®
                    A WORLD OF INFORMATION AT YOUR FINGERTIPS


      Overview of Counterfeit and Substandard Parts in t...
®
                    INTRODUCTION TO ERAI, INC.

         • Founded in 1995, ERAI is an information services
           o...
®
                    ERAI’S FIRST COUNTERFEIT INVESTIGATION


     • First counterfeit part approximately 10 years ago
  ...
®
                    SOME ROOT CAUSES OF COUNTERFEITS


         • Chinese governments willingness to overlook
          ...
®
                        TOTAL COUNTERFEIT INCIDENTS:

    OCMs, Distributors, Board Assemblers, Prime/Sub Contractors 20...
®
                    ALLMOST PERFECT E-WASTE




                    TC58FVM6T2AFT65
                    Manufacturer: TO...
®
                       ALLMOST PERFECT E-WASTE

                    TC58FVM6T2AFT65 (TOSHIBA)




                      ...
®
                       ALLMOST PERFECT E-WASTE

                    TC58FVM6T2AFT65 (TOSHIBA)




                      ...
®
                       ALLMOST PERFECT E-WASTE

                    TC58FVM6T2AFT65 (TOSHIBA)




                      ...
®
                       ALLMOST PERFECT E-WASTE

                    TC58FVM6T2AFT65 (TOSHIBA)




                      ...
®
                       ALLMOST PERFECT E-WASTE

                    TC58FVM6T2AFT65 (TOSHIBA)




                      ...
®
                       ALLMOST PERFECT E-WASTE

                    TC58FVM6T2AFT65 (TOSHIBA)




                      ...
®
                       ALLMOST PERFECT E-WASTE

                    TC58FVM6T2AFT65 (TOSHIBA)




                      ...
®
                       ALLMOST PERFECT E-WASTE

                    TC58FVM6T2AFT65 (TOSHIBA)




                      ...
®
                       ALLMOST PERFECT E-WASTE

                    TC58FVM6T2AFT65 (TOSHIBA)




                      ...
®
                       ALLMOST PERFECT E-WASTE

                    TC58FVM6T2AFT65 (TOSHIBA)




                      ...
®
                       ALLMOST PERFECT E-WASTE

                    TC58FVM6T2AFT65 (TOSHIBA)




                      ...
®
                    IS DETECTION EASY?




                    A World of Information at Your Fingertips
© 2009 ERAI, In...
®
                    IS DETECTION EASY?




                    A World of Information at Your Fingertips
© 2009 ERAI, In...
®
                    ERAI RISK MITIGATION TOOLS




                      THE WORLD LEADER IN COUNTERFEIT
               ...
®
                    ERAI BENEFITS

            • Mitigate Risk Associated with Parts, Customers,
              & Vendors...
®
                    HIGH RISK PARTS SEARCH STEP 1




                    A World of Information at Your Fingertips
© 20...
®
                    HIGH RISK PARTS SEARCH STEP 2




                    A World of Information at Your Fingertips
© 20...
®
                    HIGH RISK PARTS SEARCH STEP 3




                    A World of Information at Your Fingertips
© 20...
®
                    HIGH RISK PARTS DATABASE




                     A world of information at your fingertips
© 2009 E...
®
                    ERAI MATERIAL SCRUBBER

                                    THE FILE




                     A worl...
®
                    ERAI MATERIAL SCRUBBER

                                      Step 1




                     A worl...
®
                    ERAI MATERIAL SCRUBBER

                                      Step 2




                     A worl...
®
                    ERAI MATERIAL SCRUBBER

                                    REPORT




                     A world ...
®
                    ERAI MATERIAL SCRUBBER

                         Scrubber Management Suite




                     ...
®
                    COMPLAINTS SEARCH STEP 1




                    A World of Information at Your Fingertips
© 2009 ER...
®
                    COMPLAINTS SEARCH STEP 2




                    A World of Information at Your Fingertips
© 2009 ER...
®
                    COMPLAINTS SEARCH STEP 3




                    A World of Information at Your Fingertips
© 2009 ER...
®
                    COMPLAINTS SEARCH STEP 4




                    A World of Information at Your Fingertips
© 2009 ER...
®
                    COMPLAINTS SEARCH STEP 5




                    A World of Information at Your Fingertips
© 2009 ER...
®
                    COMPLAINTS SEARCH STEP 6




                    A World of Information at Your Fingertips
© 2009 ER...
®
                    THE SUPPLY CHAIN IS COMPROMISED

         • Fab-less IC production continues to grow
         • Scra...
®
                    SUMMARY


            • Mitigate risk-parts, customers and vendors
            • Enhance quality man...
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ERAI Risk Mitigation Tools to Address Today’s Complex Global Marketplace - Snider

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Presented at October 1, 2009 Counterfeit Workshop

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ERAI Risk Mitigation Tools to Address Today’s Complex Global Marketplace - Snider

  1. 1. ® A WORLD OF INFORMATION AT YOUR FINGERTIPS Overview of Counterfeit and Substandard Parts in the Global Hi-tech Electronics Supply Chain ERAI Risk Mitigation Tools to Address Today’s Complex Global Marketplace October 1, 2009 Mark Snider President ERAI, Inc. (mark@erai.com) www.erai.com © 2009 ERAI, Inc.
  2. 2. ® INTRODUCTION TO ERAI, INC. • Founded in 1995, ERAI is an information services organization that monitors, investigates and reports issues affecting the global hi-tech electronics supply chain. • ERAI provides tools to mitigate risks on substandard parts, counterfeit parts, vendors and even customers. • Subscribers include OEMs, CMs, Distributors, OCMs, government agencies and industry associations. • Actively involved in a number of committees and task forces addressing the counterfeit issue. A world of information at your fingertips © 2009 ERAI, Inc.
  3. 3. ® ERAI’S FIRST COUNTERFEIT INVESTIGATION • First counterfeit part approximately 10 years ago • Toshiba (Japan) verses Samsung (Korea) • Mid Nineties sees increase of outsourced manufacturing due to cheap labor markets • Taiwan, Singapore, Malaysia • Mexico • South America • India • China A world of information at your fingertips © 2009 ERAI, Inc.
  4. 4. ® SOME ROOT CAUSES OF COUNTERFEITS • Chinese governments willingness to overlook the problem • Enormous pool of cheap labor • The ROHS Initiative • E-Waste – The cost of going Green • Outsourced contract manufacturing driven by price considerations over quality • Internet makes global market access easy A world of information at your fingertips © 2009 ERAI, Inc.
  5. 5. ® TOTAL COUNTERFEIT INCIDENTS: OCMs, Distributors, Board Assemblers, Prime/Sub Contractors 2005 - 2008 10,000 9,356 9,000 8,600 8,139 8,000 7,000 6,000 5,000 3,868 4,000 3,000 2,000 1,000 0 2005 2006 2007 2008 (est.) US Department of Commerce – Preliminary Data (As of March 4, 2009) A world of information at your fingertips © 2009 ERAI, Inc.
  6. 6. ® ALLMOST PERFECT E-WASTE TC58FVM6T2AFT65 Manufacturer: TOSHIBA A world of information at your fingertips © 2009 ERAI, Inc.
  7. 7. ® ALLMOST PERFECT E-WASTE TC58FVM6T2AFT65 (TOSHIBA) A world of information at your fingertips © 2009 ERAI, Inc.
  8. 8. ® ALLMOST PERFECT E-WASTE TC58FVM6T2AFT65 (TOSHIBA) A world of information at your fingertips © 2009 ERAI, Inc.
  9. 9. ® ALLMOST PERFECT E-WASTE TC58FVM6T2AFT65 (TOSHIBA) A world of information at your fingertips © 2009 ERAI, Inc.
  10. 10. ® ALLMOST PERFECT E-WASTE TC58FVM6T2AFT65 (TOSHIBA) A world of information at your fingertips © 2009 ERAI, Inc.
  11. 11. ® ALLMOST PERFECT E-WASTE TC58FVM6T2AFT65 (TOSHIBA) A world of information at your fingertips © 2009 ERAI, Inc.
  12. 12. ® ALLMOST PERFECT E-WASTE TC58FVM6T2AFT65 (TOSHIBA) A world of information at your fingertips © 2009 ERAI, Inc.
  13. 13. ® ALLMOST PERFECT E-WASTE TC58FVM6T2AFT65 (TOSHIBA) A world of information at your fingertips © 2009 ERAI, Inc.
  14. 14. ® ALLMOST PERFECT E-WASTE TC58FVM6T2AFT65 (TOSHIBA) A world of information at your fingertips © 2009 ERAI, Inc.
  15. 15. ® ALLMOST PERFECT E-WASTE TC58FVM6T2AFT65 (TOSHIBA) A world of information at your fingertips © 2009 ERAI, Inc.
  16. 16. ® ALLMOST PERFECT E-WASTE TC58FVM6T2AFT65 (TOSHIBA) A world of information at your fingertips © 2009 ERAI, Inc.
  17. 17. ® ALLMOST PERFECT E-WASTE TC58FVM6T2AFT65 (TOSHIBA) A world of information at your fingertips © 2009 ERAI, Inc.
  18. 18. ® IS DETECTION EASY? A World of Information at Your Fingertips © 2009 ERAI, Inc.
  19. 19. ® IS DETECTION EASY? A World of Information at Your Fingertips © 2009 ERAI, Inc.
  20. 20. ® ERAI RISK MITIGATION TOOLS THE WORLD LEADER IN COUNTERFEIT COMPONENT INFORMATION AND RISK MITIGATION SERVICES A world of information at your fingertips © 2009 ERAI, Inc.
  21. 21. ® ERAI BENEFITS • Mitigate Risk Associated with Parts, Customers, & Vendors • Counterfeit, Faulty & High Risk Parts Detailed Reports • Bill of Material/Assembly Cross Checking Against High-Risk Parts Database • Vendor and Customer Analysis • Proactively Prevent Losses & Recurring Problems • Reporting and Tracking Data on Corporate Identity Theft • Review Member Profiles for Membership Status and Quality Achievements A world of information at your fingertips © 2009 ERAI, Inc.
  22. 22. ® HIGH RISK PARTS SEARCH STEP 1 A World of Information at Your Fingertips © 2009 ERAI, Inc.
  23. 23. ® HIGH RISK PARTS SEARCH STEP 2 A World of Information at Your Fingertips © 2009 ERAI, Inc.
  24. 24. ® HIGH RISK PARTS SEARCH STEP 3 A World of Information at Your Fingertips © 2009 ERAI, Inc.
  25. 25. ® HIGH RISK PARTS DATABASE A world of information at your fingertips © 2009 ERAI, Inc.
  26. 26. ® ERAI MATERIAL SCRUBBER THE FILE A world of information at your fingertips © 2009 ERAI, Inc.
  27. 27. ® ERAI MATERIAL SCRUBBER Step 1 A world of information at your fingertips © 2009 ERAI, Inc.
  28. 28. ® ERAI MATERIAL SCRUBBER Step 2 A world of information at your fingertips © 2009 ERAI, Inc.
  29. 29. ® ERAI MATERIAL SCRUBBER REPORT A world of information at your fingertips © 2009 ERAI, Inc.
  30. 30. ® ERAI MATERIAL SCRUBBER Scrubber Management Suite A world of information at your fingertips © 2009 ERAI, Inc.
  31. 31. ® COMPLAINTS SEARCH STEP 1 A World of Information at Your Fingertips © 2009 ERAI, Inc.
  32. 32. ® COMPLAINTS SEARCH STEP 2 A World of Information at Your Fingertips © 2009 ERAI, Inc.
  33. 33. ® COMPLAINTS SEARCH STEP 3 A World of Information at Your Fingertips © 2009 ERAI, Inc.
  34. 34. ® COMPLAINTS SEARCH STEP 4 A World of Information at Your Fingertips © 2009 ERAI, Inc.
  35. 35. ® COMPLAINTS SEARCH STEP 5 A World of Information at Your Fingertips © 2009 ERAI, Inc.
  36. 36. ® COMPLAINTS SEARCH STEP 6 A World of Information at Your Fingertips © 2009 ERAI, Inc.
  37. 37. ® THE SUPPLY CHAIN IS COMPROMISED • Fab-less IC production continues to grow • Scrapping procedures can become compromised • E-Waste is likely to continue to grow • No one is immune in the supply chain • RMAs from customers back to franchise or factories • Stock rotations back to factory from franchise • Create a program to address the issue-it’s not going away anytime soon A world of information at your fingertips © 2009 ERAI, Inc.
  38. 38. ® SUMMARY • Mitigate risk-parts, customers and vendors • Enhance quality management and procurement practices • Proactively prevent losses, recurring Problems • Stay informed with real time information on hi-risk parts • Encourage your vendors and sub contractors to get involved and be proactive A world of information at your fingertips © 2009 ERAI, Inc.

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