Cover story
Component management – begin before the end
Six steps of successfully planning for and avoiding the costs of obsolescence O
bsolescence is inevitable. Time marches on, technology grows older, but obsolescence is not the end. Obsolete
product can still be available, obsolete product can still be planned for; obsolete product can save businesses money. The challenge requires planning and preparation, but facing the issue is for the better. Here Rochester presents six steps for successfully managing component obsolescence:
1. Obsolescence management begins at the design and product defi nition phases. Component selection in development is a deciding factor in potential premature product redesigns and requalifi cation. We have all heard stories of products being launched with obsolete components. This is a particularly relevant issue for customers with lengthy development and qualifi cation cycles. New cars, aircraft or industrial controllers will typically spend up to fi ve years in the design and qualifi cation stages. Add fi ve to seven years of production and seven to ten years of after-sale support, it isn’t uncommon to require upwards of 20 years of component supply. Choosing the right component
technology and supplier can have dramatic impacts on long-term availability. The lowest-cost sources may not be the best choice for long- term supply. It is difficult to obtain absolute guarantees of stock availability over the long-term, as there may be unforeseen natural disasters, market instabilities, and product acquisitions, which cannot be predicted years in advance. Therefore, a reliable supplier needs to demonstrate a proven transition process through end-of-life (EOL) and into long-term authorised supply and long-term production. It is
imperative to ask any supplier what their commitments are to long-term availability.
Key questions to consider include: • What is the component lifecycle status across the application’s lifetime?
• Are the key components of the design (software-packed microcontrollers, FPGAs, or ASICs) comprehensively documented?
• Can the true design fi les (VHDL, Spice models, test vectors) be retained and archived at the design phase, to offer a chance of rebuilding if the unexpected happens?
• Does the design contain proprietary intellectual property? If so, the ability to “port” such designs when the components are made obsolete, will be compromised, or subject to relicensing and royalties.
2. Understanding the total costs of obsolescence It is important to understand and model the costs and risks associated with obsolescence. Component obsolescence is never just a purchasing problem to be addressed as an afterthought.
Key questions to consider include: • Does the project plan need to include anticipated product refresh or re-design during its life? If yes, how will it be funded?
• How will the business account for the capital locked down in long-term component sourcing?
• What will the component obsolescence impact be on after- sales service commitments?
• What effect would a shortened product lifecycle have on your customers and end-users?
06 September 2023
www.electronicsworld.co.ukw
3. Planning for obsolescence and resource management If your equipment has long qualifi cations, productions, or in- service lives you will face component obsolescence. Manufacturers who are surprised by component obsolescence and treat it as an inexpensive inconvenience, which to overcome will add disruptions, costs and risks. Best-in-class organisations devote skilled multi-disciplined workers to obsolescence management. Preventative planning by purchasers, component engineers, designers and program managers can reduce or eliminate cost and risk. As the saying goes: “The devil is in the detail” and cost analysis must be done on a line-by-line basis. The unexpected obsolescence of a 1-cent transistor could potentially stop a program in its tracks, just as easily as the obsolescence of the main microcontroller.
4. Identify important Product Discontinuation Notices (PDNs) that may aff ect your business and monitor them. Proactively monitoring component lifecycles is crucial to anticipating problems before they occur. Excellent commercial tools are available, which track a component’s lifecycle, lead times and specifi cation changes. Such tools provide alerts that can be triggered when PDNs are issued. Keep in mind that these tools use current market trackers to estimate remaining component life.
5. Last Time Buy (LTB) – What to forecast? Forecasting is not an exact science and, unfortunately, it is likely that forecasts will be inaccurate. It is difficult to anticipate product needs years in advance, or possible market disruptions. If production forecasting is difficult, accurately predicting
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