Even the most advanced, cutting-edge technologies eventually reach the end of their service life. This article explores how staying on top of obsolescence can help avoid major business risks – and even open the door to operational improvements1.
“Obsolete” is a word that strikes at a primal human fear. It evokes the inexorable march of time; the worry that the best days are over; the sense that one’s usefulness could be usurped by something newer and more relevant.
So, perhaps it’s understandable that many of us try to put the topic of obsolescence out of mind for as long as we can. In the food and beverage industry, it’s not uncommon that producers find themselves having to prioritise other needs. Some will instead run plant components well beyond the end of their serviceable lifecycle, prolonging upgrades to newer technologies until after a breakdown occurs.
This reactive approach – addressing obsolescence only when it’s absolutely necessary – might seem like the easiest solution in the short term, but it can lead to serious operational disruptions over time. When manufacturers cease support for older components, service and spares become unavailable, creating risks that can harm production.
Taking a proactive approach to lifecycle management helps avoid these risks. By understanding where obsolescence comes from and how it can impact food and beverage production, it’s easier to stay ahead of challenges that occur as assets near the end of their lifecycles. It can be an essential strategy to ensuring reliable productivity and, ultimately, reliable profitability.
The first step to addressing component obsolescence is understanding its root causes. Many assume this is just an issue of suppliers innovating new technologies that replace previous solutions. In fact, obsolescence is often the result of external drivers over which OEMs have little control. Two particularly prominent examples have included supply chain disruptions and new regulations.
Supply chain disruptions
In recent years, bottlenecks in the global supply chain have created logistical challenges and material shortages that have impacted some parts suppliers. A key example is the chip and semiconductor crisis of the early 2020s. Due to supply chain issues, a number of manufacturers of automation and control technologies have been unable to access the types of microchips traditionally used in their components. As a result, those affected have had to develop new solutions using different types of chips, making their previous products obsolete.
“The semiconductor crisis affects food and beverage production across the board: processing equipment, packaging and filling machines, downstream equipment. As a result of these shortages, many food and beverage producers are operating with PLCs, HMIs, servo drives and more that are no longer supported by the original manufacturers.”
Mark Day
Senior Product Manager, Packaging Upgrades at Tetra Pak
Regulation
In some cases, component manufacturers develop new solutions in order to comply with changes in national or regional law. Examples of regulation that can impact suppliers to the food and beverage industry include directives for hazardous materials, cyber security, and traceability and labelling2. When new rules take effect, parts that don’t fulfil the requirements will no longer be produced or supported by the OEM.
Of course, food and beverage producers are not obligated to replace a part simply because it is no longer supported by the OEM. Some outdated technologies can in fact continue running for years without any noticeable impact to production. The risk of a “wait and see” approach is not that an obsolete component is guaranteed to break, but rather that the impact will be much bigger if it does.
Unplanned downtime
Anytime a part fails unexpectedly, it can cause a production stop that leads to lost productivity and costly repairs. But the problem could be exponentially worse if the equipment in question has already reached the end of its lifecycle. Instead of swapping out the failed component with an equivalent spare, it may be necessary to replace it with an entirely new type of technology.
In other words, what started as unplanned downtime is now an unplanned retrofit project. Fixing the equipment is more complex and more time-consuming, and what might have normally stopped production for only a few hours could instead take several days to address.
“I often say that you should think about an obsolete part like a toothache. It may not hurt so bad at first, and you can probably ignore it for a while. But just like waiting too long to go to the dentist, you will one day find yourself in a lot of pain and it will be a lot more expensive to fix than if you had acted earlier.”
Nikolay Andreychikov
Senior Product Manager, Automation & Digital at Tetra Pak
Inefficient technology
An obsolete system does not have to fail completely to create challenges. Outdated technologies can also create routine difficulties in daily operation, leading to inefficiencies that negatively impact productivity across the plant.
Consider, for example, a control system that is no longer supported by the manufacturer. Software updates are not available, and the user interface does not work as well as it used to. Operation may be slow, or perhaps the system crashes regularly, forcing a restart. This adds time to every single production run, limiting daily yield.
Cybersecurity
A system that is no longer supported may also lack the latest security protections, making the equipment more susceptible to hackers. Their attacks can take the form of ransomware that partially or totally shuts down production, or data breaches where sensitive company information is stolen or deleted.
The above considerations are largely applicable to all industries, but food plants have additional considerations that make it even more critical to tackle the question of obsolescence head on.
Perishable ingredients
An unplanned production stop is costly for any business, but the impact is magnified if you work with ingredients like milk that must be thrown away if they spoil. Addressing obsolescence is therefore about more than just preventing lost productivity. Avoiding downtime also prevents lost product and helps to minimise costly ingredient waste.
Product quality
Outdated and unsupported systems can make it more difficult to control for reliable product quality, impacting variables ranging from shelf life to flavour, aroma, mouthfeel and more. Ensuring your equipment is up to date is therefore important for delivering a consistent product that will keep consumers coming back to your brand.
Food security
Food and beverage businesses fulfil a socially critical role. In certain markets, populations are highly dependent on local producers to access the necessary nutrition for a healthy lifestyle. For producers operating in these areas, having a lifecycle management strategy is about supporting regional food supplies just as much as it is about supporting your own bottom line.
“Many of our customers supply to school food programmes or serve markets where there can be limited access to food and drink. For these businesses especially, the risks of equipment obsolescence can have far-reaching impact.”
Nikolay Andreychikov
Senior Product Manager, Automation & Digital at Tetra Pak
What can you gain by managing obsolescence in the right way?
It’s not just a question of mitigating risk. Proactively replacing obsolete components can open the door to improvements for modernising plant operations.
Sustainability
Many upgrades can enable your existing equipment to run more efficiently, reducing utility consumption and related costs. Lower water and energy use can support environmental goals, with a positive impact on associated emissions or waste in your processes.
Data-driven decision making
Today’s plant solutions are significantly more interconnected than previous generations. Modern upgrades enable your assets to better communicate with one another, giving you greater access to production data. You get a better view of your whole plant and can more easily identify areas for improvement.
Expanding your product portfolio
Consumers are always on the lookout for the next big thing, and some of today’s popular products require new types of processing technologies. Upgrading your existing lines can be a smart way to extend production and enable product innovations.
“Solving obsolescence can unlock a lot of potential. You get more insights into the performance of your equipment, which can yield benefits in practically every area we’ve touched upon.”
Mark Day
Senior Product Manager, Packaging Upgrades at Tetra Pak
1 Unless otherwise noted, all information in this article is based on lengthy interviews with Mark Day and Nikolay Andreychikov, two Tetra Pak upgrades experts who have extensive experience supporting food and beverage producers around the globe navigate plant obsolescence and lifecycle management challenges.
2 See, e.g.:
https://environment.ec.europa.eu/topics/waste-and-recycling/rohs-directive_en
https://digital-strategy.ec.europa.eu/en/policies/nis2-directive
https://food.ec.europa.eu/plants/genetically-modified-organisms/traceability-and-labelling_en