FEATURE Automotive Supply Chain
Planning for obsolesence in the automotive sector
Neil Ballinger, Head of EMEA at EU Automation, explains what it takes to stay abreast of the ever-evolving challenges in the automotive sector
. A
s the life cycles of electronics become shorter, automotive manufacturers must plan for component obsolescence for a
sustainable future.
The automotive sector undergoes continuous advancements and technology updates. Innovations such as artifi cial intelligence (AI), electric vehicles (EVs), autonomous driving, energy storage and cybersecurity are just some of the technologies reshaping this industry. Self-driving cars, augmented-reality dashboards and automated parking systems may be novelties right now, but they are revolutionising the automotive fi eld. Technologies once considered futuristic and far-fetched now regularly feature at automotive trade shows. Such rapid changes also mean that manufacturers must modernise their production lines and streamline their complex supply chains.
Product life cycles In the automotive sector there has been an exponential increase in the adoption of
26 February 2022 | Automation
safety-related electronic systems. Back in 2004, only a quarter of vehicles had airbags and less than 50% had factory-installed power seats. However, the current safety regulations and customer demand lead to a surge in the adoption of these systems. Consequently, auto makers are using an increasing number of semiconductors, and the automotive electronics market has become one of the fastest growing in the semiconductor industry. However, the life cycle of semiconductors
is shortening: In the 1970s and 80s, many types were in production for 25 to 40 years. Today, a semiconductor’s production life can be as short as two years, with an average life cycle of about fi ve years. T e incredible pace of technological
progress, coupled with an increasing trend toward customisation, is forcing manufacturers to make their assembly lines as agile and adaptable as possible. However, in such a complex and demanding industry, adaptability can quickly turn into a logistical nightmare. T e constant introduction of innovative design elements means that, oſt en, the production of popular and relatively
recent components will be discontinued simply to make space for newer versions. T e shorter lifecycle of electronic
components is problematic in all industries but is especially challenging in automotive. Not only are newer vehicles increasingly reliant on electronic components, but the highly-specialised nature of automotive supply chains is also exasperating the issue. To keep up with the competition,
component manufacturers for the automotive sector have started to narrow their off erings, investing in niche components rather than highly commoditised ones. T is means that when specialised components inevitably become obsolete, automotive manufacturers have few sourcing options. Obsolescence of the components being
used in vehicles is not the only worry, this issue also aff ects critical machines on assembly lines. PLCs, motors and robotic solutions are upgraded at unprecedented speed, leaving manufacturers with growing diffi culties in fi nding like-for- like replacements of items currently used, however recent.
automationmagazine.co.uk
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