Manufacturers such as medical OEMs and industrial equipment providers — and aerospace and defense companies, in particular — make systems and products that typically have a long shelf life. They could be in the field for up to three decades. Unfortunately, many of the parts those systems require often go out of production while the system or product remains in use.

Parts obsolescence, the loss or impending loss of the components that make up an end product, continues to give many buyers headaches. Or worse.

"Although mundane in its simplicity, the inevitable depletion of crucial components as systems age has sweeping, potentially life-threatening consequences," a University of Maryland professor of mechanical engineering recently wrote in an IEEE Spectrum report entitled Trapped on Technology's Trailing Edge. "At the very least," Professor Peter Sandborn wrote, "the quest for an obsolete part can escalate into an unexpected, budget-busting expense."

And the purchasing and engineering challenges related to part obsolescence won't end anytime soon.

Buyers must first be sure the part is actually obsolete. Going to the original part manufacturer or a contract manufacturer that used the part is a good place to start. The usual route is to wait until a supplier announces the end of a product's manufacturing cycle and then place a final order that will hopefully support the product throughout its lifetime.

"Lifetime buys can be an effective strategy for buyers to source obsolete parts, providing they accurately forecast what their component requirements will be," Purchasing Magazine says:

When a component manufacturer decides to stop making a part, it will send out an end of life (EOL) notice that specifies a date when the part will cease to be produced. Companies that need the part will then make lifetime buys. They forecast how many parts they will need in the future and place an order for them with the component manufacturer.

But a couple of things make such lifetime buys tricky: 1) Not all manufacturers send out their alerts enough in advance to allow their customers time to request a final factory run; and 2) It can be hard to know how many parts to stockpile, as the IEEE Spectrum feature points out.

If a buyer is unable to source the part from the original part manufacturer or a contract manufacturer that used the part, another possible solution is through independent distributors and authorized non-franchised resellers. Some specialize in obsolete parts.

The most straightforward solutions — looking for a replacement part from a different manufacturer or finding through auction sites (such as eBay) or where other buyers and suppliers congregate online (such as The Broker Forum, ERAI Inc., Brokerlynx or elsewhere) — face major hurdles.

For one, buyers must ensure that the replacement isn't counterfeit. It isn't only bogus obsolete parts buyers have to worry about, either; buyers may have to deal with counterfeit documentation for the replacement part.

Counterfeit EOL notices already exist in terms of compliance certificates, notes Purchasing: "Parts brokers are receiving these documents saying the parts have been tested and they are what they say they are when in fact the parts have been counterfeited."

Another hurdle is lack of compatibility. "When one component changes or is no longer available, the solution can impact interfacing parts — whether in form, fit or function — and increase the cost of obsolescence solutions," according to Aero-Defense News at IHS.com. A part purchased from an unapproved vendor can involve costly and time-consuming "re-qualification" testing to determine that the replacement is the right part and is reliable.

When the company can't find a part, one option is to redesign or reverse-engineer the part. This solution is a last resort, though, as it is often very timely and very costly. Most buyers prefer to buy parts from existing inventories of component manufacturers or distributors, which is why sometimes the product is found on the gray market cheaper.

"The absence of crucial parts now fuels a multibillion-dollar industry of obsolescence forecasting, reverse-engineering outfits, foundries, and unfortunately, a thriving market of counterfeits," according to Sandborn at IEEE Spectrum. "Without advance planning, only the most expensive or risky options for dealing with obsolescence tend to remain open."

Resources

Trapped on Technology's Trailing Edge
by Peter Sandborn
IEEE Spectrum, April 2008

How Buyers Handle Obsolete Parts
by James Carbone
Purchasing, Dec. 13, 2007

The Ongoing Threat of Parts Obsolescence
by Randal Meske
American Gear Manufacturers Association

Coping with Parts Obsolescence
Aero-Defense News - IHS.com, July 2004

Parts Obsolescence Challenges for the Electronics Industry
by J. Torresen and T.A. Lovland
Design and Diagnostics of Electronic Circuits and Systems - IEEE, April 2007