Development Cost Reduction by the Method of Merged Designs for Replacement ASIC
Outline of Business
The production of ASICs necessary for the manufacture of certain control equipment was discontinued. The last buy (last sale) was executed to secure necessary quantities. However, the inventory of the ASICs approached exhaustion since the life of the equipment lasted longer than scheduled. Because the inventory quantities were insufficient, the development of substitute products was studied. However, because two part-numbers of ASICs were used, the increase of development cost was a significant factor hindering the decision.
- Two part-numbers of ASICs were used, and the development cost would be needed for both of them.
- Yearly use was in small quantities.
- Budget was limited (not sufficient for two part-numbers to be developed).
As a solution to these issues, we proposed and the customer adopted the method of Merged Designs for development of the replacement product.
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