PRESENTATION How to Avoid Obsolescence, Control Change and protect your bottom line Suitable for a range of business’ from an office business in a Service Industry through to the complexity of a large Manufacturing operation

REQUIREMENTS FOR CHANGE CONTROL TWO BASIC DRIVERS FOR CHANGE Management Driven Parts count reduction Assembly time cost reduction Warranty replacement cost reduction Product Improvement Enforced Change Decision Customer Complaint In-field component failure BEST PRACTICE INDICATES PRODUCT CHANGE (INTERNAL) SHOULD BE ALLOCATED A SEPARATE BUDGET FROM NORMAL PRODUCT COSTINGS WITH SEPARATE IDENTIFIERS TO MATCH THE BUSINESS PRODUCT(S) WARRANTY IDENTIFIED AS A STAND ALONE BUSINESS COST IDENTIFIED TO MATCH THE BUSINESS PRODUCT(S)

PRODUCT CHANGE (AND HOW TO MONITOR POTENTIALLY DANGEROUS COSTS) CHANGES IN ANY ORDER TO ANY PART OR SALEABLE ITEM CONFIGURATION GIVES THE OPPORTUNITY FOR EXCESSIVE STOCK/OBSOLESCENCE (a) Brand New Product Introduction [Saleable Item] New concept produces new parts requiring new suppliers leading to new part sign off (SO). New manufactured product is followed by new customer instructions. (b) New Product Introduction [Saleable Item] New concept but using EXISTING & NEW parts requires new suppliers leading to new part SO. Readjusted schedule for existing parts then produces new manufactured product followed by new customer instructions. (c) Existing Product in Production now and on Sale (d) New Part Introduction [Part Level] Can be used in either (a), (b) or (c) (e) New Part Introduction [Part Level] Use in (a) or (b), CANNOT be used in (c) – thus making spare parts unavailable after current factory/dealer stock expires (EC has Limitation on minimum available time spare parts must be kept available)

PRODUCT CHANGE Problem Reported or Need identified Research and Investigate Devise Solution Test Check for parts on order Check stock WIP Check stock inventory Check in-field stock Release to Production )timing Component Tooling )plans Manufacture & Supply )req’d Release at RiskNo Risk DECISION COST TO COMPANY Intro new parts ASAP Scrap existing Introduce Modified parts ASAP Introduce to lowest cost Recall Product Manufacture new parts & restock LOWEST HIGHEST

Alan Dutton – Director Lutton Consultancies Ltd Automotive background – Rolls-Royce Motor Cars, Autoliv, Plaxton Coach & Bus. Factory Management, System Engineering & Sales Account/Business Development