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• W2992187948 abstract "Short product life cycles coupled with long lead-times for procuring capacity necessitate a forecast ... errors in product forecast often lead to incorrect capacity investment decisions ... describes a novel approach that ON Semiconductor has developed to deal with such a problem. The semiconductor industry is dominated by capacity bottlenecks. To ensure low cost and superior service to our increasingly demanding customer base, it is essential to have a timely access to capacity. But capacity investment is very costly, easily running into millions of dollars and requiring long lead-times. To do it right, you must have a reliable view of future market demand, which is extremely difficult for new products and new technologies because they have no history to rely on. A new product forecast comes from a new product planner, which often is not very good. Here we present range forecasting, which is an approach that combines consensus demand planning (a part of SO market share is gained by leveragingoperational excellence in the form of low-cost manufacturing and Mr. Khowala, Senior Industrial at ON Semiconductor, currently works capacity modeling and scenario for back-end manufacturing. He has several projects in the Global Chain Organization relating to optimization, product segmentation, demand prioritization. He is a certified Sigma Black Belt practitioner. His M.S. degree in Industrial Engineering is Arizona State University. superior customer service. In most cases, superior service involves significant risk in inventory builds. New products in this industry, for which no history exists, add yet another component to risk. Products in the computing and consumer segments have life cycles of one to two quarters, which is less than the typical product development lead-time of one year. A minor delay in product availability to the market can result in a failed product Mr. Valiveti is a Demand Manager at ON Semiconductor. His role includes continuous improvement and management of strategic projects within the Global Supply Chain Organization. Before that, he worked at i2 Technologies as a solution architect for 5 years. He has wide experience in process and data management related to Capacity Planning and Scenario Management. He holds a Ph.D. from Cornell University in Ithaca, New York. launch. To avoid that, the supply chain has to build inventory based on a reasonably accurate forecast. Inventory is produced by applying the capacity to raw materials. It is well known in the semiconductor industry that the supply chain is very much capacity constrained, but building capacity requires massive capital investment. Most mature companies now have a formal capital expenditure review and approval process as part of their S&OP processes. Owing to long cycle times (from raw material to finished good transformation) in the supply chain, and even longer capacity procurement and/or deployment leadtimes, capacity requirements are forecasted based on the demand forecast of four to six quarters into the future. New product forecasts contribute significant uncertainty to the overall forecast with the result that precious capital is often allocated to the wrong capacity equipment. This article describes a forecast improvement initiative, led by members of our global supply chain operations (GSCO) group, to provide a rigorous and accurate basis for capital expenditure (CAPEX) decisions. …" @default.
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• W2992187948 title "Using and Developing Range Forecasts for Capacity Planning - on Semiconductor's Journey" @default.
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