The Curve:

In a perfect world everything we purchase would last forever.  In the real world most things we buy have a finite life and will need to be replaced according to some mystical schedule, set by the manufacturer.  This is often referred to as planned obsolescence or in extreme cases are products “designed to fail over time”. Occasionally, we choose to upgrade or replace on our own schedule but more often than not we change because we must.  This cycle of life applies to the products we use at home as well as the investments we make at work.  We need stuff to do our job and stuff will be changed over time, like it or not.

Products needed to demonstrate compliance are an integral part of any manufacturing process that is subject to emission standards.  It is not unusual expect 7-10 years of useful service and (when treated right) to get 15-20 years out this equipment. These items are usually well maintained and with few moving parts, tend to last longer than most of the other working components of the production system. If they aren’t designed to last, then we find ways extend their life because without them, we can’t operate. If we can’t operate then we can’t maintain profitability and production targets.  It is during periods of unplanned downtime due to a monitoring system failure that compliance related equipment gets a lot of attention. Avoiding the unplanned failure is the key to a successful plant operation.

To understand the culture of most production companies, we need to understand that compliance related components aren’t typically viewed as a contributing asset of the company. It understood that it is an important requirement that must be met but given the choice to invest in a new monitor vs a new widget that will boost production; well the widget wins every time. This puts pressure on support technicians to keep emissions monitoring equipment running smoothly and reliably during peak production times.  It is a balancing act that keeps most techs on their toes as they work to choose to maintain, upgrade or replace key elements of the compliance system during outages and scheduled maintenance periods. Staying ahead of this curve is the key to success and some tips on how to do so are found in the following sections.

 The High-Level Plan:

Compliance markets are cyclical with a well-defined beginning and end.  Any business based on regulatory drivers will struggle a bit during lulls created by normal regulatory cycles.  Even the strongest suppliers must sometimes force change to sustain their position in the marketplace during the natural downturns. Because of the known market window, manufacturers of environmental equipment can tailor product development to launch upgrades near the end of one cycle and before the beginning of the next one. In effect, creating sustainable business levels by mining orders from their installed base when new growth is not available.  It is a symbiotic relationship between end user and provider working towards a mutually beneficial outcome. Wrap this around the broad objective of maintaining compliance and you have a situation that serves both sides well.

All suppliers know when they are planning to stop supporting an existing product and when they will be launching a new one.  There should always be ample warning and time to prepare for the eventual outcome.  In most cases you will be given a transition window broken down into three (3) major milestones:

·         End of Production

·         End of Available Spare Parts & Tech Support

·         End of Service & Obsolescence Notice

In the best cases you will have 2-3 years to plan before having to deal with the end of service notice. This should be manageable for even the tightest of organizational spending budgets and is something you can easily plan for. You will have plenty of notice, so pay attention to the warning signs and plan accordingly. 

Traditionally technology moves slowly in the environmental world but that doesn’t mean you are not subject to obsolescence for obsolescence sake. Some vendors force change simply because they can but most work towards a gradual transition from old to new but not everyone plays fair. Be sure you know who you are dealing with and hold them accountable to their obligations. Responsible suppliers plan for this, keeping their clients well informed about product life cycles and develop realistic timelines that can be easily accommodated. End users can help themselves through these equipment changes by viewing compliance obligations as an integral part of the manufacturing process as opposed to a necessary evil.  For this reason, we should always pay attention to the status of our supporting cast and integrate upgrades/replacements into our production spending budgets so that you are properly funded when the need arises. Knowledge is power and ignorance is bliss – but choosing to ignore the signs of pending obsolescence is a ticket to disaster.

Learning to Hit the Curve:

Hitting a curve ball is one of the hardest skills to master for the average baseball player.  If you don’t find success against this pitch you will never make it to the show.  It takes practice, patience and planning.  Same thing goes for protecting your compliance obligations.  Learning from past mistakes and working closely with the folks that provide the goods and services needed to stay in compliance goes a long way towards success.  Learning to manage pending obsolescence is one of the many curve balls that air compliance will throw at you. Our tips on how to hit that curve are as follows:

 1.       Know what you are buying when you buy it: Equipment manufacturers don’t just wake up one morning and decide that they will be replacing an old model with a new model. It takes years of planning and development to create new products.  Before signing on the dotted line, you need to know the life cycle and timeline of the equipment you are purchasing.  Any responsible vendor will tell you and it may enhance your bargaining position. Make informed purchases.

2.       Be your own advocate: As an end user you have a voice in how manufacturers manage their obsolescence programs. Many companies have steering committees or run user groups where they enter into open discussions about product performance and new product development.  Take advantage of these forums. If you can’t participate directly then send a representative. If all else fails, contact the product manager and tell them how you feel about launch timing and ongoing product support. You have a voice – use it.

3.       Protect the back end: In most cases you have techs that are well trained on the existing equipment and know how to keep it running.  Help them out by keeping a good supply of spare parts and staying ahead of your inventory.  Depending on your situation you might even consider buying a spare analyzer or two as a cold back up to your primary monitor.  Although I am not a big fan of cannibalizing new equipment to save old equipment, it is a practice that becomes easier to tolerate the closer you get to the end of the useful life of the equipment. Some air compliance programs do make accommodations for swapping out “like-kind” instruments which helps improve monitoring uptime and keeps you operating, so having spare monitors can give you an additional advantage if you can afford them. Protect yourself at all times by thinking ahead.

4.       Look outside for support: Develop relationships with 3rd party service companies and system integrators that are tied to the equipment manufacturers. These companies specialize in having access to spare parts that may no longer be available from the manufacturer.  They do a lot of the field retrofit work changing out the old with the new and often get to keep the replaced hardware as part of their contract. This gives them unique access to parts that others don’t have. Be advised, this would require you to purchase some service work from them occasionally but in the long run these relationships can be a lifeline for you when things really go south.  Make friends with outside experts and build partnerships that can help in an emergency.

5.       Use your leverage to negotiate the best deal: Anything goes when a manufacturer reveals their obsolescence plan.  A known replacement program maximizes your buying and negotiating power.  Anything is on the table for discussion especially if you are long-time customer.  Brand loyalty and marketshare is super important to equipment suppliers.  Be mindful of your buying power and make the best deal possible when negotiating an upgrade path. Buy-back programs, extra spare parts, new equipment discounts are all fair game and should be talked about before committing to the new equipment.

 Closing thoughts:

Thank you for the opportunity to share some thoughts regarding product obsolescence. When managed properly, product end of life scenarios should not cause you any undo stress or have any significant impact on meeting your regulatory obligations. Fortunately, most suppliers are responsible and value the business they get from their end users minimizing your downtime exposure.  Communications is king and staying informed is your key to ongoing success.

REGS specializes in putting end users in touch with responsible suppliers. If you are facing a potential financial hit due to unplanned obsolescence or if you need assistance in managing your program, then we are here to help.  Thanks for you continued support. Have a safe and compliant day.