A Cost Estimating Framework for Electronic, Electrical and Electromechanical (EEE) Components Obsolescence within the Use-Oriented Product-Service Systems Contracts

This paper provides a cost estimating framework for the Electrical, Electronic and Electromechanical (EEE) components obsolescence, which represents the main source of obsolescence issues due to the increasingly short life cycle of these types of components. The framework comprises a number of areas, namely “Component Complexity Levels”, “Obsolescence Management Levels”, “Obsolescence Resolution Profiles” and “Obsolescence Cost Metrics”. Several studies, based on literature and interaction with numerous obsolescence management experts from industry, have been employed in this research, following a systematic approach. The framework is able to estimate the non-recurring cost of obsolescence during the contracted period within the in-service phase. This is based on the information available at the bidding stage concerning the Product Breakdown Structure (PBS) and the obsolescence management strategy deployed. This framework has been validated at four different UK organisations in the defence and aerospace sectors using seven case studies, one of which is presented in this paper in detail.