Global supply chain becomes complex because of a fast increasing number of dynamic interactions which need to be handled. The semiconductor industry is characterized by long product life cycles, highly differentiated products, and non-linearity in the manufacturing process; furthermore the semiconductor companies also face a volatile market due to the upstream position in the supply chain of consumer electronics which makes the demand from end-customers hard to forecast.The purpose of this paper is to analyze the key drivers of supply chain complexity in the semiconductor industry from practical view and to find the common ground between them. Several prevalent problems address different aspects of supply chain complexity occurred in daily operations were collected from an international semiconductor company, and discussed at an internal workshop with around forty participants from supply chain, IT or other business units. For each case the main drivers of complexity were mapped from reality to a conceptual model. Possible solutions to manage complexity were brainstormed and structured finally. By gathering all discussion results, these findings can be summarized:1)Different complexity problems might have the same solution2)Human roles, common understanding and communication become very important in complexity management3)Trends for complexity management strategies: for current complexity, manage the value-added complexity which is necessary and reduce non-value added complexity; avoid future non-value added complexityThese empirical results also provide evidence for our hypothesis, that complexity can be viewed from these aspects: process, role, object (state) and analyzed by their individual attributes which have influences on the system. This PROS approach defines a conceptual model to describe a complex system from the theoretical perspective. People get further indications that PROS model is a useful tool to analyze complexity and it can help to separate value added from non-value added complexity.
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