In 2021, a survey of 234 small- and medium-sized (SME) manufacturing firms indicated that while manufacturing activity is growing at a record pace, there were concerns around the shortage of materials and components. This is an issue across the global industry and, if SME manufacturers are to stay ahead of the game, this means getting the most out of legacy equipment. Here Neil Ballinger, head of EMEA at automation parts supplier EU Automation, offers tips for effective obsolescence management.
On June 27, the United Nations (UN) celebrates Micro-, Small and Medium-sized Enterprises Day, a day when we highlight the importance of SMEs around the world and acknowledge their achievements. SMEs were hit hard by supply chain issues during the pandemic, and manufacturing firms were no exception to the rule.
Nevertheless, research from manufacturing surveys and trade bodies suggests that small and medium-sized manufacturers are continuing to bounce back, despite ongoing supply issues and staffing problems. For smaller manufacturing firms, the pressure to reduce costs while maximising productivity is especially important and so is making sure their legacy equipment stays up and running for as long as possible. Devising and implementing an effective obsolescence management strategy can help them prepare for similar issues post-pandemic.
Identify your goals
An effective obsolescence management strategy takes into account the life span of all the equipment and components in a manufacturer’s facility. Whatever the equipment or manufacturing process involved, the objective is almost always the same — replacing obsolete parts as they age, before they impact productivity or, worse, cause downtime. However, every SME will also have its own goals and production targets, and these must be factored into the wider obsolescence strategy.
Often, the best approach is to work backwards. This means working out what the end result should be and then assessing the obsolescence risk across the business from there. Having a coherent objective early on can make all the difference when implementing an obsolescence plan and will guide small manufacturers when identifying risks.
Making a start
The next step is collating all the relevant equipment and making a list of the parts that are already obsolete or are at risk of becoming obsolete very soon. These can be ranked depending on their urgency, prioritising the purchase of spares for high-risk items.
When analysing their equipment, manufacturers should know how old everything is, and flag any signs of damage that could impact the equipment’s performance. Determining whether anything on the shop floor is already obsolete is a must, and corrective action must be implemented immediately. At this stage, we always recommend collecting any equipment-specific lifecycle information from the original equipment manufacturer’s (OEM) website or by contacting them directly. Then, firms can simply request information on the availability of spare parts.
Just like large manufacturing companies, SMEs need a structured approach to identifying risk in their facilities. For smaller entities, reputational damage and even the slightest hit to productivity could make all the difference — so avoiding downtime is critical.
Accessing the right information
A strong obsolescence management plan gathers knowledge about the equipment and parts in a particular facility, which manufacturers can then deploy when necessary. The final stage is gathering this data on obsolescence risk, part damage and other information and bringing it together into one easily accessible format.
In reality, this could be as simple as creating a spreadsheet that highlights areas of concern on the factory or shop floor, with suggestions on how to proceed and manage the risk. Crucially, this should contain the contact information of a trustworthy supplier that specialises in obsolete automation parts, who will be ready to assist manufacturers when legacy components need to be replaced.
However, obsolescence management is an ongoing process, so any spreadsheet should be treated as a living document that manufacturers can regularly update.
While SMEs are struggling with shortages of materials and components, implementing an effective obsolescence management strategy can help mitigate risk, reduce costs and streamline productivity. Identifying the objective of such a strategy, taking stock of at-risk parts and collating the resulting data are all key steps when creating such a plan.
To find out more about obsolescence management, download EU Automation’s free book to guide you through the seven steps of obsolescence management.
