Obsolescence Management (OM) Analysis

17 Jun 2012
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Why is obsolescence management needed? While companies strive to achieve long term system availabilities, component obsolescence can negatively impact:

  • Life cycles of own systems
  • Production costs
  • Supportability and service to the customer
  • The necessity for costly redesigns of own systems
  • Costly requalification and certification of systems through the respective authorities.

Obsolescence management is needed to mitigate the risk of component obsolescence. Effective obsolescence management strategies can save a lot of money, time and capacities, e.g. by avoiding redesigns. It´s also effective to work closely with suppliers to create a life cycle management plan. The goal is to plan for longevity and technology evolution, rather than simply waiting for obsolescence events to happen.

What are the dimensions for obsolescence management strategy? Every well planned obsolescence management strategy has three dimensions measuring the impact when obsolescence occurs, the probability of obsolescence occurring, and the cost associated with the resolution chosen. Resolutions may include:

  • Negotiating with the manufacturer
  • Existing stock
  • Reclamation
  • Alternate parts
  • Part substitution
  • Uprating
  • Aftermarket sources
  • Emulation
  • Redesign
  • Reverse engineering
  • Lifetime buys/bridge buys

The three dimensions can be used on a strategic, proactive or reactive approach to minimize risk.

Last modified on Wednesday, 04 July 2012 10:41
Bjoern Bartels

Bjoern Bartels is a senior consultant and obsolescence management competence lead at ABSC and Managing Director of AMSYS. He has a masters degree in international business and a German diploma in industrial engineering and business management. He has been working with comprehensive obsolescence management practices and methods for several years. He successfully developed, implemented and managed reactive, proactive and strategic obsolescence management systems within companies. In addition, he is the head author of the publication "Strategies to the Prediction, Mitigation and Management of Product Obsolescence", a joint work with the CALCE Engineering Institute of the University of Maryland. 

We create customized and innovative obsolescence management concepts and provides competent, reliable and sustainable optimization of processes, projects and infrastructure. We support businesses as long-term partner for the definition and implementation of customer specific complete obsolescence management solutions and round off their range of services with specific seminars and events.

Website: am-sys.com/en/home/

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