Proactive Obsolescence Management for Critical Control Components in STATCOM Systems

Abstract

Obsolescence of critical control components has become a significant challenge in STATCOM manufacturing, where prolonged lead times and unavailability of spare parts increase the risk of unplanned downtime and elevated emergency costs. This project focused on the embedded control computer (CC-002) and high-frequency switching gate card (GC-002), which exhibited risk scores. The objective was to develop a proactive obsolescence management policy using the PDCA cycle. A risk prioritization matrix was constructed from ERP and CMMS data using lead time, failure rate, and downtime impact, followed by a formal multi-criteria decision analysis incorporating emergency procurement cost, cost-benefit calculations, and lifecycle costing. The analysis identified aftermarket equivalents as the preferred short-term mitigation strategy and produced a comprehensive policy that includes early warning indicators, a structured decision framework, and measurable KPIs. The resulting policy and supporting tools provide a framework that addresses supply chain vulnerability and is expected to enhance operational resilience and cost efficiency in STATCOM production. Keywords cost-benefit analysis, decision tree, risk prioritization matrix, supply chain resilience.