Technology and Quality Introduction www tq-group com Service

Technology and Quality Introduction www. tq-group. com Service Summary

Technology and Quality Introduction Service Summary A short insight into the Obsolescence Management Department at TQ Systems Gmb. H « the state of becoming old-fashioned and no longer useful » « products with build-in/planned obsolescence (= designed not to last long, so that people will have to buy new ones) » From Oxford Advanced Learner’s Dictionary 2010 OM_15092010 Slide 2

Technology and Quality Introduction Einleitung Service Summary Motivation: Are all Product-Lifecycle-Costs monitored properly? Are the life-cycles of the product‘s (parts ) components synchronized with the product‘s life-cycle in order to achieve cost reduction? Can the financial losses of a missing synchronization be calculated ? OM_15092010 Slide 3

Technology and Quality Introduction Einleitung End-Of-Life – Notifications Service Summary Project Requirements Product/Process-Change-Notifications OM_15092010 Slide 4

Technology and Quality Introduction Einleitung Service Summary According to IEC 62402: 2007 gilt: (translated from the German DIN 62402: 2007) „Obsolescence is inevitable and cannot be stopped, but (proactive and reasonable ) advance planning can minimize its (effects and high costs. ) impact “ „Obsolescence Management is (indispensable) mandatory (in order ) to (reach) achieve optimum cost efficiency during the whole product‘s life-cycle. OM_15092010 Slide 5

Technology and Quality Introduction Einleitung Service Summary Obsolescence Management at TQ • Proactive attitude in Development, Purchasing and Sales • Proactive SAP – Obsolescence – Alerting System • Strategic partnership between manufacturers, distributors and customers • Low response time due to close cooperation of departments • PCN / EOL Alert System • DIN EN 62402 • Longtime storage according to DIN CLC/TS 50466 • Member of COG-D OM_15092010 Slide 6

Technology and Quality Introduction Service Summary Obsolescence Management at TQ Inter-divisional Obsolescence Management Reactive Strategic Proactive OM_15092010 Slide 7

Technology and Quality Introduction Dienstleistung Service Summary Reactive Informational System in SAP All types of manufacturer‘s notification concerning your product Successful implemented for more than 10 years already Numerous checks on relevance OM_15092010 Slide 8

Technology and Quality Introduction Dienstleistung Service Summary Additional reactive services: Service: Description: Available for: Customer Contact person: Non C. Alternatives Searching for alternatives worldwide, purchasing and quality check OM – Ermel Longtime Storage of assemblies in inert (nitrogen) atmosphere OM – Ermel Substitution Searching worldwide for equivalent components in FFF ( Form Fit & Function? ) OM / ETW Reclamation Reuse of assemblies, also refered to as cannibalisation OM / ETW Emulation Functional replicating ETW Redesign in accordance with (actual) current market situation ETW Reverse Engineering (Completely new design of assembly meeting former requirements) Total redesign to existing ETW OM_15092010 Slide 9

Technology and Quality Introduction Dienstleistung Service Summary Obsolescence Management at TQ Strategic Systematic methodology Checklists in R&D, Purchasing and Sales Risk management in Supply Chain Strategic Selection of components Secound Source Strategy OM_15092010 Slide 10

Technology and Quality Introduction Dienstleistung Service Summary Additional strategic services: Service: Description: Available for: Contact person: Customer Non C. Auditing Audit evaluating the existing Obsolescence Management System. Individually adapted to your (industrial section) market segment and company structure. OM – Ermel New development Design of (long-time available) extended-life assemblies OM – Ermel Component Management Analysis of obsolescence risks and availability (even along) throughout the development processes OM - Ermel OM_15092010 Slide 11

Technology and Quality Introduction Dienstleistung Service Summary Obsolescence Management at TQ Proactive BOM – analysis onf current availabiliy (situation). (Forecast of remaining availabilty duration) Availibility Forecast Risk assessment of Supply Chain Obsolescence Roadmap to achieve cost reduction OM_15092010 Slide 12

Technology and Quality Introduction Dienstleistung Service Summary Obsolescence Management at TQ Service: Description: Available for: Customer Contact person: Non C. BOM– Analysis of availability situation, Identification of alternative parts (Nonrecurring or recurring) OM – Ermel BOM – Availability Forecast Based on BOM – Analysis the future availabilty situation is forecasted OM – Ermel OM_15092010 Slide 13

Technology and Quality Introduction Dienstleistung Service Summary SAP – OM - Interaction: Live – Demo of SAP and BOM MARA - Stammdatensatz OM_15092010 Slide 14

Technology and Quality Introduction Dienstleistung Service Summary Advantages : Ø Services combinable freely Ø Product oriented Ø Full cost control Ø Full performance control Ø Highest security level Ø Direct contact person OM_15092010 Slide 15

Technology and Quality Introduction Dienstleistung Service Summary Advantages: Ø Free of charge reworking Ø No contract peroids Ø German Engineering quality Ø Highest adherence to schedules Ø Free samples OM_15092010 Slide 16

Technology and Quality Introduction Dienstleistung Service Summary The « true « advantages The product‘s life-cycle costs can be reduced at a high level ! OM_15092010 Slide 17

Technology and Quality Introduction Dienstleistung Service Summary Concrete examples : A. Temperature sensor LM 75 CIMM, National Semiconductor: - NRND for over 4 years -Identical recommended replacement at a 20% reduced rate B. Customer‘s subassembly at TQS: Due to proactive Obsolescence Management approaches one redesign in the product‘s life-cycle, worth 40 -50. 000€, was saved. This specific performed proactive BOM-Analysis only costed 5. 000€. OM_15092010 Slide 18

Technology and Quality Introduction Service Summary What about the costs of Obsolescence Services ? Ø Individual (depends on BOM) Ø Audit per day about 1000€ Ø Required mean investigation time per part about 10 – 15 min Ø Obsolescence engineer per hour about 60€ Ø Obsolescence administrator per hour about 45€ Ø BOM-Analysis for 100 parts about 800 -1200€ Ø Monitoring BOM about 20 -30% less compared to BOM-Analysis Ø Individual cost agreements possible OM_15092010 Slide 19

Technology and Quality Introduction Service Summary Fazit OM_15092010 Slide 20

Technology and Quality Introduction Service Summary Fazit „Goal“ : A. Cost reduced product life B. High supply certainty C. Optimum basis of decision-marking (making? ) D. No more (narrowed) reduced performance E. Capacity for new projects F. Reduced risk OM_15092010 Slide 21

Technology and Quality Introduction Service Summary Fazit Actually there is a quite big black clowud over manufacturer XYZ OM_15092010 Slide 22

Technology and Quality Introduction Service Summary Fazit Obsolescence Management made by TQ Due to overview and foresight : Saftey and Cost reduction OM_15092010 Slide 23

Technology and Quality Introduction Service Summary Fazit Ulrich Ermel (B. E. ) Project manager Obsolescence Management TQ-Systems Gmb. H Mühlstraße 2, Gut Delling, D-82229 Seefeld Amtsgericht München, HRB 105 018, UST-Id. Nr. DE 811 607 913 Managing directors: Dipl. -Ing. (FH) Detlef Schneider, Dipl. -Ing. (FH) Rüdiger Stahl http: //www. tq-group. com/ OM_15092010 Slide 24