The Challenge of Obsolescence

Not all equipment is equal. To identify criticality, ask yourself: if this machine breaks down, will it simply slow down a process, stop a production line or bring your entire factory to a grinding halt?

Recognising which of your equipment is most important to your operations is the first step in obsolescence planning. 

Once you have a list of equipment ordered by criticality, starting from the most important find out the spares availability - are you sure you have inventory of critical components in stock? Are you aware of the current shelf-life?

Spares lead time and availability catches many businesses out, especially on maturing equipment, leading to extended unplanned downtime. An awareness of spares availability is key in managing obsolescence. 

One of the risks of maturing equipment is the OEM no longer providing support and spares becoming non-existent. 

Before you start looking at replacement options, don't rule out re-engineering of components. This is usually a cost effective alternative which can extend the life of maturing equipment and reduce total cost of ownership.

Asset management can seem complex and intimidating, but careful planning, along with acknowledging where in-house expertise ends and external expertise begins, can be a good place to start.

Obsolescence may be inevitable, but that doesn’t mean its impact on productivity, reputation and costs is any less tangible. Being prepared and mitigating risks are the most effective ways of avoiding the more severe consequences of part obsolescence. 

The role of asset management within a functioning production line should not be underestimated; but what does best practice look like? 

To repair, or to replace? That is the question. At least, it is for manufacturers, who are coming under increasing pressure to do more with less, while squeezing out the last drop of potential from every available resource. Enter Total Cost of Ownership (TCO), the acronym that’s here to help, but only if you do it right.

Industry’s productivity, profitability and reputation depend on the correct functioning of its equipment. But, when equipment fails, is a quick fix or a detailed investigation the best course of action, and what role can Total Cost of Ownership calculations play in the final decision?