STRATEGIES TO MINIMIZE PRODUCT OBSOLESCENCE RISKS
A sudden EOL (end of life) announcement from an original equipment manufacturer can cause great distress to any company relying on those parts for their own end products.
It is seen more and more often in today’s dynamic and fast-shifting environment, where companies have to either scrap entire product lines, or rework product designs in order to cope with the unexpected component depletion.
This is the reason why, in critical industry areas such as defense or healthcare, obsolescence management has become an essential part of the product support activities
WHAT TO CONSIDER IN ORDER TO MINIMIZE THE IMPACT OF COMPONENT OBSOLESCENCE ON PRODUCTION LINES
Understand the problem
Knowing and recognizing the factors that determine a product obsolescence will help a company anticipate the probability of such an occurrence.
The most influential in the product obsolescence paradox is the technological advancements which make older technologies less competitive on the open market.
There even exists such a principle called ‘Moore’s Law’ which specifies that the processing power for computers (and smart devices in general) will double every two years, thus shortening the technical obsolescence occurrence with each innovation cycle.
Think of a multifold approach
A single strategy to handle product obsolescence is only viable for a limited production environment, where the demand stays the same throughout its entire lifecycle.
For this reason, multiple plan-b strategies will be required for each sourced component, all organized under a single, actionable vulnerability plan.
Keep a centralized record
A unified library of all components used on the production line will ensure transparency and a proper supply-chain workflow.
This will allow managers and decision makers to foresee any supply chain shortages in advance, allowing the time needed to find viable
CONCLUSION: PRODUCT OBSOLESCENCE IS NOT THE END
There are ways to make sure the right parts are in the right place at the right time. It’s all about finding the right partner to help you with that.