Dan DiMase

AS5553 – A New Standard in the Fight Against Counterfeit

Electronics Parts1 October 2009

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• Introduction to the AS5553

• A Solution for Counterfeit EEE Part Mitigation

• Implementing AS5553

• Organizations Adopting the Standard

• Next Steps & Recommendations

Agenda

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Solutions – AS5553

Members

•Government•Industry – Aerospace, military, & commercial representation•Industry Associations

G-19 Committee

•Formed September 2007•Convened weekly on “fast-track” course

Charter

•Address aspects of preventing, detecting, responding to and counteracting the threat of counterfeit electronic components (EEE parts)

Objective

•Develop Standard(s) suitable for use in aeronautic, space, defense, civil and commercial electronic equipment applications to mitigate the risks of counterfeit electronic components

Aerospace Standard AS5553

Incorporates Succinct Requirements and Guidance:•Counterfeit Electronic Parts Control Plan•Component Management•Procurement•Test/Evaluation Methods•Response strategies when suspect or confirmed counterfeit components are detected.

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Counterfeit Electronic Parts;Avoidance, Detection, Mitigation, and Disposition

…increasing volume of counterfeit electronic parts … posing significant performance, reliability, and safety risks.

SAE International AS5553

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G-19 Members

US Government Members …• DSCC• GIDEP• MDA• NASA • US AF / NRO (Aerospace Corp.) • US Army - AMRDEC • US Navy - NAVAIR• US Navy - NSWC• US Navy - NCIS• US Customs and Border Protection

Industry Members …• Arrow Zeus Electronics• BAE Systems• Boeing• General Dynamics• Jabil Circuits• Lockheed Martin• Maxim Integrated Products• Northrop Grumman• Orbital Sciences• QP Semiconductor• Raytheon

Participating Industry Associations …• Aerospace Industries Association (AIA)• Best Manufacturing Practices Center of Excellence (BMPCOE)• ERAI, Inc.• Government Electronics & Information Technology Association (GEIA)• Independent Distributors of Electronics Association (IDEA)

Representation from Gov’t, Aerospace, Military, & Commercial

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Document Contents•Scope, Purpose, and Application

•Applicable Documents

•Terms and Definitions

•Requirements•Counterfeit Electronics Parts Control Plan

• Parts Availability• Purchasing Process• Verification of Purchased Product• In Process Investigation• Material Control• Reporting

•Appendixes with Detailed Guidance

SAE International AS5553

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Counterfeit Parts Control

Plan

Purchasing

Parts Availability

Verification of Purchased

Product

In Process Investigation

Purchasing Information

Material Control

Reporting

Appendixes for Guidance

SAE AS5553 Requirements

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SAE AS5553 Implementation

Counterfeit Parts Control Plan:

… The organization shall develop and implement a counterfeit electronic parts control plan that documents its processes used for risk mitigation, disposition, and reporting of counterfeit parts…

Counterfeit Parts Control Plan

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SAE AS5553 Implementation

Counterfeit Parts Control Plan:Parts Availability

Requirements

… The process shall maximize availability of authentic, originally designed … parts throughout the product’s life cycle, includingmanagement of part obsolescence…

Parts Availability

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SAE AS5553 Implementation

Counterfeit Parts Control Plan:Purchasing Process

Requirements

Source of Supply

• Determine risk of receiving counterfeit part…• Actions may include surveys, audits, review…• Specify a preference to procure directly from OCMs…

Approved Suppliers

• Maintain a register of approved suppliers• Guidance on source selection and approval process• Assure sources of supply are maintaining processes for counterfeit risk mitigation

Risk Mitigation

• Mitigate the risks of procuring counterfeit parts from sources other than OCMs…• Specify supply chain traceability to the OCM…• Specify flow down of applicable requirements to contractors and sub-contractors…

Purchasing

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SAE AS5553 Implementation

Counterfeit Parts Control Plan:Purchasing Information & Verification

Requirements

…The documented process shall assure detection of counterfeit partsprior to formal product acceptance…

…This documented process shall specify contract/purchase order quality requirements …

Verification of Purchased Product

Purchasing Information

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SAE AS5553 Implementation

Counterfeit Parts Control Plan:

Reporting

Shall assure that all occurrences of counterfeit parts are reported…

Material Control

Shall control … nonconforming parts from entering supply chain

Shall control counterfeit parts to preclude their use …

In Process Investigation

Shall address the detection, verification, and control of … counterfeit parts.

Requirements

In Process Investigation

Material Control

Reporting

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Solutions

Example Procurement Clause

…The seller shall establish and implement test and inspection activities necessary to assure the authenticity …

SAE AS5553 Implementation

Appendixes for Guidance

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Risk Charts

SAE AS5553 Guidance

Lowest Risk

Highest Risk

Supplier with

GIDEP/ERAIAlerts

_

__

OCM

Source of Supply

Small %__

___

100%

1X Visual Inspection

______

Life Test

In Business < 1 Year

& Unknown Financials

_

_Supplier

Audited & Approved

LifeDependent

__

___

Non-Critical

Test / InspectPopulation

Level of Test & Inspection

Supplier Assessment

Product & Application

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Organizations Adopting Policies:

Counterfeit Parts Control Plan

Our Customers and Subcontractors are Invoking Requirements

• NASA Policy Directive

• DOD Policy Memorandum

• DOD adopts AS5553 August 2009

• Other companies with plans:• BAE Systems• Orbital Sciences Corp.

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• Departments impacted include:

- Parts Engineering

- Quality Assurance

- Electronics Manufacturing

- Receiving Inspection

- In-Process Inspection

- Procurement

- Legal & Contracting Organization

Additional Considerations for Implementation

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Next Steps – Recommendations

• Training and Awareness of Counterfeit Issue

• Formation of a counterfeit parts working group

• Cross function team of impacted departments

• Changes to internal policies and procedures

• Creation of a Counterfeit Parts Control Plan

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Summary

• Understand the Scope & Benefits of SAE AS5553

• Understand the Requirements of AS5553

• Adoption by Government and Industry

• Recommended Next Steps for Implementation

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Thank you for your time!

Questions?

Dan DiMaseCounterfeit Parts Control Specialist

Daniel.DiMase@honeywell.com