Holistic database for management of data including operational metrics

Value adding solutions to optical applications

Mika AhoSeppo Orsila

Modulight, Inc.

Holistic database for management of data including operational metrics

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Value adding solutions to optical applications

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

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Value adding solutions to optical applications

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

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Value adding solutions to optical applications

System integration architectures

ERP CRM

MES PDM

GeneralLedger

EDI

Point-to-point(commercial systems)

ERP CRM

MES PDM

GeneralLedger

EDI

Integration(smart way)

n*(n-1) connections 6 connections

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Value adding solutions to optical applications

How to integrate?

• What is this all about?• Transferring information between different

systems• Transforming the information

• What is needed?• Interfaces• Interpretation

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Value adding solutions to optical applications

One information system structure

MES ERP

Productionequipment

Extranet

CRM

EDI Logistics

Partners

Customers

Suppliers

Strategy and planning

Manufacturing

R&D

Sales

Marketing

Finance

Employees

www.modulight.com

Intranet

MLDB

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Value adding solutions to optical applications

Contents

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

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Value adding solutions to optical applications

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

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Value adding solutions to optical applications

Full traceability, cont.

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Value adding solutions to optical applications

Full traceability, cont.

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Value adding solutions to optical applications

Full traceability, cont.

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Value adding solutions to optical applications

Full traceability, cont.

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Value adding solutions to optical applications

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

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Value adding solutions to optical applications

Invoice allocation

MES ERP

Dynamic and static rules

Account (group)

Input

Input

Productionequipment

- 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 PRO20% to PDE40% to QUA and70% to Project A30% to Project B

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Value adding solutions to optical applications

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

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Value adding solutions to optical applications

Kustannusten jakaminen

MES ERP

Dynamic and static rules

Dynamic changes(automatic)

Allocation engine

Input

Productionequipment

Static changes (user defined)

Reports, views ...

Project allocation

Departmental alloc.

Product allocation

ABC Analysis

Input

Input

Input

Reports, views,embedded data...

Activity Based Costing

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Value adding solutions to optical applications

Chip final inspection

MES

Productionequipment

Product specifications, parameters, measurement data...

Productiontechnician

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Value adding solutions to optical applications

Product datasheets, reports..

MES

Product specifications, parameters, measurement data...

Productionequipment

Productiontechnician

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Value adding solutions to optical applications

Website

MES

Product specifications, parameters, measurement data...

Productionequipment

Productiontechnician

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Value adding solutions to optical applications

Just a few Intranet functions

Manage production

Interact with customers

View production statistics

Manage personnel

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Value adding solutions to optical applications

Towards a true eEnterprise

• Effective tool in eBusiness• Semiautomated process from RFQ to delivery and customer feedback

CRM ERPMES

MLDB

RFQ

PO

Quotation

Delivery

Activity Production

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Value adding solutions to optical applications

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

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Value adding solutions to optical applications

Thank you!

Authors wish to acknowledge Finnish Technology Development Centre (TEKES) for support of this work

[email protected]@modulight.com