Quality Progress - January 2015 - 54

STANDARDS OUTLOOK BY DALE K. GORDON Fake Out Keep counterfeits at bay via your quality management system SOME ALREADY know this issue, but examples have involved electronics and ers, transistors, diodes, capacitors and many do not: There is a problem in the extended into many products that could integrated circuits) are bought through supply chain. There are some unscrupu- affect personal safety. In the aviation, distribution. lous people around the world who don't space and defense (AS&D) industry, the just think imitation is the sincerest form of safety implications of counterfeit electron- and you will find dozens, if not hundreds, flattery-to them it's a profitable activity. ics are severe. Imagine the consequences: of brokers and legitimate authorized dis- Search the internet for a component loss of control of air or spacecraft, tributors for it. If you wanted to sell into an acute problem that shows up in many defense munitions or communications. an uncontrolled marketplace (think of a consumer and nonconsumer industries. These cannot happen for a warfighter or Middle East bazaar), this is the best point Figure 1 shows global reports of coun- for the defense of nations. of entry for a counterfeiter. I am talking about counterfeit products, Think about the quantity of today's terfeit product incidents and purchased Another issue is that the lifespan of products that depend on small numbers of parts. many electronics components is now electronic components for their safe and about the same as the lifespan of the end affecting copyrights or similar issues effective operation. This even extends to items they go into, such as cellphones and related to music or movies. Others think children's toys or automotive components consumer products. This lifespan may be of "knockoffs," such as handbags, luggage that can catch fire or malfunction due only a few years. and clothing that looks almost identical to to counterfeit, improperly functioning the namebrand originals but that can be components. Some think this is harmless, only A reason for the focus on electronics purchased for a fraction of the retail cost. In the early days of the electronics industry, AS&D was the promoter and investor in electronics. The products by counterfeiters for a source of profit is produced back then are still flying or ing of goods has extended to all areas of the ease of entry into the supply chain. working today. For example, think of a commerce. Some of the most frightening Most electronic components (resist- B-52 aircraft bomber as it enters its 60th The sad truth is that the counterfeit- year of continuing service. ERAI-reported incidents 250 250,000 200 200,000 150 150,000 100 100,000 50 50,000 0 ERAI = Entreprise Rhône-Alpes International Source: IHS Parts Management, October 2012 54 QP * www.qualityprogress.com Aug. 2012 July 2012 June 2012 May 2012 April 2012 March 2012 Feb. 2012 Jan. 2012 Dec. 2011 Nov. 2011 Oct. 2011 Sept. 2011 0 Purchased parts involved (ERAI-only) Global reports of counterfeit incidents and purchased parts / FIGURE 1 Replacement electronic parts for many avionic components are no longer produced or available from the original manufacturers, making servicing of the aircraft difficult. Furthermore, AS&D needs today account for less than 1% of the uses of electronics. The volumes, therefore, are too low and costs too high for the manufacturers of components to directly support the AS&D products that last more than 30 years. In fact, the problem has become so acute that the U.S. government has deemed it necessary to implement strict requirements and regulations on defense contractors for the prevention of counterfeit electronic components in products provided to the Department of Defense (DOD). Purchased parts involved Counterfeit incidents The current accepted definitions of http://www.qualityprogress.com

Table of Contents for the Digital Edition of Quality Progress - January 2015

Up Front
LogOn
Expert Answers
Keeping Current
Mr. Pareto Head
Total Quality’s Leader
Narrow(er) Focus
Dissecting the Differences
Separate Steps
Innovation Imperative
Measure for Measure
Quality in the First Person
Career Corner
Statistics Roundtable
Standards Outlook
QP Toolbox
QP Reviews
One Good Idea
Back to Basics

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