Advanced Micro Devices, Inc.

Advanced Micro Device (AMD) is a global supplier of integrated circuits for the personal and networked computer and communications markets. The company was founded in 1969 and is based in Sunnyvale CA, employs nearly 14,000 people worldwide in manufacturing facilities in the United States, Europe, Japan and Asia, as well as sales offices in major cities around the globe.

AMD produces microprocessors, flash memory devices, and support circuitry for communications and networking applications. These products allow customers to access, process, and communicate information at ever-greater speeds and low costs.

AMD is a truly global company, had revenues of approximately $ 3.9 billion in 2001, from which more than half came from international markets. Shares of the company trade on the New York Stock Exchange (NYSE) under the symbol AMD.

Business Environment

As a leading manufacturer of processors, network and memory products that help drive the information technology revolution, AMD operates in some of the most highly competitive markets in the world. The organization has been able to achieve a balance between strategic
manufacturing alliances and self-autonomy. That balance enables the company to compete globally and meet its customer’s high-volume, high-quality requirements.

AMD develops advanced process technologies at the Submicron Development Center (SDC) in Sunnyvale, CA. This location also serves as pilot production facility for next generation AMD products. New products and processes are then migrated into production at operational
manufacturing sites around the world. Wafer fabrication facilities are located in Austin, Texas and Dresden, Germany. The Fujitsu AMD Semiconductor, Ltd. (FASL) joint venture factory in Aizu-Wakamatsu, Japan is manufacturing low voltage flash memory devices. The company has also established sophisticated test and assembly plants in Penang (Malaysia), and Bangkok (Thailand), as well as a world-class test, device analysis, and design facility in Singapore. AMD operates a test and assembly facility in Suzhou (China) as well.

In December 2000, AMD made the strategic decision to use the SAP R/3 system to build a highly flexible and integrated system environment to support the ongoing changes in the marketplace. The mission of the SAP project is to replace all AMD business applications with a
single, integrated SAP architecture that enables:

• Best of class processes enabling customer certification processes in AMD’s chosen markets

• Efficient and effective single access to data that helps management run the business

• Single, integrated source for Master Data used by all processes – Customers, Vendors, Employees, Business Partners, Product and Company Structure

• Foundation systems enabling E-Commerce or Business-to-Business supply- demand Internet Exchanges extending AMD's reach to Customers, Channel Partners and Direct and Indirect Material Suppliers

• Reduction in world-wide data processing and system support costs

• Reduction in world-wide business transaction costs

SAP R/3 Implementation

Scope

Phase 1 Worldwide Financials and Materials Management for Procurable Items (Assets, Procurement and Inventory of Raw Materials, Inter-company processes, EBP, Approval via Workflow and BW). This multi-site implementation included 34 financial company codes in 4
continents. All of them are under one global chart of account and consolidated under the US mother company. The financial consolidation takes place within the SAP R/3 consolidation module. Beside that the following inventory and purchasing locations were implemented, including multiple SAP warehouse systems: Dresden (Germany), Bangkok (Thailand), Penang (Malaysia), Suzhou (China), Sunnyvale and Austin (USA) and Singapore. Procurable items are shipped from one AMD site to another. These inter-company processes were also part of the implementation scope beside the global rollout of the SAP asset tracking and depreciation functionality. AMD installed the purchasing functionality in all the major sites, including the non- US sales offices. The buying functionality is supported by the Web based Enterprise Buyer
Professional (EBP) module, which allows the buying community to process all their requests on the Web. Reporting is done via R/3, the business warehouse BW and the via SAP workplace function myamd.com

Support Teams

Phase 1 Team Consulting Group, Inc. (TCG) was introduced by SAP America, Inc. to lead the TeamSAP consulting team for phase1. The consulting team provided to AMD included a group of 10-12 full time consultants from SAP America. The team consisted of 3 MM, 3 AP, 1 SD, 3 FI, 1 TAX, 1 CO, multiple technical and BW consulting resources and a Project Manager. Three TCG
consultants were working full time at the client site for the time frame mentioned above. They were responsible for the overall consulting team towards the customer AMD and SAP America, the system design, interfaces, configuration, integration and testing in the area of MM, SD and FI. The AMD project is one of the biggest projects directly implemented by SAP as the sole system integrator. TCG was an essential part in making this success happen. Under the active guidance of TCG Implementation Management together with the full time SAP Program Manager, we were able to build a solid SAP R/3 infrastructure for the client and prove that the implementation strategy of TeamSAP works seamlessly.

The overall AMD core team consisted of approx. 40 resources. All of these resources were fully assigned to the SAP project and were brought partially to Sunnyvale or Austin for 6-8 weeks intervals duration the duration of the project. Multiple integration tests were conducted in the various sites to test the system locally and prepare the end-users before turning on the system. The in-house team was a mix between AMD IS staff and end users from the US, Europe and Asia.

Duration

 Phase 1 was implemented within an 11 months time frame and went live in time on 01/01/2002.