In today's fast-paced technological landscape, staying ahead of the curve is essential for businesses to remain competitive. It is imperative to have a comprehensive understanding of the costs associated with component obsolescence. Obsolescence cost measurement drives prioritization and risk reduction plans. Component obsolescence should never be addressed as an afterthought, but rather as a proactive consideration that ensures seamless operations and uninterrupted production.

Component lifecycles and their predicted EOL dates can be monitored and tracked using tools, such as Z2Data and I.H.S., among others. By integrating the project plan for end equipment, organizations can effectively forecast and simulate the costs involved in addressing obsolescence in a pre-emptive manner.

A few questions for any plan:

• Does the project plan need to include anticipated product refresh or redesign during its life? Are resources allocated to support these plans? These events are not one-time actions; instead, they necessitate consistent and regular evaluations by a multi-discipline team throughout the duration and life of a project.

• How will the business account for the capital locked up in long-term component sourcing? For many long-term projects, the sums of money tied up in last-time-buy stock represent a significant financial investment. Moreover, the uncertainty surrounding the potential outcome after 5+ years of storage adds an extra layer of risk.

• How will component obsolescence impact after-sales service commitments? Often forgotten are the costs of servicing a long and uncertain after-market tail.

• What effect would a shortened equipment life have on your customers and end-users? Prematurely ending the life of equipment or cutting short the service life can have costly consequences, including reputational damage. Additionally, it poses an immediate risk of customers turning to competitors as they are compelled to seek alternatives elsewhere.