6 tips for managing obsolete components

Issuing time:2022-06-30 20:06

There is a widespread misconception that when a certain component is suspended, the unauthorized or grey market is the only source of procurement of the obsolete components.

Nowadays, with the accelerating of technological innovation, electronic components can be continuously upgraded and developed. However, in many industries, the use of outdated components still remains. In the aerospace and military industries, for example, most equipment is expected to last for decades. As time goes by, the parts also gradually become obsolete and need to be replaced frequently.

Here are six tips to help OEMs plan and manage outdated issues with components:


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Obquded component management begins in the design and product definition phase

In the long run, choosing the right component technology and supplier is conducive to the stable development of OEM. The lowest cost and is not the best option for long-term supply.

the key to the question:

What is the state of this component throughout the application life cycle?

Are the key components of the design fully documented?

Can authentic design documents be retained and archived during the design stage to provide reconstruction opportunities in case of accidents?

Does the design have proprietary intellectual property rights?

图片Understand the total cost of obsolete components


Understand the obsolete components and simulate the associated costs and risks.


the key to the question:

  • Does the project plan need to include an update or redesign of the intended product during its lifetime? If so, how will you invest it?

  • How will enterprises calculate the fixed funds in the long-term procurement of components?

  • What impact will outdated components have on after-sales service commitments?

  • What impact will shortening the product life cycle have on customers and end users?


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Obsolete planning and resource management

If your equipment has a long qualification, production or service life, you are at risk of expiration / scrapping of your components. First-class teams put multidisciplinary skilled workers into outdated management. Preventive planning can reduce or eliminate outdated costs and risks.

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Identify a PDN that may affect the company's business,

And to monitor it

PDN is Product Discontinuation Notices, important product production notice.

Actively monitoring the life cycle of the components is crucial before the problem occurs. Excellent business tools can track the component life cycle, delivery times, and specification changes. These tools can trigger an alert when you receive a PDN.

the key to the question:

  • Will your secondary supplier share their bill of materials?

  • Does your secondary supplier have an appropriate outdated management process?

While many upstream manufacturers proactively offer product lifecycle management as a service, many OEMs are completely passive. Because PDN reports are typically available only for direct purchasers in the past two years.

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Prediction from the LTB

LTB is Last Time Buy, last purchase.

Prediction is not an accurate science, it may likely be inaccurate. Predicating product demand several years in advance is difficult and may even cause market disruption. To underestimate the demand, there may be a risk of early product termination. Overestimated demand will take up unnecessary inventory funds and excessive storage costs.


If a future redesign is planned to limit the cost of the LTB, the design, reappraisal, and the opportunity cost of using the engineering resources will all need to be taken into account.

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Purchase from the authorized channels

There is a widespread misconception that when a certain component is suspended, the unauthorized or grey market is the only source of procurement of the obsolete components. In fact, authorized suppliers / distributors should always be preferred.

The risks from the unauthorized channels include:

  • Improper operation: it may cause static electricity damage and damage to the equipment.

  • Improper storage: too hot, too cold, or too wet at any stage of its storage life. Including external lead corrosion, weldable failure, moisture entry, and / or catastrophic failure of equipment.

  • Fake documents, mimic the original specifications or lie about performed tests.

  • ecycling, remarking, or repackaging, disguised as other products.


In short, the products purchased through unauthorized channels.



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