A Semiconductor Packaging & Testing Company (Confidential)
SAP ERP connects subcontracting, operations and finance for consistent control and reporting
- Chinese name
- 某半导体封装测试企业
- Industry
- Semiconductor (packaging & testing)
- Products & Services
- Chip packaging & testing
- Partner
- MTC
- Solution
- SAP ERP
Client name and identifying details withheld to protect privacy
Project Summary
Linked subcontract quota management, leftover-material reconciliation, goods receipt and processing-fee settlement into one traceable chain, integrating business and finance
Configured resources, capacity, scheduling and production execution; during execution, PDA devices captured on-site data such as material issue, return, goods receipt and work reporting
Company Profile
To protect the client's privacy, this case withholds the name and identifying details; only industry and outcomes are shared.
This is an optoelectronic chip company that develops, manufactures and sells optoelectronic chips, with products used in optical communication, industrial lasers, sensing and consumer applications; its main lines cover a full range of laser and detector optical chips and packaged products.
The hard part of optical-chip manufacturing lies in subcontract processing, which involves many steps and a long chain: raw materials must flow through purchasing, subcontract material issue, leftover-material reconciliation, subcontract goods receipt and processing-fee settlement. With so many steps, costs are easily blurred and progress becomes unclear. Using SAP Business One on HANA, MTC linked subcontract quota management, leftover-material reconciliation, goods receipt and processing-fee settlement into one traceable chain, and configured resource management, capacity, scheduling and production execution, so that at month-end close, cost elements such as equipment, labor hours and materials all have data to draw on.
Business and Management Requirements
Management Requirements Before Implementation
- Subcontract processing involves many steps and a long chain, making raw-material progress and leftover material hard to account for accurately
- Production execution lacked on-site data collection; material issue and work reporting relied on manual effort
- Cost accounting lacked supporting data on equipment, labor hours and materials
Systems and Applications in Scope
Implementation partner: MTC
Implementation Outcomes
- Month-end cost accounting includes cost elements such as equipment, labor hours and materials, enabling business analysis from a financial perspective to guide improvement
- Established traceability across material issue, subcontract processing, leftover-material reconciliation and fee settlement, with corresponding financial records
- Subcontract processing forms a complete closed loop from material issue and leftover-material reconciliation to processing-fee settlement, avoiding hard-to-account subcontract costs and unclear progress
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