Hitachi Semiconductor (America), Inc.

logo_hitachi

Hitachi Semiconductor (America), Inc.

Hitachi Semiconductor (America) Inc. – a subsidiary of Hitachi, America, Ltd., in turn a subsidiary
of Hitachi, Ltd. – supports the requirements of the North American marketplace with a broad range of standard and low power semiconductor solutions. Offering some of the industry’s
most popular RISC microprocessors and memory components among other semiconductor solutions, Hitachi provides chips to the world’s leading device manufacturers within industrial,
consumer and emerging market applications. Based on 1997 unit shipments, Hitachi is the world’s single-largest provider of 32-bit RISC microprocessors and the second-largest provider of micro controllers and flash memory cards. Hitachi’s substantial design engineering, research and development facilities in the United States help bring the world’s best technology to U.S. customers.

Business Environment

The worldwide industrial and consumer electronics market is highly dependent on semiconductors and the support related tools and services which are necessary to conduct
commerce in, or using, these elements. The extended family of Hitachi affiliated organizations are key players in this worldwide market.

Since 1990, the market for semiconductor-based products and services has grown steadily in terms of quantity and quality, while the overall value of semiconductor products and services has steadily declined. As a result, product yields, output and sales are at all-time highs, while revenues and profit margins are at all time lows.

Combine this semiconductor and electronics industry environment with the financial instability
surrounding much of the Asian economic community during the latter half of the 1990’s, and the stage is set for an aggressive position to be taken for all that find themselves conducting business in these markets.

SAP R/3 Implementation
Scope

Project 1

Split Hitachi Semiconductor division of Hitachi America, Ltd. into a separate company and create a new separate SAP installation containing only the new Hitachi Semiconductor company. A decision was made to spin off the Hitachi Semiconductor division from Hitachi, America to from
a new separate company called Hitachi Semiconductor (America). The formation of this new company would allow the semiconductor business to focus on its core business opportunities and objectives as a unique and separate business entity.

Project 2

Upgrade Hitachi Semiconductor, Inc. SAP installation from version 3.0D to version 4.0B.In order to utilize the power of SAP it was felt that Hitachi should keep abreast of the newest business
processes and enhancements SAP had to offer by upgrading the production software from 3.0D to version 4.0B. The SAP system that was in production contained numerous user exits, and custom developments that had to be tested and modified where appropriate.

Project 3

Merge two separate companies and two separate SAP installations from Hitachi Micro
Systems, Inc. and Hitachi Semiconductor (America) Inc. into a single company and installation.
Most recently the global semiconductor business continues to be dramatically affected by over-capacity in memory chips. Yet at the same time, the growing need for intelligent command and
control in many industries in North America which present important market opportunities for
Hitachi. A decision was made to from a new business unit by merging Hitachi Semiconductor
(America) and Hitachi Micro Systems, Inc. The formation of this new unit will allow Hitachi to
focus greater resources on building a systems solution business in North America, while
consolidating high-volume semiconductor production to a unified operating base to achieve
greater operating efficiencies.

Support Teams

Project 1

Team Consulting Group, Inc. (TCG) was the primary applications consulting partner utilized during the split project. The TCG consulting team was formed by a small team of three (3)
applications consultants, covering the FI/CO, SD and MM modules of the SAP system. This
team of consultants provided the project planning, business process mapping, program and process impact investigation, report and output rework and testing. A substantial support was also provided in the cutover and go live activities including general ledger and financial balancing, transport of programs, and mapping and input of conversion data. In addition, a Hitachi ABAP programmer was used to make supplemental report and output modifications.

Project 2

Team Consulting Group, Inc. (TCG) was the primary applications consulting partner utilized
during the upgrade project. The TCG consulting team was formed by a small team of three (3)
applications consultants, covering the FI/CO, SD and MM modules of the SAP system. This team of consultants provided the project planning, new business process mapping, program and process impact investigation, user exit and development support, test planning, user test support and execution. Substantial support was also provided in the cut over and go live activities including transporting and coordination of fixes and enhancements. 8 additional Hitachi personnel were used as supplemental help with SAP upgrade application, program and report fixes and changes, user test coordination and testing.

Project 3

Team Consulting Group, Inc. (TCG) was the primary  applications consulting partner utilized
during the merge project. The TCG consulting team provided support covering the FI/CO, SD and MM modules of the SAP system. This team of consultants provided the project planning, business process mapping, new business process merging and integration, program and
process impact investigation, report and output rework, user training, and testing, go-live conversion activities, and production support.

Hitachi Semiconductor (America), Inc. is a model for a fast and efficient SAP upgrade, that
company splits and mergers can be implemented in SAP quickly and cost efficient.

Duration

Project 1 was implemented in a 2  months time frame which involved Company Split.

Project 2 was implemented in a 3  months time frame which involved System Upgrade from 3.0d to 4.0b.

Project 3 was implemented in a 2  months time frame which involved Company Merger.

Hitachi (Canadian) Ltd.

Hitachi (Canadian) Ltd. (HCL), a wholly owned subsidiary of Hitachi, Ltd. (Tokyo, Japan), markets a broad range of electronics, computer systems and semiconductors, and provides
industrial equipment and services throughout Canada. HCL conducts business primarily with OEM businesses in three main electronics industry sectors:

  • Power and Industrial Devices

  • Semiconductor Devices

  • Information System Services

Business Environment

The worldwide industrial and consumer electronics market is highly dependent on semiconductors and the support related tools and services which are necessary to conduct
commerce in, or using, these elements. The extended family of Hitachi affiliated organizations are key players in this worldwide market.

Since 1990, the market for semiconductor-based products and services has grown steadily in terms of quantity and quality, while the overall value of semiconductor products and services has steadily declined. As a result, product yields, output and sales are at all-time highs,
while revenues and profit margins are at all time lows.

Combine this semiconductor and electronics industry environment with the financial instability
surrounding much of the Asian economic community during the latter half of the 1990’s, and the stage is set for an aggressive position to be taken for all that find themselves conducting business in these markets.

More than ever, as a result of this sub-optimal business climate, each of the key players realize
that it is extremely important to operate efficiently and quickly in an effort to be price competitive and reduce overall time to market. One of the tools, which organizations see more
and more as a strategic element in the marketplace is the use of a standardized, fully integrated business transaction system. Such a system helps to streamline the flow of information to decision makers and consistently provide information in a timely manner.

Recognizing this opportunity, Hitachi, Ltd. launched a worldwide SAP R/3 implementation effort in the mid-1990’s. And, one part of this extremely aggressive rollout plan was the decision to implement the SAP R/3 system at HCL during the spring of 1998.

SAP R/3 Implementation

HCL has five locations in Canada. Each of these sites is utilized to support the sales and service functions of the HCL business. No manufacturing or production is directly managed by the HCL organization, itself. All of the objects marketed and sold by HCL are procured directly from other Hitachi affiliated entities throughout the Americas and Asia.

The main objective of the Hitachi worldwide information systems strategy, based in part on the SAP R/3 platform, was to aggressively promote the utilization of standard software and similar business processes at most, if not all, of the Hitachi corporations.

After a series of other Hitachi affiliates had already implemented the SAP R/3 software, HCL was faced with the challenge of leveraging bits and pieces of existing Hitachi implementations to most efficiently and effectively install the SAP system while meeting specific HCL and
Canadian business requirements.

The result was an extremely rapid implementation that allowed the HCL organization to benefit from previous design work performed by other Hitachi family members while still retaining the flexibility to tailor the system to its own immediate HCL needs.

Scope

The multi-site R/3 implementation was divided into two main phases. Each phase was rolled-out to all five (5) geographic sites simultaneously.

Phase 1 included the company wide application of FI General Ledger Chart of Accounts, A/R
Customer Invoice Processing, A/P Vendor Invoice Processing, A/P Check Printing, CO Cost Center Accounting, MM Non-Inventory Purchasing, and MM Non-Inventory Goods Receiving.

Phase 2 included the company wide application of SD Sales Order Entry, Pricing, Delivery and Billing, MM Finished Goods Inventory Procurement and full MM Finished Goods Inventory
Management. This second phase was built upon functionality already implemented during
the first Phase.

Support Teams

Team Consulting Group, Inc. (TCG) was the primary applications consulting partner utilized during the HCL implementation. The TCG consulting team was formed by a small team
of three (3) applications consultants, covering the FI/CO, SD and MM modules of the SAP system. This team of consultants initially supported the implementation on a part-time basis and eventually began working full-time on the project as implementation dates drew near. In addition, two Hitachi Basis personnel were supplementary utilized to help with hardware system set up and authorization definition.

The overall HCL project core team consisted of five (5) resources. These resources were assigned to the project on a part-time basis from the beginning. The HCL team was a mix
of senior management, MIS staff and end user personnel. These team members received SAP knowledge transfer from the TCG consulting staff, and in turn educated their own employees regarding end-user system utilization.

Duration

Phase 1 Five sites implemented in 3 months.

Phase 2 Five sites implemented in 4 months.