Brief company presentation System integration methods and benefits How to integrate to commercial ERP and CRM using industry standard components and tools? Modulight information system structure Benefits and example applications Towards a true eEnterprise Summary

Brief company presentation

System integration methods and benefits

How to integrate to commercial ERP and CRM using industry standard components and tools?

Modulight information system structure

Benefits and example applications

Towards a true eEnterprise

Summary

Modulight, Inc. Privately held company with offices in Finland & Bay area Product lines: High-Power lasers, Transmitter lasers and Custom products Applications: Industry, communication, medical, space, defense

Privately held company with offices in Finland & Bay area

Product lines: High-Power lasers, Transmitter lasers and Custom products

Applications: Industry, communication, medical, space, defense

System integration architectures ERP CRM MES PDM General Ledger EDI Point-to-point (commercial systems) ERP CRM MES PDM General Ledger EDI Integration (smart way) n*(n-1) connections 6 connections

How to integrate ? What is this all about? Transferring information between different systems Transforming the information What is needed? Interfaces Interpretation

What is this all about?

Transferring information between different systems

Transforming the information

What is needed?

Interfaces

Interpretation

One information system structure MES ERP Production equipment Extranet CRM EDI Logistics Employees www.modulight.com Intranet MLDB Partners Customers Suppliers Strategy and planning Manufacturing R&D Sales Marketing Finance

Contents Brief company presentation System integration methods Modulight information system structure Example applications Towards a true eEnterprise Summary

Brief company presentation

System integration methods

Modulight information system structure

Example applications

Towards a true eEnterprise

Summary

Full traceability We would like to know: Who, what, when, using what machine manufactured a part we shipped three years ago? Order was for 10 Gb/s FP laser chips and 1310 nm FP 2.5Gb/s laser chips Sample lot size 50 pcs Two deliveries

We would like to know:

Who, what, when, using what machine manufactured a part we shipped three years ago?

Order was for 10 Gb/s FP laser chips and 1310 nm FP 2.5Gb/s laser chips

Sample lot size 50 pcs

Two deliveries

Full traceability, cont.

Full traceability, cont.

Full traceability, cont.

Full traceability, cont.

Invoice allocation Enables significant internal (cost) accounting accuracy See product costing from different perspectives No manual work needed, same benefits for 10 and 10000 invoices

Enables significant internal (cost) accounting accuracy

See product costing from different perspectives

No manual work needed, same benefits for 10 and 10000 invoices

Invoice allocation MES ERP Dynamic and static rules Account (group) Input Input Production equipment Equipment time Materials Effective working time Batch size 40*0.7 = 28% PRO Project A 40*0.3 = 12% PRO Project B 20*0.7 = 14 % PDE Project A What to allocate? Where to allocate? How often? How to allocate? E.g. allocate: 40% to PRO 20% to PDE 40% to QUA and 70% to Project A 30% to Project B

Equipment time

Materials

Effective working time

Batch size

Benefits Improved accuracy and speed in data entry and decision-making Use Activity Based Cost (ABC) to determine the true cost of product What are indirect costs? What resources makes costs? Quickly drill-down product costing and see it from different perspectives Product pricing, manufacturing scheduling, cost analysis, detailed high-level forecasting Rapid change management

Improved accuracy and speed in data entry and decision-making

Use Activity Based Cost (ABC) to determine the true cost of product

What are indirect costs?

What resources makes costs?

Quickly drill-down product costing and see it from different perspectives

Product pricing, manufacturing scheduling, cost analysis, detailed high-level forecasting

Rapid change management

Activity Based Costing Kustannusten jakaminen MES ERP Dynamic and static rules Dynamic changes (automatic) Allocation engine Input Production equipment Static changes (user defined) Reports, views ... Project allocation Departmental alloc. Product allocation ABC Analysis Input Input Input Reports, views, embedded data...

Chip final inspection MES Production equipment Product specifications, parameters, measurement data... Production technician

Product datasheets, reports.. MES Product specifications, parameters, measurement data... Production equipment Production technician

Website MES Product specifications, parameters, measurement data... Production equipment Production technician

Just a few Intranet functions Manage production Interact with customers View production statistics Manage personnel

Towards a true eEnterprise Effective tool in eBusiness Semiautomated process from RFQ to delivery and customer feedback CRM ERP MES MLDB RFQ PO Quotation Delivery Activity Production

Effective tool in eBusiness

Semiautomated process from RFQ to delivery and customer feedback

Summary Integration and adoption are challenging and time-consuming, but leads to agility profitability customer focus reliability Resources to creative work IT systems part of business process development “ If a company's systems are fragmented, its business is fragmented” Prof. Thomas Davenport

Integration and adoption are challenging and time-consuming, but leads to

agility

profitability

customer focus

reliability

Resources to creative work

IT systems part of business process development

“ If a company's systems are fragmented, its business is fragmented” Prof. Thomas Davenport

Thank you! Authors wish to acknowledge Finnish Technology Development Centre (TEKES) for support of this work [email_address] [email_address]