Product Lifecycle Goals for Cadia Networks
Cadia Networks is highly selective in the components we chose to use in our designs. We meet with our manufacturing partners and major silicon manufacturers on a regular basis which provides us great insight into component availability and the latest roadmaps for both current and future products. The net results are products from Cadia Networks with a 3 to 5 year life expectancy and often times well beyond.
As an embedded computing solution provider, we know our customers need more than just a product development policy statement. They are looking for end-of-life management strategies which cause minimal disruptions to their supply-chain. The biggest misconception is once a component goes end-of-life, that it automatically triggers an end-of-life in any products using such component. The relevant issues are not if but when a component goes end-of-life…….how one deals with it.
For the most part, Cadia has approved second sources for many devices. The end-of-life issues with major silicons do however present us with much greater supply chain management challenges. Often, Cadia Networks will take on the burden of insuring product availability by placing large last time buys for EOL components making the EOL component issue transparent to our customers.
However, when it does come time for Cadia Networks to discontinue a product, we take the following steps:
- Provide EOL Product Notices
- Offer EOL Last Time Buys & Deliveries
- Plan for EOL Migration Strategies
- Offer an EOL Component Bonding Program
EOL Product Notice
Cadia Networks’ EOL Product Notice will alert customers that a given product will no longer be part of the standard product offering and are provided with an EOL date.
EOL Product Last Time Buy
The EOL product Notice will include last time buy and delivery dates. Most often these dates are flowed down from the component manufacturers and usually range from 3 to 6 months for both last time buys and deliveries.
EOL Migration Strategies
DSC maintains a next generation product development strategy. As such, Cadia will most often have already released a next generation product to the market well in advance of an EOL Product Notice. This option provides our customers with a smooth transition for validation and the migration of next generation products with minimal disruptions.
EOL Component Bonding Program
For OEMs and Strategic customers who simply are not in a position to take on the time or requalification costs of migration to our next generation product, Cadia can extend the life of EOL Product through bonding of EOL components. In this program the Customer would be required to pay for a predetermined number of EOL components. These components will be placed in a bonded area for future production requirements of EOL product. Cadia will build products in minimum lots sizes over an agreed to period of time. Furthermore, the bill of materials for EOL Product will be reviewed on a quarterly basis for additional EOL components to be placed into this program.
Costs associated with this program are:
- Bonding Program Initiations fee, Determined by board Type and Projected EOL volumes.
- Bonded Components, Determined based on the EOL Components, plus a procurement fee.
- Quarterly BOM Review, Determined based on the product.
- Annual Maintenance, 10% of value in components in bonded stores at 12 month intervals. Payable Annually.