Are you in the dark when it comes to counterfeits?

Electronic Supply Chain Solutions is working day and night to help promote awareness about ways companies can midigate the risk associated with buying counterfeit electronic components. Many people turn to our site http://www.combatcounterfeits.com/ to learn the latest "tricks they play". ESCS known for thier Professor Quality has once again found new tecnology to "Combat Counterfeits.

While working in the dark Professor Quality discovered his finger print and everyone knows there are no two alike. That is where Alp Vision's "Fingerprint "is a real breakthrough in identifying genuine manufactured objects from fake ones based on digital images of the original product stored in a secure server. Fingerprint is based on a stored image which registers unique, microscopic differences generated by the manufacturing process and the raw material used.Digital imaging software identifies these unique characteristics of the image due to intrinsic differences even though objects are produced in series. Fingerprint is a Read Only solution which simply relies on the object "as is". It therefore cannot be counterfeited.

Typical applications are authenticating genuine mechanical parts of watches, automotive spare parts, medical devices and genuine spare parts of all kinds. Bottles, cans, flasks or other conditioning with metallic or plastic parts are also concerned.

Protect moulded or stamped parts:
Protect moulded or stamped parts that are mass produced objects such as Integrated Circuits (ICs) using a mould or using stamping techniques, the same unique “signature” will be present on all the objects produced with the same mould or using the same stamping tool. Therefore if a few moulds or stamps are used, only a few reference images are necessary. Toys, game chips, automotive parts, aerospace parts, electromechanical parts, and medicinal tablets are typical Fingerprint applications.

Contact AlpVision if you need to know more or how the Fingerprint solution can be applied to your Brand Protection and Gray Market Detection of your products.

Fingerprint is a trade mark of AlpVision SA and is part of the AlpVision digital imaging security solutions.

Lessons from the Automotive Supply Chain: Surviving a Downturn & How it May Effect the Aerospace Sector

Electronic Supply Chain Solutions provides this Article by Vince Pavlak as a quality lesson learned.
There have been numerous comparisons between the automotive and aerospace industries, and an October 2009 article from Aviation Week even asked, “Could Wichita become the next Detroit?” Many aircraft suppliers are learning from the automotive industry and some have recruited executives from the sector. Given the recent turmoil and challenges faced by the cyclicality of the automotive industry and its participants, the actions taken may provide valuable insights for the aerospace industry, which has historically also endured its share of volatility.
During the past 18 months, the automotive industry experienced one of the worst periods in its history. All industry participants, from original equipment manufacturers (OEMs) and suppliers, to automotive dealers, were affected. Suppliers experienced significant volume declines, immense liquidity constraints and a severe tightening of the credit markets. Few companies were adequately prepared, and all were required to adapt quickly to the new economic conditions and take significant actions to remain viable. This time period can truly be characterized as a fight for survival in which there were many casualties.
While the extraordinary government aid at the OEM level clearly helped to stabilize the industry, we have found that supplier survival came down to the following key factors…

Understanding customers, programs and parts
We are constantly surprised by how many suppliers believe they understand the profit generated on specific parts, programs and customers. However, after more thorough analysis, these gut feelings are often proven inaccurate. During a downturn, having a good understanding of where the profit is (and is not) can be critical to survival. In one example, we evaluated the standard cost and quote model for a $100 million supplier, noting the pricing model was omitting 20% of true cost, and that management was basing pricing and other critical strategic decisions on this flawed model.
As a supplier, it is also critical to understand which programs your parts ultimately end up on and which programs may be susceptible to market conditions or cancellation by the OEMs. Automotive suppliers that sold parts to the SUV and truck markets were more severely affected during the economic downturn than those that supplied more fuel efficient vehicles.
Managing and optimizing the cost structure
The best suppliers found creative ways to cut costs while mitigating negative impacts on the company’s longer-term prospects. Many suppliers were careful not to make cuts that affect the customer (e.g., sacrificing quality and delivery). Suppliers implemented numerous actions, including temporary wage/benefit reductions, in-sourcing of certain processing or services, improving asset utilization, and facility consolidation. While there was an obvious focus on reducing costs to conserve cash and enhance liquidity, we found the prosperous suppliers took this concept a step further by preparing an integrated cash flow/liquidity forecast model. This forecast model contained several key concepts, including (a) understanding product linkages to OEM programs, (b) sensitizing industry/OEM volumes and© flexing various cost structures. Suppliers with a deep understanding of their cost structure that were able to perform detailed financial planning were better equipped to manage through the downturn but more importantly, were proactive in developing plans and providing confidence to other stakeholders (lenders, customers, etc.) during the process.
Supply risk management
We believe that suppliers at all levels of the aerospace industry will receive increasing pressure from upstream customers (including the DoD) to proactively manage their supply base. Further, from a supplier standpoint, there will likely be more scrutiny on both the financial and operational metrics of the supplier’s business. An October 2008 Government Accounting Office report indicated that ”[the] DoD expects prime contractors to maintain internal corporate metrics to evaluate the health and performance of their subcontractors.” Further, Brett Lambert, the DoD’s director of industrial policy, noted:
“I’m worried about the second-, third- and fourth-tier vendors, the people who make the nozzles … that’s where we’re going to focus a lot of energy in the next few years.”
Ford Motor Company utilizes a Web-based system called Vontik as its global solution to gather more intelligence on its supply base, even going so far as to require suppliers to enter data prior to being awarded any new sourcing. It will be critical to ensure that suppliers at all levels are taking a proactive role in managing their own supply base, which includes understanding the extent of sole-source relationships, suppliers’ geographic footprints, contingency planning, etc. Providing comfort that there is a sound supplier management system in place might well become a criterion of future sourcing decisions.
Adapting (not abandoning) a longer-term business strategy
To prepare for a potential, or cope with an actual, down cycle, it is more critical than ever to understand the strategic direction of your company and how it aligns with the future marketplace. Making short-term decisions that are inconsistent with long-term strategy can be disastrous. Honest assessments of core competencies, manufacturing footprints, industry trends and technology shifts can provide valuable insight into the future direction of the company and its ability to be competitive. Also, it is crucial to maintain a convincing, viable, long-term plan; otherwise, customers may not be willing to source the company new work.
Being in the midst of a downturn represents an opportunity to re-evaluate the whole business model to refine the focus on delivering value. This evaluation could lead to the realization that a merger/acquisition is the preferred method for long-term growth and survival. Also, certain elements of the business that are without strategic or core value might present an opportunity for carve-out or liquidation.
Managing Debt and Liquidity

High debt levels prior to the automotive crisis caused many suppliers to end up insolvent. The suppliers that survived were able to maximize cash flows from working capital, as banks were not increasing exposure to the sector and in fact were more prone to exiting credits. Further, surviving suppliers were more sophisticated in terms of preparing flexible financial forecast models and reducing cash outflows. This allowed these suppliers to understand and plan for potential upcoming issues with their debt, whether it was the specific amount and timing of repayment, covenants or liquidity constraints.
While there now appears to be some loosening of credit and more willingness on part of lenders to work with troubled credits, the markets generally are still tight, and borrowing costs remain high, especially for lower tier suppliers. Ironically, many automotive suppliers are now experiencing liquidity constraints trying to fund the working capital needs and requisite capital/tooling expenditures as the industry slowly begins to recover and volumes increase.

In summary, those suppliers that were able to demonstrate the above factors were more likely and better positioned to survive the recent automotive downturn. Automotive suppliers actually are emerging from the downturn better positioned with lower cost structures, improved balance sheets, more reliable supply chains, fewer competitors and an enhanced mix of product offerings. While these principles have proven valuable during the crisis in the automotive industry, they can be applied to aerospace suppliers, as well, and are useful even during times of prosperity. Suppliers that demonstrate viability through the aforementioned key factors can make it clear to customers and other key constituents that they are well positioned for long-term success and, as such, are more likely to be chosen as winners in the long-term battle for survival.
Electronic Supply Chain Solutions is an AS9120 certified company that owns it's facilities in Clearwater FL ESCS owes and stocks both military and aerospace components with an estimated value in excess of a million dollars and has both factory and franchise relationships with many of the top tier original component manufacturers. Visit http://www.escs9120.com/ to learn more!

ESCS Believes Component Authentication and Screening is Important

Electronic Supply Chain Solutions would like for our customers to have some Quality Lessons Learned. The following webinar should provide these lessons.
ESCS does not have any affiliation with this webinar and only offers this information as a service to the electronics community.

IMAPS PDC Webinar Series:
Component Authentication and Screening
Wednesdays, July 14 and 21, 2010
All webinars will be held 12:00 noon - 1:00 pm EASTERN
Registration Deadline: July 13, 2010
Register On-line Now
Program Information | Target Audience | About the Presenter
Registration Details:
IMAPS Members - $125 per webinar; 2-course series - $200;
Non-members - $200 per webinar; 2-course series $375
(includes one-year complimentary individual membership in IMAPS)
________________________________________
Program Information
Counterfeit electronics have been reported in a wide range of products, including computers, telecommunications equipment, automobiles, avionics and military systems. Counterfeit electronic products include everything from very inexpensive surface mount capacitors and resistors to expensive microprocessors. Unfortunately, the counterfeit EEE component problem is growing rapidly and no signs of abatement are in sight.
The webinar begins with an introduction to electronic parts supply chain, the sources of authorized and unauthorized parts. Attendees will learn about the status of the electronic part distribution market and how it has changed over the past decade. The movement of the manufacturing and technology know-how across the globe will be covered to understand the international aspect of the counterfeit electronics supply chain. This part is followed by information on the extent of the counterfeit electronics problem with illustrative examples that emphasize the aspects of supply chain.
The webinar further covers the tools and techniques that engineers need to understand for determining the risk levels of components that require authentication. Basic inspection and electrical testing will be covered with an emphasis on the tools and techniques necessary for positive identification of parts that are not authentic in their representation. Attendees will also learn how to effectively engage specialist electrical and material testing laboratories in a cost effective manner to determine risk of counterfeit components.
Lecture topics in webinar will include:
• Electronic part supply chain
• Counterfeit parts: types and examples
• Sources of counterfeit parts
• Mitigation techniques and few anti-counterfeiting efforts
• Testing and characterization
• Electrical Characterization
o Optical Microscopy
o X-Ray Microscopy
o Scanning Acoustic Microscopy
o X-ray fluorescence Spectroscopy
o Environmental Scanning Electron Microscopy (ESEM) / Energy
Dispersive Spectroscopy (EDS)
o Materials Characterization Tools
Keywords: counterfeit EEE, supply chain, authentication, testing and characterization
________________________________________
Target Audience
Component engineers, Engineering managers, Procurement Managers, Quality Managers, Failure Analysts, Contracts personnel and anybody who is involved in policy making activities in fields of marketing or procurement of electronics parts or assemblies.
________________________________________
About the Presenter
Bhanu Sood is the Director of the Test Services and Failure Analysis (TSFA) Laboratory at the University of Maryland's Center for Advanced Life Cycle Engineering (CALCE). He holds Masters Degrees in Advance Materials Processing and Materials Science, and a Bachelors Degree in Mechanical Engineering.
His research areas include electronic materials characterization, electronics part authentication techniques, investigation into failure/degradation modes and mechanisms in lithium-ion batteries, electronic components, assemblies and, printed circuit board (PCB) materials. Prior to joining CALCE in 2005 Mr. Sood worked at U.S. Naval Research Laboratory (NRL) in the areas of embedded electronics, micro-power sources, Laser assisted micro-fabrication, characterization of electrically conductive polymeric formulations and advanced materials. His technical publications include papers on failure site isolation techniques, PCB materials, embedded electronics, energy storage systems and instrumentation for mechanical studies. Mr. Sood has taught numerous industry courses in the areas of electronics reliability, root cause failure analysis techniques and materials characterization tools.
Email: bpsood@calce.umd.edu

Additional information about counterfeits offered by Electronic Supply Chain Solutions can be found at www.combatcounterfeits.com

This ISO 9001 Quality Certificate smells fishy!

 How to Find Out if an ISO 9001 Certificate is Valid

The first thing you need to do when you are evaluating a potential supplier based on their ISO 9001 certificate is request that they provide you with a copy of the certificate itself. If the company is indeed certified, they shouldn't have a problem providing you with a copy of their certificate.  When you have it, then you can make the following checks:

1. Only registrars are allowed to give ISO 9001 certificates. An organization cannot self-grant a certificate. So, look for the name of the registrar (e.g., DNV, BSI, ABS etc.).

2. Look for the name of the accreditation body (e.g., ANAB, UKAS, etc.). If you see a stamp from an accreditation body, you can find out if this accreditation body is a member of the International Accreditation Forum (IAF). If there is no stamp from an accreditation body on the certificate then you should be suspicious as to whether the registrar is competent to audit. A registrar may opt to not seek accreditation, but that may or may not be an indication of their ability and competency.

Here is an excerpt from the ISO web site: "In most countries, accreditation is a choice, not an obligation and the fact that a certification body is not accredited does not, by itself, mean that it is not a reputable organization. For example, a certification body operating nationally in a highly specific sector might enjoy such a good reputation that it does not feel there is any advantage for it to go to the expense of being accredited. That said, many certification bodies choose to seek accreditation, even when it is not compulsory, in order to be able to demonstrate an independent confirmation of their competence."

3. If there is a registrar name on the certificate, the quickest way to find out if the certificate is valid is to call the registrar directly and ask them to verify that they have issued such a certificate. Explain to their registrar what you are trying to do and they should be able to put you in touch with the specific department that can help with you with such situations.

4. Bear in mind that if an organization certifies Plant A, it doesn't mean that Plants B and C are also certified. Usually the certificate will tell you exactly which processes and locations are certified. So verify that your vendor's specific location and processes are certified.

5. Ensure that the certificate has not expired. If it has, then you can ask the company the reason why the certificate is expired.

Valid reasons could be:

    a. They already had their recertification audit but the registrar failed to provide the audit report on time and therefore they were unable to answer the nonconformities on time. In this case you should be able to get a copy of the recertification audit report. I have experienced this situation and the organization truly may not be at fault.

    b. They were not ready for their recertification audit and decided to postpone it. In this case, you should expect to see an audit agenda, describing the new audit date. I have seen this situation also. In this case the organization itself is admitting they have shortcomings. See if they are actually working on improving the system.

6. If you have some time and access to the internet, you can actually go to the registrar web site directly and look for a list of their clients. An easy Google search could use the search words: ISO 9001 registrar. 

Not all registrars are created equal

Like it or not, not all registrars conform to the same audit standards or principles. Simply put, some registrars are better than others. I'm not being biased, but rather speaking from my own experience and what I hear in the ISO standards world.

In the case of an accredited registrar that is operating while its accreditation is under suspension, they are not authorized by the accreditation to give certificates bearing the logo of the accrediting agency (e.g., ANAB, UKAS, etc.) until their auditing practices are up to par with the accreditation body auditing practices and the ISO 9001 auditing standard as well.

When an organization is audited by a registrar that doesn't have good practices, the only one that stands to lose is the organization, because they are made to believe that their management system is conforming to the standard, when in fact, such a management system may have many opportunities for improvement. In some cases, the need for this improvement is severe. The problem is not just “not conforming to the standard” but rather not getting the full benefit of being certified, which means improving the processes and the business.

Of course, all audits are based on a sampling plan, however if a registrar decides to audit less days than those recommended by the International Accreditation Forum or another similar entity, then you may not be able to truly obtain a representative sample from which to audit.

If it still smells...

A good supplier should be able to help you improve your quality by providing you with excellent products and services.

Miriam Boudreaux is the author  of this article and President of Mireaux Management Solutions, a consulting firm headquartered in Houston, TX.

Quality lessons learned is a service of Electronic Supply Chain Solutions Inc.