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Jean-Pierre Zaffiro Global Product Director, Tower Cranes, Manitowoc Cranes May 12, 2011 Counter the counterfeit Identifying and managing counterfeit tower.

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Presentation on theme: "Jean-Pierre Zaffiro Global Product Director, Tower Cranes, Manitowoc Cranes May 12, 2011 Counter the counterfeit Identifying and managing counterfeit tower."— Presentation transcript:

1 Jean-Pierre Zaffiro Global Product Director, Tower Cranes, Manitowoc Cranes May 12, 2011 Counter the counterfeit Identifying and managing counterfeit tower crane parts

2 Counter the counterfeit2 2 What is the problem? Marked increase in illegal copies Starting to target Europe, after Asia and Middle East Easier access – strong internet presence Increased number of recorded incidents Difficult to identify Counterfeits infringe patents, trademarks, legal contracts

3 Counter the counterfeit3 Legal: Does not comply with manufacturer’s specification Safety: Insufficient strength due to sub-standard manufacturing Liability: No warranty and no insurance to cover any loss Why are counterfeit components dangerous?

4 Counter the counterfeit4 Strength: Some counterfeits use substandard steel. Causing a higher risk of material failure, resulting in a higher risk of crane instability Resilience: Very important as jerking can occur. High- grade steel is more ductile, especially in cold climates. Counterfeiters do not guarantee what steel grade they use as they buy it from questionable suppliers Safety issue Source of steel, strength and ductility

5 Counter the counterfeit5  Structural welds on a counterfeit may look good on the outside Only testing can reveal the truth Counterfeit tower section weld joints have poor workmanship and do not reach an acceptable standard What is their standard of welding? Do counterfeiters test their welding? Safety issue Welding quality

6 Counter the counterfeit6  A good quality management system is essential for high quality and consistent products Counterfeiters copy dimensions, not manufacturing standards Manitowoc’s Quality Management System is certified to ISO9001 by the German certification body TÜV Counterfeiters do not operate a quality checking system and the product does not have a guarantee Safety issue Manufacturing standard

7 Counter the counterfeit7 Working cycle is the number of work cycles before the component fails Governed by steel strength and grade, standard of manufacturing, welding, etc. Counterfeiters use sub-standard steel, inconsistent manufacturing processes, weld joints, etc. What can you expect? Short product life Counterfeiters do not test parts for fatigue — Original Manitowoc components will fully withstand the stresses imposed on them for many years Our success rests on a respect for crane construction standards, 80 years of experience in design and calculation and the latest state- of-the-art production methods. Safety issue Working (fatigue) cycle

8 Counter the counterfeit8 Why do we care? Safety, safety, safety If it does not comply with the manufacturer’s specification, it could be dangerous! Cost savings will be small Accidents are expensive Generally, you get what you pay for

9 Counter the counterfeit9 Counterfeit components Huge risk, little reward Pins Masts Motors Fixing angles

10 Counter the counterfeit10 Counterfeit components Huge risk, little reward Fixing angles

11 Counter the counterfeit11 Counterfeit components Huge risk, little reward Fixing angles

12 Counter the counterfeit12Counter the counterfeit12 Consequences for manufacturer Loss of revenue Reduced return on investment in R&D Undermines differentiation strategy Loss of reputation

13 Counter the counterfeit13Counter the counterfeit13 Consequences for user Major accident Manufacturer warranty is void Loss of CE-mark (within Europe)

14 Counter the counterfeit14Counter the counterfeit14 Manitowoc fights counterfeits

15 Counter the counterfeit15 Fatigue test on counterfeit Mast sections life cycle: Two original and one counterfeit Potain Copy Counterfeit fails before the designed limited cycle

16 Counter the counterfeit16Counter the counterfeit16 Structural integrity investigation Surface protection tests Standard comb test: Outer layer and primer degraded, early corrosion Salt spray test: Surface protection quickly degraded Control sample (expected result) Test samples

17 Counter the counterfeit17Counter the counterfeit17 Structural integrity investigation Welding Visual variations in quality Overall welding defects: Poor weld fusions Worm-hole porosity Lack of root or inter-run fusion

18 Counter the counterfeit18Counter the counterfeit18 Structural integrity investigation Steel grain Micrographical examination Inconsistent steel grain size Significant areas of large grains

19 Counter the counterfeit19 Manitowoc Chinese factory action plan New process now in place at our Chinese factory

20 Counter the counterfeit20Counter the counterfeit20 Manitowoc’s internal activity Ongoing investigation process to identify counterfeiters Internal task force to report cases Dealer education program and specific training Making technicians available for on-site checks

21 Counter the counterfeit21Counter the counterfeit21 Manitowoc’s external activity Promoting issue in trade media Improving information available to end users and authorities Tighter legal agreements, contracts, patents and trademarks Improving information security Working with trade associations

22 Counter the counterfeit22Counter the counterfeit22 Manitowoc’s external activity Promoting issue in trade media

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