Presentation is loading. Please wait.

Presentation is loading. Please wait.

Company Confidential Registration Management Committee (RMC) 1 Counterfeit Parts Prevention & AS9100 Atlanta, GA July 23, 2010 Kevin Beard Auditor Workshop.

Similar presentations


Presentation on theme: "Company Confidential Registration Management Committee (RMC) 1 Counterfeit Parts Prevention & AS9100 Atlanta, GA July 23, 2010 Kevin Beard Auditor Workshop."— Presentation transcript:

1 Company Confidential Registration Management Committee (RMC) 1 Counterfeit Parts Prevention & AS9100 Atlanta, GA July 23, 2010 Kevin Beard Auditor Workshop Atlanta, GA July 22-23, 2010

2 Atlanta, GA July 22-23, 2010 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 Atlanta, GA July 22-23, 2010 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 Manufacturer’s (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 Atlanta, GA July 22-23, 2010 Counterfeit Parts Origin 4

5 Atlanta, GA July 22-23, 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

6 Atlanta, GA July 22-23, Counterfeit Overview

7 Atlanta, GA July 22-23, How Counterfeits Enter The Supply Chain 7

8 Atlanta, GA July 22-23, Counterfeit Overview 8

9 Atlanta, GA July 22-23, Counterfeit Overview 9

10 Atlanta, GA July 22-23, 2010 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 Source: Dept of Commerce 10

11 Atlanta, GA July 22-23, Due Diligence Is Essential 11

12 12

13 Atlanta, GA July 22-23, 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.

14 Atlanta, GA July 22-23, 2010 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 Against Counterfeiting and Piracy (CACP) 14

15 Atlanta, GA July 22-23, Industry Working Together G-19 SAE G-19 NASA JPL DOD ERAI IDEA GIDEP AIA Certification Bodies Internat. Expansion Accreditation Bodies Distributor Community Industry Primes

16 Atlanta, GA July 22-23, 2010 G-19 The Way Forward 16 AS 5553 AS 6081 AS TBD

17 Atlanta, GA July 22-23,

18 Atlanta, GA July 22-23, 2010 AS5553 Focus Parts Availability Purchasing Process Supply Chain Traceability Procurement Contract Requirements Product Assurance Material Control Reporting 18

19 Atlanta, GA July 22-23, 2010 AS 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 Atlanta, GA July 22-23, Brokers Independent Franchise Commercial Defense Space Inspection Test The Way Forward

23 Atlanta, GA July 22-23, 2010 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 Atlanta, GA July 22-23, 2010 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 –Distributor s 24

25 Atlanta, GA July 22-23, 2010 Counterfeit Parts & The Industry Model DOD, NASA, Civil Aviation, Etc. Primes Sub-System Component Sub-Component Parts OCMs & Aftermarket Franchised Distributor Other Type Distributor Stocking Broker Independent Other Sources Surplus Open Market Recyclers Etc. Industry Supply Chain Design Resp Not Design Resp Counterfeit Parts Entering the Supply Chain More Complex Procurements In Supply Chain 25

26 Atlanta, GA July 22-23, 2010 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

27 Atlanta, GA July 22-23, 2010 SAE AS5553 & Risk Hierarchy Lowest Risk Highest Risk Supplier with GIDEP & ERAI Alerts _ OC M Source of Supply 100% _ Small % Life Test _ 1X Visual Inspection In Business < 1 Year & Unknown Financials _ _ Supplier Audited & Approved Life Dependent _ Non- Critical Test / Insp Population Test & Insp Level Supplier Assessment Product & Application ?? How Can This Approach Be Applied in AS 9100b/c ?? Design Lifecycle ApproachConfiguration Management ID/TraceabilitySCM Strategy Risk Hierarchy in AS 9100c 27

28 Atlanta, GA July 22-23, 2010 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

29 Atlanta, GA July 22-23, 2010 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 Organization’s 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

30 Atlanta, GA July 22-23, Primes Sub-System Component Sub-Component Parts OCMs & Aftermarket Franchised Distributor Other Type Distributor Stocking Broker Independent Other Sources Surplus Open Market Recyclers Etc. Scenario 1 Direct Purchase of OCM Parts DOD, NASA, Civil Aviation, Etc. Where Are The Risks? Where Do We Focus The Audit ControlControl

31 Atlanta, GA July 22-23, Primes Sub-System Component Sub-Component Parts OCMs & Aftermarket Franchised Distributor Other Type Distributor Stocking Broker Independent Other Sources Surplus Open Market Recyclers Etc. Scenario 2 Purchase From Franchised Distributor DOD, NASA, Civil Aviation, Etc. Where Are The Risks? Where Do We Focus The Audit COTC CM? ControlControl

32 Atlanta, GA July 22-23, Primes Sub-System Component Sub-Component Parts OCMs & Aftermarket Franchised Distributor Other Type Distributor Stocking Broker Independent Other Sources Surplus Open Market Recyclers Etc. Scenario 3 Purchase From Other Type of Distributor DOD, NASA, Civil Aviation, Etc. Where Are The Risks? Where Do We Focus The Audit Compliance Verification Compliance Verification ControlControl No COTC

33 Atlanta, GA July 22-23, 2010 Common QMS Areas of CP Prevention Challenges 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

34 Atlanta, GA July 22-23, 2010 Audit Approach to CP Prevention Themed Approach to Audits –Parts Qualification –CM & Traceability Controls –Outsourcing/Supply Chain Control –Others?? 34

35 Atlanta, GA July 22-23, 2010 Parts Qualification Focused Audits Audit Focus - Procuring Organizations Part Life Planning - Engineering determination of Part meeting Design Need (Current Need, Future Need, Obsolescence, Etc.) Part Qualification Approach Reliability, Material Baselining, Etc. Lot Control Against Know Qualified Part Procurement Strategy (Current Need, Future Need, Obsolescence, Etc.) Procurement Flowdowns for : Configuration Management, Change Notification, Sub Tier Supplier Sources, etc. Source Integrity Risk Impact on Initial Qualification and Acceptance Approach Risk Evaluation on Future Procurement Impacts to Initial Qualification Inspection Against Qualification Unite Where in AS9100 can you audit these activities?? 35

36 Atlanta, GA July 22-23, 2010 CM & Traceability Control Focused Audits Audit Focus – Franchise Distributor Design Change with No Part Number Changes Material Substitutions By OCM With No Part Number Changes OCM Discontinuing Production of Specifically Qualified Component Strength of COTC Chain of Custody –Parts Control (Segregation, Bonded Storage, etc.) –Lot Storage (Segregation by Lot Code –Part Handling & Packaging Audit Focus - OCM  Engineering  Procurement  Manufacturing  Inspection & Test  Parts Control (Segregation, Bonded Storage, etc.)  Lot Traceability  Lot Storage (Segregation by Lot Code)  Part Handling & Packaging Where in AS9100 can you audit these activities?? 36

37 Atlanta, GA July 22-23, 2010 Outsourcing/Supply Chain Control Focused Audits Supportive Requirements In AS9100c e Risks have been identified (See 7.1.2) D&D Planning Shall consider the ability to produce, inspect, test and maintain the product The Organization shall Define ……. The drawings, parts lists, and specifications necessary to define the configuration and the design features of the product The organization shall ensure that purchased product conforms to req’ts. The type and extent of control applied…..Dependent on the effect….. on subsequent product realization or the final product The Organization shall evaluate and select suppliers based on their ability to supply product in accordance with organ. Req’ts f determine and manage the risk when selecting and using suppliers Various others 37

38 Atlanta, GA July 22-23, 2010 Primes Sub-System Component Sub-Component Parts OEMs & Aftermarket Franchised Distributor Other Type Distributor Stocking Broker Independent AS 9100 & AS 5553 AS9120 & AS6081 Other Sources Surplus Open Market Recyclers Etc. DOD, NASA, Civil Aviation, Etc. AS Standards Used for CP Prevention 38

39 Atlanta, GA July 22-23, 2010 Challenge to Organization’s Auditors Review the AS9100c standard with a view towards –The Industry Structure »Supply Chain Structure Influence On Product –The Challenges Facing the Industry »Counterfeit Part Risk In Organization’s Supply Chain –Our Ability to Interact with Organization’s during Audits with Regards to Counterfeit Parts Prevention »Appropriate Interpretations & Application Of AS9100 In Our Audits 39

40 Atlanta, GA July 22-23, 2010 Linking AS9100c to AS5553 AttributeAS9100AS 5553 Planning of Product Realization 7.1.a - Object & Requirements for the product 7.1.c – Req’ts for V,V,M,M,I,T of product4.1 – CP Parts Control Plan – Obsolescence Control Plan – Process for managing RiskApp A.1-Parts Availability App A.2 - Obsolescence Management – CM appropriate to the Product Review of Req’ts a – Req’ts Stated by Customer b – Req’ts not stated but necessary for intended use c – Statutory/Regulatory a – Product Requirements are determined e – Risks have been IdentifiedApp A.1-Parts Availability App A.2 - Obsolescence Management d – SR of the product are determined 40

41 Atlanta, GA July 22-23, 2010 Linking AS9100c to AS5553 AttributeAS9100AS 5553 Design7.3.1 – D&D planning shall consider ability to produce, inspect, test and maintain product App A.1 – Design, proposal and Program planning b – Provide info for Purch, & Prod d – Specify product Characteristics essential for safe & proper use e – Specify CI, KC and specific actions to be taken for these items – Drawings, Part lists and Specs. Necessary to define config – material, process, manufact, & Assembly data needed to ensure conformity of product 41

42 Atlanta, GA July 22-23, 2010 Linking AS9100c to AS5553 AttributeAS9100AS 5553 Purchasing – org shall ensure that product conforms……. The type and extent of control applied…. Dependent upon effect…… – specify quality req’ts to minimize risk of being provided CP App B – Procurement Approach – The org shall evaluate & Select suppliers based on their ability to supply… a – Assess sources to determine risks of receiving CP App B – Procurement Approach f – Determine & Manage risk when selecting & using suppliers a – Assess sources to determine risks of receiving CP d – Assure that sources are maintaining effective processes for mitigating risks of supplying CP e – Assess and mitigate risks of procuring CP from Sources other than ECM or Auth. Suppliers g – If supplier/intermediaries do not have CP control plan, a risk analysis is req’d. App B – Procurement Approach a – Req’ts for approval of prod, procedures, processes & Equip c – QMS req’ts Identification4.1.2.f – Specify Supply Chain Traceability through all supplier intermediaries App C – Supply Chain Traceability g – Flowdown of applicable reqt’s including customer req’ts4.1.2.g – flow down applicable req’ts for CP Control to contractor/sub contractors. App D – Procurement Contract Requirements – Org shall ensure adequacy of purch req’ts prior to comm. w/supplier e – Assess and mitigate risks of procuring CP from Sources other than ECM or Auth. Suppliers Verif of Purch Product – Establ & Implement inspect. Activities necessary for ensuring that product meets req’ts – The rigor of verification process shall be commensurate with product risk – obtain evidence of conformity of product from supplier & review documentation App C – Supply Chain Traceability – Inspection of product upon receiptApp E.1.1 – Documents and Packaging Inspection 42

43 Atlanta, GA July 22-23, 2010 Linking AS9100c to AS5553 AttributeAS9100AS 5553 Production Planning a – The availability of information that describes characteristics of product h – evidence that all production I&V have been completed k – Criteria for workmanship – Establish, impl, & maintain process for managing CI/KC Production7.5.3 – The org shall maintain the ID of the Config of product…… – Where traceability is a req’t, the org shall control the unique ID of product and maintain records f – If traceability is purchased parts is unavailable/suspect, a documented risk assessment is required. Inspection8.2.4 – The org shall M/M the characteristics of the product to verify that prod. req’ts are met. App E – Product Assurance a – Criteria for Accept/Reject – Where CI/KC are ID, org shall ensure control and monitoring – Where org uses sample inspection…… 43

44 Atlanta, GA July 22-23, 2010 In Closing Significant Challenges Industry Focus Ramping Up. What Part will We Play in Solving this Industry Problem? Your Input Is Invited Your Audit Efforts in this Area are Needed! 44

45 Atlanta, GA July 22-23, 2010 Counterfeit Part Prevention CounterfeitKnown Good Part Which Device Do You Want In The Airplane you are flying on? Questions? 45


Download ppt "Company Confidential Registration Management Committee (RMC) 1 Counterfeit Parts Prevention & AS9100 Atlanta, GA July 23, 2010 Kevin Beard Auditor Workshop."

Similar presentations


Ads by Google