counterfeit parts

Download Counterfeit parts

Post on 14-May-2015

998 views

Category:

Technology

7 download

Embed Size (px)

DESCRIPTION

Counterfeit Parts

TRANSCRIPT

  • 1.1
    Counterfeit Parts Prevention & AS9100
    Atlanta, GA
    July 23, 2010
    Kevin Beard
    Auditor Workshop
    Atlanta, GA
    July 22-23, 2010

2. Presentation Intent
Discuss Industry Problems with Counterfeit Parts
Discuss Industry Efforts On Counterfeit Part Prevention
Discuss Role of G-19, AS5553 and Other Standards
Discuss the Roles of Various Groups within an Organization in Preventing Counterfeit Parts From Entering Product
Discuss Methods for Auditing Counterfeit Parts Prevention (CPP) within AS 9100
Internal Audits
Supplier Audits
2
3. What is a Counterfeit?
a. Parts which do not contain the proper internal construction consistent with the ordered part. (die, manufacturer, wire bonding, etc.)
b. Parts which have been used, refurbished or reclaimed, but are represented as new product.
c. Parts which have different package style or surface plating/finish than the ordered parts.
d. Parts which have not successfully completed the Original Component Manufacturers (OCM)s full production and test flow, but are represented as completed product.
e. Parts sold as upscreened parts which have not successfully completed upscreening.
f. Parts sold with modified labeling or markings intended to misrepresent the parts form, fit, function, or grade.
3
4. Counterfeit Parts Origin
4
5. E-Waste
Laborer de-soldering circuit boards over a coal-fired grill. Rock in the box is where boards are hit to remove solder. Pliers are used to pluck off chips which go into various buckets. The boards are then tossed into a pile for open burning.
Basel Action Network 2006.
5
5
6. 6
Counterfeit Overview
7. How Counterfeits Enter The Supply Chain
7
7
8. Counterfeit Overview
8
8
9. Counterfeit Overview
9
9
10. Counterfeit Overview- Impact -
Counterfeiting accounts for more than 8% of global merchandise trade and is equivalent to lost sales of as much as $600B and will grow to $1.2T by 2009.
Source: Dept of Commerce
10
11. Due Diligence Is Essential
11
11
12. 12
12
13. What We Know
There is a lack of dialogue between all organizations in the U.S. supply chain.
Companies and organizations assume that others in the supply chain are testing parts.
Lack of traceability in the supply chain is commonplace.
There is an insufficient chain of accountability within organizations.
Recordkeeping on counterfeit incidents by organizations is very limited.
Stricter testing protocols and quality control practices for inventories are required.
Most DOD organizations do not have policies in place to prevent counterfeit parts from infiltrating their supply chain.
13
14. Supply Chain Awareness-Key Industry Associations
Aerospace Industries Association (AIA) Counterfeit Parts Integrated Process Team (IPT)
ERAI
Independent Distributors of Electronics Association (IDEA)
Semiconductor Industry Association (SIA) Anticounterfeiting Task Force (ACTF)
US Chamber of Commerce Coalition AgainstCounterfeiting and Piracy (CACP)
14
15. 15
Industry Working TogetherG-19
16. G-19 The Way Forward
16
AS TBD
AS 6081
AS 5553
17. 17
18. AS5553 Focus
Parts Availability
Purchasing Process
Supply Chain Traceability
Procurement Contract Requirements
Product Assurance
Material Control
Reporting
18
19. AS 5553 -Purchasing Process
Assess sources of supply
Assess risk
Interview
Audit
Alerts
Make Risk Based Decisions
Maintain approved supplier list
19
20. 20
21. 21
22. 22
The Way Forward
Brokers
Independent
Franchise
Commercial
Defense
Space
Inspection
Test
23. Auditing Counterfeit Parts Prevention within AS 9100
Can We Audit For Counterfeit Parts Prevention within
AS9100b?
AS9100c?
Explicit/Implied?
What Parts of the Standard?
23
24. Counterfeit Parts& The Industry Model
Aerospace Industry Challenges
Complex Products
Complex Processes
Small Quantity Purchases
Long Duration Product Lifecycles
Ever Changing Supply Chain
Many OCMs Go Out Of Business Prior to the End of the Product Lifecycle
Supply Chain Roles In Counterfeit Parts Prevention
System Integrator
Design Responsible Middle Tier Organizations
Non Design Responsible Middle Tier Organizations
Distributors
24
25. Counterfeit Parts& The Industry Model
DOD, NASA, Civil Aviation, Etc.
Industry Supply Chain
Design Resp
Primes
Primes
Primes
Sub-System
More Complex Procurements In Supply Chain
Not Design Resp
Component
Sub-Component
Parts OCMs & Aftermarket
Franchised Distributor
Other Type Distributor
Other Sources

  • Surplus

26. Open Market 27. Recyclers 28. Etc. 29. Stocking 30. Broker 31. IndependentCounterfeit Parts Entering the Supply Chain
25
32. AS 5553 and Risk
Risk in the Aerospace Supply Chain
Design Responsible Organizations
Manufacturing Responsible Organizations
Warehousing and Distribution Organizations
Common Areas of Risk
Source Selection
Obsolescence
Loss of Traceability
Piece Part Configuration Changes without Notification
Many Others
Risk Model in AS5553
Categorization of Risk
Hierarchy of Risk Inputs & Mitigations per Category
Application of Mitigations Based on Risk Input Hierarchy
26
33. SAE AS5553 & Risk Hierarchy
Risk Hierarchy in AS 9100c
Highest Risk
Supplier with
GIDEP & ERAI Alerts
_
_
_
_
OCM
100%
_
_
_
_
_
Small %
Life Test
_
_
_
_
_
1X Visual Inspection
In Business < 1 Year
& Unknown Financials
_
_
_Supplier Audited & Approved
Life
Dependent
_
_
_
_
_
Non-Critical
Design Lifecycle Approach
Configuration Management
ID/Traceability
SCM Strategy
Test & Insp Level
Source of Supply
Test / Insp
Population
Supplier Assessment
Product & Application
Lowest Risk
?? How Can This Approach Be Applied in AS 9100b/c ??
27
34. Counterfeit Parts& The Industry Model
AS9100 Applicability
Parts Qualification Concept
Creation of Design Baseline
Configuration Management Concept
Control of Design Baseline
Application In Supply Chain
Robust Procurement Strategy
28
35. Counterfeit Parts& The Industry Model
Needs of the Industry
Ensure QMS Promotes Acquisition of Acceptable Parts for Integration into the Organizations Product
Engineering
Good Risk Identification, Analysis & Mitigation Decision Processes
Design Specifications that identify parts from suppliers that provide parts with a high degree of Supply Chain Assurance
Purchasing & Receipt Inspection
Proper Source Usage to Prevent Inadequate Parts from entering the Organizations Supply Chain
Supplier Assurance of Proper Sub-Tier Source Usage
Proper Evaluation Techniques to Prevent Inadequate Parts from entering the Production Process
Production Planning & Inspection
Proper Production Planning that Ensures Adequate I&T of Supplier Parts at the appropriate points in the Production Process
29
36. 30
Scenario 1
Direct Purchase of OCM Parts
DOD, NASA, Civil Aviation, Etc.
Primes
Primes
Primes
Control
Sub-System
Component
Parts OCMs & Aftermarket
Sub-Component
Franchised Distributor
Other Type Distributor
Other Sources

  • Stocking

37. Broker 38. Independent 39. Surplus 40. Open Market 41. Recyclers 42. Etc.Where Are The Risks?
Where Do We Focus The Audit
43. 31
Scenario 2
Purchase From Franchised Distributor
DOD, NASA, Civil Aviation, Etc.
Primes
Primes
Primes
Control
Sub-System
CM?
Component
Parts OCMs & Aftermarket
Sub-Component
CM?
Franchised Distributor
Other Type Distributor
Other Sources

  • Stocking

44. Broker 45. IndependentCOTC

  • Surplus

46. Open Market 47. Recyclers 48. Etc.Where Are The Risks?
Where Do We Focus The Audit
49. 32
Scenario 3
Purchase From Other Type of Distributor
DOD, NASA, Civil Aviation, Etc.
Primes
Primes
Primes
Control
Sub-System
Component
Parts OCMs & Aftermarket
Compliance
Verification
Sub-Component
Franchised Distributor
Other Type Distributor
Other Sources
Compliance
Verification
No COTC

  • Surplus

50. Open Market 51. Recyclers 52. Etc. 53. Stocking 54. Broker 55. IndependentWhere Are The Risks?
Where Do We Focus The Audit
56. Common QMS Areas of CP PreventionChallenges
Requirements Definition at Proposal/Contracts Phase
Design Planning For Production and Full Life of Components
Purchasing Strategy to Support Production and Full Life of Components
Control of Subtier Suppliers for CM and Parts Qualification
Identification & Traceability Requirements
In House & Through Out Supply Chain
Production Planning
Inspection & Test of Components
Does AS9100 Have Wording in These Areas??
33
57. Audit Approach to CP

Recommended

View more >