Difference between semiconductor ERP system and traditional ERP system

Nov 13 - 2023

ERP System

We are at the center of electronic innovation. Almost every chip in the world uses one of our products or services. We are the semiconductor industry's leading provider of integrated material solutions. The explosion of data, 5G, artificial intelligence, the Internet of Things and extended reality is leading to the need for smaller, more energy-efficient products. Materials are now becoming more important than ever and are at the center of escalating innovation.semiconductor system Unlock your customers' potential for new microchip architectures and next-generation electronics with Semiconductor ERP Systems' expertise and data-driven insights.

What is Semiconductor ERP System?

Semiconductor ERP System provides a cost-effective, flexible alternative to traditional ERP inventory systems. It provides a sophisticated, web-based solution for all problem areas as well as a wide range of semiconductor accounting, sales, production, supply chain and manufacturing execution functions. Semiconductor ERP systems can also be integrated with your manufacturing subcontractors.

How is a Semiconductor ERP system better than a traditional ERP system?

Traditional ERP inventory systems are invaluable to thousands of manufacturing companies around the world. But what about for semiconductor manufacturers?

It's not that traditional ERP inventory systems don't work. They're just not suited to the core processes of fabless semiconductor production. For years, fabless companies have struggled to make these legacy systems work for their needs, but it's a lot like trying to force your left foot into your right shoe. You might be able to fit it in, but it won't be very comfortable or practical. Once the shoe is on the wrong foot, you can't walk straight.

Genealogy Tracking and Management

Traditional ERP inventory functions don't provide genealogy tracking at all.semiconductor test system Fabless operations typically need to track their entire process history, mapping every step a product goes through, including rework. For each production step, you need to know the completed process, suppliers used, sourcing and production information - and all key attributes collected. Once you've attached this genealogy to a product, fabless operations typically require complete forward and backward tracking through the genealogy from the production process to customer re-returns (returns). Semiconductor ERP systems track and maintain a complete, auditable process history for each supplier and production step, including detailed product and production information for each step. Each part has a complete family tree associated with it.

Track Lot Identification

Identifying specific products by lot number or date code is another challenge. Most traditional ERP systems provide only lot tracking or serialization, with only one tracking number associated with a part. Fabless companies use multiple key tracking attributes to label their products, often using fab lot numbers and date codes. Lot splitting and lot merging add more complexity, which makes it even more important to accurately collect individual tracking attributes for products. Semiconductor ERP systems track wafer lots, supplier lots, and internal lots at each step of the production process. In fact, our customers can maintain and track a complete batch history, as well as product identification and process genealogy for forward and backward traceability. Batch splitting and merging is also fully supported.

Product Attribute Management

Fabless companies need to track detailed product attributes during the manufacturing process. Examples include: test programs used, test boards, mask sets, internal lot numbers and assembly lot numbers. This is far beyond the capabilities of more traditional manufacturing systems.semiconductor solutions With a semiconductor ERP system an unlimited number of production attributes can be tracked and used for detailed analysis.

Cost History

Traditional ERP inventory systems do not provide a solution for maintaining process cost history, and they cannot support semiconductor product costing and inventory earned value requirements. Due to the complexity of costing and unique requirements unlike any other type of product, fabless operations often need to maintain complete cost histories by production process step. They also need to know standard and actual costs, yields, and detailed cost variances, all by production process step. Semiconductor ERP systems support standard cost variance support. Costs for each production step can include input materials, consumed materials, overhead and supplier costs. Each cost is appropriately accounted for with respect to variance analysis and cost history.

Recycling Processing

Traditional ERP systems do not allow for recycling processing, which allows previously discarded material to be brought back into the system.Fabless operations often need a system to recycle previously lost production or dividends.They need to be able to bring back previously discarded materials, including the complete product spectrum, and allow them to be put back into inventory at an appropriate cost.The Semiconductor ERP system allows re-work, re-screening and re-testing.It supports test analysis and production enhancement, recycling and bonus processes, as well as re-testing and re-screening production processes, capturing detailed scrap and yield information, and segregating materials and discrepancies.

Location Tracking ManagementTraditional ERP inventory systems do not perform location tracking. Fabless operations typically require location tracking by supplier.Ideally, they should also be able to track unlimited locations per supplier.For example, if you have multiple locations for your fab, test lab, and packaging plant, you should be able to track materials at each location. Semiconductor ERP systems track wafer lots, internal lots, and supplier lots at each step of the manufacturing process. Unlimited production attributes can be tracked and used for detailed analysis.

Operations Integration ManagementTraditional ERP inventory systems are not designed to be integrated with operations management.For fabless companies, ERP inventory integration with WIP tracking and WIP costing is the minimum requirement for an effective business system.Semiconductor ERP systems provide complete WIP and inventory management support for semiconductor operations, including yield and cycle time history, integrated WIP status, complete forward and reverse product genealogy, and complete lot and product attribute tracking, all fully integrated with planning, customer service, and ERP.