Re-architecting Your Supply Chain     for High Velocity Growth  Anthony Noguera & Padman Ramankutty
Agenda NVIDIA Company Overview Intrigo Overview State Of Industry Business Problem CODE Solution Overview
From Super Phones to Super Cars
GPU                      Mobile                                     Processor         ®           ®          TM           ...
GEFORCE® | Helping Gamers Enjoy            Games
BEST VISUAL EFFECTS                             Quadro GPUs were behind all                             of the “Best Visua...
WORLD-CLASSSUPERCOMPUTINGIn October 2011, Oak RidgeNational Labs announced that itwill use 18,000 NVIDIA Tesla GPUsto deve...
MARKET LEADERSHIPTegra has taken the market by storm.Today, more than 30 tablets and 65phone SKUs are powered by thesuper ...
NVIDIA FACTSFounded in 1993Jen-Hsun Huang is co-founder,president and CEOListed with NASDAQ under thesymbol NVDA in 1999In...
About Intrigo    We are a Premier Enterprise Consultancy, focused on orchestrating Customer    Value Networks at the confl...
Intrigo Systems’ Clients“The ability of Intrigo’s leadership team to execute in acomplex, multi-party environment directly...
State of Supply Chain Planning inthe Semiconductor Industry•   Discrete vs. attribute-based part numbers•   Multiple postp...
Business Problem  NVIDIAs business has grown more complex      Our ability to project, manage and optimize our wafer suppl...
Desired Maturity of Supply ChainPlanning                                                     CODE                         ...
NVIDIAs Supply Chain PlanningEvolution                                                                Inventory Forecastin...
Vendor Evaluations  We evaluated several vendors with the final two  being SAP/Intrigo vs i2 (JDA)  Most of our business s...
Planning & Execution LandscapePlanning                                                                                    ...
Guiding Principles•   Flexible planning models    •   Postponement    •   Buffer stock•   Usability and maintainability of...
Planning Solution Overview                    Wafer Allocation byOptimization                      Wafer Family: for Wafer...
Reference Model – Material FlowFab              Bump              Sort                                        Assy        ...
Planning Scenarios Overview                        POR Version                                                            ...
Planning Systems Overview                                 Input Screens                                  Planning data man...
Implementation Overview• End-to-end Blueprint Design completed as of 2/15   • Phased project approach but design was end-t...
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Re-architecting Your Supply Chain for High Velocity Growth

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Anthony Noguera, Senior Manager of Sales & Planning Systems at NVIDIA and Padman Ramankutty, CEO at Intrigo Systems, will give you a glimpse into NVIDIA's Supply Chain initiative, driven by a focus on mobile computing, visual computing, and super-computing. [Presented at the 2012 SAP Summit on Suppy Chain Management in Newtown Square, PA]

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Re-architecting Your Supply Chain for High Velocity Growth

  1. 1. Re-architecting Your Supply Chain for High Velocity Growth Anthony Noguera & Padman Ramankutty
  2. 2. Agenda NVIDIA Company Overview Intrigo Overview State Of Industry Business Problem CODE Solution Overview
  3. 3. From Super Phones to Super Cars
  4. 4. GPU Mobile Processor ® ® TM ®GeForce , Quadro , Tesla Tegra VISUAL & PARALLEL COMPUTING MOBILE COMPUTING
  5. 5. GEFORCE® | Helping Gamers Enjoy Games
  6. 6. BEST VISUAL EFFECTS Quadro GPUs were behind all of the “Best Visual Effects” Oscar nominees for the past three years.Image courtesy of GK Films
  7. 7. WORLD-CLASSSUPERCOMPUTINGIn October 2011, Oak RidgeNational Labs announced that itwill use 18,000 NVIDIA Tesla GPUsto develop the world’s fastestsupercomputer, called “Titan.”
  8. 8. MARKET LEADERSHIPTegra has taken the market by storm.Today, more than 30 tablets and 65phone SKUs are powered by thesuper chip.
  9. 9. NVIDIA FACTSFounded in 1993Jen-Hsun Huang is co-founder,president and CEOListed with NASDAQ under thesymbol NVDA in 1999Invented the GPU in 1999 andhas shipped more than 1 billionto dateFY12: $4 billion in revenue7,000 employees worldwide2,300 patents worldwideRanked #10 “greenest” companyin America by Newsweek in 2011Headquartered in Santa Clara,Calif.
  10. 10. About Intrigo We are a Premier Enterprise Consultancy, focused on orchestrating Customer Value Networks at the confluence of Demand, Supply and Innovation. Respond Supply Demand Sense CreateOUR SERVICES Source: AMRAdvisory Re-architect the planning processes Usability / workflow re-model Innovate Enterprise Architecture and Software components Implementation Complete turnkey implementation Assemble to deliver Support Offshore project/engineering delivery Planning Analytics
  11. 11. Intrigo Systems’ Clients“The ability of Intrigo’s leadership team to execute in acomplex, multi-party environment directly contributed to thesuccess of our project." -- John Hanna, Director - iPlan Project, Clorox “Intrigos deep industry domain knowledge and their expertise in SAP made for an effective implementation of our Business Systems. Their commitment and focus to making us successful make Intrigo a key partner for Aptina.” -- Joe Passarello, CFO, Aptina Imaging
  12. 12. State of Supply Chain Planning inthe Semiconductor Industry• Discrete vs. attribute-based part numbers• Multiple postponement points• Optimization planning models • Long lead time materials (wafers) • Capacity-constrained, high value materials • Test equipment, allocation to multiple subcons, cost• Heuristic planning models • Order-based planning (customer centric Models)• Lead time assumptions are vague in fabless model
  13. 13. Business Problem NVIDIAs business has grown more complex Our ability to project, manage and optimize our wafer supply has entered the critical path of our growth Existing spreadsheet-driven processes cannot scale to the growth of our business (market segments, number of SKUs, product complexity) Focus today is simply aligning supply to marketing demand by product family Tomorrow, we want to employ production plans optimized for cost, capacity and flexibility
  14. 14. Desired Maturity of Supply ChainPlanning CODE program Excel Complete Scenario Optimized Integrated Planning Planning planning planning planning Active links with Sales, BU, & Finance tools; i.e., mutual plans re-align regularlyCODE – COMPLETE, OPTIMIZED DATA ENGINE
  15. 15. NVIDIAs Supply Chain PlanningEvolution Inventory Forecasting and Supply-Demand AlignmentDemand GATP with product (SAP APO+BO Dashboards) PostponementPlanning (SAP APO) Allocation (SAP APO) Planning 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Unconstrained VMI deployment (SAP CODE Supply planning Deployment) • Constrained planning (SAP APO – PPDS • Optimized planning heuristics) FCD improvements / • Scenario Planning 12-month Supply Commit
  16. 16. Vendor Evaluations We evaluated several vendors with the final two being SAP/Intrigo vs i2 (JDA) Most of our business sponsors preferred i2 over SAP given i2’s perceived richness of semiconductor-specific functionalities and more experience in the space But IT and Intrigo convinced the business about the much better TCO of SAP and the feasibility of this path
  17. 17. Planning & Execution LandscapePlanning APO Demand PDMT Wafer & BE Planning Build Optimization Steelwedge Planning Collaborative Supply Planner Inventory Levels are calculated by the system using service targets, demand history, and supply chain models All Vendors All Business Available Safety Stock can also be defined in days of coverage Requested O.R. tools Committed Unmet Unmet % APO To promise Requested Committed Unmet Excel Unmet % Requested Committed S Unmet Unmet % Supply Requested Committed Unmet Unmet % Statement A Planning data management APO ATP P B W Execution Order Management + Customer Demand Promise B Orders Dates O SAP SD Windchill Demand HUB Sourcing Demand and SAP supply (SPNR) Box color legend C o l l a b o r a t i v e S u p p l y P l a n n e r I n v e n t o r y L e v e l s a r e c a l c u l a t e d b y t h e s y s t e m u s i n g s e r v i c e t a r g e t s , d e m a n d h i s t o r y , a A l l dV e n n sd o r s p p l y u c h a i n m o d e l s A l l B u s i n e s s R e q u e s t e d C o m m i t t e d SAP U n m e t New System U n m e t % R e q u e s t e d C o m m i t t e d U n m e t U n m e t % R e q u e s t e d C o m m i t t e d Serus SAP MM U n m e t U n m e t % R e q u e s t e d C o m m i t t e d U n m e t U n m e t % (ABR) Changes in the BOM interface system to SAP Production Inventory No changes Execution Management Sub cons
  18. 18. Guiding Principles• Flexible planning models • Postponement • Buffer stock• Usability and maintainability of the planning master data • Planning rules maintained in Business language • Ease of maintenance• Explainability of the planning results• Scenario and bridge Analysis
  19. 19. Planning Solution Overview Wafer Allocation byOptimization Wafer Family: for Wafer Wafer Planning by SAPConstraint for APO Optimizer Planning Backend planning Backend planning PFG Supply: to determine Assy for Data Management Custom UI Backend planning by SAPConstraint for SLT APO Optimizer starts, PFG starts for Forecast Planning SLT Planning to Projected determine PFGSLT planning by Backend Finished goods starts for demand CTM SAP for Order signal Commitments
  20. 20. Reference Model – Material FlowFab Bump Sort Assy Test SLT Unbumped Bumped Wafer Sorted Wafer Die FG Back Assembly PFG/FG* Wafer Grind Back Grinded Tape Die and Reel Direct Sort Flow (Wafer Buy) Direct Sorted Wafer Buy Assembly Flow Test Flow PFG to FG FlowSupply Plans generated for: PFG Postponement Flow PFG to FG Flow Fab - Sort Die inv to FG SLT/T&R adhoc runs Direct FlowFocus on data, priorities, rules and system generates supply plans * Test out part numbers for Direct Flow only. Required for capacity planning in SLT
  21. 21. Planning Scenarios Overview POR Version Wafer Plan Wafer capacity-constrained version Wafer capacity-unconstrained version Backend Plan Backend material and capacity-constrained version Backend material-constrained, capacity-unconstrained version Backend constrained, push production SLT Plan SLT material and capacity-constrained version SLT material-constrained, capacity-unconstrained version Scenario solves as per the requirement
  22. 22. Planning Systems Overview Input Screens Planning data management tool APO Planning Engine Build Rules Build Strategies Time Phased Data Data Repository APO Master Data transferECC Master Data transfer Publish to output APO Planning Engine Data Warehouse APO Master Data transfer Transaction Data Planning results Core Interface Standard SAP component to transfer Planning Input Data (Master and Transaction Data) and Output Data (Planning results) Execution instructions to subcon ECC Confirmations from subcon
  23. 23. Implementation Overview• End-to-end Blueprint Design completed as of 2/15 • Phased project approach but design was end-to-end• Expected go-live in 2012 and 2013• Q&A

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