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A cost estimating framework for electronic, electrical and electromechanical (EEE) components obsolescence within the use-oriented product–service systems contracts

F J Romero Rojo · Rajkumar Roy · Essam Shehab · Kalyan S. Cheruvu

29 citations0/0 files storedProceedings of the Institution of Mechanical Engineers Part B Journal of Engineering Manufacture

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Transportation Systems and Infrastructure Sustainable Supply Chain Management Systems Engineering Methodologies and Applications

Abstract

This paper provides a cost estimating framework for electrical, electronic and electromechanical (EEE) components obsolescence, which represents the main source of obsolescence issues, owing to the increasingly short life cycle of these types of component. The framework comprises several areas: component complexity levels, obsolescence management levels, obsolescence resolution profiles and obsolescence cost metrics. Several studies, based on the literature and on interaction with numerous obsolescence management experts from industry, have been employed in this research, following a systematic approach. The framework is able to estimate the non-recurring cost of obsolescence during the contracted period within the in-service phase. This is based on the information available at the bidding stage concerning the product breakdown structure (PBS) and the obsolescence management strategy deployed. This framework has been validated at four different UK organizations in the defence and aerospace sectors using seven case studies, one of which is presented in this paper in detail.

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References

2007State-of-the-art in product-service systems 2000Electronic part life cycle concepts and obsolescence forecasting 2006Obsolescence Driven Design Refresh Planning for Sustainment-Dominated Systems 1999Component part standardization: A way to reduce the life-cycle costs of products 2009Obsolescence management for long-life contracts: state of the art and future trends 2009A competitive framework for industrial product-service systems 2001Expert Judgement in Cost Estimating: Modelling the Reasoning Process 2007A Data Mining Based Approach to Electronic Part Obsolescence Forecasting

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