RiskXtraJune2019

FIRE SAFETY
Roland Martin-Bessey
(operations director at
Hochiki Europe) looks
at the global
component shortage
and what this means
for manufacturers
and installers alike
To find out more about
Hochiki Europe visit
www.hochikieurope.com
Downsizing Technology to Mitigate
Bigger Security Risks
The key issue affecting all industries today is
a simple, but important one. Over the last
decade, there has been a huge rise in
demand for micro electrical components.
Manufacturers are having to find new ways in
which to build devices without increasing unit
size so the producers of electronic components
are meeting demand by downsizing everything
they create.
Much of the technology we use today
incorporates similar components all fitted to a
printed circuit board (PCB) which determines
the function of the product. To correctly fit each
component and keep production moving,
manufacturing lines need to be equipped with
the right machinery.
As the miniaturisation of mainstream
technology continues, manufacturers in all
industries must follow suit. This is especially
true in the life safety sector. Life safety
solutions are not as space-hungry as products
like mobile phones. This means there’s no great
need for them to become smaller. However,
when these new, smaller components are
manufactured, the predecessors are usually
phased out, leaving a shortage for the rest of
the industry. It’s a process known as component
obsolescence.
To keep production going in the face of this,
life safety manufacturers need to adopt a
strategy that’s built with the future in mind.
That must be a key focus for any R&D team.
Regardless of sector, R&D divisions should
understand how technology might change, or is
changing, and how their business may need to
adapt to suit.
Manufacturing for the Future
There are a number of relatively straightforward measures manufacturers can
take to combat the risks posed by the component shortage. We’ve recently
invested hundreds of thousands of pounds in our production capabilities and
equipment to ensure we can handle the smallest of components. By being aware
that such an investment will be required for long-term success, we can plan our
operations more effectively, factoring-in any costs as part of business planning.
We must always be looking for new ways in which to increase productivity,
outputs and everything in-between despite challenges like the global
component shortage. Being ahead of the curve is key and, by maintaining close
relationships with suppliers and customers and investing in capabilities, our
industry will be able to continue to operate efficiently now and into the future.
At Hochiki, we use various software tools to
ensure our R&D teams can track such changes
and use the data to develop plans that will
ensure the business can continue to operate.
Manufacturers will have a quota of the
number of products they need to be able to
produce to keep up with customer demand and
maintain a suitable level of stock, meaning
there should never be a product shortage.
Meeting this quota requires a certain number of
components. If these are not available then
manufacturing processes can be very quickly
thrown out of sync, causing issues for the
manufacturer, customers and end users alike.
To address this risk, we need to be forwardthinking
and more collaborative. This is why we
work closely with suppliers to ensure they’re at
the top of the list for product deliveries.
Simultaneously, we’re also planning well in
advance to ensure that our component stock is
continually maintained. We’re ensuring we have
enough components to maintain a steady and
constant stream of production.
As with any product, an increase in demand
drives costs upwards. When the cost of
individual components rises, so too does the
cost of the final product. Manufacturers then
have to make a difficult decision – how much of
the cost do they pass on to their customers and
how do they communicate the increase?
Essentially, there’s no right or wrong way to
do this. It very much depends on the
manufacturer. One thing that’s constant,
however, is the need for excellent relationships
and stakeholder management processes.
Another reason why manufacturers must
manage the risks of the global component
shortage effectively is the installer. If a company
is unable to produce solutions, installers could
find themselves without the products they need
to fulfil a project. Being in such a position could
mean that installers then have to turn down
work, which is bad from a reputation and
business perspective. There’s also the risk that
customers could re-specify projects to
incorporate less advanced systems. It’s
essential, then, to manage, mitigate and
communicate risk throughout the supply chain.
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