• Counterfeit Components Hurt More Than Military Applications

    Counterfeit Components Hurt More Than Military Applications

    When reading the news around counterfeit components, much of the dialogue is driven by the defense industry. When you are dealing with systems that protect our national security and the lives of the people out in the field – you’re not dealing with counterfeits in a bunch of trivial electronics. You’re taking necessary steps to protect the lives of men and women who depend on the systems for their safety. Since 2011 more than 1800 cases of counterfeit components were reported in defense applications, including mission computers operating the THAAD missile system, in the Air Force’s C-27J, in the Navy’s P-8A, and in electromagnetic interference filters on an SH-60B helicopter.

    However, the trouble with counterfeits isn’t limited to the defense industry and the military. They’re just currently the ones driving the conversation and legislation such as the 2012 National Defense Authorization Act, Sec. 818.

  • A Tale of Two SHIELDS: Marvel Comics, DARPA, and Counterfeiting

    A Tale of Two SHIELDS: Marvel Comics, DARPA, and Counterfeiting

    Marvel Comic’s SHIELD (Strategic help Homeland Intervention, Enforcement, and Logistics Division) and, slick as it is, it is more likely to wind up counterfeited than prevent counterfeiting

    It is a program devised by a secretive government agency. Its purpose is to organize and motivate the top actors in their fields to come together to prevent crimes that threaten not only the economy but our national security. It focuses its attention on producing cutting-edge technologies. It is SHIELD, and it is becoming a reality.

    No . . . no . . . not that SHIELD. That’s Marvel Comic’s SHIELD (Strategic help Homeland Intervention, Enforcement, and Logistics Division) and, slick as it is, it is more likely to wind up counterfeited than prevent counterfeiting. We’re talking about the Supply Chain Hardware Integrity for Electronics Defense program being initiated by DARPA, and rather than placing a series of gigantic floating gun platforms in the upper atmosphere, it’s looking to place tiny 100 micron by 100 micron authentication dielets on all the electronic components used in Department of Defense programs.

  • Counterfeit Components: More than parts — it is about people

    Counterfeit Components: More than parts — it is about people

    With the dialog about counterfeits in the supply chain, it is easy to lose track of what counterfeits actually mean.  Yes, they will hurt your business. Yes, they can lead to heavy penalties and jail time, but counterfeits can also lead to jeopardizing lives; a risk that could otherwise have been avoided.

    I am always looking for recent numbers and reports to keep the topic fresh and moving forward. But, recently, as I researched my paper for the upcoming SMTA International conference, I’ve come across some new numbers that drives home, once again, how vulnerable everyone is to the issues around counterfeits.

    I personally take an average of 2-4 flights every month. According to the FAA, the amount of travel Americans are doing both for business and recreation is increasing. It is projected that the total number of people flying commercially on U.S. airlines will increase from 732 million to 746 million in 2013, and increase to 1.2 billion by 2032. And in 2010 the FAA estimated that some 520,000 counterfeit parts make their way into planes each year.

  • ERAI Executive Conference: Gaining Momentum in the Fight against Counterfeits

    ERAI Executive Conference: Gaining Momentum in the Fight against Counterfeits

    Managing components at-risk of going EOL requires proactive planning, otherwise critical systems become increasingly at-risk for encountering counterfeits

    Managing components at-risk of going EOL requires proactive planning, otherwise critical systems become increasingly at-risk for encountering counterfeits.
    Photo by Sebastian Dooris

    Managing components at risk of going EOL requires proactive planning. If this vital step is not implemented, critical systems run into increased risk of exposure to counterfeits. Two topics that program managers never want to hear about are counterfeit components, and end-of-life (EOL).  While it is possible to come across counterfeit components on active products, this risk can generally be mitigated by implementing smart buying practices, such as purchasing from a franchised distribution line or directly from the original component manufacturer (OCM).  Unfortunately, as components go EOL, yet are still needed in critical systems, they become difficult to find and increasingly more expensive. These facts combined with often careless buying practices, leave the embedded supply chain exposed to counterfeit components. These risks only increase as systems age.

  • Will sequestration increase the risk of counterfeit components in the supply chain?

    Will sequestration increase the risk of counterfeit components in the supply chain?

    Between Section 818 in the NDAA FY12 and the NDAA FY13 Amendment, the defense industry is highly aware of the risks of counterfeit components in the supply chain.  As a rule, logistics teams know not to purchase parts off EBay but from authorized sources, or purchase directly from the manufacturer.  They know about the SAE standards AS5553 and AS6081 for business processes and they know about guidelines for purchasing and authenticating components.

  • Cutting Electronic Waste out of the Counterfeit Supply Chain

    Cutting Electronic Waste out of the Counterfeit Supply Chain

    According to the EPA, although electronic waste (or sometimes known as “e-waste”) is less than 10% of the current solid waste stream, it is growing 2-3 times faster than any other waste stream.   In 2005 an estimated 26-37 million computers became obsolete and the Consumer Electronics Association reported that roughly 304 million electronics—were removed from US households.

    E-waste impacts the international community in many ways.  New innovations in industrial and commercial technology have forced obsolescence in equipment like computers, mobile phones and televisions, and refrigerators.  As consumers keep up with changing trends, the United Nations Environmental Program (UNEP) estimates that 20-50 million metric tons of e-waste are generated each year and much of this electronic waste gets shipped overseas to developing areas in Asia, Africa, and South America.

  • Obsolescence and why you can’t always just make more.

    Obsolescence and why you can’t always just make more.

    When I first began my work with GDCA one of the questions I had was “Why is dealing with obsolete components not just about making more parts?”

    As I have come to learn, unfortunately, obsolescence management is not just as simple as “making more parts.”

    Imagine you manufacture various components.  In the 1960s, the computers you were making parts for were relatively simple, without many customers who could even afford computers; quantities were low, the manufacturing was relatively easy, and products generally lasted longer.

    Let’s jump forward to today. Over time, and as technology has evolved (Moore’s Law), your fabrication company’s production has also evolved. Now with each product line, you are cranking out hundreds of thousands of parts each day. Customers who need 50 parts are not happy to hear of a 5000 part minimum order quantity (MOQ).  And besides, to some the manufacturers even a 5000 MOQ on an older part can be a distraction.

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