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Re: [TenTec] ORION II end of production

To: <tentec@contesting.com>
Subject: Re: [TenTec] ORION II end of production
From: "Pfizenmayer" <pfizenmayer@q.com>
Reply-to: Discussion of Ten-Tec Equipment <tentec@contesting.com>
Date: Mon, 1 Jul 2013 15:12:16 -0700
List-post: <tentec@contesting.com">mailto:tentec@contesting.com>
I have watched these comments for a couple days now and do not see any comments about what can happen and probably has happened to TenTec with respect to parts supply.

I worked in a product group of a major semiconductor manufacturer for about 30 years and can surmise what has happened.

Semi manufacturers will look at what sales have been on given product lines and have a rule of thumb which will vary in the full details but basically is a rule based on looking at a given group of products - in this case take an example of the ex Motorola / now Freescale Dragon Ball CPU in the Orion.(I do not know this is the particular case - just an example)

When a product line in a group is identified that is x percent of sales for that line - say only 10 percent in $$ of all sales for that line , then "management " will order the product group to issue an "end of life " announcement and give customers a chance to make a "lifetime buy" and give them usually a year or less to place and take delivery on those orders. At that point the customer has little they can do but just suck it up and try to figure out what they need for the "lifetime" and order and hold the inventory. Another option is a major re-design to use a later part . But since Orion is somewhere between 8 and 10 years in its life cycle and the designs were probably pretty firm a year or so before that - that is a long time in semiconductor life. Sometimes , the semi manufacturer will allow some smaller semi outfit to produce the parts - but there are a lot of what ifs and gotchas in that with respect to giving away processing "secrets" - and even worse it can be hard to really duplicate all the characteristics for a given device to be able to drop into a socket- especially at RF.

So bottom line is I would not be surprised at all if TenTec is not faced with a really serious issue in getting many of the parts and having to maintain a huge inventory cost burden for best guess at production plus spares needs.

It really pained me many times when we had a great relationship with a customer , especially smaller ones (in terms of small compared to GM or Ford etc ) and we were forced to issue end of life and I knew whatv the ramifications of that really were . (And sometimes even the GMs and Fords etc are faced with this sort of thing - much gnashing of teeth all around).



73 Hank K7HP
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