Obsolescence management reduces costs and minimizes disruption

As 4 Star Electronics explains, obsolescence might be inevitable but it is also manageable via proactive strategies, expert guidance and fostering cross-sector collaboration.

Obsolescence is a continuing challenge requiring an effective proactive management plan which can reduce costs and minimize reactive actions by evaluating resolutions and gathering metrics to monitor programs throughout their lifecycles. Two organizations offering guidance and best practices are the International Institute of Obsolescence Management (IIOM) and the Defense Standardization Program (DSP). Both understand you cannot eliminate obsolescence, but with thoughtful planning, you can significantly reduce its impact.

As product lifecycles shorten and innovation accelerates, original component manufacturers (OCMs) often discontinue components long before the systems they support reach end-of-life. This can lead to costly redesigns, supply chain disruptions and compromised system reliability.

The IIOM promotes global awareness and education around obsolescence, emphasizing that obsolescence is not merely a supply chain issue but a strategic business risk. Its guidance encourages organizations to embed obsolescence management into product design, procurement and support strategies

The DSP defines obsolescence through its Diminishing Manufacturing Sources and Material Shortages (DMSMS) program as the ‘loss or impending loss of manufacturers or suppliers of items, raw materials or software’ essential to system functionality. In military and aerospace sectors, where systems often remain operational for decades, obsolescence poses a significant threat to readiness, cost efficiency and mission success.

Both organizations agree on some basic principles including:

• Develop a formal obsolescence management plan

• Train personnel in DMSMS principles and lifecycle analysis

• Use centralized databases to track component status and supplier updates

• Engage with IIOM and DSP resources to stay informed on evolving best practices

It’s also important to address obsolescence issues at all stages of product development; design, introduction, growth, maturity, decline and phase-out.

During the design phase, component engineers should evaluate the availability and sustainability of each component, considering factors like manufacturer stability, market trends and regulatory changes. Tools such as BoM health checks and lifecycle prediction software can aid in identifying high-risk parts early.

During the production phases, continual evaluation of BoMs should be performed, keeping in mind the following factors:

• Reviewing current availability and forecasting future requirements for production

• Monitoring component lifecycles using predictive tools

• Making strategic last time buy (LTB) or end-of-life (EoL) material purchases

• Evaluation of design alternatives when component supply becomes critical

Leverage data-sharing platforms like the DMSMS Knowledge Sharing Portal to access tools, training and collaborative solutions.

During phase-out, these strategies should continue but may need adjusting depending on the success of prior planning and ever-changing risk factors. Specialist suppliers can assist with bridging gaps and back-filling depleted material. These suppliers may include aftermarket manufacturers, independent distributors and test labs, who can support the supply and testing of material after all regular production has discontinued.

Collaboration across industry and government is vital. Dialogue between stakeholders is crucial to share insights and coordinate responses to emerging obsolescence issues. Both the IIOM and DSP host conferences and training programs to build professional expertise and promote standardized approaches.

www.4starelectronics.com

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