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The Impact of Technology Insertion on Organisations

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HFIDTC/2/12.2.1/1<br />

Versi<strong>on</strong> 3 / 21 November 2007<br />

comp<strong>on</strong>ent obsolescence and the associated impact <strong>on</strong> costs for l<strong>on</strong>g field life electr<strong>on</strong>ic<br />

systems. <str<strong>on</strong>g>The</str<strong>on</strong>g> Mitigati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> Obsolescence Cost Analysis (MOCA) is a s<str<strong>on</strong>g>of</str<strong>on</strong>g>tware tool<br />

designed to support proactive design and life cycle planning <str<strong>on</strong>g>of</str<strong>on</strong>g> systems. <str<strong>on</strong>g>The</str<strong>on</strong>g> MOCA<br />

developers argue [213] that methodologies are needed to address optimal design in order<br />

to minimise the cost <str<strong>on</strong>g>of</str<strong>on</strong>g> comp<strong>on</strong>ent obsolescence and technology inserti<strong>on</strong>. This tool is<br />

designed to support decisi<strong>on</strong>s <strong>on</strong>:<br />

• when best to carry out design refresh programmes;<br />

• what obsolete system comp<strong>on</strong>ents should be replaced at a specific design refresh<br />

(versus c<strong>on</strong>tinuing with some other obsolescence mitigati<strong>on</strong> strategy);<br />

• what n<strong>on</strong>-obsolete system comp<strong>on</strong>ents should be replaced at a design refresh.<br />

Based <strong>on</strong> a detailed cost analysis model, the methodology determines the optimum design<br />

refresh plan during the life <str<strong>on</strong>g>of</str<strong>on</strong>g> the product. <str<strong>on</strong>g>The</str<strong>on</strong>g> design refresh plan c<strong>on</strong>sists <str<strong>on</strong>g>of</str<strong>on</strong>g> the number<br />

<str<strong>on</strong>g>of</str<strong>on</strong>g> design refresh activities, their respective calendar dates and c<strong>on</strong>tent necessary to<br />

minimise the life cycle sustainment cost <str<strong>on</strong>g>of</str<strong>on</strong>g> the product. <str<strong>on</strong>g>The</str<strong>on</strong>g> decisi<strong>on</strong>s that govern<br />

whether a technology is changed (replaced or upgraded) or not changed at a design<br />

refresh depend <strong>on</strong> the obsolescence attributes <str<strong>on</strong>g>of</str<strong>on</strong>g> the specific technology and <strong>on</strong> the<br />

‘utility’ to the system realised by changing the technology (ec<strong>on</strong>omic, performance, and<br />

reliability) [214]. To make the decisi<strong>on</strong> in a coupled-technology process, the MOCA<br />

developers formulated Bayesian Belief Networks (BBNs). BBNs are applicable for<br />

reas<strong>on</strong>ing about beliefs under c<strong>on</strong>diti<strong>on</strong>s <str<strong>on</strong>g>of</str<strong>on</strong>g> uncertainty and using disparate sources <str<strong>on</strong>g>of</str<strong>on</strong>g><br />

evidence (diverse data sources, including subjective beliefs and when all <str<strong>on</strong>g>of</str<strong>on</strong>g> the data<br />

entering into the decisi<strong>on</strong> is highly uncertain). An example <str<strong>on</strong>g>of</str<strong>on</strong>g> this is shown in Figure 8.<br />

Figure 8: Example Bayesian Belief Network (BBN) for determining whether to<br />

replace electr<strong>on</strong>ic comp<strong>on</strong>ents at a specific redesign point [218].<br />

56

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