1. PRESENTED BY:-
•KUNWAR MANMEET (05)
•VISHWAJEET SINGH(07)
•SHWETA BAKSHI (08)
•INDERJEET SINGH(10)
•PRIYANKA KUMARI(27)

2.  STMicroelectronics was formed in June 1987 by the
merger of two money losing state owned semi-
conductor companies SGS
Microelectronic of Italy and Thomson Semi-
conducters, the semiconductor arm of
France's Thomson.
 It is an Italian French electronics and semiconductor
manufacture headquartered in Geneva, Switzerland.
 In 2001 it become the no. 1 Europe based chipmaker
in sales and no.3 in all over the world after Intel and
Toshiba.

3.  In December 2001 it was named as the “Best
French Company of the Decade”.
 It has a wide array of product line.
 Specializes in memory chips, discrete components
and many types of analog and mixed signal
integrated circuits used in communication
technology .

4.  A proper supply chain management strategy has
always been essential for ST to manage its broad
range of product portfolio and processes as well as
its strategic partnerships.
 In 1998, the premises of the e-chain optimization
(eChO) project with one of the ST‟s major trading
partners were settled .
 This project was a joint effort to streamline the
company‟s planning and renew the current
operations.

5. • Short product life cycle
• Rapid price decline
• Imposing customers
• Costly operations with different facilities
• Supply chain challenges
• Inaccurate forecasting of the product
demand
• Lack of communication between the
trading partners

6. Prior to ECHO project, ST and its trading partners
were using manual processes
 Process started by email or fax spreadsheet containing
weekly product demands in advance
 Demand forecasts were entered manually
 Production plan would reconcile with the information
received
 Trading partners were notified by email of any
manufacturing discrepancies that demands presented
 Planning process disconnected, time consuming and
inaccurate.

7.  each planning cycle took several weeks to complete
 inflexible and unresponsive to changes in market
demands.
 Isolated planning and lack of integration
 High inventory levels and low capacity utilization
reduced ST's return on net assets
 production was planned two months in advance
 High level of inventory was kept to mitigate the impacts
of demand variability

8.  higher rate of capacity utilization and
better service level can be provided
 To provide best in class supply chain
management, four processes were
needed for demand satisfaction :
 Planning
 Sourcing
 Making
 Delivering

10.  MILLIONS OF UNITS SHIPPED EVERY HOUR.
 NEEDED A TOTAL SUPPLY CHAIN
SOLUTION
 IN 1998 TRIED TO DEVELOPED A B2B
STANDARD.
 IN 1999 ROSETTANET WAS THE BASIS

11.  SHIPMENTS ON CONSIGNMENTS.
 ROBUST COLLABORATIVE FORECASTING
 DYNAMIC REPLENISHMENT TOOLS
 SYNCHRONIZATION OF DEMAND AND
SUPPLY

12. RIGHT INVENTORY
AT RIGHT PLACE
AT RIGHT TIME
OBTAINING “LOWER COSTS”

14.  A non-profit consortium
- Supports the high-tech manufacturing (end-to-end processes
within vertical
industry supply-chain)
- Supports industry segments (electronic components, information
technology, and semiconductor manufacturing)
- Global in presence, participation and adoption
 A standards body
- Creates standards which seek to
… standardize the interaction process (public process)
… standardize the data exchanged to support a business process
 An XML Implementation
- Ready-to-implement XML implementation
- PIPs are ready to download and implement today
- High visibility, momentum, and adoption
- Supported by broad set of software providers

15.  ENTERPRISE
TRADING ROSETTANET
PARTNER
B2B
BUISNESS
PROCESS
TRADING
PARTNER

16.  WAS THROUGH PIP(PARTNER INTERFACE
PROCESSES)
 PIP4A4:- NOTIFIES EXCHANGE OF DEMAND
FORECASTS
 PIP 4B2:- NOTIFIES RECEIPT OF SHIPMENTS
 PIP 4C1:- NOTIFY DAILY INVENTORY REPORT
 PIP 3B2:- NOTIFY ADVANCE SHIPMENT
 PIP 3B3:- NOTIFIES SHIPMENT STATUS

17.  FOUR MONTHS DEVOTED TO R&D
 2001 FEB, NEW SYSTEM STARTED
 MONTHLY PLANNING CAPACITY MODEL
 FIRST ITERATION CHECKED
 MPS UPDATED SEVERAL TIMES
 DAILY PLANS RESET AT FINAL STAGE.

18.  EVERYTHING AUTOMATED
 TOOK 4 TO 5 HOURS
 EACH REPORT SENT TO ST‟S B2B SERVER
EACH FEED CONVERTED TO STXML
FORMAT
 FED TO DRP(DISTRIBUTED REQUIREMENTS
PLANNING) MODULE.
 OUTPUT OF DRP IS REPLENISHMENT PLAN

19.  Vendor Managed Inventory is the
process where the vendor assumes the
task of generating purchase orders to
replenish a customer‟s inventory.

20.  Collaboration
The collaborative stage is critical in establishing the goals and key performance
indicators for the VMI relationship. Periodically, this stage is revisited to review
current performance and adjust or reconfirm the goals and constraints. The impact
of this strategic collaboration is a commonality of metrics and focus between
supply chain partners.
 Planning
The key to automating a replenishment process, and achieving world-class
inventory /service performance is employing comprehensive, dynamic, exceptions
based replenishment software. Software tools that are comprehensive enough to
effectively manage a variety of demand patterns. Dynamic enough to
automatically detect and adjust to changing demand patterns, goals and
constraints. Exceptions based to allow for an automated flow of information and
product when the outcomes are within expectation. If exceptions are detected, they
are analyzed for degree of importance and the user is automatically prompted for
action.

21.  Execution
In dynamic, volume intensive supply chains inventory
conditions can change suddenly. Each day the current supply
chain are analyzed against the plans to automatically determine
the course of action.
When the Collaboration and Planning stages are done properly,
the Execution stage becomes automated with very few
exceptions, requiring scant human interaction on a daily basis.
 Assessment
The old adage holds true in VMI, what gets measured gets fixed.
The Assessment stage tells the VMI partners how they are doing
against the goals. And within the software, diagnostic
information is fed back into the planning stage in a continuous
effort to close the gap between theory (plan) and reality (result).

22. Benefits Of ECHO
•common and convenient Platform for B2B messaging between ST and
its trading partners.
•Improved ST‟s process efficiency
•VMI model resulted in a significant reduction in inventory levels. Buffer
inventory was no more required.
•ST was able to cut out totally the four weeks of planning cycle time and
thereby reduce the total planning and manufacturing cycle time by
50%, from eight to four weeks
•To achieve the required short lead times and high degree of flexibility, ST
articulated clear goals for each step in its Plan to Delivery process re-
engineering.

23. • ST has become 10 times more responsive due to improved inventory
management.
• Identified bottlenecks and worked to mitigate them to improve supply
chain efficiency.
• Accurate forecasts allowed the company to serve more customers and
increase its capacity utilization by 30%.
• ST could capitalize on rush orders, and thus provide an identifiable value-
added service to the customer.

24. Challenges and Costs Associated With the ECHO Project
• the benefits were not realized without a cost
• while it was expected that in the long run the higher degree of automation
would lower the company‟s Labour „in practice the echo project led to an
increase in the required man-hours for planning activities at ST.
• Implementing the Rosetta Net standards was also quite complicated and
required substantial resources
• Correct security infrastructure to protect the highly sensitive information
that was being exchanged.

25. Expanding New Processes to Other Trading Partners
• ST achieved the intangible benefit of increased customer intimacy and
low inventory cost.
• However, it was clear that to maximize the return on its investment, ST had
to expand the implementation of the new processes to additional trading
partners
• Tremendous infrastructure and knowledge base was in place, each new
implementation would likely require much smaller investments while yielding
similar benefits, thus significantly increasing ST‟s return on investment.
• However, there was a lot of uncertainty in the extent to which ST could
expand this to new trading partners so the work is in progress.

26. THUS ST MICROELECTRONICS
REVOLUTIONIZED THE SEMICONDUCTOR
MANUFACTURING AREA BY OPENING IT‟S
GATE TO ROSETTANET AND MINIMIZED IT‟S
EXPENSES ADDING ULTIMATELY TO IT‟S
PROFITS.

27. THANK YOU
FOR YOUR CO-OPERATION