Xilinx Confidential Project XTCS Presented by: Helen Milani, Michael Raj, Lynette Sequeira 01/24/06

Xilinx Confidential

Project XTCS

Presented by:Helen Milani, Michael Raj, Lynette Sequeira01/24/06

Xilinx ConfidentialXTCS 2

Today’s 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


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


Xilinx Worldwide Presence

Sales, Marketing, Support

Manufacturing (Fab, Assy, Test)

R & D

Headquarters

RocketLabs


Xilinx Revenue

200

400

600

800

1993 1994 1995 1996 1997 1998 1999 2000

1000

2001

1200

1400

1600

Fiscal Years2002 2003 2004

$ Millions

2005


Xilinx Supply Chain

Wafer FabWafer Fab

Wafer FabWafer Fab

DistributorDistributor End CustomerEnd CustomerEMSEMSWafer FabWafer Fab

Wafer Fab

60-90 Days

Distribution & Mfg Network

End Market

Assy & TestAssy & Test

Assy & TestAssy & Test

Assy & Test

14 Days


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 Dynamic’s 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)

Today’s Topic


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


U.S. Export Controls1. 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 )


U.S. Import Controls1. 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


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


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

Trade Export

•Automates•Simplifies•Accelerates•Managesthe entire export process

Trade Import

Manages the entire import process -- pre-Customs to post-Customs.

Trade Agreement

Automates the management, utilization and qualification processes necessary for businesses to participate in preferential trade agreements.

Tools that support Trade Collaborator are:•Trade Documents •Scheduler

•Application Connector•Appligent Tools

•Business Object


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)


Interface With Order Management

TCS INTERFACES FLOW1: Order Management and B2B

TCS

B2B

Orac

le OM

BookOrder

Publish OrderMessage

Screen Order

Screen Failed

Release Hold

Publish ProformaMessage

Process ProfomaMessage

Yes

ChangeOrder

Process OrderMessage

Order FailedScreen

Place the Orderon LIC Hold

Yes

Release the LICHold, if Hold

ExistsNo

PickRelease

ShipConfirm

Publish ShipmentMessage

ProcessShipmentMessage

Screen Shipment

PickReleaseStatus

Yes

Close ShipmentNo

Process ProformaMessage for VD

Warehouses Only

PublishProforma

Message forVD

WarehousesOnly

Order Entry Shipment


XTCS InterfacesData Inflow

Sales Order4

Message

OM

TIB Interface

Shipment5 Message

Marketing Part5

Message

Part Xref2 Message

Transport Network Message

Content Updates (DPL, HTS,

Export Rules etc.)

Trade Compliance System (TCS)

OM CXDB CXDB OM XTCS


XTCSProcess Flow

Licensing

Future Requirement

Exportscreening

ConsolidationShipmentShipment

Print/Fax/Email

Export screening

Licensing Govt

Agency

Orders (Shipment5)

Orders (Shipment5)

Orders (SO4)

Orders (SO4)

Part Classification


XTCS InterfaceData Outflow

Trade Compliance System (TCS)

TIB interface

Customs Proforma (screening result)

Message

Part Classification

MessageB2B B2B

Order License Hold/Release

MessageOM


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


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.


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


Project Time line

12/15/04

SteeringCommittee

Presentation

BudgetApproval

HardwareInstallation and testing

Secure Resources

01/11/0512/23/04

05/31/05

07/15/05

12/05/05

FinalizeVendor

Contract

Create Project Plan

05/1/05

Dec-05Major

Release

Design and Development

Select a Vendor

06/1/05 08/1/05


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

Xilinx Confidential

XTCS Xilinx Demo

Presented by:

Michael Raj

01/24/06