36. Österreichischer Controllertag
Achieving more with less – Wirkungsvolles Controlling
3. – 4. März 2016, Hilton Vienna
Controlling in einem
kapitalintensiven High TechUnternehmen
Dominik Asam, CFO, Infineon Technologies AG
www.controllertag.at
Agenda
1
Introduction to Infineon
2
Next level of R&D controlling - ePPL
3
Capacity planning
4
Industry 4.0 at Infineon
5
Business analytics
36th Controller Day - Vienna, 3 March 2016
Copyright © Infineon Technologies AG 2016. All rights reserved.
2
Agenda
1
Introduction to Infineon
2
Next level of R&D controlling - ePPL
3
Capacity planning
4
Industry 4.0 at Infineon
5
Business analytics
36th Controller Day - Vienna, 3 March 2016
Copyright © Infineon Technologies AG 2016. All rights reserved.
3
We make life easier, safer
and greener – with technology
that achieves more, consumes
less and is accessible to
everyone. Microelectronics
from Infineon is the
key to a better future.
Part of your life.
Part of tomorrow.
36th Controller Day - Vienna, 3 March 2016
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4
Leadership in system understanding will foster
future growth
Competitive advantages
Leading in system-crucial categories
System leader in
Automotive
Courtesy: BMW Group
›
Advanced Driver Assistance System
(ADAS) - Infineon AURIX™ C, the
central processing unit responsible for
all safety relevant decisions
›
Sensors – pressure, magnetic and
radar sensors for safety and comfort
features
›
CO2 reduction – Infineon enables
energy efficient and compact designs
in all areas requiring electronics
#1 and technology
leader in Power
Leader in Security
Solutions
36th Controller Day - Vienna, 3 March 2016
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5
Leadership in system understanding will foster
future growth
Competitive advantages
Broad product & technology portfolio
System leader in
Automotive
›
System leader with digitalization of
the control loop and functional
integration
›
300mm thin-wafer manufacturing for
power semiconductors
›
Leader in next-generation power
semiconductor materials
GaN and SiC
#1 and technology
leader in Power
Leader in Security
Solutions
36th Controller Day - Vienna, 3 March 2016
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Leadership in system understanding will foster
future growth
Competitive advantages
Mobile Communication & IoT Security
System leader in
Automotive
›
#1 and technology
leader in Power
Leader in Security
Solutions
36th Controller Day - Vienna, 3 March 2016
Hardware based security for
– Compliance with security mechanisms
determined on application level
– Secure & trusted environment for
data storage and code execution
– Protection against manipulation,
access and theft of secrets
›
Machine-to-Machine communication as
backbone for reliable operation
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7
Infineon‘s revenue development (excl. IRF)
outperformed total semi market
[EUR m]
CAGR(99-15): ~9%
1999
2001
2003
2005
2007
2009
2011
2013
4,303
3,815
3,774
3,780
3,103
2,128
2,916
2,906
2,701
2,366
2,289
1,995
1,821
2,045
0
1,681
1500
1,200**
3000
126,895***
4500
5,100 (excl. IRF)
296,383
CAGR(99-15): +5.4%
2015
Revenue Infineon* [lhs]
Semiconductor World Market (adjusted for the Infineon fiscal year ending Sep 30)
*
**
Based on Infineon’s portfolio (excl. Other Operating Segments and Corporate & Eliminations) per end of 2015 fiscal year.
Based on market development assumptions FY99’s revenue figures for some smaller product categories have been derived
from the FY00’s revenue figures.
***
Scale indexed to the Infineon FY99 revenue.
Source: Infineon; WSTS (World Semiconductor Trade Statistics), November 2015
36th Controller Day - Vienna, 3 March 2016
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Infineon is number 1 or number 2 in our
target application segments
Automotive
semiconductors
Power
semiconductors
total market in 2014:
$27.5bn
total market in 2014:
$16.2bn
Renesas
Infineon
(incl. IRF)
12.0%
10.5%
Infineon
(incl. IRF)
Mitsubishi
Smart Card ICs
total market in 2014:
$2.63bn
NXP
19.2%
Infineon
7.0%
30.5%
23.9%
STMicro
7.8%
STMicro
5.9%
Samsung
16.0%
Freescale
7.5%
Fairchild
5.7%
STMicro
15.2%
Toshiba
5.4%
SHHIC
NXP
6.8%
6.7%
Automotive semiconductors incl.
semiconductor sensors.
Discrete power semiconductors and
power modules.
Microcontroller-based smart
card ICs.
Source: Strategy Analytics,
April 2015
Source: IHS Inc., September 2015
Source: IHS Inc., July 2015
36th Controller Day - Vienna, 3 March 2016
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Agenda
1
Introduction to Infineon
2
Next level of R&D controlling - ePPL
3
Capacity planning
4
Industry 4.0 at Infineon
5
Business analytics
36th Controller Day - Vienna, 3 March 2016
Copyright © Infineon Technologies AG 2016. All rights reserved.
10
What projects do we invest our
R&D money in and how
profitable are they?
The PPL lies at the core of our
financial R&D controlling
36th Controller Day - Vienna, 3 March 2016
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11
What is a PPL?
› A Product Plan (PPL) is the financial decision criteria for a
"product"
› The PPL shows the assumed profitability and therefore the future
financial performance of a planned product. It is a microincome-statement
› A PPL is a joint commitment of…
– Sales & Marketing regarding future customer projects in terms
of price, volume and product specifications
– OP regarding future manufacturing cost development in terms
of yield,
– R&D regarding project timeline, resource commitment and
project cost development
– Finance
36th Controller Day - Vienna, 3 March 2016
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Replace excel by a system –
the three key elements of ePPL 2.0
Data sources
Calculation Tool
Reporting
BI Portal
OCC
ePPL 2.0 DB
36th Controller Day - Vienna, 3 March 2016
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Harmonized PPL calculation –
common structure in ePPL
36th Controller Day - Vienna, 3 March 2016
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Benefit I: comparison of various PPLs
Project 1
Copyright © Infineon Technologies AG 2016. All rights reserved.
Project 2
Project 3
Project 4
Project 5
Project 6
Project 7
Project 8
Project 9
Project 10
Project 11
36th Controller Day - Vienna, 3 March 2016
15
Benefit II: PPL comparison over time
36th Controller Day - Vienna, 3 March 2016
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Benefit III: plan/actual comparison
36th Controller Day - Vienna, 3 March 2016
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Lessons learned during PPL roll out
› Ease of use and value add required to provide incentive for
adoption “bottom up”
– Certain simplifications to be jointly agreed in the finance
community to reduce the degree of complexity
– Data available in other systems needs to be automatically fed
into to system to reduce workload
– User interface needs to be convenient and fast
› Tone from the top both by the technical and finance side
required to support roll out “top down”
– Improved transparency in an area which is at the core of the
decision power of the divisions not always welcome (fear of
increased top down interference)
– It takes a long time before results from roll out provide full
benefit in terms of controlling
36th Controller Day - Vienna, 3 March 2016
Copyright © Infineon Technologies AG 2016. All rights reserved.
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Agenda
1
Introduction to Infineon
2
Next level of R&D controlling - ePPL
3
Capacity planning
4
Industry 4.0 at Infineon
5
Business analytics
36th Controller Day - Vienna, 3 March 2016
Copyright © Infineon Technologies AG 2016. All rights reserved.
19
Semiconductor industry characteristics
› Asset Intense Industry
› Long Production Lead Time
› Significant Demand Fluctuation
› Early in the Value Chain
36th Controller Day - Vienna, 3 March 2016
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Three major stakeholders in Infineon’s
planning process
Regions
Regional Account Teams
Uncapped Demand
36th Controller Day - Vienna, 3 March 2016
Four Divisions
P&L Responsibility
Operations
Global Production and
Distribution Network
Consolidated Demand
and Release
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Capacity & Supply
21
Stakeholders are aligned within one planning
cycle
Planning Cycle
Demand
›
›
Uncapped Demand
Signal
Price Planning
Load
›
›
›
›
36th Controller Day - Vienna, 3 March 2016
Consolidated but still
Uncapped Demand
Flexibility Planning
Stock and
Contingency
Planning
Review of Resulting
Load to Resources
Capacity
›
›
Invest Proposals
Capacity Feedback
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Adjust &
Release
›
›
Invest Decisions/
Reservations
Adjusted Plan for
Demand, Load and
Capacity
22
Multidimensional big picture within online
planning cube for integrated decision making
Demand
Load
Demand/Product View
› Volume, Price,
Revenue
› Region, Currency
Capacity
Adjust &
Release
Resource View
› (Allocated) Capacity
› Reserved Capacity
› Idle Capacity
Load View
› Load for Revenue
› Load for Stock
› Inventory
All Planning dimensions are available and aligned at all planning steps
36th Controller Day - Vienna, 3 March 2016
Copyright © Infineon Technologies AG 2016. All rights reserved.
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Adding Financial Key Parameters to Planning Cube
translates the Plan into a Financial Statement
Financial Parameters
Sourced from Finance Systems
›
›
›
›
Price per Piece
Cost per Piece
Cost per Idle Capacity Unit
…
Volume related inputs to
Financial Forecast Statement
›
›
›
›
›
›
36th Controller Day - Vienna, 3 March 2016
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Revenue
Cost
Margin
Idle Cost
Inventory
Value
…
24
Multidimensional picture a necessary condition
to make industry 4.0 happen

Production Network
› Flexibility
› Stock development

Customer Demand
› Volume
› New Products
36th Controller Day - Vienna, 3 March 2016
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Production Site
› Capacity
› Utilization
› Idle Cost
› Necessary Invests


Product
› Currency
› Regional Split
› Price
› Cost of Sales
25
Agenda
1
Introduction to Infineon
2
Next level of R&D controlling - ePPL
3
Capacity planning
4
Industry 4.0 at Infineon
5
Business analytics
36th Controller Day - Vienna, 3 March 2016
Copyright © Infineon Technologies AG 2016. All rights reserved.
26
Our aim: combining the productivity of mass production
with the individuality of customized manufacturing
Hello material ordering? I’ll
need nitrogen in three hours.
Add specification
A24.
I have the right of
way.
The customer changed his mind
– I need an additional feature
Who needs a
ride?
OK, I will take
you first.
36th Controller Day - Vienna, 3 March 2016
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Semiconductor frontend fabs are highly
complex production systems
Furnace
IMPLANT
Defect Densitiy
Wet Etching
Metrology
ETCH
PVD / MCVD
(Physical Vapor
Deposition)
Start
CMP (Chemical
Mechanical
Polishing)
36th Controller Day - Vienna, 3 March 2016
Lithography
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CVD (Chemical
Vapor Deposition)
28
Industry 4.0 contributes to achieve the
following operational targets of manufacturing
react quickly to
changes because
of transparent
procedures
competitive strength, as
efficiency can be increased
through integration of
production, data and
people
Enhance
Flexibilty
innovative business
models are
developed
Shorten
Time to Market
36th Controller Day - Vienna, 3 March 2016
Industry 4.0
Increase
Efficiency
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29
Verticale Integration
Industry 4.0
State-of-the-art frontend factories realized
elements of a „Smart Factory“
Manufacturing
Information
The most complex
production
system is a
semiconductor FrontEnd
in Real fabrication.
time
Paperless Manufacturing
Clearly identified
and located
Collaborative Human-Maschine
Interaction
36th Controller Day - Vienna, 3 March 2016
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Products are clearly identifiable and can be
localized at any time in a Smart Factory
Single Chip
Identification
cassette
Identification
with RFID
Paperless
Manufacturing
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Industry 4.0
other examples at Infineon
HR
IT
IT Security
Data
Quality
Automated decisions
Maintenance of equipment
Operation of infrastructure
WIP Flow Management
Fast development
Automation
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Industry 4.0 at Infineon in Villach/Austria
› Villach: Building complex for research, development and
production
› Invest and R&D-expenditure: €290 Million until 2017
› 200 High-Tech-work places
› Pilot Space Industry 4.0: Infineon as pioneer of Industry 4.0 in
Austria
› New concept in which automated manufacturing systems and
digital information technologies are linked with one another.
› Ensures competitiveness in Europe
36th Controller Day - Vienna, 3 March 2016
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Agenda
1
Introduction to Infineon
2
Next level of R&D controlling - ePPL
3
Capacity planning
4
Industry 4.0 at Infineon
5
Business analytics
36th Controller Day - Vienna, 3 March 2016
Copyright © Infineon Technologies AG 2016. All rights reserved.
34
The quantity of data
that is generated
today and has
become available
The speed at which
data is generated has
increased vastly
VOLUME
The inconsistency which
can be shown by the data
at times
VARIABILITY
& INCONSISTENCY
36th Controller Day - Vienna, 3 March 2016
VELOCITY
Proliferation of data has the potential to
change how we think of business strategy
The sheer
variety/types of data
that is available today
has increased
!
?
&
VARIETY
The data is often
unstructured and not
linked, connected or
correlated
COMPLEXITY
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35
We need to extract insights from the data to
enable better business decision making
36th Controller Day - Vienna, 3 March 2016
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Leveraging the overall ecosystem in Singapore
Professional Services
Networking
To
Ecosystem
Innovation
Cross Industry Best Practices &
Incubation of New Technology
.
Funding
Joint
Lab
A collaborative platform hosted by IT
to support strategy, SMD and AP
management to have better business
decision
36th Controller Day - Vienna, 3 March 2016
Knowledge
Ram up &
Re-skilling
Capacity & Capability Building
BA Incubation Project~ 153 K SGD (iDA)
BA CoC ~ 2.2 M SGD (EDB- over 3 yrs)
Institute for Infocomm
Research (I2R)
Institute for Higher Learning
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Example: Automated revenue forecast on
Infineon Group level
I) Problem Statement
› Prediction of IFX revenue for the current & next quarter based on internal variables and analysis of historical
trends
II) Problem Statement Analysis
III) Variable Selection & Qualification
Business Context & Motivation
Problem scoping & sizing
›
›
Historical Data-set selection
Primary and Secondary variables
›
›
V) Predictive Modelling
IV) Exploratory Data Analysis (EDA)
›
Underlying Assumptions / Hypothesis
›
Analytical data-set preparation
›
Trend and Pattern Analysis
›
Algorithm Selection- Time series & Regression
›
Model Design & Building
–
Yearly, Quarterly & weekly
›
Seasonality Testing
›
Model Comparisons & Validations
›
Inferences from EDA Selection of Variables
›
Prediction for the current & next quarter
VI) Outcomes (Iteration I)
›
Insights & Recommendations from EDA
›
Prediction for the current & next quarter
with Quarterly Refresh
VII ) Next Steps (Iteration II)
›
›
Predictive Model with Monthly refresh
Inputs and Guidance from business experts
36th Controller Day - Vienna, 3 March 2016
VIII) Model Evolution (post Iteration II)
›
Enhancements with >2 iterations
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38