Maintaining Inventory for
Evolving Product Lines
The demands placed on machinery are constantly evolving, and the rate of that evolution itself is increasing.
The modern manufacturing process would have been all but unimaginable a generation ago, and yet we arestill in the throes of even more revolutions in factory automation.
The introduction of robots to the manufacturing process was a breakthrough, but early models weredangerous and limited. They had to be fenced off from workers because they had no awareness of theirsurroundings and could only be used for certain tasks. Now new models are being introduced with advanced
vision systems and other sensors that let them safely work alongside and in cooperation with people.
Programmable logic controllers (PLCs) gradually overtook the market for relays as their features became
more robust, becoming the standard for controlling machinery. Now that PLCs are standard, there is anexplosion of new functionality being added. PLCs can connect to networks to allow status monitoring, datacollection, and updates from anywhere in the world. Other models have touch screen interfaces that allow
variable controls based on the needs of the moment.
Operations engineers can now collect data or update
control software at manufacturing sites around theworld, all without leaving their desk.
When your customers become aware of these
possibilities they will start to demand them. Meeting
those demands can be a logistical nightmare, putting
a serious strain on your inventory system. As anoperations engineer, how can you stay on top ofthese changes and manage inventory levels?

Inventory problems caused by evolving products
While these developments add new functionality to your machines, rapid evolution of technology creates problems on twofronts: it can be difﬁcult to obtain components for machines purchased in the past and new components with the latest
features aren't in stock.

Mechanical equipment generally has a long life and is often used for more than ten years. Financially, there is a case that
depreciation should be calculated over more than the usual ten years. In contrast to this, new FA products are developed

and brought to the market in cycles of two to three years. If a model your machinery uses is discontinued it may become
difﬁcult or impossible to repair for a major part of its expected service life.

When you introduce new components with new features, it means stocking additional components and potentially dealing
with new suppliers. This can put a serious strain on your supply chain, especially when your company is trying to keep
its manufacturing process lean. When a new cutting edge feature is only offered by a supplier that you are not currently
working with, you face a difﬁcult choice of foregoing the feature or making the supply chain more complex.

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CMaintaining Inventory for Evolving Product LinesMinimizing the risks of an evolving product line
When your product lineup is changing constantly, it's important to take steps to minimize the risk ofnecessary parts becoming unobtainable and to have rapid access to the latest technologies. Building strong
relationships with high-quality suppliers is the best strategy for both of these issues.

The first step is to evaluate your suppliers to ensure they can meet your current and future needs. The
answers to the following questions can help you determine if using a supplier's components will reduce risk.

Do they provide replacement part information?
Specifically, make sure that the supplier provides detailed information on theircomponents, replacements parts, and the period during which those replacement

parts or recommended alternatives will be available. This information is vital whenselecting components to ensure that the availability of components will match theservice life of your machinery.

What is the supplier's production capacity?
Find out the level of inventory the supplier keeps in stock and their lead times
to manufacture new components. This can help you avoid production bottle
necks and improve your production forecasts. Also determine the supplier's

ability to respond to custom requests. When new machinery has special

requirements, working with a supplier you have an established relationshipsaves time.

Are the supplier's products high quality and cutting edge?
Ask your supplier about their approaches to Quality Assurance and Research and Development. Working with

suppliers of high-quality components means you can conﬁdently use them when new requirements arise. Sticking

to familiar, reliable components saves time and inventory hassles, and high-quality components are more likely tostand up to unanticipated uses.

When you partner with a supplier on the cutting edge of their ﬁeld, you can be conﬁdent that the best new features

will be available to you without any extra hassle. And since they are developing the latest features you can easily
stay on top of the latest developments and make sure you're using every component to its fullest.

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CYour evolving product line and the THK advantage
Maintaining inventory levels in the face of constantly changing product requirements is a daunting task.
But with the right help from suppliers you can rise to the challenge and offer your customers high-quality

machinery with the best features that they will be able to rely upon for years to come. THK understands thesechallenges and will work and evolve with you, helping you face the challenges of a rapidly changing market,
while staying lean and efficient.

THK has been on the cutting edge of linear motion systems for over 40 years. THK introduced the world's
first Linear Motion Guide, revolutionizing linear motion in machinery, and has continued to create innovative
products with uncompromising quality. Our globally distributed manufacturing base lets us flexibly respond tocustomer requests and quickly react to the needs of your evolving product line.

About
THK is the pioneer of Linear Motion Systems. Today, our LM Guide is an indispensable component of mechanical andelectronic systems in a wide variety of industries. The versatility of our products and their wide use across applications
have made us an industry leader with sales upward of $2.6 Billion.
thk.com/resources
Learn more at

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