Project XTCS

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Project XTCS

• Presented by
• Helen Milani, Michael Raj, Lynette Sequeira
• 01/24/06

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Todays Topics

• Introduction to Xilinx
• Xilinx Supply Chain
• Drivers and Supply Chain focus areas
• Project back ground
• What is Trade Compliance?
• Key requirements
• New application overview
• Oracle XTCS Interfaces
• Project Implementation
• Benefits
• Lessons Learned
• Xilinx XTCS Demo
• Management Dynamics overview

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Introducing Xilinx

• Leader in fastest growing semiconductor segment
• Invented programmable chip in 1984
• 7,500 customers, 50,000 design starts/year
• Leader in semiconductor process technologies
• First to 180nm, 150nm, 130nm and 90nm
• Pioneer of fabless semiconductor model
• Focus on design, marketing, support
• Partner for everything else
• A well-managed company and great place to work

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Xilinx Worldwide Presence
Headquarters
R D
Sales, Marketing, Support
Manufacturing (Fab, Assy, Test)
RocketLabs
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Xilinx Revenue
1600
Millions
1400
1200
1000
800
600
400
200
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
Fiscal Years
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Xilinx Supply Chain
Distribution Mfg Network
End Market
Assy Test 14 Days
Wafer Fab 60-90 Days
Wafer Fab
Assy Test
Distributor
End Customer
EMS
Wafer Fab
Assy Test
Wafer Fab
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Fundamental Supply Chain Drivers

• Xilinx products are generic until the customer
  programs them
• Total Manufacturing Time is 75 Days
• Fabrication, Assembly at vendor site
• Test and back end processing
• In-house
• Vendor
• Warehousing model includes In-house and 3pl(3rd
  party logistics WH
• Use Oracle ERP system with Management Dynamics
  Trade collaborator application to manage global
  trade compliance at Xilinx.
• Compliance screening and generating export docs
  and government docs for all orders done in XTCS
  (Xilinx Trade Compliance System)

Todays Topic
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Global Trade ComplianceBackground

• What is Trade Compliance?
• Export and Import of goods need government
  clearance
• Governments create rules and regulations
• Globalization made Trade Compliance a must have
  feature for companies, who trade across borders
• Cross-border trade involves movement of goods,
  services technology through multiple countries
  to end-user locations
• Multinationals such as Xilinx must comply with
  increasingly stringent import and export
  requirements (severe penalties for
  non-compliance)
• Correct documentation needed to prevent
  cross-border supply chain delays
• Physical product shipments must be reconciled
  with revenue recognition, to meet legal financial
  reporting requirement

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U.S. Export Controls
1. What are Export Controls Laws enforced by government to regulate distribution of certain exports to foreign nationals and foreign countries
2. Why have Export Controls Restrict exports of goods and technologies that could contribute to military potential of other countries, etc.
3. Increased Focus Post 9/11 Seen as anti-terrorism tool with increased focus on enforcement
4. U.S. Government Agencies Commerce Export Administration Regulations ( EAR ) for Dual Use technologies State International Traffic in Arms Regulations ( ITAR ) for inherently military technologies Treasury Office of Foreign Assets Control ( OFAC ) prohibits transactions with countries subject to embargo, boycott or trade sanctions
5. Penalties Severe civil, criminal and administrative penalties under EAR, ITAR OFAC for export violations
6. Export Compliance Program Required by government to show due diligence by Xilinx ( government audits increasing )
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U.S. Import Controls
1. What are Import Controls Import prohibitions, restrictions, specific product requirements country of origin marking requirements
2. Entry Process Importer required to use "reasonable care" when making entry of imported merchandise Incorrect procedures may subject importer to civil, criminal penalties possible seizure of imported product
3. Classification Assignment to imported product a harmonized code number for duty determination purposes ( U.S. Harmonized Tariff Schedule or HTS )
4. Customs Valuation Assignment to an imported product a U.S. dollar value for duty determination purposes
5. U.S. Government Agency C-TPAT Program U.S. Customs Border Protection ( Homeland Security ) C-TPAT joint government-trade initiative to strengthen security in company's supply chain Benefits of joining include reduced border clearance times, reduced inspections, expedited duties/fees processing
6. Import Compliance Program Integrating internal controls throughout clearance process, from time order is placed until received in warehouse
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Key Requirements for the New System

• US, Ireland, Singapore and other countries
  government rules and regulations
• New US Government DOS, ITAR regulations
• Re-export screening
• Auto Export license tracking and decrementing
• Electronic filing and email capability of Export
  Documents
• Order and shipment screening
• Audit Trail

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Overview of Management Dynamics/Trade
collaborator application
Trade Collaborator, enterprise global trade
software platform, provides a single-stop
solution for companies that want to grow and
expand globally.

Trade Collaborator

• Scheduler

• Trade Documents

• Application Connector

• Appligent Tools

• Business Object

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Overview (Cont. II)
Characteristics of Trade Collaborator

• Fully browser-native

• n-Tier Capability

• Database Server

• Application (Business Layer) Server

• Browser (Thin) Client

• Accessibility

• Intranet (LAN or WAN)

• Internet (HTTP or HTTPS)

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Interface With Order Management
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XTCS InterfacesData Inflow
OM
OM
CXDB
CXDB
OM
XTCS
Content Updates (DPL, HTS, Export Rules etc.)
Sales Order4 Message
Shipment5 Message
Marketing Part5 Message
Part Xref2 Message
Transport Network Message
TIB Interface
Trade Compliance System (TCS)
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XTCSProcess Flow
Licensing
Future Requirement
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XTCS InterfaceData Outflow
Order License Hold/Release Message
OM
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Project implementationScope

• Purpose
• To replace the old Trade Compliance System with
  new compliance system
• Scope
• WW implementation of the new system included
  XSJ, XCO and XIR Import/Export and Compliance
  functions
• XAP will use the system to release XAP order from
  hold in XTCS and/or misc. shipments

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Functionality and Benefits

• XTCS Functions
• Screen All Orders/Shipments (Domestic
  International) in XTCS Order screen process will
  place orders on hold in OM not the shipment
  screening process in XTCS.
• System Tracking Decrementing of Valid Export
  Licenses
• Electronic Routing of Export Documentation to
  Freight Forwarders, Customs Brokers Customers
• Provides ITAR (DOS) regulations for screening
  Export requirements for state department control
  regulations ( we used to only screen against
  department of commerce)
• Trade Wizard Look-up Tool to help with making
  decision on where we can or can not ship to,
  Individual screening and will give all required
  docs
• Re export screening
• Auto order screening
• Shipment consolidation
• Generate Export docs
• Auto email of docs to forwarders
• Auto part classification for countries other than
  U.S.

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Project Tasks

• Project kick off 4/29
• Design and Documentation June
• Development Completed July
• Unit testing 9/15 to 9/30
• Super user training 8/15
• CRP1 09/19/05 -10/10/05
• CRP2 10/10 to 10/28
• UAT 11/07 to 11/18
• Go no Go 11/23
• Production cutover 12/02 to 12/05
• Go live 12/05

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Project Time line
Steering Committee Presentation
Secure Resources
Finalize Vendor Contract
Dec-05 Major Release
Select a Vendor
Budget Approval
Create Project Plan
Design and Development
Hardware Installation and testing
07/15/05
12/05/05
05/1/05
06/1/05
08/1/05
12/15/04
01/11/05
12/23/04
05/31/05
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Lessons learned

• Install and test the application based on user
  requirements before finalizing functional design
• Get all users involved early in the project
• Review before and after process flows and gaps
• Go over the technical check list with technical
  team in detail
• Allow enough time for
• Data mapping
• Development and unit testing
• Bug fixes and rework

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XTCS Xilinx Demo

• Presented by
• Michael Raj
• 01/24/06