Decrease Product Life Cycle Risks with Automated Obsolescence Management
As technology, industry, and expertise expand, so does the need for the business sector’s ability to adapt. Constantly updating technology, compliance regulations, and processes raise the importance of ensuring that out-of-date technologies or parts do not hinder production.
Obsolescence Management is the process of monitoring the risks associated with technologies or parts going obsolete and forecasting the eventual end-of-life stage for all aspects of production. The traditional method manages this through spreadsheets and manual upkeep. Accelerating advancement of technology and environmental regulations makes it increasingly difficult to not only stay up to date with product life cycle risks but to ensure there are no oversights or errors in the process.
Using an automated system frees up valuable time, eliminates the possibility of human error, accurately forecasts the life cycle of parts and technologies, and has the latest updates and information all along the supply chain.
This e-book explores the benefits of using an automated Obsolescence Management solution while reviewing the pitfalls of manual product lifecycle risk management. As production becomes increasingly complex, managing component obsolescence is critical to avoiding costly disruptions. Source Intelligence’s Obsolescence Management solution provides advanced analytics to forecast part end-of-life, automate alerts, and streamline supply chain processes, ensuring your operations remain agile and efficient.
What is Obsolescence Management?
Obsolescence Management is a continuous, tedious, and vital process for production managers. Avoiding costly disruptions to the flow of production by anticipating the obsolescence of parts or technologies is a crucial aspect of product management.
Businesses that manage obsolescence on their own with spreadsheets and manually updated data save money on upfront costs and have direct oversight over the Obsolescence Management process. However, the amount of time and resources it takes to regularly update tracking spreadsheets, and the likelihood of human error or oversight, are two of the major drawbacks in manual management.
On the other hand, an automated method comes with a higher upfront cost. Paying for the automated service and expertise of a 3rd party to control your parts obsolescence program can be expensive at first glance. However, having your product life cycle information automatically updated will save time and money in the long term. Enjoy the peace of mind included in knowing that any obsolescence risks will be brought to your attention well in advance.
Every producer or manufacturer has been affected by obsolescence at some point. Ideally, this only causes a minor disruption where a large last time buy is executed, or a new supplier is sourced to replace the obsolete part. In the worst-case scenario, products must be completely redesigned and recertified. Major disruptions result in products being removed from the market while redesigns are constructed, incurring massive losses.
When a part goes obsolete with little notice, hundreds of businesses could be looking for an alternate supplier or part to replace what is now obsolete. The sudden influx of demand when many businesses are looking for an alternative part or supplier can create a competitive environment. Shortages from a surge in demand or other global events like conflicts, sanctions, or pandemics might leave you without a quick solution to your missing part.
Having a robust Obsolescence Management system alerts business owners of risks well in advance. With time to plan for obsolescence, businesses can avoid scrambling to find a solution and adapt their affected products to the changing market without missing sales or making costly final hour arrangements.
Ditching the Spreadsheets
The Pitfalls of Manual Obsolescence Management
The manual method of Obsolescence Management, whether done in-house or outsourced to a 3rd party, is an admittedly tedious process. Finding Bills of Materials (BOMs), transferring them to a spreadsheet that tracks obsolescence risks, and keeping it regularly updated requires continuous dedication of staff and resources.
Assembling everything in a spreadsheet is only the start of the manual process. Analyzing the data, understanding obsolescence risks, and predicting when and where future risks may arise are paramount to a successful Obsolescence Management program. Without intimate knowledge of industry, technology, and environmental regulations, forecasting obsolescence becomes a guessing game.
An effective Obsolescence Management system prepares you in advance for the end-of-life of parts or technologies. Analyzing spreadsheets of thousands of products in search of potential obsolescence risks is an exhaustive and mind-numbing task that leaves a high potential of overlooking and missing products that are at risk of becoming obsolete.
Human error is a common occurrence in Obsolescence Management that can cause significant losses for businesses. Having shelves sit empty while your team scrambles to find replacement parts and/or technologies due to an oversight in managing product life cycle risk is a costly and avoidable error.
It can be difficult for a business to turn its back on an Obsolescence Management method they have invested so much time into. Despite inefficiencies in manual management, it is easy for a business owner to feel attached to their method. Usually, it is a system often created when the business is in its initial stages and the smaller product list was a manageable size. A growing business means more moving parts and growing BOMs. Eventually, the spreadsheet becomes too large to adequately manage. Potential risks of obsolescence go unnoticed, and the spreadsheets become a hindrance to productivity.
When a spreadsheet gets too large to manually manage, Obsolescence Management systems turn into a reactionary process. Rather than identifying potential obstacles well in advance, business owners are instead learning about obsolete parts and using the spreadsheets to find out which of their products have been affected.
This is not what an Obsolescence Management system is designed to do. It should be a tool to avoid disruptions in plant throughput and ensure that businesses can seamlessly adapt with a change in supply. An automated system instantly updates those ‘spreadsheets’ and alerts business owners well in advance of areas of concern. It is a proactive system rather than the reactionary manual method.
Enhance your obsolescence management strategy
You've just reviewed the benefits of automating obsolescence management and the pitfalls of manual lifecycle risk tracking. Next, the e-book dives into advanced forecasting, real-time alerts, and effective BOM management—all designed to proactively mitigate risks. It also explains how Source Intelligence’s Obsolescence Management solution can optimize your supply chain processes and free up valuable resources.
Read the complete e-book to transform your approach and stay ahead of obsolescence challenges.