Risk Rank is a proprietary algorithm Supplyframe has developed to quantify component risk rank using multiple data points. This ranking helps engineers and buyers determine whether alternates should be sought for parts that are deemed as high risk.
Risk Rank is determined by a combination of factors such as product lifecycle status, price, inventory volatility, current inventory availability, and much more. Even the availability of manufacturer specifications and part documentation, such as datasheets and reference designs, have an impact on determining the overall riskiness of a part.
The risk is characterized across three product phases:
- Design
- Production
- Long Term
Design Phase
The design phase of a product is the beginning of the product lifecycle. This is when engineers are doing analysis of components in the marketplace, determining which specifications are most important for their design and assessing the cost impact of using this particular component. While this is early in the product lifecycle, choices at this point can severely impact a product much later on when the product is being made. Additionally, this stage is the one furthest from a product being made, which is why we focus on metrics of stability over time when determining Design Risk.
Production Phase
The production phase is when the product is being assembled. Sourcing parts reliably is the essential task during this phase, as it determines whether the product can continue production. During the production phase, there is no time to test new components if something goes awry – the design is the locked-in and a primary risk factor is the component availability in the marketplace. It is possible to utilize alternative parts if things go wrong during this phase, but they need to be FFF (form, fit, function) compatible. Therefore, if a part is available in the online marketplace and has available FFF components, it will be listed as lower risk.
Long Term Phase
The amount of time that a product is manufactured often depends on the industry. Some automobile electronics are made consistently for 5-10 years, whereas military and industrial electronics could be produced from anywhere from 30-50 years.
This means part risk goes up with the likelihood of obsolescence. If a chip manufacturer decides to stop making a particular chip, it is supremely disruptive to mature products, because there may not even be replacement parts available. Other factors like environmental certifications (RoHS) feed into this as well, as non-certified parts are more likely to become obsolete in the future.
