Philips SPEED: Accelerating Global Integration

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Increased efficiency, improved business control and reduced cost of ownership.

“One of the best managed and controlled implementations in the whole Philips Group.”
Philips internal audit

The Situation

The semiconductors market is truly global. Product development and manufacturing span all continents, and relocating labour-intensive manufacturing activities to Asian countries is an economic imperative. Flexibility in working with third-party suppliers and joint ventures is key.

NXP Semiconductors, earlier Philips Semiconductors, had diverse system architecture in place to support its “classic ERP” functionality. To regain a solid position as one of the top ten in the industry, Semiconductors needed to pursue a strategy of growth and cost reduction. An integrated system for the manufacturing environment of Semiconductors on a global basis was seen as a prerequisite for the execution of this strategy.

The Solution

In 2000, Philips decided to phase in an SAP-ERP system for all its manufacturing sites worldwide. A program, SPEED (Superior Production Execution through ERP Deployment), was launched. Based on SAP, it included ADEXA, SAP-Business Warehouse, SAP Plant Maintenance and Enterprise Buyer Professional standard applications. These are all highly integrated, supporting the manufacturing business processes. A set of common interfaces would enable each site to communicate effectively with the rest of the Philips network. SPEED was implemented on a site-by-site basis and rolled out globally. Upon completion, all legacy “ERP” systems used at the manufacturing sites all over the world would be eliminated.

The Result

With the implementation of SPEED the following benefits are being achieved:

  • Single global Business Control Model for manufacturing sites with standard systems, procedures, processes and documentation
  • Reduced total cost of ownership by replacement of a multitude of almost end-of-life local legacy environments
  • Increased efficiency and data quality by avoiding multiple keyboarding
  • Improved business control as a result of more transparent, fully integrated processes and management information
  • Improved delivery reliability and speed at the manufacturing sites as a result of more accurate demand planning techniques, better scheduling, reduction in cycle times, reduced inventory levels and accurate, timely and complete management information.