Don't Let Obsolescence Harm Your Business

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Don’t Let Obsolescence Harm Your Business Source: Flickr CC

Transcript of Don't Let Obsolescence Harm Your Business

Page 1: Don't Let Obsolescence Harm Your Business

Don’t Let Obsolescence Harm

Your Business

Source: Flickr CC

Page 2: Don't Let Obsolescence Harm Your Business

Obsolescence: the most challenging obstacles companies face in supply chain management

If obsolescence is managed early and addressed methodically, it

has potential to provide significant cost avoidance throughout the

entire life of the display

Source: CMCA, The National Academies Press, & Flickr CC

Page 3: Don't Let Obsolescence Harm Your Business

Obsolescence:

A manufacturing line down situation due to obsolescence is time wasting, resource wasting, causes losses in revenue, causes delivery delays, and the

potential loss of customers due to delivery delays.

Is difficult to plan for

Can cause significant delays in production

Can cost tens of thousands in redesign time

Drives the end product itself to become obsolete

Source: CMCA, The National Academies Press, & Flickr CC

Page 4: Don't Let Obsolescence Harm Your Business

● The key to eliminating this problem is finding a supplier that will work to prepare for obsolescence and will help fix it when it occurs

● Suppliers that build more customized components specifically for your product line are more likely to work with your individualized needs, rather than large-volume manufacturers

Source: CMCA, The National Academies Press, & Flickr CC

Page 5: Don't Let Obsolescence Harm Your Business

Why Partner with a

Supplier

Good partners will help by designing upfront for obsolescence mitigation

Your supplier can react by creating safety stock, sourcing alternate components, and re-engineering your display around a readily available replacement component

This obsolescence management mitigated through your supplier will help to safeguard your product line

The first question to ask your supplier: What would

cause my LCD to become obsolete?

Source: CMCA, The National Academies Press, & Flickr CC

Page 6: Don't Let Obsolescence Harm Your Business

If your supply chain is unable to adapt to their own market conditions and maintain the ability to supply your critical components, then your whole product will likely become obsolete.

To mitigate obsolescence, you need a supplier who will avoid the LCD component from going obsolete so that the customer can produce their product

as long as needed.

Source: CMCA, The National Academies Press, & Flickr CC

Page 7: Don't Let Obsolescence Harm Your Business

Proactive obsolescence management consists of a robust cycle of planning, monitoring, mitigating, and reviewing what is designed to minimize the

impact of obsolescence on system support costs and availability, through the early identification and application of of appropriate strategies,

resources, tools, and resolution options.Source: CMCA, The National Academies Press, & Flickr CC

Page 8: Don't Let Obsolescence Harm Your Business

Avoiding obsolescence or minimizing its costs can be accomplished through proactive actions in:

• Planning• Design• Manufacturing

• Operations• Sales• Marketing

These actions generally have the purpose for:

Minimizing the impacts of obsolescence by anticipating

change

Accommodating changes that cause obsolescence before the costs of obsolescence become substantial

Source: CMCA, The National Academies Press, & Flickr CC

Page 9: Don't Let Obsolescence Harm Your Business

Actions in Design and Planning:

● Strive to assure that an LCD’s design is capable of accommodating change without substantial loss or performance capability

● Designing the end product for the possibility of future functional change

● Designing with the most standard and appropriately up to date components

● Continuing to be alert of any possible change is a prerequisite of effective management of products

● Constantly scanning for trends that may foster obsolescence

● Upon EOL, purchasing an effective and efficient stock quality to manage a last time buy at the lowest component value level possible

● Redesign the display with a readily available component with minimal end product impact

● Plan, so that none of this disrupts manufacturing or the end customers

Source: CMCA, The National Academies Press, & Flickr CC

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Want to learn more?

Contact us and let Phoenix Display be your guide!