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om
• offerservicestailoredtocustomers’ requirements.
• havetheexpertiserequiredtoperform
theservices.
• arecommittedtoqualityandenvironment
management.
• determinethedesiredresultsand
performanceindicatorstogetherwith
thecustomer.
The following ZVEI members …
Obsolescence ManagementThe key to the long-term availability
of electronic systems
PCBandElectronicSystemsDivision
*EndofLife
Managing risks
Levels of obsolescence management (OM)
Reactive OM: Proactive OM: Strategic OM:
TakingactiononreceivinganEOL*notification
Increasedrisk
TakingactionbeforereceivinganEOL*notificationEarlywarning
Moretimetorespond
Long-termstrategy:Regularforecastingandcostanalysisacrossentirelifecyclerightfromthedevelopmentalstage
Preventativeaction
Measures: Measures: Measures:
• Lasttimebuy
• Long-termstorage
• Aftermarketsupply
• Redesign
• …
•Riskassessmentofcomponents
•Lifecycleanalysisofbillofmaterialsalreadyinthedevelopmentalstage
•Partnershipsandcontractswithmanufacturersandsuppliers
•Electronicmonitoringofkeycomponents
•Regularconsultationswithcustomers
•…
+ Reactive OM
•Second-sourcestrategy
•Managementofwarehousestocks
•Developmentofasustainabledesign
•Earlydevelopmentofanalternativedesign
•…
+ Reactive OM
+ Proactice OM
The selected EMS partner is able to satisfy the agreed OM requirements.
ZVEI-GermanElectricalandElectronicManufacturers‘Associatione.V.PCBandElectronicSystemsDivisionLyonerStrasse9•60528FrankfurtamMain•Germany
Phone:+49696302-437•Fax:+49696302-438E-mail:[email protected]•www.zvei.org
Causes of obsolescence
•Innovationcycles–technologicaldevelopments
•Marketadjustmentstomeetcustomerrequirements
•Environment:legislativerequirementsandstandards (e.g.RoHS*Directive,substancebans)
•Politicaldemandsandcompliance (e.g.REACH**regulations,DoddFrankAct)
•Environmentaldisasters
Obsolescence risk factors
*RoHS=RestrictionofHazardousSubstances/**REACH=Registration,Evaluation,AuthorisationandRestrictionofChemicals *JEDEC=JointElectronDeviceEngineeringCouncil/**PCN=ProductChangeNotificationandPDN=ProductDiscontinuanceNotice *DIN=DeutschesInstitutfürNormung
Involving suppliers in OM
• Suppliercontractstoincludeobligationtoreport scheduleddiscontinuationsingoodtimein accordancewithJEDEC*standardasperJESD46d andJESD48c
• Promptconclusionofcontractswithas yetunregisteredsuppliers
• Preferencegiventosuppliersboundbycontract
• Establishingabasisoftrustforalong-term relationship
• Auditingsuppliersthroughreviewsandvisits
• PromptnotificationofPCN/PDN** (uptotwoyearsafterthelastorder)
• Consignmentwarehouse
OM in customer relationships
• Riskratingforcomponents
• Stipulateandusesecond-sourcemanufacturers
• Customercontractstospecifystockinglevelsanddeadlines
• AgreementstipulatingpromptcommunicationofPCN/PDNas perJEDECstandard
• Preferencegiventocomponentswithlowriskofobsolescence
• Designforlong-lifecycle/anti-obsolescence
• RegularOManalysisofproductcomponentsandobsolescencenotifications
• Long-termstorageof(key)componentsforsemifinishedand finishedproducts
• Productcareandmodification
• Developmentofalternativesolutions
• Suppliersanddeveloperscollaboratetofindsubstitutes
OM aims to identify items that are at risk in good time (DIN62402*)
Objectives:
•Long-termproductavailability
•Costsavings
•Promptinformationfromcustomersregardingdiscontinuedproducts
•Sustainabledesign,selectionofcomponentsanduseofresources andrawmaterials
•Identifyingobsolescenceandminimizingitsimpactinthe bestpossibleway
OMisaworthwhileinvestmenttoensurethelong-termavailabilityofelectronicsystems.
ActiveOMenablesallstakeholderstobenefitfromtheEMSpartner‘sexpertise.
Existingagreementsbetweencustomerandsuppliermustbetakenintoaccount.
What is obsolescence? Obsolescence management in the supply chain Obsolescence requires managing
Electronic componentsNorms
Soft
war
e
Standards
Mechanical components Test equipment
Processes
Means of production
LAWS Ceramic microcircuits
Consumables
Printed circuit boards
Sub-systemsAssemblies
PRODUCT LIFE CYCLE
Introduction Massproduction Sparepartssupply
Productionvolumes
= Obsolescence risk
time
Ongoing communication within the supply chain inspires confidence. Obsolescence management is an implicit part of our service.
Obsolescence describes the state which occurs when an item or process is no longer available.
OM enables EMS partners to guarantee the long-term availability of products in the required quantity at minimum costs.
OMisessentialforaprofessionalmaterialsmanagement
