This document summarizes challenges in managing component obsolescence for aerospace and defense products with long lifecycles. It discusses how constant innovation driven by Moore's Law leads to frequent component discontinuations. It outlines options for dealing with obsolescence like buying excess components, redesigning, or qualifying alternate sources. It also discusses how original component manufacturers closely guard lifecycle information and outlines the tiered system of component suppliers from franchised distributors with direct OCM relationships to open market sellers. The document advocates an enterprise risk management approach and collaboration with trusted suppliers to better understand and mitigate obsolescence risks.
This document discusses eight strategies for implementing concept-to-customer supply chain management. The concept-to-customer approach views a company's supply chain across three dimensions: internal, external, and customer. The eight strategies are: 1) dynamically adjusting networks, 2) taking a global view of demand, 3) working the supply network, 4) boosting asset productivity, 5) collaborating across the supply chain, 6) gaining end-to-end visibility, 7) responding in real-time, and 8) measuring performance across the entire chain. Implementing these strategies helps companies establish resilient supply chains that can adapt to business dynamics and focus on customers.
The document provides results from a 2018 survey on perceptions of commodity trading and risk management (CTRM) software vendors. Key findings include:
- ION OpenLink and Allegro were the most commonly named and recognized vendors.
- ION OpenLink was perceived as the overall CTRM market leader by nearly half of respondents.
- In the energy category, slightly over half saw ION OpenLink as the leader, while Allegro was also seen as a leader.
- Most respondents were satisfied with their current CTRM solution, though some cited issues with support, bugs, or unfulfilled promises.
Contract manufacturing involves one firm producing goods under another firm's brand or label. The hiring firm approaches a contract manufacturer with a design and the contract manufacturer will quote costs and act as the hiring firm's factory by producing and shipping the agreed-upon units. Industries like automotive, aerospace, electronics, pharmaceuticals commonly use contract manufacturing to outsource components or manufacturing so they can focus on design and assembly. Benefits include cost savings, mutual skills and scale benefits, while risks include potential loss of control, flexibility, and intellectual property.
- Engineering, operations, and supplier collaboration are seen as having the highest potential to positively impact companies' bottom lines. Engineering in particular is cited as an area of high potential.
- Companies are focusing on improving productivity within their core competencies and growth in domestic markets using existing product extensions, as looming defense budget cuts and increased global competition weigh heavily on the industry.
- Suppliers perceive the greatest challenge as meeting schedule and lead time commitments across the global supply chain, while also facing expectations to take on more product development and cost reduction responsibilities. Lack of reliable schedule and plan information is a primary concern.
Intense competition, rapidly declining prices, unpredictable customer demand, and constrained material supplies are facts of life in the global electronics supply chain. The pursuit of higher prices and margins leads to a continuous stream of new products, each able to command a premium price for a short period of time before becoming commoditized. This challenging cycle is faced every day by IBM as well as hundreds of other companies operating in virtually every segment of the electronics industry.
Reimagining Energy Trading and Risk Management (ETRM) With Advanced Delivery ...CTRM Center
ETRM systems are, by their nature, complex software products as the software must mirror the full complexity of the commodities industries, markets, and assets that they serve. Spanning from contract administration through invoicing and settlement, the business processes involved in commodity trading varies greatly. This variation is created by the unique combinations and nature of the physical or financial commodity or commodities traded, as well as by the industry segment (power generation/trading, gas production/trading, agricultural production/trading, etc.), the assets employed in the supply chain(s) and geographic differences (North American power vs. European vs. Japan, for example).
1) Fairchild is a large semiconductor manufacturer that needed to standardize and streamline its global quality processes to better align with customer needs and the growing complexity of its business.
2) It implemented MetricStream's customer quality management solution to automate issue logging, investigation, reporting and close-out across its worldwide operations.
3) The solution provided improved visibility, efficiency and data-driven decision making capabilities to help Fairchild more quickly and consistently resolve customer issues.
This document provides strategies for integrating safety and EMC compliance considerations early in the product development process. It recommends obtaining market research information to understand target markets and applicable regulations. Designing with compliance in mind from the start can help avoid costly delays from needed modifications and retesting later. Using listed components and documenting the design process also facilitates testing and certification. Addressing compliance proactively helps get products to market faster at a lower cost.
This document discusses eight strategies for implementing concept-to-customer supply chain management. The concept-to-customer approach views a company's supply chain across three dimensions: internal, external, and customer. The eight strategies are: 1) dynamically adjusting networks, 2) taking a global view of demand, 3) working the supply network, 4) boosting asset productivity, 5) collaborating across the supply chain, 6) gaining end-to-end visibility, 7) responding in real-time, and 8) measuring performance across the entire chain. Implementing these strategies helps companies establish resilient supply chains that can adapt to business dynamics and focus on customers.
The document provides results from a 2018 survey on perceptions of commodity trading and risk management (CTRM) software vendors. Key findings include:
- ION OpenLink and Allegro were the most commonly named and recognized vendors.
- ION OpenLink was perceived as the overall CTRM market leader by nearly half of respondents.
- In the energy category, slightly over half saw ION OpenLink as the leader, while Allegro was also seen as a leader.
- Most respondents were satisfied with their current CTRM solution, though some cited issues with support, bugs, or unfulfilled promises.
Contract manufacturing involves one firm producing goods under another firm's brand or label. The hiring firm approaches a contract manufacturer with a design and the contract manufacturer will quote costs and act as the hiring firm's factory by producing and shipping the agreed-upon units. Industries like automotive, aerospace, electronics, pharmaceuticals commonly use contract manufacturing to outsource components or manufacturing so they can focus on design and assembly. Benefits include cost savings, mutual skills and scale benefits, while risks include potential loss of control, flexibility, and intellectual property.
- Engineering, operations, and supplier collaboration are seen as having the highest potential to positively impact companies' bottom lines. Engineering in particular is cited as an area of high potential.
- Companies are focusing on improving productivity within their core competencies and growth in domestic markets using existing product extensions, as looming defense budget cuts and increased global competition weigh heavily on the industry.
- Suppliers perceive the greatest challenge as meeting schedule and lead time commitments across the global supply chain, while also facing expectations to take on more product development and cost reduction responsibilities. Lack of reliable schedule and plan information is a primary concern.
Intense competition, rapidly declining prices, unpredictable customer demand, and constrained material supplies are facts of life in the global electronics supply chain. The pursuit of higher prices and margins leads to a continuous stream of new products, each able to command a premium price for a short period of time before becoming commoditized. This challenging cycle is faced every day by IBM as well as hundreds of other companies operating in virtually every segment of the electronics industry.
Reimagining Energy Trading and Risk Management (ETRM) With Advanced Delivery ...CTRM Center
ETRM systems are, by their nature, complex software products as the software must mirror the full complexity of the commodities industries, markets, and assets that they serve. Spanning from contract administration through invoicing and settlement, the business processes involved in commodity trading varies greatly. This variation is created by the unique combinations and nature of the physical or financial commodity or commodities traded, as well as by the industry segment (power generation/trading, gas production/trading, agricultural production/trading, etc.), the assets employed in the supply chain(s) and geographic differences (North American power vs. European vs. Japan, for example).
1) Fairchild is a large semiconductor manufacturer that needed to standardize and streamline its global quality processes to better align with customer needs and the growing complexity of its business.
2) It implemented MetricStream's customer quality management solution to automate issue logging, investigation, reporting and close-out across its worldwide operations.
3) The solution provided improved visibility, efficiency and data-driven decision making capabilities to help Fairchild more quickly and consistently resolve customer issues.
This document provides strategies for integrating safety and EMC compliance considerations early in the product development process. It recommends obtaining market research information to understand target markets and applicable regulations. Designing with compliance in mind from the start can help avoid costly delays from needed modifications and retesting later. Using listed components and documenting the design process also facilitates testing and certification. Addressing compliance proactively helps get products to market faster at a lower cost.
This document discusses supply chain leading practices for large-scale smart grid deployments by utilities. It outlines the need for utilities to adopt new methodologies to support large deployments of smart meters and grids. Specifically, it recommends (1) revising quality assurance programs, (2) managing supplier relationships, and (3) establishing deployment operations centers to coordinate rollouts. The document provides examples of processes that need to be scaled up, like component sourcing and defect tracking, and technology selection best practices from other industries.
Compliance With Udi Labeling Mandates A Proven MethodologyLoftware
There has never been a better or more urgent time for manufacturers of healthcare products to make a close examination of their product labeling systems. Why? Because in most cases, existing solutions were developed over time, usually organically and often departmentally, individually and separately by each manufacturing entity to a labeling standard of their own choice. This approach has mostly worked, albeit at great expense, with much inefficiency, and at the tremendous risk of error, manufacturing interruptions, counterfeit labels and a host of other problems. But in addition to these well-known limitations, there is one additional major reason why now is a good time to explore labeling solution alternatives. New labeling mandates from the FDA – now expected to be imposed no later than September, 2013 – are going to require all healthcare products manufacturers in the United States to adhere to a uniform set of Unique Device Identification (UDI) labeling standards. This means that proprietary labels and any labels that are not part of a universally-accessible database for common use by all other manufacturers and at all checkpoints in any supply chain will, virtually overnight, be a thing of the past in the United States. In fact, it is likely the FDA initiative will further drive the global effort occurring at this time to effect this same kind of UDI solution worldwide.
EU Horizon 2020 Funded Project SCRREEN Publishes Final Output ReportKTN
For the first time in the history, SCRREEN aims at gathering European initiatives, associations, clusters, and projects working on CRMs into along lasting Expert Network on Critical Raw Materials, including the stakeholders, public authorities and civil society representatives.
SCRREEN built an expert network on CRMs through Europe. As part of its awareness raising and knowledge exchange activities, the KTN reached out to range of stakeholders (through surveys and interviews) to better understand the current perception of risk associated with CRMs and the drivers for taking steps (or not) to minimise these risks.
This three year project has sadly come to an end, however we look forward to future activities, and in the meantime, we are pleased to now share with you the final output report which highlights some of the work the team have been doing with regards to industry insights on critical raw material supply chain risks and solutions.
Find out more: https://ktn-uk.co.uk/news/eu-horizon-2020-funded-project-scrreen-publishes-final-output-report
Reverse logistics programs are complicated but can provide opportunities. They involve managing returns, repairs, and used goods in ways that (1) generate additional revenue, differentiate companies, and support new product demand; (2) establish customer loyalty; and (3) are considered part of successful growth strategies. However, reverse logistics requires defined processes and metrics since returns are variable, and many companies currently do not handle returns well due to a lack of focus on this area.
The document discusses different options for system owners to integrate energy storage systems. It describes two main options:
Option A involves the system owner conducting their own integration and carrying the associated risks. Option B involves hiring an independent system integrator who takes responsibility for procurement, integration, and associated risks but charges a premium.
The document recommends system owners carefully evaluate potential integrators' experience, willingness to provide guarantees, and financial stability given projects' long lifetimes of 10-20 years to best mitigate risks. Integrators range from those providing customized solutions to standardized "package integrators," and system owners should understand the integrator's model.
Standards are important for both designers and customers. Designers must be aware of all relevant standards for the product and locations it will be used. Standards cover safety, quality, interchangeability and can be mandatory by law or contract. They provide guidelines for areas like performance, dimensions and best practices to facilitate design. Identifying applicable standards is an essential early task for designers.
Este documento presenta un proyecto de ley para reformar el sistema de educación superior en Chile. Detalla los logros educativos del país y las áreas que aún requieren mejora, como elevar la calidad de manera integral y hacer el sistema más equitativo. Propone tres ejes para el sistema de educación superior: calidad, equidad e inclusión, y pertinencia. Finalmente, brinda un breve resumen histórico del desarrollo de la educación superior en Chile desde su fundación.
Clifford's Color Challenge brings a fresh twist on coloring pages to challenge your creativity and for you to interact with friends. Check out www.cliffordscolorchallenge for updates to coloring challenges.
El Senado provincial aprobó las modificaciones a la ley de Emergencia Hídrica impulsadas por el candidato a intendente Jorge D'Onofrio, que incluyen a todos los arroyos de Pilar. El proyecto obtuvo media sanción y pasará a ser debatido la próxima semana en Diputados. La ley establece un plazo de 360 días para realizar estudios e iniciar licitaciones de obras hidráulicas necesarias para evitar inundaciones.
Consejos salud, informacion de que son las enfermedades, causas mas comunes de las enfermadades, que sintomas presentan las enfermendades, prevencion y profilaxis de contagios de enfermadsdes mas comunes.
This document is a research project submitted for a BA in International Relations. It examines France's humanitarian interventions in Africa through the lens of colonial legacy and dependency. The project argues that France's interventions are enabled by ongoing misrepresentations of Africa that stem from colonial-era spatial imaginations. These misrepresentations allow France to reorganize its imperial capacity under the guise of humanitarianism. The research will analyze French interventionism and its colonial legacy, use the crisis in the Central African Republic as a case study, and argue that interventions have reproduced patterns of neocolonial dependency rather than resolving local conflicts. The goal is to show how France's understanding of itself and Africa remains shaped by colonial notions that have yet to be decolonized
This privacy policy governs how MdqGameplay collects and uses user information from its games and applications. It outlines what personal and non-personal data is collected, such as basic profile information, device identifiers, and location. The policy also describes how data is used, including to improve customer service, personalize experiences, and allow sharing through social networks. Users agree to these practices by using MdqGameplay's services, and the policy is subject to change.
El documento define la educación ambiental como un proceso para reconocer valores y aclarar conceptos con el fin de fomentar las aptitudes y actitudes necesarias para comprender las interrelaciones entre el ser humano, su cultura y el medio biofísico. Los objetivos de la educación ambiental incluyen la sensibilización, la adquisición de conocimientos, el fomento de actitudes para participar en la protección del medio ambiente, y la promoción de la participación individual y colectiva. La metodología incluye juegos, talleres, interpret
The document appears to be lyrics or a poem discussing various everyday events and experiences over multiple days. It references going to a party where the speaker got what they wanted, spending Sunday playing and getting in trouble for marks on Monday, seeing a boy at night that scared them, being told to go to bed, and making a plane that gained fans while having eaten cannabis.
This document recommends 24 t-shirt designs for HR managers and provides a link to view more details about the t-shirt designs. It also includes additional links to an HR management community Facebook page and website for more HR management resources and materials.
Mapa conceptual sistemas de informacion gerencialmaioranamj
El documento presenta un mapa conceptual sobre los sistemas de información gerencial. El mapa divide la información en dos categorías principales: información privilegiada y pública. Dentro de la información privilegiada se encuentran la información interna y externa de la organización, y la información directa. El mapa también clasifica los sistemas de información en cinco tipos: informáticos, estadísticos, físicos, abstractos, abiertos y cerrados. Finalmente, el mapa enumera algunos ejemplos específicos de sistemas de inform
The document discusses RapidScale's cloud computing solutions including CloudDesktop, CloudMail, and CloudServer.
CloudDesktop provides desktop as a service allowing users to access applications from any device globally. CloudMail offers hosted Microsoft Exchange email, calendar and contacts. CloudServer offers virtual server infrastructure as a service allowing customers to avoid managing physical hardware.
The document provides pricing and feature details for each solution, noting benefits like scalability, security, simplified management, and lower total cost of ownership compared to on-premise options. RapidScale's partner experience team is also introduced as dedicated to developing partnerships.
El rap cubano surgió en los años 90 durante una crisis económica en Cuba. Aunque el gobierno cubano inicialmente no apoyó el movimiento, eventualmente comenzó a verlo como una herramienta para involucrar a la juventud afrocubana. En 1995 se creó el primer festival de rap y en 2002 la Agencia Cubana de Rap para administrar el movimiento. Sin embargo, la incorporación del rap al estado ha creado divisiones entre raperos comerciales y underground. Además, aunque la agencia intenta promover el rap, muchos raperos creen que
Control Systems Obsolescence – Support Strategies and Key ConsiderationsOptima Control Solutions
Naturally, robust steel frameworks of machines age much more slowly than their moving parts and also have an extremely long life span if well-maintained. However, with those same machines’ control systems the case is different. Modern technology advances so quickly that a system can be out of date in as little as 10-12 years.
In this article, Michael Hill, managing director of Optima Control Solutions, looks at three different manifestations of control system obsolescence and offers practical advice on how to deal with each case. The last part of the article contains a checklist of the key factors to consider before moving forward with any obsolescence support strategy.
This document discusses supply chain leading practices for large-scale smart grid deployments by utilities. It outlines the need for utilities to adopt new methodologies to support large deployments of smart meters and grids. Specifically, it recommends (1) revising quality assurance programs, (2) managing supplier relationships, and (3) establishing deployment operations centers to coordinate rollouts. The document provides examples of processes that need to be scaled up, like component sourcing and defect tracking, and technology selection best practices from other industries.
Compliance With Udi Labeling Mandates A Proven MethodologyLoftware
There has never been a better or more urgent time for manufacturers of healthcare products to make a close examination of their product labeling systems. Why? Because in most cases, existing solutions were developed over time, usually organically and often departmentally, individually and separately by each manufacturing entity to a labeling standard of their own choice. This approach has mostly worked, albeit at great expense, with much inefficiency, and at the tremendous risk of error, manufacturing interruptions, counterfeit labels and a host of other problems. But in addition to these well-known limitations, there is one additional major reason why now is a good time to explore labeling solution alternatives. New labeling mandates from the FDA – now expected to be imposed no later than September, 2013 – are going to require all healthcare products manufacturers in the United States to adhere to a uniform set of Unique Device Identification (UDI) labeling standards. This means that proprietary labels and any labels that are not part of a universally-accessible database for common use by all other manufacturers and at all checkpoints in any supply chain will, virtually overnight, be a thing of the past in the United States. In fact, it is likely the FDA initiative will further drive the global effort occurring at this time to effect this same kind of UDI solution worldwide.
EU Horizon 2020 Funded Project SCRREEN Publishes Final Output ReportKTN
For the first time in the history, SCRREEN aims at gathering European initiatives, associations, clusters, and projects working on CRMs into along lasting Expert Network on Critical Raw Materials, including the stakeholders, public authorities and civil society representatives.
SCRREEN built an expert network on CRMs through Europe. As part of its awareness raising and knowledge exchange activities, the KTN reached out to range of stakeholders (through surveys and interviews) to better understand the current perception of risk associated with CRMs and the drivers for taking steps (or not) to minimise these risks.
This three year project has sadly come to an end, however we look forward to future activities, and in the meantime, we are pleased to now share with you the final output report which highlights some of the work the team have been doing with regards to industry insights on critical raw material supply chain risks and solutions.
Find out more: https://ktn-uk.co.uk/news/eu-horizon-2020-funded-project-scrreen-publishes-final-output-report
Reverse logistics programs are complicated but can provide opportunities. They involve managing returns, repairs, and used goods in ways that (1) generate additional revenue, differentiate companies, and support new product demand; (2) establish customer loyalty; and (3) are considered part of successful growth strategies. However, reverse logistics requires defined processes and metrics since returns are variable, and many companies currently do not handle returns well due to a lack of focus on this area.
The document discusses different options for system owners to integrate energy storage systems. It describes two main options:
Option A involves the system owner conducting their own integration and carrying the associated risks. Option B involves hiring an independent system integrator who takes responsibility for procurement, integration, and associated risks but charges a premium.
The document recommends system owners carefully evaluate potential integrators' experience, willingness to provide guarantees, and financial stability given projects' long lifetimes of 10-20 years to best mitigate risks. Integrators range from those providing customized solutions to standardized "package integrators," and system owners should understand the integrator's model.
Standards are important for both designers and customers. Designers must be aware of all relevant standards for the product and locations it will be used. Standards cover safety, quality, interchangeability and can be mandatory by law or contract. They provide guidelines for areas like performance, dimensions and best practices to facilitate design. Identifying applicable standards is an essential early task for designers.
Este documento presenta un proyecto de ley para reformar el sistema de educación superior en Chile. Detalla los logros educativos del país y las áreas que aún requieren mejora, como elevar la calidad de manera integral y hacer el sistema más equitativo. Propone tres ejes para el sistema de educación superior: calidad, equidad e inclusión, y pertinencia. Finalmente, brinda un breve resumen histórico del desarrollo de la educación superior en Chile desde su fundación.
Clifford's Color Challenge brings a fresh twist on coloring pages to challenge your creativity and for you to interact with friends. Check out www.cliffordscolorchallenge for updates to coloring challenges.
El Senado provincial aprobó las modificaciones a la ley de Emergencia Hídrica impulsadas por el candidato a intendente Jorge D'Onofrio, que incluyen a todos los arroyos de Pilar. El proyecto obtuvo media sanción y pasará a ser debatido la próxima semana en Diputados. La ley establece un plazo de 360 días para realizar estudios e iniciar licitaciones de obras hidráulicas necesarias para evitar inundaciones.
Consejos salud, informacion de que son las enfermedades, causas mas comunes de las enfermadades, que sintomas presentan las enfermendades, prevencion y profilaxis de contagios de enfermadsdes mas comunes.
This document is a research project submitted for a BA in International Relations. It examines France's humanitarian interventions in Africa through the lens of colonial legacy and dependency. The project argues that France's interventions are enabled by ongoing misrepresentations of Africa that stem from colonial-era spatial imaginations. These misrepresentations allow France to reorganize its imperial capacity under the guise of humanitarianism. The research will analyze French interventionism and its colonial legacy, use the crisis in the Central African Republic as a case study, and argue that interventions have reproduced patterns of neocolonial dependency rather than resolving local conflicts. The goal is to show how France's understanding of itself and Africa remains shaped by colonial notions that have yet to be decolonized
This privacy policy governs how MdqGameplay collects and uses user information from its games and applications. It outlines what personal and non-personal data is collected, such as basic profile information, device identifiers, and location. The policy also describes how data is used, including to improve customer service, personalize experiences, and allow sharing through social networks. Users agree to these practices by using MdqGameplay's services, and the policy is subject to change.
El documento define la educación ambiental como un proceso para reconocer valores y aclarar conceptos con el fin de fomentar las aptitudes y actitudes necesarias para comprender las interrelaciones entre el ser humano, su cultura y el medio biofísico. Los objetivos de la educación ambiental incluyen la sensibilización, la adquisición de conocimientos, el fomento de actitudes para participar en la protección del medio ambiente, y la promoción de la participación individual y colectiva. La metodología incluye juegos, talleres, interpret
The document appears to be lyrics or a poem discussing various everyday events and experiences over multiple days. It references going to a party where the speaker got what they wanted, spending Sunday playing and getting in trouble for marks on Monday, seeing a boy at night that scared them, being told to go to bed, and making a plane that gained fans while having eaten cannabis.
This document recommends 24 t-shirt designs for HR managers and provides a link to view more details about the t-shirt designs. It also includes additional links to an HR management community Facebook page and website for more HR management resources and materials.
Mapa conceptual sistemas de informacion gerencialmaioranamj
El documento presenta un mapa conceptual sobre los sistemas de información gerencial. El mapa divide la información en dos categorías principales: información privilegiada y pública. Dentro de la información privilegiada se encuentran la información interna y externa de la organización, y la información directa. El mapa también clasifica los sistemas de información en cinco tipos: informáticos, estadísticos, físicos, abstractos, abiertos y cerrados. Finalmente, el mapa enumera algunos ejemplos específicos de sistemas de inform
The document discusses RapidScale's cloud computing solutions including CloudDesktop, CloudMail, and CloudServer.
CloudDesktop provides desktop as a service allowing users to access applications from any device globally. CloudMail offers hosted Microsoft Exchange email, calendar and contacts. CloudServer offers virtual server infrastructure as a service allowing customers to avoid managing physical hardware.
The document provides pricing and feature details for each solution, noting benefits like scalability, security, simplified management, and lower total cost of ownership compared to on-premise options. RapidScale's partner experience team is also introduced as dedicated to developing partnerships.
El rap cubano surgió en los años 90 durante una crisis económica en Cuba. Aunque el gobierno cubano inicialmente no apoyó el movimiento, eventualmente comenzó a verlo como una herramienta para involucrar a la juventud afrocubana. En 1995 se creó el primer festival de rap y en 2002 la Agencia Cubana de Rap para administrar el movimiento. Sin embargo, la incorporación del rap al estado ha creado divisiones entre raperos comerciales y underground. Además, aunque la agencia intenta promover el rap, muchos raperos creen que
Control Systems Obsolescence – Support Strategies and Key ConsiderationsOptima Control Solutions
Naturally, robust steel frameworks of machines age much more slowly than their moving parts and also have an extremely long life span if well-maintained. However, with those same machines’ control systems the case is different. Modern technology advances so quickly that a system can be out of date in as little as 10-12 years.
In this article, Michael Hill, managing director of Optima Control Solutions, looks at three different manifestations of control system obsolescence and offers practical advice on how to deal with each case. The last part of the article contains a checklist of the key factors to consider before moving forward with any obsolescence support strategy.
Multi-commodity ETRM’s are becoming too expensive to implement, and maintain ...CTRM Center
Since ETRM software was first introduced around 20-years ago, developers have continually sought to move from developing solutions designed to support specific commodities such as crude oil, natural gas, and electric power, to building solutions that catered for multiple energy commodities. In part, their objective was to reduce costs – specifically integration costs, but without a doubt, part of the objective was self-serving, as this also allowed them to broaden the appeal of their software to a larger and more lucrative market.
Transformation of legacy landscape in the insurance worldNIIT Technologies
The document discusses the transformation of legacy systems in the insurance industry. Legacy systems present challenges like being difficult to change and update as they are based on older technologies. Insurance companies are transforming legacy systems to support new business models and customer needs. Common strategies for legacy transformation include modifying existing applications, replacing applications, or retiring applications when they are no longer needed. Successful legacy transformation depends on effectively migrating data and business rules to new systems.
Ibm The Supply Chain Of The Future BilcareBilcareltd
In the course of our research for IBM’s inaugural Global Chief Supply Chain Officer Study, we conducted face-to-face interviews with nearly 400 senior supply chain executives from 25 countries and 29 different industries.
Here, we focus on the responses of the 23 supply chain executives from the Life Sciences industry (see sidebar, Survey sample).
In the course of our research for IBM’s inaugural Global Chief Supply Chain Officer Study, we conducted face-to-face interviews with nearly 400 senior supply chain executives from 25 countries and 29
different industries.
In the course of our research for IBM’s inaugural Global Chief Supply Chain
Officer Study, we conducted face-to-face interviews with nearly 400 senior
supply chain executives from 25 countries and 29 different industries.1
Here, we focus on the responses of the 23 supply chain executives from
the Life Sciences industry (see sidebar, Survey sample).
The document discusses common reasons why relationships between OEMs (original equipment manufacturers) and EMS (electronics manufacturing services) providers often fail. It identifies 10 key issues: 1) OEMs micro-managing EMS providers and trying to replicate their own processes instead of leveraging the EMS model, 2) EMS providers overselling their capabilities and scrambling to deliver, 3) lack of clarity or confusion around agreements and responsibilities, 4) misaligned metrics where OEMs and EMS providers incentivize different goals, 5) and other issues that can strain the relationship if not addressed. The document argues that addressing these issues through open communication, clear expectations, and aligned incentives can help optimize OEM
LEM Products implements efficient manufacturing and management practices to provide identification and safety products with flexibility and certainty to customers. These practices include just-in-time production, kanban systems, lean operations, and Six Sigma quality control methods. This allows LEM to meet customer demands with low minimum orders, quick response times, customization capabilities, and consistent high quality products, eliminating waste for both customers and LEM in the supply chain.
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strategic and organizational requirements for competitive advantage
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the context of strategic hrm
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strategic and organizational requirements for comp
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jr.
This document outlines a 6-step framework for designing distribution channels for new industrial products. The key steps are: 1) Identifying customer segments, 2) Prioritizing customers' channel function requirements, 3) Benchmarking the seller's and competitors' channel capabilities, 4) Generating feasible channel options, 5) Evaluating the costs and benefits of each option, and 6) Aggregating options to maximize synergies across product lines and markets. The goal is to systematically evaluate different channel structures and identify the option that best satisfies customers' needs while optimizing costs and revenues for the firm.
An analysis of the external environment is undertaken in order to discover the opportunities and threats that are evolving and that need to be addressed by the organization. A study by Diffenbach (1983) identified a number of positive consequences that stem from carrying out an organized environmental analysis. An analysis of the external environment can be broken down into three key steps, each becoming more specific to the organization. The first step is an analysis of the macro-environmental influences that the organization faces. This is followed by an examination of the competitive (micro) environment the organization operates within. Finally a specific competitive analysis is undertaken.
System Engineering ISO 15288 Supported by PLMpstrookman
This document discusses how product lifecycle management (PLM) can support system engineering processes defined in ISO 15288. PLM provides capabilities that can help companies align their processes with ISO 15288 standards and more effectively manage product information across the lifecycle. Key challenges for companies include selecting the right PLM solutions, ensuring interoperability between systems, and optimizing internal processes to conform with ISO 15288.
The document discusses the dilemma businesses face in choosing between commercial software products and in-house development tools. It presents a model to help select solutions based on business and technology drivers. The model separates solutions into a packaged applications approach or development tools approach based on dimensions like the business view, technology view, and separation of concerns. It aims to help businesses match their requirements to appropriate software products or tools.
This document discusses 10 trends shaping the life insurance industry landscape:
1. Steady industry growth, but underlying issues of underinsurance and lack of innovation persist.
2. Insurers are challenged to rationalize legacy systems while maintaining valuable historical business, constraining growth.
3. Some insurers are outsourcing administration and systems management to leverage partnerships and convert costs.
4. Regulatory changes increase need for flexibility but also interfere with modernization efforts.
This document discusses supply chain challenges and leading practices for large-scale smart meter and AMI deployments by utilities. It outlines Capgemini's approach to establishing a Deployment Operations Center to oversee the end-to-end deployment process. Key areas that are addressed include supplier relationship management, integrated supply chain and logistics, cross-dock setup, hardware traceability, vendor management, and quality assurance practices. The document emphasizes the need for adapted processes and procedures to support the increased volume and demands of large deployment projects.
Assignment 6 - IS Managment Issue IdentificationAshley Leonzio
This document discusses the challenges of determining when to retire or sunset software applications and products. It notes that while retiring legacy systems seems logical, there are many complicating factors to consider, such as costs, contractual obligations, regulatory compliance, and understanding how customers use the system. The document examines frameworks for evaluating products and the product lifecycle. It also discusses stakeholders impacted by sunsetting decisions and why determining when to retire products is fundamentally difficult, with many tradeoffs to evaluate.
Auto-injectors: choosing the right path | Insight, issue 2Team Consulting Ltd
The auto-injector market is growing rapidly due to a shift towards self-administration of therapies and a need for product differentiation. Auto-injectors provide patients independence and convenience over traditional syringe administration. While auto-injectors offer benefits, pharmaceutical companies face a complex selection process in choosing a development path for their product. Key decisions include whether to develop a new device, use an off-the-shelf option, or license a technology. Proper upfront planning is important to define needs and requirements, assess development options and timelines, and ensure regulatory approval.
Mitigating the Risk of Counterfeit ICT in the DoD Supply ChainKyrl Erickson
This document discusses the risks of counterfeit information and communication technology entering the Department of Defense supply chain. It notes that globalization has increased risks by making supply chains more complex and less visible. Counterfeit ICT poses national security risks as it can contain malicious code or hardware vulnerabilities. The document recommends that the government and industry collaborate to develop standards for information sharing and supplier monitoring throughout the entire lifecycle of ICT systems, from acquisition to maintenance, to improve visibility and mitigate risks of counterfeits entering the supply chain. It also calls for standards in counterfeit detection methods and avoidance techniques.
For many manufacturers, evaluating and managing the risk of obsolescence is a missing piece of their overall management strategy, an oversight that can have significant implications in terms of business continuity. With a clear obsolescence policy and risk-assessment framework, manufacturing companies can help ensure that their systems and assets remain up and running, supported by a continuous risk-mitigation cycle.
1. Aerospace & Defense
Components
White Paper – Supply Assurance™
Practical Solutions for
Managing Component
Obsolescence Risk for
Counterfeit Avoidance
Author
Tyler Moore
Director of Supply Assurance
Arrow Electronics
May 5, 2014
Contents
Overview and Scope 1
Moore’s Law and the Impact
of Constant Innovation 2
Original Component
Manufacturers and Their
Franchised Distributors 3
Avoiding Obsolescence –
A Brighter Pair of Headlights 4
Enterprise Risk Management –
The Competitive Advantage 5
Summary 7
arrow.com/supplyassurance
Overview and Scope
Thirty year lifecycles. Minimal customer
commitments. Market forces that favor change.
Suppliers that are driven by short-term metrics. It’s
hard to conceive of a more challenging environment
in which to manage the production of high
performance electronic products. Now add to the
mix thousands of opportunists that are just waiting
to capitalize on the panic that ensues when there
are large gaps between supply and demand. This is
today’s reality for most of us who have made careers
working to support and improve the supply chain for
Aerospace & Defense (A&D) products.
In this paper, we will describe meaningful
qualitative differences between tiers of suppliers.
Providing clarity to these differences will help
leaders within the A&D community to better
understand potential opportunities for avoiding
the risks associated with the unwitting purchase
of counterfeit electronic devices. We will expand
on the theme of risk avoidance by outlining certain
tools that may be used to improve the quality and
quantity of options for dealing with the challenges
that component obsolescence creates. We’ll also
explain how collaboration with top tier suppliers
can fill a critical need in the process by providing
an even more refined view of risk.
We will then outline certain practical solutions that
A&D leaders can consider to better understand the
risk that obsolescence poses for their enterprise
and tools to manage that risk once it is more clearly
understood.
We will share our firsthand observations of a
company that was put in a position that threatened
not only their brand and credibility in the A&D
market, but could have suffered nearly mortal
wounds to their balance sheets as a result of not
fully understanding the breadth and depth of risk
that EOL events create for not only a supply chain
management team, but for the enterprise itself.
As we share this analysis, backed by decades of
experience in serving this market, we’ll provide
evidence that managing obsolescence within
the A&D market demands a holistic approach.
This approach relies on a spectrum of tools
and business practices, properly applied in
collaboration with credible partners, throughout
the long life span of military and aerospace
programs. Lastly, we will share our view, that
counterfeit risk, though real and threatening, is in
many ways a byproduct of the absence of such an
approach within industry itself.
2. 2arrow.com/supplyassuranceAerospace & Defense
Practical Solutions for Managing Component Obsolescence Risk for Counterfeit Avoidance
White Paper | May 5, 2014
Moore’s Law and the Impact of Constant Innovation
Original Component Manufacturers (OCM) are entirely commercial
enterprises. They compete with one another in one of the most
challenging, innovative markets that the world has ever known. It’s this
“innovate or die”1
environment that most directly impacts those of us
that, though appreciative of innovation, live in a practical world where
long term stability is almost more important than innovation itself.
>> This paradigm is best described in Moore’s Law. In 1965, Gordon
Moore, one of Intel’s founders, then predicted the phenomenon
whereby IC (Integrated Circuit) density doubled every year2
.
The accuracy of his prediction has been born out across over a
dozen generations of microprocessors. Today we’re able to take
advantage of technology that is nearly one million times denser than
the technology that existed when his prediction was made.
This has created a constant conflict between suppliers of components
and component users. Suppliers feel the pressure to move resources
to new products, while customers feel the need to maintain existing
products, especially products with long life spans and complex system
qualification processes.
Frequently, it is core processors, memory, and logic technologies that
are caught up in this pace and with it comes the challenge to users of
these products.
At Arrow, we see these patterns manifest in the thousands of end of life
notifications that were transmitted to us in 2011. Across the electronics
industry, Silicon Experts, a leading component information provider,
documented over one million discontinuances during a similar period.
New generation products are introduced every year, and with each
introduction, older technologies are abandoned, leaving customers to
deal with the myriad challenges that obsolescence creates.
As recourse to any of these events, planned or otherwise, users face a
relatively narrow set of options:
-- Purchase enough to last the life of the program
-- Qualify an alternate source
-- Redesign
-- Purchase enough to support near term (<2 yrs) requirements
Because each of these options carries distinct and, in some cases,
significant expense and/or risk, avoiding obsolescence events
gains a premium value to executives and supply chain managers.
Understanding the full range of cost/benefit tradeoffs that different
options create is critical as well. Once these options and their tradeoffs
are understood, the quality of partnerships that a user has with the
parts provider becomes increasingly important.
Why is lifecycle information so difficult to find? Product technical
information is broadly available from countless websites. Valid, timely
lifecycle information about these same parts is much more difficult
to access. OCMs have a proprietary interest in keeping their product
mortality plans or schedules under very tight control by making that
information available to a very narrow range of customers and partners.
1
Tom Peters, Innovate or Die, 1997
2
Excerpts from A Conversation with Gordon Moore: Moore’s Law, Intel Corp, 2005
3. 3arrow.com/supplyassuranceAerospace & Defense
Practical Solutions for Managing Component Obsolescence Risk for Counterfeit Avoidance
White Paper | May 5, 2014
It is easy to envision how early access to this information by an OCM’s
competitors could give them the ammunition to sow fear, uncertainty,
and doubt about a particular product or even an entire product
family. If OCM ‘A’ learns that OCM ‘B’ plans to discontinue a product
family at some point, they can immediately begin targeting all of the
designs using ‘B’’s products for redesign. Further, they can modify
their own production, pricing, and marketing plans to enhance this
displacement strategy. The less obvious reasons why OCMs keep
lifecycle information very closely held include substantial raw material
investments, production ‘load-leveling’, strategic customer alignment,
and corporate philosophy, all of which play a part in the decisions that
OCMs make regarding the discontinuance of products.
To better understand how product lifecycle is developed and how
this information flows from deep inside an OCM, Figure 1 outlines
the interrelated engineering, operations, supply chain, and customer
management elements that must be managed and coordinated
to yield an effective and timely ECN/EOL notification process.
Understandably, competing interests within certain constituent groups,
contribute to further mask the true nature of product lifecycles from
the outside world.
By design then, factory-direct, accurate information about the
true lifecycle plans of many suppliers’ product remains remarkably
opaque to most component users. Actual discontinuances and PCNs
are readily available of course, but mid- (>1yr <3yr) and long-term
information (>3yr) which would be truly helpful to A&D users remains
frustratingly out of reach to most users.
Original Component Manufacturers and
Their Franchised Distributors
Most OCMs have long established franchised channels of distribution.
The nature of this franchised relationship insures that the parts that
these distributors sell are sourced directly from the OCM’s factory.
Performance standards for quality, information control, and traceability
are similar to those of the OCM itself.
Franchised distributors also receive automated product information
concerning: Product Changes, Engineering Changes, Lifecycle
Changes, as well as Lead Time Updates.
In contrast, open market sellers of these components do not benefit
from a direct relationship with an OCM. Although the best open market
sellers maintain stringent quality control measures once a part enters
their facility, the very nature of their acquisition strategies introduce
variables that may impact the ultimate quality and usability of devices
acquired via open market channels. (Consider the impact of unclear
holding, environmental controls and other quality elements as a part
travels through unknown sources before becoming available for sale.)
Furthermore, open market suppliers lack the access to people and
information that franchised distributors receive as part of their working
agreement with the OCM.
From these differences, based on product quality and visibility to
product information, there are three distinct tiers related to the sales
and support of electronic products.
Figure 1 - A typical OCM’s organizational structure with its necessary layers of
management, conspires to limit the outside world’s view of lifecycle plans
Franchised Distribution
A franchised distributor is obligated to carry out certain operational,
marketing, support, and in some cases engineering services in
support of the Original Component Manufacturer’s strategy and
product roadmap.
Within this relationship, OCMs typically provide distributors
with product training, design tools, automated product data
streams including pricing, lead times and in some cases, design
recommendations.
The franchised distributor is a critical functioning part of an OCM’s
channel strategy. In some cases, the franchised distributor may
support the vast majority (>90%) of the end customers for a
particular supplier’s products.
Franchise agreements may be global or regional in scope, and are
typically evergreen in their duration, though some agreements may
be time bound.
4. 4arrow.com/supplyassuranceAerospace & Defense
Practical Solutions for Managing Component Obsolescence Risk for Counterfeit Avoidance
White Paper | May 5, 2014
Figure 2 - Component Source Tier Structure
*It should be noted that there are wide varieties in the sourcing practices & quality
controls across resellers in the open market. It is dependent on all buyers in the
A&D market to thoroughly investigate the quality controls of any open market
reseller in order to mitigate the risks associated with counterfeit parts and
compliance with federal regulations
Avoiding Obsolescence – A Brighter Pair of Headlights
Just as component manufacturing has advanced dramatically over
recent decades, so has our ability to gather and interpret information
about those technologies. Furthermore, academics and technologists
have taken up the challenge of layering analytical methods on top
of product information to create prediction tools. These tools give
component users a sense of the potential (obsolescence) problems
latent in their parts lists. These tools range in cost and complexity and
are sold under a range of brand names:
>> Silicon Expert
>> I.H.S.
>> Part Miner
>> Total Parts Plus
Tools of this type rely on data mining based algorithms, such as those
proposed by P. Sandborn et al. of the University of Maryland, CALCE3
,
which focus directly on DMSMS and provide the predictive foundation
for many of the tools mentioned above.4 5
The data used in these tools
may be gathered in the public domain, and may also include proprietary
information from suppliers themselves. At their core, these tools
attempt to “predict” obsolescence events. The accuracy and efficacy
of these tools are dependent on the degree to which the future adheres
to historical patterns and the specific conditions that any given user
faces related to any specific EOL event (minimum buy quantity, product
cost, and total predicted volume).6
Even with these limitations however,
these tools are key in the short term (<1 yr) tactical response to EOL
risk, as well as a guiding resource for longer term strategic planning.
Given their predictive nature, users will inevitably find themselves faced
with situations where the tools are predicting an imminent risk and the
user will consequently need to obtain further clarity before taking action.
In the electronic component ecosystem, component manufacturers
and their franchised distributors can provide a next-level of analysis
and specificity regarding the identified risk for an at-risk part that goes
beyond the directionally correct guidance which the tools provide.
Engaging with a franchised distributor can help to significantly improve
the quality and usability of the information that these services provide,
as well as help component buyers and users gain the critical insight
necessary to effectively deal with discontinuance risk.
3
Sandborn P, Forecasting Technology and Part Obsolescence, CALCE Electronic Products and Systems Center, University of Maryland,
November, 2010
4
Silicon Expert press release, SiliconExpert Technologies Releases Component Risk Analysis and Obsolescence Forecast Algorithm,
November 19, 2008
5
PartMiner Inc. press release, Lifecycle Forecasting and Bill of Materials Management Added to PartMiner’s CAPS Component Database,
November 3, 2003
6
Sandborn P., Pradhakar V, Ahmed, O, Microelectronics Reliability, Vol. 51, ‘ Forecasting electronic part procurement lifetimes to enable the management
of DMSMS obsolescence ’, 2011
5. 5arrow.com/supplyassuranceAerospace & Defense
Practical Solutions for Managing Component Obsolescence Risk for Counterfeit Avoidance
White Paper | May 5, 2014
Enterprise Risk Management – The Competitive Advantage
The market and supplier dynamics already discussed create the
attractive conditions from which counterfeit or sub-quality parts are
propagated into the supply chain. Channel confusion or disregard
for resellers’ source of supply further stimulates the growth of the
counterfeit markets. Yet, as we discussed, tools exist which can help
users identify parts that are likely to become counterfeiting targets.
These tools continue to improve in their accuracy and efficacy to the
problem. And yet the problem of counterfeits and substandard parts
entering the supply chain persists.
It is our position that a significant contributing factor to the problem of
counterfeit propagation starts with inadequate or misunderstood risk
analysis and risk management by senior leaders within A&D enterprises.
Product discontinuance events create significant potential for product
cost increases, design cost increases, system-availability impacts, and
supply chain delays. The cost factors created by discontinuance are
well documented and can exceed $1M for a single commercial off-the-
shelf redesign and inject nearly a year of design time delay.7
The risks that are less apparent however, may be risks that occur at an
enterprise level. These risks, which can be substantial and threaten an
enterprise’s health and sustainability, fall into four distinct areas:8
>> Hazard Risk
-- Liability, Property, Natural Catastrophe
>> Financial Risk
-- Pricing, Asset, Currency, Liquidity
>> Operational Risk
-- Customer Satisfaction, Product Failure, Integrity, Reputational
Risk
>> Strategic Risk
>> Competition, Societal Trends, Capital Availability
As a franchised distributor, when we view the typical OEM (or
customer response to discontinuance events, the risk analysis process
predominantly focuses on items related to financial risk, price and
inventory holding costs). The resulting response is biased toward
minimizing the cost and quantity of products purchased. Anecdotally,
buyers of these products describe the pressures that formulate
their response. They are typically concerned with Purchase Price
Variance (PPV) metrics, Return on Working Capital (ROWC), inventory
turns, inventory levels, and limitations related to the DFAR which may
preclude them from purchasing more raw materials than they may
actually need for future production. All of these pressures contribute to
a consistent underestimation of their product needs.
Arrow’s own internal analysis, completed over the past decade,
indicates that a typical end of life announcement generates product
orders to the OCM that covers only 60% of future demand for that part.
A full 40% of future demand is not captured during the last time buy
process setting up a substantial supply gap for years to come.
Failure to fully consider the full range of risk dimensions that these
events create, and this bias toward minimizing the capital costs
of discontinuance events serves as the catalyst which creates a
significant gap between long-term supply and demand. This unmet
demand drives the well-meaning buyers into the open market for these
parts and potentially creates significant exposure to other enterprise
level risks.
7
DMSMS Non-Recurring Engineering (NRE) Cost Metric Update prepared by ARINC Engineering Services LLC (Shaw W., Speyerer F.), September, 2010
8
Overview of Enterprise Risk Management, Casualty Risk Management Society, May, 2003
6. 6arrow.com/supplyassuranceAerospace & Defense
Practical Solutions for Managing Component Obsolescence Risk for Counterfeit Avoidance
White Paper | May 5, 2014
A real life example of a single
component EOL driving
enterprise-level risk
An upper tier semiconductor manufacturer published an
end of life notification per normal policy and practice.
Within the A&D enterprise using a particular component, a local
supply chain team made the decision and commitment with regard to
the level of investment that they would make in the EOL component.
The team decided to make an investment amounting to
approximately three year’s usage:
-- At the time of this decision, long term service requirements were
easily visible but not clearly accounted for in the last-time-buy
-- At this time, then current sales forecasts were visible and
indicated a larger demand than would have been supported
with the committed LTB
-- At this time, redesign was not under consideration and redesign
times were known to be greater than 3 years including system
qualification
Shortages materialized within 30 months of the Last Product
Shipment (LPS) date from the OCM.
No redesign had been started at the 30 month post LPS milestone.
Because of the particular systems effected, not only was the overall enterprise
facing catastrophic customer service and support issues, but also nearly
debilitating financial impact putting an entire quarter’s earnings at risk.
Through significant time and effort of chief executive and technology
levels, solutions were created. Though less expensive when measured
against the catastrophes they helped to overt, these solutions
amounted to over 11x the original cost of a full life time buy that would
have incorporated 5 years of production including the optimistic sales
forecast, forecasted service requirements, and stock to cover redesign
and requalification time - which has started at this time.
By fully evaluating the full spectrum of risks that EOL events create
for an enterprise, we believe that many users will respond differently
from the norms we observe today.
A framework and tools for implementing such an approach to risk
analysis are well documented in ISO31000 and IEC/ISO31010
standards.9 10
Under this framework, users should gain significantly
better visibility and understanding of the principles and techniques
that should be used to evaluate these risk-generating events.
Using this framework, entities can expect to build a better response
framework focused on:
-- Avoidance: Exiting or fully mitigating activities
-- Reduction: Diminish the likelihood or impact of events
-- Alternate Actions: Identify feasible alternates
-- Risk Sharing or Insurance: Strategies to share or apportion risk to
other constituents
-- Acceptance: Cost/benefit decisions
ERM (Enterprise Risk Management) is not only a tool for dealing with
the downside potential of obsolescence events. When implemented
holistically across a program or enterprise, ERM can become a
significant competitive advantage. Relating this to the current
context of defense acquisition, enterprises that are able to deal
most effectively with obsolescence risk and the concomitant risk
of counterfeits that occurs will become the competitive leaders in
service to the DoD.
9
Risk Management – Principles and guidelines, ISO 31000, International Standard, First Edition, 2009-11-15
10
Risk Management – Risk Assessment Techniques, IEC/ISO 31010, International Standard, Edition 1.0 2009 – 11
7. 7arrow.com/supplyassuranceAerospace & Defense
Practical Solutions for Managing Component Obsolescence Risk for Counterfeit Avoidance
White Paper | May 5, 2014
Summary
Exposure to end of life or product discontinuance events is not likely
to diminish in the foreseeable future. Commercial market forces
effecting Original Component Manufacturers are in many ways in
direct opposition to the long life support needs of Aerospace and
Defense companies. The gap between the interest of these groups
creates a fertile ground in which profit seeking players seek any and
all options to fill the seemingly insatiable demand for hard to find or
obsolete products. As a result, component users in the Aerospace &
Defense sector, as well as other sectors characterized by a need for
long product life or high reliability, are bombarded by sellers offering
these parts.
These sellers can be categorized into three tiers: the original
manufacturers; those manufacturer’s franchised distributors, and
all others. Within this last tier, the origins, chain of custody, storage
conditions, prior usage conditions, and other characteristics of these
parts are very difficult to determine. Aggressive inspection schemes
and processes meant to validate the veracity of resellers’ authenticity
claims are certainly necessary and warranted in an environment where,
for practical reasons, certain parts are only available via open market
resellers.
To get ahead of the problem, we must deal with two of the driving
forces that create the conditions in which open market acquisition has
become the norm:
>> Restricted visibility to oncoming risk
>> Inadequate response to discontinuance life-time-buy events
A range of commercially available tools have been created and
continue to be refined which give component users a clearer view
of risk as it evolves. These tools provide particularly high utility for
A&D users when they are implemented on an ongoing basis where
information is constantly refreshed. Where A&D customers or prime
contractors may have shifted bill of material management downstream
to their manufacturing providers, these providers must be held
accountable for implementing tools of this type as well.
As good as these tools are, they are still limited in their ability to
accurately predict the behavior of the OCM, which, as we have shown,
is a function of multiple organizational inputs as well as market forces.
There are a variety of competitive reasons explaining why an OCM
may not want to openly broadcast the actual lifecycle plans for their
components prior to the official EOL announcement.
This is where a partnership with an OCM’s franchised distributor
makes real sense. By virtue of their close alignment with the OCM, the
franchised distributor is likely to be able to offer the A&D user a refined
view of the risks that the commercial lifecycle management tools may
illuminate. The franchised distributor will have access to certain people
and roadmap information that can add clarity to a component user’s
LTB (Last Time Buy) decision making process.
Finally, we have outlined our observations concerning buyers’ common
response to LTB events. It is not uncommon to see very tactical
responses to EOL events when in fact these events create a very
strategic and potentially threatening set of circumstances for the A&D
enterprise.
Specific tools were discussed to help A&D managers respond to EOL
events in a more holistic way. We believe this holistic response will lead
to noticeable changes in buyers’ response to EOL announcements.
We also believe that given the environment created by changes in
legislation concerning the propagation of counterfeit parts, enterprises
that implement this risk management framework will achieve a
significant competitive advantage over their peers that do not
implement ERM (Enterprise Risk Management).
Understanding that counterfeit components are the symptom, not
the disease, is an important first step toward addressing the problem
they create. Understanding and acting on the fact that tools and
partnerships are available today that can give much improved clarity
to obsolescence risk is critical. And finally, implementing these steps
in the context of an enterprise that is holistically aware of the risk
exposure and management strategies that discontinuance creates,
offers the A&D enterprise the best chance of truly solving this problem.
8. Practical Solutions for Managing Component Obsolescence Risk for Counterfeit Avoidance
White Paper | May 5, 2014
Arrow Electronics, the world’s leading franchised
distributor, operates one of the most complex
supply chains in the world. Arrow’s supply
assurance program supports customers’ ongoing
demand for electronics parts after a component
manufacturer has discontinued production of
finished components and die-level products. Arrow
maintains direct connections with its suppliers
for information concerning engineering changes,
lifecycle changes, and lead time information, while
ensuring that a wide range of factory-direct EOL
product inventory – including over 1400 QML
devices – are available to customers long after
the OCM has discontinued production. To learn
more about product obsolescence solutions, email
supplyassurance@arrow.com or call:
1-800-833-3557 (customers new to Arrow)
1-800-777-2776 (existing customers).
1868_NA_AD-SupplyAssurance_10/15_CDS1.1
Arrow Electronics, Inc.
Aerospace & Defense
7459 South Lima Street
Englewood, CO 80112, USA