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Strategies to the Prediction, Mitigation and Management of Product Obsolescence by Michael G. Pecht, Peter Sandborn, Ulrich Ermel, Bjoern Bartels

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7.2 OBSOLESCENCE RECOVERY (MITIGATION) TACTICS

There are a number of possible solutions to obsolescence problems after they occur. These range in complexity from a simple part substitution to a major redesign of a product. The selection of the most appropriate solution is a complex task involving a large number of factors, including the time available, the expected future production and support lifetime, and the expected occurrence of future product developments.

The cost of resolving diminishing manufacturing sources and material shortages (DMSMS) problems is of primary concern to program managers. Using data from many organizations, the DMEA, in conjunction with ARINC and CALCE, developed nonrecurring engineering cost factors for each resolution approach. The goal was to report the cost impacts of DMSMS problems and highlight the fact that the implementation of an effective obsolescence management system is necessary for companies and other organizations (McDermott et al., 1999; Shaerer and Tomczykowski, 2001; Shaw et al., 2010).

The various strategies available and their driving factors are discussed in the following sections, which are presented in approximate order of increasing resolution cost, as shown in Table 7-1 (Shaw et al., 2010).

TABLE 7-1 Nonrecurring Resolution Cost and Time Metrics (FY2011) from the 2009 DMEA Survey (adapted from Shaw, et al., 2010)

Resolution type/Strategy Nonrecurring Resolution Cost (US$) Section
Negotiation with the manufacturer $0

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