Electronic Part Total Cost Of Ownership And Sourcing Decisions For Long Life Cycle Products

The manufacture and support of long life cycle products rely on the availability of suitable parts from competent suppliers which, over long periods of time, leaves parts susceptible to a number of possible long-term supply chain disruptions. Potential supply chain failures can be supplier-related (e.g., bankruptcy, changes in manufacturing process, non-compliance), parts-related (e.g., obsolescence, reliability, design changes), logistical (e.g., transportation mishaps, natural disasters, accidental occurrences) and political/legislative (e.g., trade regulations, embargo, national conflict). Solutions to mitigating the risk of supply chain failure include the strategic formulation of suitable part sourcing strategies. Sourcing strategies refer to the selection of a set of suppliers from which to purchase parts; sourcing strategies include sole, single, dual, second and multi-sourcing. Utilizing various sourcing strategies offer one way of offsetting or avoiding the risk of part unavailability (and its associated penalties) as well as possible benefits from competitive pricing. Although supply chain risks and sourcing strategies have been extensively studied for high-volume, short life cycle products, the applicability of existing work to long life cycle products is unknown. Existing methods used to study part sourcing decisions in high-volume consumer oriented applications are procurement-centric where cost tradeoffs on the part level focus on part pricing, negotiation practices and purchase volumes. These studies are commonplace for strategic part management for short life cycle products; however, conventional procurement approaches offer only a limited view for parts used in long life cycle products. Procurement-driven decision making provides little to no insight into the accumulation of life cycle cost (attributed to the adoption, use and support of the part), which can be significantly larger than procurement costs in long life cycle products. This dissertation defines the sourcing constraints imposed by the shortage of suppliers as a part becomes obsolete or is subject to other long-term supply chain disruptions. A life cycle approach is presented to compare the total cost of ownership of introducing and supporting a set of suppliers, for electronic parts in long life cycle products, against the benefit of reduced long-term supply chain disruption risk. The estimation of risk combines the likelihood or probability of long-term supply chain disruptions (throughout the part's procurement and support life within an OEM's product portfolio) with the consequence of the disruption (impact on the part's total cost of ownership) to determine the "expected cost" associated with a particular sourcing strategy. This dissertation focuses on comparing sourcing strategies used in long life cycle systems and provides application-specific insight into the cost benefits of sourcing strategies towards proactively mitigating DMSMS type part obsolescence

A General Approach to Electrical Vehicle Battery Remanufacturing System Design

One of the major difficulties electrical vehicle (EV) industry facing today is the production and lifetime cost of battery packs. Studies show that using remanufactured batteries can dramatically lower the cost. The major difference between remanufacturing and traditional manufacturing is the supply and demand variabilities and uncertainties differences. The returned core for remanufacturing operations (supply side) can vary considerably in terms of the time of returns and the quality of returned products. On the other hand, because different contracts can be used to regulate suppliers, it is almost always assumed zero uncertainty and variability for traditional manufacturing systems. Similarly, customers demand traditional manufacturers to sell newly produced products in constant high quality. But, remanufacturers usually sell in aftermarket, and the quality of the products demanded can vary depends on the price range, usage, customer segment and many other factors. The key is to match supply and demand side variabilities so the overlapping between them can be maximized. Because of these differences, a new framework is needed for remanufacturing system design. This research aims at developing a new approach to use remanufactured battery packs to fulfill EV warranties and customer aftermarket demands and to match supply and demand side variabilities. First, a market lifetime EV battery return (supply side) forecasting method is develop, and it is validated using Monte Carlo simulation. Second, a discrete event simulation method is developed to estimate EV battery lifetime cost for both customer and manufacturer/remanufacturer. Third, a new remanufacturing business model and a simulation framework are developed so both the quality and quantity aspects of supply and demand can be altered and the lifetime cost for both customer and manufacturer/remanufacturer can be minimized. The business models and methodologies developed in this dissertation provide managerial insights to benefit both the manufacturer/remanufacturer and customers in EV industry. Many findings and methodologies can also be readily used in other remanufacturing settings. The effectiveness of the proposed models is illustrated and validated by case studies.PHDMechanical EngineeringUniversity of Michigan, Horace H. Rackham School of Graduate Studieshttps://deepblue.lib.umich.edu/bitstream/2027.42/143955/1/xrliang_1.pd

Study: Applying new sustainable models to long-life assets

The goal of this research is to show how companies can move to a sustainable business model, what they will find on their path and how long-life assets can help them in the process. The literature review is done by using articles that are made from previous researches. These articles show how sustainable business models work and how assets can help the business in their circular business model. This way could be learned how sustainable business models work. Studying about the various parts of the company showed where the changes needed to be made. As a result of the research, we found that there are six main topics that the company has to focus on in order to become a circular company. These six topics are: the business model, the company’s employees, the product that the company is trying to sell, the selling strategy of the company, how to store these products and the company’s assets. The report focusses on businesses that work with long-life assets and what they have and can do to make the change from linear to circular. The conclusion of the research is that the change from a linear company to a circular company is difficult and need to be managed with care. Some big investments are needed in order to make the change. Assets are a big part and help for this opportunity. Increasing their lifetime will help a lot in the search for sustainability. To make the change now is better than to do it in a couple of years. The people’s awareness about sustainability is changing towards being more sustainable and buying sustainable products is a huge part of it. If the company does not make the change now, they can be overtaken by their competitors, which can result in loss of market share. The constraints of the report are that it does not focus on the budget part of the change and that it’s not focussed on a specific sector. Therefore, in the future it would be good to do a research more focussed on a sector or more about the budget, that would be needed for the chang

An Evaluation of End of Maintenance Dates and Lifetime Buy Estimations for Electronic Systems Facing Obsolescence

The business of supporting legacy electronic systems is challenging due to mismatches between the system support life and the procurement lives of the systems' constituent components. Legacy electronic systems are threatened with Diminishing Manufacturing Sources and Material Shortages (DMSMS)-type obsolescence, and the extent of their system support lives based on existing replenishable and non-replenishable resources may be unknown. This thesis describes the development of the End of Repair/End of Maintenance (EOR/EOM) model, which is a stochastic discrete-event simulation that follows the life history of a population of parts and cards and operates from time-to-failure distributions that are either user-defined, or synthesized from observed failures to date. The model determines the support life (and support costs) of the system based on existing inventories of spare parts and cards, and optionally harvesting parts from existing cards to further extend the life of the system. The model includes: part inventory segregation, modeling of part inventory degradation and periodic inventory inspections, and design refresh planning. A case study using a real legacy system comprised of 117,000 instances of 70 unique cards and 4.5 million unique parts is presented. The case study was used to evaluate the system support life (and support costs) through a series of different scenarios: obsolete parts with no failure history and never failing, obsolete parts with no failure history but immediately incurring their first failures with and without the use of part harvesting. The case study also includes analyses for recording subsequent EOM and EOR dates, sensitivity analyses for selected design refreshes that maximize system sustainment, and design refresh planning to ensure system sustainment to an end of support date. Lifetime buys refer to buying enough parts from the original manufacturer prior to the part's discontinuance in order to support all forecasted future part needs throughout the system's required support life. This thesis describes the development of the Lifetime Buy (LTB) model, a reverse-application of the EOR/EOM model, that follows the life history of an electronic system and determines the number of spares required to ensure system sustainment. The LTB model can generate optimum lifetime buy quantities of parts that minimizes the total life-cycle cost associated with the estimated lifetime buy quantity

Law for the Illinois farmer / 1079

"This circular replaces Circular 886."Cover title

Design of Extended Warranties in Supply Chains under Additive Demand

This is the author's accepted manuscript. The original publication is available at http://dx.doi.org/10.1111/j.1937-5956.2011.01300.x.We study the design of extended warranties in a supply chain consisting of a manufacturer and an independent retailer. The manufacturer produces a single product and sells it exclusively through the retailer. The extended warranty can be offered either by the manufacturer or by the retailer. The party offering the extended warranty decides on the terms of the policy in its best interest and incurs the repair costs of product failures. We use game theoretic models to answer the following questions. Which scenario leads to a higher supply-chain profit, the retailer offering the extended warranty or the manufacturer? How do the optimum price and extended warranty length vary under different scenarios? We find that, depending on the parameters, either party may provide better extended warranty policies and generate more system profit. We also compare these two decentralized models with a centralized system where a single party manufactures the product, sells it to the consumer and offers the extended warranty. We also consider an extension of our basic model where either the manufacturer or the retailer resells the extended warranty policies of a third party (an independent insurance company, for example), instead of offering its own policy

Optimal Warranty Period for Free-replacement Policy of Agm Batteries

The objective of this study is to analyze the suitability of the age-based warranty model and a millage based warranty model for absorbent glass mat batteries (AGM) for the automobile industry. The battery life expectancy can be assessed and described by a combination of different terms such as: state of health (SOH), deep of discharge (DOD), state of energy (SOE) and state of charge (SOC). However, using actual data from the field, the implementation of reliability engineering and statistical modeling we aim to calculate optimal limits for warranty policies that minimize warranty costs. The outcomes of this research will enable battery manufacturers, motor companies and warranty managers in decisions making strategies for cost savings in warranty projects without negatively affecting customer satisfaction

Process Mapping a Diminishing Manufacturing Sources and Materiel Shortages Reactive Management Strategy: A Case Study

In order to handle its obligations, the Brazilian Ministry of Defense (MoD) will need an information system capable of managing logistics information from all military services. A project to develop an integrated information system to fit the requirements of different, but connected, organizations has inherent challenges. Differences in the organizational structures, cultures and political aspects, are key issues to be observed before the development to assure the project\u27s success. The same is applicable when trying to adapt an already existing information system to fill the needs of another organization. In the new organization, it is mandatory to assess the feasibility of the software\u27s alternatives available. Alternatives can be to adapt an existing information system or to develop a completely new system. This research sought to develop a method for assessing the organizational, cultural, and political considerations affecting the insertion of the Integrated Logistics Information System (SILOMS), developed by the Brazilian Air Force, into the MoD. The research develops a method for assisting decision makers in assessing the risks involved in the implementation of an information system in the MoD