Comparing Lifecycle Sustainment Strategies in an Electronic Component Obsolescence Environment

Abstract

Rapid advancements in technology and the diminishing lifecycle of electronic systems have complicated the sourcing and sustainment activities of many organizations as suppliers of original components go out of business or refuse to produce obsolete products. This article explores diminishing manufacturing sources and material shortages as well as the obsolescence costs and reliability issues associated with electronic components. Using the current United States Air Force situation as an example, the overall research question asks how obsolescence management can be improved through various sourcing strategies. This article utilizes a simulation model to evaluate equipment demand requirements and sustainment costs for three different approaches: (1) a re-engineering strategy, (2) a lifetime buy strategy, and (3) a programmed redesign strategy. Statistical analysis and long-term forecasted cost comparisons of these three strategies provide a framework to help acquisition, and sustainment managers determine the approach with the lowest total cost of ownership.