Asset Obsolescence Strategy

A large food manufacturer contacted PEME for assistance with a challenge they faced. They believed their operation was at significant risk from obsolescent assets and wanted to develop a strategy to deal with this risk. Obsolete assets can be difficult to repair and replace, especially when they are not supported by suppliers or the Original Equipment Manufacturer (OEM) no longer exists.

Anybody still using a VHS video player will understand obsolescence when it has something wrong with it. They are likely to find it difficult to source components to repair it or find someone with the experience / skill-sets to conduct the repair or be able to purchase a new VHS video player. Time to move to DVD or something more advanced.  That’s the problem – if you have an expensive asset that is critical to your operation but you can no longer get spares, repairs or purchase a one-for-one replacement then you are at risk from significant interruptions to your production whilst you sort out a solution that may be expensive.

An effective Obsolescence Strategy ensures that in the advent of degradation or failure the key assets within the Plant are protected against unavailability due to asset obsolescence.

PEME’s role was to define an appropriate methodology and identify obsolescence ‘at risk’ assets, components and issues.  This work was carried out by the PEME Reliability Department led by our Reliability Operations Manager, Duncan Maxwell. The key activities involved were: 

  • Define / develop / agree a tailored methodology
  • Confirm Asset List
  • Conduct asset obsolescence rating and identify asset obsolescence status
  • Select obsolescence ‘at risk’ assets
  • Identify obsolescence ‘at risk’ components / issues

This work has allowed the identification and implementation of appropriate obsolescence strategies for individual assets. In-turn this reduces the risk from obsolescence as low as practicably possible.