Assessment of product criticality at the corporate level presenting a newly developed method based on standard VDI 4800 Part 2

• The study provides a method to determine criticality of components. • The VDI 4800/2 method for raw materials is transferable to components. • The method is applicable by companies and usable as a tool for supply risk management. Numerous unpredictable vulnerabilities are inherent in global supply chains for both raw materials and components. While methods to determine the criticality of raw materials exist and policies such as the EU’s Critical Raw Materials Act are being implemented to improve supply chain resilience, companies often face challenges due to their dependence on components, for which criticality assessment methods are not yet well established. VDI 4800 Part 2 is the first standard developed for the assessment of raw material criticality and links the criticality assessment with life cycle sustainability aspects. However, it does not include the applicability for components. Therefore, this study explores the adaptation of VDI 4800 Part 2 method to components in a way that can be applied by companies. Thereby, criteria proposed in VDI 4800 Part 2 were modified to fit the context of components. The developed procedure, like the original method, evaluates the two dimensions supply risk and vulnerability by addressing nine and eleven individual criteria, respectively. As a case study, the adapted method was applied by a company to analyse the criticality of an electrolyser showing the criticality of nine different components. The application of the method enabled the company to identify and mitigate potential supply chain weaknesses. This study presents a new method for the criticality assessment of components applicable by companies that aligns with VDI 4800 Part 2 and can be used as a guide for strategic decisions in risk management.