Chief Supply Chain Officer magazine got the skinny on
the Microsoft strategy direct from Senior Supply Chain
Manager Osama Kahn.
Q:
Why did you choose a largely Microsoft software solution
rather than adopting off the shelf supply
chain/manufacturing tools from vendors such as i2?
A:
For this specific project, we did choose off the shelf
Microsoft Axapta, now known as Microsoft Dynamics AX, as
the planning system for the fabless semi-conductor
industry. Microsoft’s partner, Fullscope, built a vertical
semiconductor module in Axapta catering to our major
requirements, which included lot management, yield
management, and WIP [Work in Process] tracking.
Fullscope’s implementation experience in the industry,
coupled with the Microsoft technology it utilized, which
provided an intuitive user interface built on SQL server,
made for seamless integration with other Microsoft
technologies such as SharePoint, BizTalk,and Office.
Also, since we were operating as a fabless
semi-conductor company by subcontracting all fabrication,
assembly, and testing of silicon, we needed to integrate
our planning and execution systems with shop floor and
execution systems.
Q:
Were there other companies that had used this software in
this way that acted as a guide?
A:
We partnered with a company that had experience in the
semiconductor industry, and was also an implementation
partner for Axapta.
Q:
What lessons, good and bad, did you learn from the supply
chain built for the first Xbox?
A:
Our leadership decided to own the design, fabrication,
assembly, and testing of critical Xbox 360 components.
From a business perspective, we learned how to compete
more effectively and lower our costs while improving
yields and decreasing costs in this industry.
From a systems perspective, we wanted to move away from
tightly coupled point-to-point integration. We were
interested in moving towards a more loosely coupled
hub-and-spoke model adopting Service-Oriented
Architecture. This would reduce the total number of
interfaces, and give us the ability to do pattern based
integration, providing a more scalable solution while
becoming more agile and adaptive in adding new partners.
Q:
What metrics do you use to judge your own success?
A:
From a business perspective, we are successful if we meet
our supply, quality, and cost target commitments.
Q:
What metrics do you use to measure partners?
A:
From a systems perspective, we have built a partner score
card that measures both successful and failed partner
messages. From a supply chain perspective, partners are
measured using key metrics consisting of delivery
performance, quality, and yields along with cost of
materials and services.
Q:
What specific benefits have you achieved?
A:
We have improved delivery performance benefits, and
reduced inventory and service costs.
Q:
How are you extending this technology, embracing more
partners and more parts of the chain?
A:
We have designed and implemented a highly scalable
end-to-end supply chain planning and execution solution
using Axapta nd BizTalk. We are already looking to add new
partners, parts, and processes to manage using this
solution.
Q:
Are these concepts and technologies being extended to
other parts of Microsoft, for other products?
A:
Yes, we are looking to apply this Customer Owned Tooling
(COT) model to other high value parts. We have also rolled
out a new Xbox 360 Contract Manufacturer using BizTalk and
RosettaNet implementation. To reiterate, we plan on
extending this to high value parts within the Silicon
Operations span of responsibility. This solution is also
being promoted outside of Microsoft to our high-tech
customers, for example, fabless semiconductor contract
manufacturers – by Microsoft’s high-tech manufacturing
industry unit.
Q:
Are there still pieces of the old supply chain in the new
one?
A:
Yes, upstream of Silicon Operations is our Xbox supply
chain. We integrated the two supply chains, while taking
advantage of processes that were already present and
operating effectively in the existing supply chain.
From an integration perspective, when we look at
implementing new partners, we leveraged the new BizTalk
and RosettaNet integration framework.
Q:
If the old supply chain was in place would the Xbox 360
have shipped in time for the Holiday shopping season?
A:
Yes, however it would have incurred additional costs. That
said, using the old supply chain was not an option. We had
to have an “application specific solution” implemented in
time to support the Xbox 360, and we did.
Q:
Has your implementation influenced the development of
these tools, such as new features?
A:
Yes, we are sharing our insight with the BizTalk product
team so that future versions can incorporate these tools,
providing better solutions for our customers.
Q:
Has your implementation been used as a guide for
prospective Microsoft customers?
A:
Yes, case studies have been written to showcase our
implementation of Axapta and BizTalk to guide prospective
Microsoft customers. |
