New-Tech Europe | January 2016

Figure 4. As the older product declines, the newer one grows, requiring new investments in manufacturing lines, parts and warehouse space

Figure 5. The other timing problem is the offset between the decline of commercial products and the growth and long decline of an aerospace/defense system

several key questions are worth considering: • How long has the OEM been in business? o What’s the likelihood they’ll be around 20 years from now? • How well do they listen to your needs? o Do they respond with suggestions that make sense from a technical perspective? o Do their suggestions make sense from a business perspective? • Can the OEM support your program over the long term by supplying needed system components? o Do they offer cost-effective assurance plans and maintenance services? o Do they have a service infrastructure designed for present and future needs? • What is the real cost of doing business with the supplier-now and through the life of the test system? o What is the duration of its standard warranty? The greater the number of favorable answers, the greater the likelihood a vendor will be able to ensure that a system will operate at peak performance well into the future. During production and while replacements are still available (SSP) As long as an instrument is in production, the OEM’s support capabilities are relatively high. This is a good time to adopt best practices such as utilizing high-quality services and developing contingency plans for the post-

manufacturing phase. Solid contingency planning starts with a key assumption: OEM support capabilities will diminish with time. It’s best to work directly with the OEM to determine long- term plans and needs. For example, it’s wise to regularly monitor product lifecycles and assess the value of making lifetime buys of all crucial components. The OEM should be willing to help ensure a sufficient inventory of parts or assemblies to avoid critical failures. This is also the best time to identify critical instruments and purchase an optimum number of spares based on statistical data such as the mean time between failures. Creating and maintaining intra- and inter-company asset lists may reveal available spares and also prevent unnecessary scrapping of still-needed instruments. After products are no longer manufactured (ESP) Eventually, an organization will have to deal with the support and maintenance of instruments that are out of production. At that point, three options are available: OEM services, third-party services and self-maintenance. While the best choice depends on the business and technical specifics of the situation, the OEM will usually provide higher quality service than a third-party provider or in-house self-maintenance staff. One reason: providing excellent service ensures customer satisfaction and, being pragmatic, helps protect the company’s reputation. Also, because

they are aware of need for longer-term support, some OEMs have planned for this on a product-by-product basis. This requires an investment in the necessary infrastructure: staff, equipment, test systems and supply chain of genuine OEM parts. Another option is to purchase second- hand equipment to use as replacements for failed instruments. This can be useful if the following items are true about the used equipment: • Any necessary repairs have been performed by factory-trained technicians • When needed, only genuine OEM parts were used • After any repairs, the instrument received a full calibration and all necessary adjustments Similar to the suggestions offered earlier, we recommend purchasing used equipment that has been fully refurbished by the OEM. Conclusion As our customers assess service alternatives, they can be confident in Keysight’s ability to ensure their operational continuity. We know that it takes time to find the right equipment and a trusted solution partner. Once a test system is up and running, the responsible organization needs confidence that it will keep going. That’s why we’re offering Instrument Lifecycle Solutions, including our Extended Service Period solutions.

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