The document outlines the requirements and strategies regarding counterfeit parts as per ISO standards, specifically highlighting the definitions, sources, impacts, and mitigation strategies for counterfeit issues. It emphasizes the importance of prevention, detection, and proper disposition of counterfeit items within supply chains to minimize risks to safety, reliability, and corporate reputation. Detailed steps are provided for procurement, supplier training, and actions to take when counterfeit parts are suspected or identified.

1. Counterfeit Part
Awareness
Date: XXth August 2024
Prepared by: Jasmin

2. ISO 9001 : 2015 / MS ISO 9001 : 2015 & EN9100 : 2018(AS9100D)
Counterfeit Requirement
AS9100D Clause 8.1.4

3. ISO 9001 : 2015 / MS ISO 9001 : 2015 & EN9100 : 2018(AS9100D)
What is Counterfeit?
Any unauthorized copy, imitation, substitute or
modified part that is knowingly misrepresented as a
specified genuine part of an OEM or authorized
manufacturer.
Definition
Examples of counterfeit part:
- Used parts/components represented as new.
- Parts from unapproved manufacturers represented
as manufactured by the approved source.

4. ISO 9001 : 2015 / MS ISO 9001 : 2015 & EN9100 : 2018(AS9100D)
Counterfeit Item Examples

5. ISO 9001 : 2015 / MS ISO 9001 : 2015 & EN9100 : 2018(AS9100D)
Source of Counterfeit Part
This slide shows a flow for an electronic component, however anything can be
counterfeited. Counterfeiting is a complex criminal enterprise.
Counterfeit parts can come from many different sources.

6. ISO 9001 : 2015 / MS ISO 9001 : 2015 & EN9100 : 2018(AS9100D)
Impact of Counterfeit Part
1. Personal Injury due to functional failure of
airplane.
2. Reduced Reliability and product recall.
3. Potential loss of contract.
4. Shutdown of manufacturing line.
5. Negative cost and schedule impacts.
6. Penalties for companies and individuals.
7. Damage to company image.

7. ISO 9001 : 2015 / MS ISO 9001 : 2015 & EN9100 : 2018(AS9100D)
Impact of Counterfeit Part
Counterfeit
Problem
Perception
Reality of the counterfeit
problem
Global impact on industry

8. Avoidance Detection Mitigation Disposition
ISO 9001 : 2015 / MS ISO 9001 : 2015 & EN9100 : 2018(AS9100D)
Strategies to Eliminate Counterfeit
In acquiring
counterfeit parts
Of counterfeit
part before use
Of Issues due to
counterfeits
Of Counterfeit
items

9. ISO 9001 : 2015 / MS ISO 9001 : 2015 & EN9100 : 2018(AS9100D)
Avoidance
“Most cost effective step in the process”
Strategies to Eliminate Counterfeit

10. ISO 9001 : 2015 / MS ISO 9001 : 2015 & EN9100 : 2018(AS9100D)
Avoidance of Counterfeit
Lowest
counterfeit risk
Highest
counterfeit risk
Highest
Confidence in
Authenticity
Lowest
Confidence in
Authenticity
Original Component
Manufacturer (OCM)/ Original
Equipment Manufacturer (OEM)
Authorized Distributor
Independent Distributor
Broker Distributor
Unknown Source

11. ISO 9001 : 2015 / MS ISO 9001 : 2015 & EN9100 : 2018(AS9100D)
Avoidance Strategies
a. Procurement
Process
Purchaser need to incorporate with OCMs/OEMs approved or
OCMs/OEMs authorized sources.
b. Chain of Custody
Require a document from the original source of manufacture for
all components provided to Synactic.
Purchaser shall ensure the original doc to be provided to
Synactic (e.g. Certificate of Conformance, Shipping & Receiving
docs, Packing List).
c. Supply Chain
Management
Flow-down counterfeit avoidance strategies through supply
chain, including the requirement to use OCM/OEM authorized
sources.
PIC: QA Engineer & Purchaser
d. Counterfeit
Awareness Training
Provide internal training and to supplier.
PIC: QA Engineer

12. ISO 9001 : 2015 / MS ISO 9001 : 2015 & EN9100 : 2018(AS9100D)
Detection
“Making sure counterfeit material are stopped at
the ‘front door’”
Strategies to Eliminate Counterfeit

13. ISO 9001 : 2015 / MS ISO 9001 : 2015 & EN9100 : 2018(AS9100D)
Probability of Detection
Cost
&
Schedule
Confidence
Certificate of
Compliance
(COC)
Visual
Inspection
More time, effort,
and expenditure
on validating
parts increases
the level of
confidence in
authenticity.

14. ISO 9001 : 2015 / MS ISO 9001 : 2015 & EN9100 : 2018(AS9100D)
Suspect “Warning Flags”
“Warning flags” alert sourcing, receiving, inspection, to
potential counterfeit materials. The more flags you see,
the more suspicion you should have.
If things don’t look right, investigate!

15. Source other than OCM/ authorized sources
ISO 9001 : 2015 / MS ISO 9001 : 2015 & EN9100 : 2018(AS9100D)
Suspect “Warning Flags”
Price is too low
Scarce items are suddenly available
No Certificate of Conformance (COC)
Obsolete Item
Unknown Supplier
Prohibited materials present

16. Does not match similar items
ISO 9001 : 2015 / MS ISO 9001 : 2015 & EN9100 : 2018(AS9100D)
Suspect “Warning Flags”
Items marking issues
Alterations/resurfacing
Incomplete marking
Wrong size/location/method
Quality difference
Lot number/ date code issue

17. Size/ shape/ colour/ finish/ material
ISO 9001 : 2015 / MS ISO 9001 : 2015 & EN9100 : 2018(AS9100D)
Suspect “Warning Flags”
Packaging Issues
Evidence of rework/ repair/ refinishing/ resurfacing
Poor quality

18. ISO 9001 : 2015 / MS ISO 9001 : 2015 & EN9100 : 2018(AS9100D)
Mitigation
“Minimizing damage to company’s reputation”
Strategies to Eliminate Counterfeit

19. ISO 9001 : 2015 / MS ISO 9001 : 2015 & EN9100 : 2018(AS9100D)
Mitigation Strategy
When?
Before the item enter Synactic.
Strategies to Eliminate Counterfeit

20. ISO 9001 : 2015 / MS ISO 9001 : 2015 & EN9100 : 2018(AS9100D)
Synactic PO to flow down Counterfeit Requirement
Supplier Term and Condition (F-SPPS01-10) Rev. 01

21. ISO 9001 : 2015 / MS ISO 9001 : 2015 & EN9100 : 2018(AS9100D)
Synactic PO to flow down Counterfeit Requirement
Supplier Term and Condition (F-SPPS01-10) Rev. 01
Summary of the T&C Clause 9:
1. Documentation requirements. (COC, Mill Cert, COA)
2. If suspect counterfeit enter Synactic, supplier shall:
- Replace the part.
- Bear the cost.
- Return the counterfeit part to Synactic/ gov. authority for further
investigation.
3. Supplier shall flow down counterfeit requirement to sub-tier
supplier.
- Any outsource process must need Synactic approval.
- If the sub out process not OEM/OCM supply chain, need Synactic
approval.

22. ISO 9001 : 2015 / MS ISO 9001 : 2015 & EN9100 : 2018(AS9100D)
Mitigation Strategy
When?
After the item enter Synactic.
Before the item enter customer premise.
Strategies to Eliminate Counterfeit

23. ISO 9001 : 2015 / MS ISO 9001 : 2015 & EN9100 : 2018(AS9100D)
Suspect Counterfeit Mitigation Action
Qurantine the affected parts.
- Locate parts in stock and on assemblies, ensure they are quarantined and clearly
marked as nonconforming.
- Identify any suspect items that may have left Synactic
Notify the Purchasing PIC.
Gather all records.
Including traceability, chain of custody, and authenticity test information associated
with the suspect part.
Purchase Order (PO), Cerfiticate of Conformance (CoC), Test data, Inspection Reports
Verify the item is not counterfeit.
Conduct additional testing in an effort to confirm if the item is counterfeit
Engage the manufacturer of the part for assistance to the extent possible
Corrective action.

24. ISO 9001 : 2015 / MS ISO 9001 : 2015 & EN9100 : 2018(AS9100D)
Suspect Counterfeit Mitigation Action
Qurantine the affected parts.
- Locate parts in stock and on assemblies, ensure they are quarantined and clearly
marked as nonconforming.
- Identify any suspect items that may have left Synactic
Notify the Purchasing PIC.
Gather all records.
Including traceability, chain of custody, and authenticity test information associated
with the suspect part.
Purchase Order (PO), Cerfiticate of Conformance (CoC), Test data, Inspection Reports
Verify the item is not counterfeit.
Conduct additional testing in an effort to confirm if the item is counterfeit
Engage the manufacturer of the part for assistance to the extent possible
Corrective action.
If you suspect that a counterfeit item
infiltrated your supply chain, these
items must be addressed immediately
to minimize or bound the impact.

25. ISO 9001 : 2015 / MS ISO 9001 : 2015 & EN9100 : 2018(AS9100D)
Disposition
“Decide on proper actions and resolution”
Strategies to Eliminate Counterfeit

26. Counterfeit involves fraud (often from
supplier that is several tiers removed),
therefore, coordination with appropriate
officials must take place before the
disposition of the part.
ISO 9001 : 2015 / MS ISO 9001 : 2015 & EN9100 : 2018(AS9100D)
Disposition
Protect the supply chain & ourselves

27. ISO 9001 : 2015 / MS ISO 9001 : 2015 & EN9100 : 2018(AS9100D)
Disposition
If the suspect items are within the Synactic, best practices dictate:
Store counterfeit part in quarantine, clearly identify as non-conforming/
counterfeit product pending a review by organization's management.
Inform customer is their AVL is selling counterfeit part.
Do not return Counterfeit part to the supplier in such way they could be
reintroduced into the supply chain to be sold again to another victim.
Legal authorities may be contacted to initiate an investigation into
counterfeiting activity. Parts may be required as evidence.

28. Any question?

29. THANK YOU