Original Date: 07/08/2002
Revision Date: 01/18/2007
Information : Obsolescence Management
The Directorate for Missiles and Surface Launchers began a formal Obsolescence Management program in 1997 in the absence of a formal methodology to support parts and material obsolescence.
The Directorate for Missiles and Surface Launchers (PEO TSC-M/L), like most program offices, was forced in recent years to begin recognizing and taking action to help resolve material obsolescence issues brought about by discontinued product lines and diminishing manufacturing sources. For PEO TSC-M/L, this issue began in 1997 in the absence of a formal methodology to support parts and material obsolescence. The Directorate appointed the prime contractor to take the leadership role, and an obsolescence management program was chartered. The prime contractor was responsible for heading the effort involving the vendors. Collaboration with other material groups was maximized to help monitor potential risk. A significant initiative was undertaken to optimize commonality of parts and materials across all prime contractor product lines during design and production. The main idea was to track obsolescence issues and their resolution. Proactive involvement across all missile variants was essential to success.
PEO TSC-M/L teamed with the contractor to develop several databases and models to facilitate the obsolescence management process. These tools depict the likelihood of obsolescence of all parts and materials, and they model costs associated with various solution options. One tool shows actual numbers of cases solved and the estimated cost avoidance associated with each (Figure 3-1) based on which solution type was implemented. For example, column one shows 245 cases were solved by using existing stock since October 1999, and the associated cost avoidance was $470,645. This represents money that was not spent because existing stock was found vs. having to move to the next, more expensive solution type Continued Availability. The last, most expensive option after Life of Type/Bridge Buy is complete redesign. By using Life of Type/Bridge Buy vs. redesign, the cost avoidance was $1,978,926. The costs associated with each of these possible steps were obtained from the Defense Microelectronics Agency based on their historical information. These figures are being refined as the team collects actual data specific to STANDARD Missile (SM) and includes them in the cost model.
Figure 3-1. Obsolescence Management Benefits and Metrics
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