Oracle Applications Prove Ideal Fit for High-Tech Industry at Applied Materials

Strategic Insights -

Applied Materials, the world's largest producer of wafer fabrication systems and services for the global semiconductor industry, has successfully implemented Oracle Manufacturing software applications for its chemical mechanical polishing (CMP) division. The five-month implementation within the division was completed within budget and five weeks ahead of schedule. This marked the first phase of a corporate-wide adoption of Oracle's Manufacturing suite, which is expected to be completed by the end of 1999. The implementation coincided with the end of Applied's third fiscal quarter and was motivated by a 60% forecasted growth in production within the next nine months.

Key Takeaways:

  • Applied Materials, the world's largest producer of wafer fabrication systems and services, has implemented Oracle Manufacturing software applications for its CMP division.
  • The five-month implementation was completed within budget and five weeks ahead of schedule, marking the first phase of a corporate-wide adoption of Oracle's Manufacturing suite.
  • The implementation was motivated by a 60% forecasted growth in production within the next nine months and was requested by managers within the CMP division.
  • Out-of-the-box features of Oracle's manufacturing modules enabled CMP to sustain its rate of production while maintaining its philosophy of lean manufacturing.
  • Oracle's software provides the unit with needed security and accuracy of data, as well as Year 2000 compatibility, features not addressed by the old legacy system.
  • Applied Materials has 13,000 U.S. and international employees and plans to implement the Oracle Manufacturing suite for all employees by the end of 1999.
  • Oracle consultants worked closely with the Applied Materials team to understand their business processes and implemented the software within five months.

Statistics:

  • Applied Materials is the world's largest producer of wafer fabrication systems and services for the global semiconductor industry.
  • The company's CMP division accounts for 35% of the market.
  • The division plans for a 60% forecasted growth in production within the next nine months.
  • Oracle's software provides the unit with needed security and accuracy of data, as well as Year 2000 compatibility.
  • The company plans to implement the Oracle Manufacturing suite for all 13,000 employees by the end of 1999.
  • Oracle's software has enabled the CMP division to process on-line requisitions, run nightly MRP reports, and eliminate a second step of double-entry when executing engineering change orders.

Sources:

  • Oracle Corporation press release, dated Oct. 19, 1998 (available on PRNewswire)
  • Applied Materials company information (available on Oracle Corporation's website)