I am doing Component Engineering work where i do Life Cycle analysis of electronic products. For every product for which we do analysis, there is a set of principles that govern their life expectancy.The life cycle of a product have different stages which start from its conception, goes through design and manufacture, to service and at last disposal. With the rapid change in technology it is particularly important understand the product’s life cycle which can help manufacturer to understand, when to launch a product, when to withdraw it, its success or failure and hold its grip on the market and consumer can decide to use the product by seeing its life stage as such information can be useful when specifying parts is use in new systems or as an replacement in existing system.
Product Growth
The Growth stage is characterized by the part’s market acceptance. Increasing of the sales in this phase justify the development of product. Mass production, mass distribution and mass marketing bring the price low and create market place for the product.
The product’s life cycle has nine stages/Phases.
- Product Development
- Product Introduction
- Product Growth
- Product Maturity
- Product Saturation
- Product Decline
- Product Phase out
- Product Last shipment
- Product Obsolescence
Product Development
Product development phase begins with initial recognition of a need or a concept for a new system or for the modification to an existing system and develops a new product idea. This involves translating various pieces of information and incorporating them into a new product.
Product Introduction
Stage begins with the approval to produce the system. The introduction phase of a product includes the product launch with its requirements, related supporting to getting it launch in such a way so that it will have maximum impact at the moment of sale.
Product Growth
The Growth stage is characterized by the part’s market acceptance. Increasing of the sales in this phase justify the development of product. Mass production, mass distribution and mass marketing bring the price low and create market place for the product.
Product Maturity
When the market becomes saturated with variations of the basic product, and all competitors are represented in terms of an alternative product, the maturity phase arrives. In this phase market share growth is at the expense of someone else business, rather than the growth of the market itself. This period is the period of the highest returns from the product.
In this phase, sales peak and then start to level out toward the end of phase.
Product Saturation
In this stage sales and competition begins to decline and the manufacturer defend market position for competitors as Sales and capacity are leveling out. During this phase technological enhancement can happen and some manufacturers can migrate to next generation technology. Some marginally competitive manufacturers can also exit the market.
Product Decline
In this stage capacity is beginning to decline and price begins to rise and profit is very less for manufacturer and product is only to maintain customer loyal to them. Competitors are less. This is due to availability of new technology which can be more cost-effective or improved component, social trends or environmental factors.
Product Phase out
Capacity is declining rapidly and Formal discontinuance notice may be issued when production of product will stop. The decision for withdrawing a product seems to be a complex task and there a lot of issues to be resolved before with decide to move it out of the market. Orders are pressed toward final and last buy and a notice is issue regarding this. Here manufacturer can suggest alternative part or aftermarket manufacturer.
Product Last shipment
Now discontinuance of product happen which means manufacturers stop production of the product.Product in final stage of shipments after a formal Life Time Buy notice. Shipments made to existing orders. Manufacturing capacity limitations may exist and new orders are limited to existing or residual inventory. Support system is available.
Now discontinuance of product happen which means manufacturers stop production of the product.
Product Obsolescence
This stage is completed with the end of life of the operational system products. The end-of-life phase is bounded by two events. This phase starts when the vendor no longer manufactures or sells the product and it ends when the vendor no longer supports the product. The termination of related services and decommissioning of development, production, operations and support system products i.e. all supporting hardware, software, and documentation for the product are removed at end of this phase.
Product is considered no longer available. Inventory is removed.
Analysis of product life cycle
Life cycle analysis of a product during its initial development can play a crucial role in determining the product's overall life cycle cost and useful life span. In designer perspective it can be known that at which stage the product is, which he want to use in his deigns and also they can take prudent decision to use it or not.
To standardize the terms and definitions used to describe the life cycle status of a product use in the electronics industry we have Product Life Cycle curve model by ELECTRONIC INDUSTRIES ASSOSCIATION (EIA). The standard is EIA-724. In this standard we have six stages-Introduction, Growth, Maturity, Saturation, Decline and Phase-Out which are same as explain above. In this standard time parameter is expressed in years. It is required for manufacturer who follows this standard to give information of the time remaining in the stage and the time until the end of product’s life.
My sources and useful link:
- INTERNATIONAL STANDARD ISO/IEC 15288
- http://www.boeing.com/commercial/aeromagazine/aero_10/elect_textonly.html
- Technology Life-Cycles And Technological Obsolescence by Stephen L. Barreca, PE, CDP
