PROACTIVE OBSOLESCENCE MANAGEMENT

Creating affordable sustainment and
readiness solutions for legacy platforms.

CTG’s capabilities to source obsolete material have positively affected the short and long term sustainment and affordability of many Legacy Platforms. We are experts at sustainability assessments, real-time market analysis and most importantly, providing compliant sources and availability to the most challenging material requirements. The costs avoided will be significant, risk will be mitigated and operational readiness will be improved.

CTG's Proactive Obsolescence Management programs allow for sustainable production and repair and aid the customer in achieving the right readiness at the right cost.

Historically budget increases are evident during periods of armed conflict when the effectiveness of war demands that readiness be achieved at any cost. These periods are defined by increased budgets designed to support high operational tempos.

In the post war era, budgets decline by as much as 30%. These periods are usually defined by lower operational tempos that dictate readiness be maintained at the right cost. Declining budgets and more calculated reset are driving a transition from reactive to proactive planning.

Proactive Obsolescence Management

Reactive State REACTIVE STATE: Sustained by high budgets, concentrated operational tempos, agile modernization programs and quick turn reset. This was supported by a stable and focused industrial base = Readiness at any cost.

Proactive State PROACTIVE STATE: Smaller budgets being driven by sequestration, declining operational tempos over more dispersed geography, with more calculated reset, and a refocused, moving offshore, industrial base = The right readiness at the right cost.

To support this transition The Department of Defense (DoD) needs to focus on supporting its Legacy Platforms and Legacy Platforms into the future. Legacy Systems, may it be an aging built to print military platform, an industrial piece of equipment with a 15 to 20 year life span or a medical device with an extended life cycle, are prone to obsolescence because they are outliving the technology turn currently capable within industry. Defense markets have felt the brunt of this problem, however industrial and medical have struggled as well with this quick turn technology. The manufacturers will discontinue an item with little notice and no alternative solution to a form, fit and function replacement.

Since our inception, CTG has not only recognized this serious problem, but has developed the ability to provide sustainable cost effective solutions. The current reactive approach to sustainment is antiquated and has a proven track record that leads to increased cost and decreased readiness. Component obsolescence related redesign decisions are being made without the results of comprehensive logistics and engineering analysis.

At CTG we offer a variety of proactive solution tools in the areas of DMSMS (Diminishing Manufacturing Sources and Material Shortages), long lead time, and End of Life (EOL). We will escalate sustainment while slowing operating cost growth, by reducing costs and implementing lifecycle cost reduction initiatives.

Proactive Obsolescence Management includes the process described below that delivers a sustainable production and repair or operational readiness, the right readiness at the right cost.

PROACTIVE OBSOLESCENCE PROCESS

  • Step 1 BOM (Bill of Materials) Analysis
  • Step 2 COA (Course of Action) development

STEP 1

  • BOM Analysis – Life Cycle Determination
    • Active
    • Aging
    • Obsolete

STEP 2

  • COA Development Considerations
    • Current inventory position
    • Special arrangements for allocated stock
    • Drawings and technical data
    • Procurements in process
    • Analysis of alternatives in progress
  • Market Condition Analysis
    • Cost
    • DMS / EOL
    • Volume (distribution and market demand)
    • Procurement lead time
  • Sustainment Analysis
    • Supply Side analysis
    • Demand planning analysis

Courses of Action are developed by determining where material resides within four material segments: Active, Aging / Stable, Aging / Unstable, and Obsolete.
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  • Active Stock – Material that is readily available and is currently in production.
    • Solution – continue to practice normal procurement methodologies for stock replenishments. ($)*
    Infographic - Four Material Segments
  • Aging / Stable - Material that is out of production with significantly more inventory on hand in the commercial market place that is in excess of customer requirement for a defined period of time.
    • Solution – Monitor industry stock position to ensure integrity of material availability. ($)
  • Aging / Unstable – Material that is out of production where demand planning is outpacing supply in the market place.
    • Solution – Safety stock procurements or Life Time Buys (LTB) to ensure stable production cycles are maintained. ($$)
  • Obsolete – no material is available to meet current customer requirement in the marketplace, driving the customer to look toward costly alternatives.
    • Solution – Recommend non-public inventories, alternate parts, perform up-screening, reverse engineering, 3D printing, or full blown Engineering Change Proposals. ($$$$)
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* Symbol of Cost Magnitude

Investing dollars in proactive obsolescence management with CTG will:
  • Allow replacement of components at the lowest system level, thereby reducing unnecessary and costly redesigns
  • Reduce the requirement for costly material alternatives that can negatively impact cost, schedule or performance
  • Increase readiness throughout the world with our allied FMS partners
  • Reduce overages in material procurements, which cause escalating cost to any platform or program
  • Most importantly, create affordable sustainment and readiness solutions for Legacy Platforms