Component Obsolescence and Future-Proofed Assemblies

Few feelings are worse than performing a part buy and realizing the components aren’t suitable for the design as planned. Whether incorrect package styles or electrical parameters, the result is a delay in manufacturing while waiting for the next shipment. An even more ghastly possibility is the inclusion of components designated for obsolescence, which can lead to post-market revisions and unforeseen cost overruns.? Before putting together a shopping list for a PCBA, it’s vital to implement a check for component status supplied by manufacturers to avoid component obsolescence in the end product.

Obsolescence is the final step of manufacturing status: a product has met or exceeded its marketable peak (in terms of cost and supply-demand balance) and cedes to new products that offer better performance or are less expensive from a production standpoint. However, designers need not worry that an obsolescence announcement could upend board production at any moment, as there is a progression of notifications from component manufacturers:

• Product change notifications indicate alterations to established production protocols, such as materials, location, QMS updates, or functionality. PCNs are not necessarily a precursor to immediate obsolescence, but changes could sometimes impact REACH compliance and similar material standards. A compliance team can track and account for these changes and provide replacement components should the design warrant it.
• End-of-life (EOL) or product discontinuation notices (PDNs) communicate the manufacturer’s decision to phase out production gradually. Purchasers need not worry that parts will become unavailable instantly but should consider making plans if current or upcoming boards feature these components.
• Last-time buys are the final order call announced by the manufacturer; designers wishing to acquire these components must then turn to vendor stock or other aftermarket sources.?

The difficulty with obsolescence is not its occurrence (a guarantee, and one that is increasing in frequency) but staying on top of notifications from manufacturers to avoid getting caught flat-footed. Designers may find it challenging to juggle an extra BOM parameter; a component engineer (as part of a greater assembly team) diligently tracks and notates these updates internally to stay ahead of obsolescence. When an incoming prototype needs optimization to scale production, these engineers can compare BOMs against the internal libraries tracking production status to ensure no surprises happen during part buys or future assemblies.

It’s worth noting the general global trends affecting obsolescence: although component manufacturers continue to build the missing supply in the wake of pandemic-response shortfalls, it’s become increasingly more profitable for them to focus on optimized chip designs, leading to shorter product life cycles and, ultimately, more frequent EOL/PDN notices. This shift in manufacturing philosophy is a mixed bag for designers and board manufacturers. While new, state-of-the-art chips drive innovation and improved performance, component costs generally increase as new product lines have less time to mature before replacement. In contrast, supply for older components (or acceptable replacements) becomes more challenging to source. However, designers can mitigate some of the cost increases by working with a manufacturer who can leverage vendor relationships and economies of scale.

Dangers and Opportunities Arising from Obsolescence

With obsolescence removing supply, there’s an opportunity for other manufacturers to step in and meet assembly demands. Unfortunately, the rise in the rate of obsolescence has also accelerated counterfeit operations that bridge the gap. Counterfeit components pose an exceptional danger to PCBAs as their performance is a complete mystery until placed in-circuit. Even in the best-case scenario where detection of counterfeit components occurs before installation, it can still amount to a significant loss in profitability for large part buys. Purchases from verified vendors or directly from the manufacturer will sidestep these issues while maintaining clear traceability for requirements like those found in the medical industry.

However, PCBAs can benefit from obsolescence with carefully timed purchases: obsolescence occurs in the manufacturing lifecycle where production processes have matured, significantly reducing per-component costs. Provided with enough foresight and storage capability, a PCB manufacturer can perform large part buys of obsolescent components, assuring designers cost-efficiency, scalability, and ample replacements for the production lifetime of their board. The added savings of bulk pricing also offer designers additional financial incentives to work with an established PCBA manufacturer’s component procurement team. Consider how the following roles of an assembly team can further strengthen a board’s supply chain:

• Design engineering – DEs evaluate a board’s susceptibility to obsolescence pre-production to reduce costs associated with revisions at a later date; in effect, they’re a proactive solution to obsolescence.
• Compliance management – Intensifying efforts to reduce the impact of consumer e-waste streams means PCB production is more regulated than ever. Even though a component is a complete, discrete manufactured product, its inclusion in an assembly can be the tipping point for rejection based on environmental safety guidelines. Obsolescence can catalyze a manufacturer’s change in materials, thus requiring assessment to prevent revisions/part replacement at an advanced production stage.
• Procurement management – Properly weighing all of the factors that go into purchasing is an intense, multidisciplinary process with a time limit. For any board runs of appreciable volume, it’s becoming increasingly important to treat procurement as an invested, continuous process rather than a simple transaction.

Your Contract Manufacturer Keeps Your Designs Up-to-Date

Component obsolescence is growing in frequency and cost implication for PCBAs. Alone, designers have to navigate complex BOM constraints from manufacturers and industry regulations to prepare for a seamless production. An experienced manufacturer can help bridge the gap between design and reality: at VSE, we’re a team of engineers committed to building electronics for our customers for over forty years. Together with our manufacturing partners, we’re continuing to bring life-saving and life-changing devices to market.

If you are looking for a CM that prides itself on its care and attention to detail to ensure that each PCB assembly is built to the highest standards, look no further than VSE. Contact us today to learn more about partnering with us for your next project.