How to Manage Obsolescence in Manufacturing in 2021
“An ounce of prevention is worth a pound of cure.” — Benjamin Franklin
Manufacturers must be prepared for worst-case scenarios to continue production seamlessly.
Obsolescence is one of those scenarios that could cause extensive downtime, leading to serious profit loss. Especially in today’s world, affected by the COVID-19 pandemic, lacking foresight can have disastrous consequences.
By managing and preparing for obsolescence under any circumstances, manufacturers can operate their facilities with confidence.
Learn more about obsolescence and preparation tips below.
Obsolescence in manufacturing
What is obsolescence?
Obsolescence is when something no longer works or is no longer useful. In manufacturing, obsolescence in parts, services, and resources occur when they are no longer provided by the original equipment manufacturer (OEM) either because they offer and support new equipment and services or because the OEM went out of business.
There are several types of obsolescence:
Technological obsolescence: when parts or equipment become obsolete due to changes in technology
Functional obsolescence: when the manufacturer’s needs have changed and the equipment becomes obsolete
Legal obsolescence: when laws or other orders prohibit the use of parts or equipment
Style/Aesthetic obsolescence: when the style of parts or equipment is thought to be outdated and becomes obsolete
Economic obsolescence: when parts or equipment become obsolete because there is a more cost-effective alternative
Technology, government regulations, and planned obsolescence are the three greatest contributors to obsolescence in manufacturing.
How obsolescence can affect your facility
When manufacturers are still using parts, services, or resources that are obsolete, the costs for maintenance, repairs, and replacements can skyrocket.
Plus, the downtime that is needed to find a technician or a replacement part can be detrimental. Downtime can cost upwards of $5,600 per minute, a huge loss that cannot be recouped.
That’s why planning around obsolescence and preparing for potential changes in production is necessary for manufacturers to get ahead of the curve.
Tips to manage obsolescence in manufacturing
If you want to save on downtime and other unnecessary costs due to obsolescence, then try these tips in your manufacturing facility.
1. CREATE A DIVERSE STRATEGY.
Because different parts and equipment have different needs in terms of maintenance, repair, and predicated end-of-life, you need to create a diverse strategy to manage obsolescence.
Base your strategy on the above factors, as well as operating environments and production demands, to effectively prepare for parts and equipment obsolescence.
Ideally, you should have a team that tracks the condition of each piece of equipment and determines the next step so nothing slips under the radar during busy seasons of production.
2. KEEP PARTS AND EQUIPMENT MANUALS AND INFORMATION IN ONE ORGANIZED SPACE.
All information related to parts and equipment should be centralized in a safe location where they can be referenced at any time.
Manuals and spreadsheets tracking the condition of parts and equipment are crucial to knowing when obsolescence is nearby. Staying organized means staying ahead of potential downtime.
3. CREATE A RELATIONSHIP WITH A RELIABLE DISTRIBUTOR.
Having a middleman who can help you source dated parts and equipment is necessary, especially since the COVID-19 pandemic.
With access to alternative supply chains, your distributor can prevent extensive downtime due to a malfunctioning or broken part.
Our sister company, iGAM, offers a wide-ranging marketplace of used industrial robots and manufacturing equipment at affordable prices. If you are in need of parts and equipment, check out their inventory on the iGAM website.
4. KNOW WHERE YOU WILL GET REPAIRS IN CASE OF AN EMERGENCY.
If equipment breaks down during production and you have to halt all operations, you’ll want a repair technician on-site immediately.
Whether you have internal technicians who take care of your repairs, or if you outsource repairs to a company that provides year-round services, know where you are getting repair services from.
NRTC Automation offers industrial equipment repair with a quick turn-around to minimize downtime and get your production line back up and running. Learn more about our Engineering Services here.
5. CONTINUALLY REVIEW YOUR PLANS TO STAY UP-TO-DATE.
Managing obsolescence is an endless process. Set up monthly, bi-annual, and annual reviews of your obsolescence strategy. A mindset of preparation will save money on downtime, repairs, and new equipment expenses.
Stay ahead of obsolescence
With our tips above, you can manage obsolescence, even in a pandemic. Remain competitive and protect your company’s bottom line from operation shutdowns by maintaining an obsolescence strategy.
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