www.linx-consulting.com617.273.8837• 973.698.2331Linx Strategic Supply Chain ServiceOverview PresentationLinx Consulting
www.linx-consulting.com617.273.8837• 973.698.23312Linx Consulting1. We create knowledge and develop unique insights at the...
www.linx-consulting.com617.273.8837• 973.698.23313Electronic Materials, 2012020406080100%% total electronic materials% tot...
www.linx-consulting.com617.273.8837• 973.698.23314High Confidence Decision Support ServicesPLANNINGBusiness AnalysisM&A / ...
www.linx-consulting.com617.273.8837• 973.698.23315Industry Analysis Reports Offered• CMP Technologies and Markets• Advance...
www.linx-consulting.com617.273.8837• 973.698.23316What is Linx-Supply Chain OptimizationLinx is a leading industry consult...
www.linx-consulting.com617.273.8837• 973.698.23317Supply-Chain Optimization Background• Market trend is to push supplier q...
www.linx-consulting.com617.273.8837• 973.698.23318Incumbent Supplier Base is being ChallengedNew material formulations bei...
www.linx-consulting.com617.273.8837• 973.698.23319New Materials are Increasing RapidlyR² = 0.98501020304050601990s 2000s 2...
www.linx-consulting.com617.273.8837• 973.698.233110The Entire Value Chain is Being ChallengedEnd-UsersNeed to have materia...
www.linx-consulting.com617.273.8837• 973.698.233111What is Needed?Companies at all levels in the value chain need help in ...
www.linx-consulting.com617.273.8837• 973.698.233112World Class Supply chain Management“ Be Prepared for the Excursion ”• W...
www.linx-consulting.com617.273.8837• 973.698.233113What is happening today?IC Manufacturers are making changes• Focusing o...
www.linx-consulting.com617.273.8837• 973.698.233114Impact of ExcursionsIMPACT to:Raws Qualified Product On Wafer Packed Ch...
www.linx-consulting.com617.273.8837• 973.698.233115Dollarized Impact of Supply Chain ExcursionHigh Volume manufacturer• De...
www.linx-consulting.com617.273.8837• 973.698.233116Why Linx?The advanced materials and tooling market is again evolving. N...
www.linx-consulting.com617.273.8837• 973.698.233117Engagement Models• Client would like to buy from supplier but it is obv...
www.linx-consulting.com617.273.8837• 973.698.233118Linx Service offering: Pre-AuditVerification of systems and adherence t...
www.linx-consulting.com617.273.8837• 973.698.233119Linx Service offering: AuditVerification of systems and adherence to th...
www.linx-consulting.com617.273.8837• 973.698.233120Linx Service offering: System BenchmarkingThe advanced materials manufa...
www.linx-consulting.com617.273.8837• 973.698.233121Linx Service offering: Excursion ManagementA materials development and ...
www.linx-consulting.com617.273.8837• 973.698.233122Linx-Supply Chain Service Provides Solutions• Enables executives to mak...
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Linx supply chain optimization2013 may

  1. 1. www.linx-consulting.com617.273.8837• 973.698.2331Linx Strategic Supply Chain ServiceOverview PresentationLinx Consulting
  2. 2. www.linx-consulting.com617.273.8837• 973.698.23312Linx Consulting1. We create knowledge and develop unique insights at theintersection of electronic thin film processes and the chemicalsindustry2. We help our clients to succeed through our:• Experience in global electronics and advanced materials and thin filmprocessing industries:• Experience in the global chemicals industry• Experience at Device Producers• Experience at OEMs• Global network and capabilities• Advanced modeling capabilities– Semi– LCD– Packaging– PV– Nano Technology– OtherLINX CONSULTING
  3. 3. www.linx-consulting.com617.273.8837• 973.698.23313Electronic Materials, 2012020406080100%% total electronic materials% total category ($Bn)SemiPhotomasksCSPSpec. gasesBulk gasesDepositionCMPPR ancillariesPhotoresistWafersLCDOtherLiquid crystalsLMFChemicalsMetalizationResistsGasesSubstratesPackagingGases & ChemsDie attach & underfillEncapsulantsCeramic packagePlastic Subs.Frames & WiresPCBSubstratesPatterningMetalizationChems &GasesSoldersOtherElectrolytesCathodes/anodesSolarWafersMetalsSaw wireSlurryPastesChemicalsGasesEncapsulantsBacksheetsGlass substratesPackagingOtherGasesDep.SubstratesTotal = 122.8Adv BattSeparatorsCompound/LEDSEE BEYOND THE HORIZON
  4. 4. www.linx-consulting.com617.273.8837• 973.698.23314High Confidence Decision Support ServicesPLANNINGBusiness AnalysisM&A / Due DiligenceDiversification / ExpansionPlanningIDEAS TO MARKETIP DevelopmentValue Chain AnalysisTechnology Assessment andCommercializationOPERATIONSCost BenchmarkingCompetitive IntelligenceCOO Models and AssessmentProcess Technology AssessmentMARKETING & SALESMarket Analysis/MonitoringMarket Forecasting and ModelingCompetitive IntelligenceCustomer PerceptionsSINGLE CLIENTSERVICESLINX CONSULTING
  5. 5. www.linx-consulting.com617.273.8837• 973.698.23315Industry Analysis Reports Offered• CMP Technologies and Markets• Advanced Thin Films for FEOL and BEOL Applications• Emerging Materials Opportunities for Advanced Semiconductor Devices – Logic• Emerging Materials Opportunities for Advanced Semiconductor Devices - Memory• Advanced Cleaning and Surface Preparation: Technologies and Markets• Advanced Patterning Forecasting• Chemicals and Materials for TSV Applications• Wafer Polishing Technologies and Markets• Impact of 450mm Wafers on Processes and Materials• Advanced Materials and Chemicals for Photovoltaic Cells and ModulesLINX CONSULTING
  6. 6. www.linx-consulting.com617.273.8837• 973.698.23316What is Linx-Supply Chain OptimizationLinx is a leading industry consulting firm focused on helping our clients to succeed by overcoming thechallenges inherent in becoming or remaining a WORLD-CLASS advanced materials supplier. Weaccomplish this through offering innovative insight and solutions to quality management systemsrequirements, which drive changes that transform the perception of quality as a cost center to quality as adifferentiator, that customers are willing to pay for, and the company from a bulk vendor to a world-classsolutions providerLinx Services Offered• Quality system auditing or pre-audit assessment• Supplier quality system benchmarking• Quality/Product Management system set-up or augmentation• Excursion managementKey Deliverables are enabling• Enables executives to make informed decisions around product line management• Enables end-users to assess and select strategic partners for next generation materials development.• Is a critical component of due-diligence supporting M&A activities
  7. 7. www.linx-consulting.com617.273.8837• 973.698.23317Supply-Chain Optimization Background• Market trend is to push supplier quality into the supply chain• End customers (End-user) are pushing suppliers to avoid costly firefighting by pre-emptivelyqualifying the supply chain• Some companies are developing collaborative programmes which are firewalled andconfidential• Others are demanding more information with an expectation of supplier transparency for thewhole supply chain.• Suppliers need to set up effective audit trails for all sub suppliers• This may lie within the capability of large suppliers, but small and medium size suppliersmay not have the expertise to develop acceptable supply change qualification systems
  8. 8. www.linx-consulting.com617.273.8837• 973.698.23318Incumbent Supplier Base is being ChallengedNew material formulations being introducedNew suppliers bring innovationMature formulations used for new applicationsTechnology cycles are being compressedNew suppliers have a steep learning curveEnd-users have limited process characterization resourcesHendry ISS 2013 Hendry ISS 2013
  9. 9. www.linx-consulting.com617.273.8837• 973.698.23319New Materials are Increasing RapidlyR² = 0.98501020304050601990s 2000s 2010+New Materials RequiredNew Devices and ArchitecturesThe Quality Dilemma1. New Materials are often found in /required for the most critical applications2. New materials lead to new value chains3. New value chains lead to new sources4. New sources are usually unqualified
  10. 10. www.linx-consulting.com617.273.8837• 973.698.233110The Entire Value Chain is Being ChallengedEnd-UsersNeed to have materials qualifiedNeed to track more of the supply chainNeed to control overheadsHandling many more materialsPrime SuppliersBeing held accountable for sub-suppliersystemsDo not have capabilities to track activities atsub-suppliersSub-SuppliersOriginal contracts did not call for stringentquality processesDo not sell directly to end-user – it is not ourproblemDo not know how to implement systems
  11. 11. www.linx-consulting.com617.273.8837• 973.698.233111What is Needed?Companies at all levels in the value chain need help in establishing and managing qualitysystems and the impact of excursions. Linx Consulting offers solutions to all participants thatare designed to:End-users Prime Suppliers Sub Suppliers• Quality system auditing• Excursion management• Systemic Reporting tools.• Quality system auditing orpre-audit assessment• Supplier quality systembenchmarking• Quality/ProductManagement system set-up or augmentation• Excursion management• Identification of tollmanufacturers• Quality system auditing orpre-audit assessment• Supplier quality systembenchmarking• Quality/ProductManagement system set-up or augmentation• Excursion management
  12. 12. www.linx-consulting.com617.273.8837• 973.698.233112World Class Supply chain Management“ Be Prepared for the Excursion ”• Well controlled manufacturingat the supplier leads to productqualification• Changed process at the sub-supplier changes end productperformanceSee Beyond The HorizonSourcingReactionPurificationPackagingShippingReceivingReactionFormulationPurificationApplication TestQCDistillationShippingQCSupplierSubSupplierSubSupplierPurificationNew Requirements• Sub-supplier process mappingduring product development• Beyond CofA materialfingerprinting• Understand and Controlvariation where possible
  13. 13. www.linx-consulting.com617.273.8837• 973.698.233113What is happening today?IC Manufacturers are making changes• Focusing on formulation sub-suppliers• Are evaluating strategic supplier readiness• Imposed significant fines for quality manual violations• Actively eliminating under performing suppliersSuppliers need assistance to overcome barriers:• Executive Sponsorship– Assignment of talent and resources for change– Commitment to attainment of quality goals• Education– Understanding WHAT and WHY• Involvement– All aspects of sales and operations are stakeholders for quality metrics• Price– End users need to pay for the appropriate level of testing and production capabilities
  14. 14. www.linx-consulting.com617.273.8837• 973.698.233114Impact of ExcursionsIMPACT to:Raws Qualified Product On Wafer Packed ChipsConsumerProductBusinessOperating capitalGood Will 1/∞TechnicalID Root CauseRecurrence ofIssueDetection location
  15. 15. www.linx-consulting.com617.273.8837• 973.698.233115Dollarized Impact of Supply Chain ExcursionHigh Volume manufacturer• Delay of Ramp– $2-10 B/ Yr• Tools Idle or re-tasked for excursion support– $¼M - 1.4M / day• Additional Wafer Inspections– Non-standard operations– Additional tool capacity may be needed inHVM operations• Additional Incoming material screening– Non-standard operations– Additional capitol may be required needed forHVM operations• Additional Wafer inspections– Non-standard operations– External services $5K – $20K per week• Task force Meeting– 1 – 3x per day– 1/wk Senior Management ReviewsFormulated Product Supplier• Additional inspections mandated– Operating margins reduced significantly• Re-engagement of R&D staff– R&D staff no longer available for otherdevelopment– Other activities with end user suspended untilexcursion is fixed• New specification development– $20K-$5M additional capital• Expedited Logistics charges– $2-$5K for Land Freight /sample– $10-$20K for air freight / sample• Task force meetings– Will need 1 Full time TF manager– 1-3x per day with end-user– 1-2x per day internal– VP of Operations/Business Expected toattendExcursions are expensive including direct and indirect costs
  16. 16. www.linx-consulting.com617.273.8837• 973.698.233116Why Linx?The advanced materials and tooling market is again evolving. New platform development iscostly and risky. End-users are identifying new strategic partners and suppliers who they canrely on to help meet their business goals. Supply chain risk has been identified as a significantvulnerability. In response to this, FABs are rethinking strategic partnerships to focus on supplierswho have consistently met project deliverables and not slipped on manufacturing rampschedules.
  17. 17. www.linx-consulting.com617.273.8837• 973.698.233117Engagement Models• Client would like to buy from supplier but it is obvious that quality systems do not meetstandards– Model: Linx service to perform client supplier initial gap assessment. Assessedsupplier then hires Linx to address gap areas and prep for qualification audit.• Client is involved in acquisition of a target company and is completing “Due diligence”– Model: Linx performs technical assessment of targets capability to meet proposedindustry technical deliverables. Client can use report as a component of due diligence.• Client needs to know where critical supply chain baseline is– Model: Linx performs baseline assessment on list of suppliers ranking them andhighlighting areas for improvement vs. industry normal.• Client has a supplier management program but must complete detailed assessments(AML?) in short time.– Model: Linx supplements existing quality team to complete audits and establishroadmaps for gap closure as an extension its own internal team.• Client is small and does not have experienced people in place.– Model: Linx acts as quality representative. Linx would be on retainer to the client andon call with a specified number of hours per month.External Disclosure Not Permitted
  18. 18. www.linx-consulting.com617.273.8837• 973.698.233118Linx Service offering: Pre-AuditVerification of systems and adherence to those systems is at the core in maintaining a culture of qualityand continuous improvement. Semiconductor manufacturers perform audits regular to asses thereadiness of their supplier base. These audits are invasive and the preparation for the audit can be adaunting. Linx provides guidance and focus to have a successful customer audit.Pre-Audit Program Deliverables• Review of end-users audit forms and questions• Completion of end-users pre-audit forms• Analysis & prioritization of gaps needed to be addressed prior to actual customer audit• Participation in the end-user audit if requested.Pre-Audit Methodology• Pre-Audit work will begin with a review of the pre-audit forms with the customer’s quality andoperations team leads to align on expectations.• The level of involvement on completing the pre-audit questionnaires will depend on the scoperequested by the customer• The completed questionnaire will be returned to the end-user after review by initial pre-audit team.• A final document will be presented to the customer highlighting items (red flags) and mitigationrequirements if needed.
  19. 19. www.linx-consulting.com617.273.8837• 973.698.233119Linx Service offering: AuditVerification of systems and adherence to those systems is at the core in maintaining a culture ofquality and continuous improvement. Quality system auditing is a program for materialsmanufacturers to asses its ability pilot and ramp new suppliers or materials.Audit Program Deliverables• Development of Customized Audit Templates• Field Audits of Supplier and critical component suppliers• Analysis & Recommended Prioritization of Needed ImprovementsMethodology• The assessment will begin with a questionnaire sent to the audit target from the customer.• The on-site portion will consist of site inspections and detailed discussions of selected portionsof the assessment checklists.• A final document will be presented to the customer highlighting key findings and anyrecommended improvements.
  20. 20. www.linx-consulting.com617.273.8837• 973.698.233120Linx Service offering: System BenchmarkingThe advanced materials manufacture’s quality system strength is limited by the capability of itssuppliers. Advanced materials formulations are complex and many use components from avariety of suppliers, typically not supplying solely to the electronics market. Periodically it isadvantageous for an end-user to asses the aggregate ranking of its supplier base. Thebenchmarking program allows a customer to rank its overall supplier performance vs. bestknown methods and suppliers not in the customers supply chain.Benchmarking Program / Deliverables• Development of Customized Benchmarking Templates and Focus Areas• Development of Customized Audit Templates• Field Audits of Suppliers• Analysis and Comparison to Best Known MethodsBenchmarking Methodology• The customer and Linx will agree on current supplier and extra-supplychain data sets– Peer Benchmarking is also possible in this program• The supplier audits will follow the standard audit methodology.• A final document will be presented to the customer aggregating the data and presenting anoverall supply chain health, gaps and feedback from the participants concerning thecustomers systems.
  21. 21. www.linx-consulting.com617.273.8837• 973.698.233121Linx Service offering: Excursion ManagementA materials development and integration program is inherently risky but the rewards for a successful rampare substantial. During the final selection process and high volume ramps end-users depend on theirmaterials suppliers to identify and eliminate material variation with minimal interruption or involvement fromthe end users technical teams. Occasionally an interaction in the integrated process requires the end-userto devote considerable resources to work with the supplier to contain, identify and systematize fixes fordeviations of form fit and function. This is impactive to suppliers and failure to manage this correctly soursthe relationship with the end-user resulting in loss of future business as well as disqualification for thecurrent process(es).Excursion Management Program• Define parameters required for excursion closure requirements• Attend excursion task force meetings ( internal, end-user or both)• Provide excursion management tools / techniques and guidance to customer excursion manager• Final report will document root cause and suggested gap closure activitiesMethodology• Will join customer internal problem solving team• Review data and evaluate completeness of data already gathered to identify problem• Will review containment activities for effectiveness• Once root cause is identified will work with customer team to implement fix.
  22. 22. www.linx-consulting.com617.273.8837• 973.698.233122Linx-Supply Chain Service Provides Solutions• Enables executives to make informed decisions around product line management• Enables end-users to assess and select strategic partners for next generation materials development.• Is a critical component of due-diligence supporting M&A activities

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