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Six simple steps to reduce the costs of component obsolescence
Paul Bentley, managing director of GD Rectifiers, talks exclusively to CIE magazine about how careful planning can help you avoid unnecessary obsolescence costs
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oday component obsolescence is a hurdle many engineers, buyers and procurement specialists face time and time again. Component obsolescence is when an electronic component is no longer available from the original component manufacturer (OCM). Electronic components are often phased out due to newer technology, superior or older parts being offered as an equivalent to reduce the product line, parts or material availability or sub-contractors can no longer provide their components or the complete product. Once a product is selected to become obsolete, it is transitioned to end of life (EOL) by the manufacturer and issued with a last time buy. It is then at this stage where distributors and customers with direct accounts have the chance to place one last order of the original part. Often, an EOL notice is given due to low demand of a product or another established part within the range already serving as a direct alternative, eliminating the need of having two active parts providing the same purpose. It’s important for customers to stay ahead of the curve and work with distributors that keep track of obsolescence, those that can update customers on the latest product availability and provide quick alternatives. It’s crucial to work with a distributor that is used to sourcing hard-to-find components and has the product knowledge to suggest a like-for- like alternative either from the same OEM, or another manufacturer quickly. A flexible approach should be adopted when dealing with component obsolescence: whilst it’s easy to design a new product around it, it can be harder to repair or replace an existing system in the field that is time critical and requires a quick refurbishment to minimise downtime.
Avoid component obsolescence costs
1. Design stage considerations It’s important that obsolete components are
38 November 2023
conditions, causing excessive heat, cold or moisture which could lead to external lead corrosion or other failures of the device. Another common problem is foreign chemicals; often used to wash or recover components which can migrate into the products causing corrosion to bond wires. Fully authorised component distributors like GD Rectifiers are compliant with ISO 9001:2015 standards and can provide traceable and guaranteed products with high-quality reliability testing if required because parts are sourced direct from the OCM.
built into new designs, even if the last time buy date and EOL date surpasses the launch date of the new project. It is far more advantageous to design the project with active components not only for ease of performance, and maintenance but to secure the best possible pricing. Choosing the right supplier and component technology is key and can impact long-term availability.
2. Understanding costs involved with obsolescence
It is crucial to understand the exhaustive list of costs and risks associated with component obsolescence. Product refreshes or redesigns should be planned into the project’s lifecycle and life-time funding should be explored, long- term component sourcing could lock down investment and impact the after-sales service.
3. Planning for component obsolescence
With a rapid rate of component obsolescence in the power electronics industry today, larger organisations are devoting a skilled and multi- disciplined team to manage obsolescence. The idea of planning for obsolescence and introducing preventative planning can reduce
Components in Electronics
or eliminate both costs and risks to the organisation.
4. Identify necessary Product Discontinuation Notices (PDNs) It’s crucial to proactively review all manufacturer PDNs and keep up with any discontinuations that might affect customers, notifying them of any last time buys as quickly as possible.
5. Why it’s important to forecast Forecasting your usage or reviewing your previous years usage is not just for the benefit of your supplier. Reviewing these frequently will help ascertain peaks and troughs in demand and provide accurate costings, allowing you to price the project accurately and help understand the market environment.
6. Always purchase from an authorised source
The risks of counterfeit or poor-quality components sourced from unauthorised sources present a significant risk to the supply chain. Grey market goods can often result in poor handling and poor storage
At GD Rectifiers we source power electronic components globally, we’ll find exactly what you need, when you need it. We have strong partnerships with over 25 component brands that we supply and have access to a wide range of products in our extended product range. We keep our customers supply chain moving even in times of component obsolescence, which helps prevent production bottlenecks. If you are looking for a distributor that will help you expect and plan for the unexpected, then GD Rectifiers can help. GD Rectifiers has worked successfully with multiple OEMs, SMEs, and start-ups around the world to supply power electronic components at competitive prices, with fast delivery and expert technical support. Confident that we’ll have the part you need, or if not, a direct replacement. We are specialists in sourcing modern day alternatives to obsolete parts, finding more cost-effective components for tight budget projects, offering parts with a longer life expectancy for sourcing fast replacement for spares and repairs.
Whether buyers are looking for an unusual package resistance value, tolerances beyond the datasheet, or specialist terminations, GD Rectifiers is your custom power specialist and we can offer a solution for your requirements.
www.gdrectifiers.co.uk www.cieonline.co.uk.uk
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