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Copyright Frontpage: © 9comeback, ecco, mino21 – Fotolia.com offer services tailored to customers’ requirements. have the expertise required to perform the services. are committed to quality and environment management. determine the desired results and performance indicators together with the customer. The following ZVEI members … Obsolescence Management The key to the long-term availability of electronic systems PCB and Electronic Systems Division * End of Life Managing risks Levels of obsolescence management (OM) Reactive OM: Proactive OM: Strategic OM: Taking action on receiving an EOL* notification Increased risk Taking action before receiving an EOL* notification Early warning More time to respond Long-term strategy: Regular forecasting and cost analysis across entire life cycle right from the developmental stage Preventative action Measures: Measures: Measures: Last time buy Long-term storage Aftermarket supply Redesign Risk assessment of components Lifecycle analysis of bill of materials already in the developmental stage Partnerships and contracts with manufacturers and suppliers Electronic monitoring of key components Regular consultations with customers + Reactive OM Second-source strategy Management of warehouse stocks Development of a sustainable design Early development of an alternative design + Reactive OM + Proactice OM The selected EMS partner is able to satisfy the agreed OM requirements. ZVEI - German Electrical and Electronic Manufacturers‘ Association e. V. PCB and Electronic Systems Division Lyoner Strasse 9 • 60528 Frankfurt am Main • Germany Phone: +49 69 6302-437 • Fax: +49 69 6302-438 E-mail: [email protected] • www.zvei.org

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• 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