The Big Picture End-to-End Supply Chain and Design Capabilities to Mitigate Risk and Enable Performance Rory King, Director Design & Supply Chain, IHS Glenn Bassett, VP Strategy, Design & Supply Chain, IHS Mark Snider, President and Co-Founder, ERAI Inc. April 29, 2011
72
Embed
ERAI Executive Conference Executive Brief - “The Big Picture” of Compliance, Counterfeits, and Continuity: How obsolescence, environmental compliance, and counterfeits are all
What is the impact of disasters like the crisis in Japan, economic downturn following the collapse of Lehman, or environmental regulation EU RoHS on the availability, obsolescence, and counterfeiting of electronic components?
See this Executive Brief and Market Intelligence overview from exclusive partners ERAI Inc and IHS Inc. • “The Big Picture” of Compliance, Counterfeits, and Continuity: How obsolescence, environmental compliance, and counterfeits are all linked to potential DMSMS, price/availability, design, and supply chain disruptions. • IHS and ERAI Partnership: How to use end-to-end supply chain, procurement, and lifecycle capabilities to reduce risk, lower costs, improve security, and make better design decisions. • Market Intelligence tools from IHS Haystack, Standards Expert, and BOM Manager to implement anti-counterfeit standard AS5553 from SAE for end-to-end counterfeit avoidance and resolution. Proactive qualification and approval of designs, parts, and suppliers; mitigation of obsolescence effects with forecasting/ resolution practices; counterfeit and high risk part reporting, resolution and redesign.
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
The Big Picture
End-to-End Supply Chain and Design Capabilities toMitigate Risk and Enable Performance
Rory King, Director Design & Supply Chain, IHSGlenn Bassett, VP Strategy, Design & Supply Chain, IHSMark Snider, President and Co-Founder, ERAI Inc.
April 29, 2011
• Founded in 1959, IHS is a leading source of information and expert analysis inpivotal areas shaping today’s global businesses
• Employs 4,400 colleagues in 30 countries who speak 50 different languages
• IHS customers include nearly 70% of the US Fortune1000 and 80% of theGlobal Fortune 500
• Tens of thousands of customers and hundreds of thousands of end-users in over 100 countries
• Public (2005) NYSE: IHS
• FY10 revenue $ 1,075 million
IHS Inc.A Leading Information Provider
2
Just a few of our clientsThousands of users globally
“The presence of counterfeitelectronic parts in the DefenseDepartment’s supply chain is agrowing problem that governmentand industry share a commoninterest in solving.”
Carl Levin, D-Michigan, andSen. John McCain, R-Arizona
March 2011
Current Pressures: Counterfeiting a PriorityEarly in 2011 top senators launched the investigation
Gross EOL by YEAR ENDING 2004 - 2009Gross EOL by MONTH 2008
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
0
206
619
Gross EOL by MONTH 2008
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
0
206
619EU REACH SVHCPublishedLehman files
Chapter 11
EOL by MFR due solely todemand/sales forecast.
Economic Recession and Chemical Restrictions:The two most dominant factors in the 300% increase of End of Life (EOL) for electrical components exiting 2008.
Recession triggered large inventory reductions –primary reduction in non-compliant parts employedby medical device companies
Shortages of key electronics components…became pronounced in the first quarter FY10,and continued in the second.
General Electric Co. said supply constraints forelectronic components used in its healthcareequipment cost the company $50 million insales for the quarter.
Effect: Material Shortages andIncreased Lead Time (among other things…)
SAFETY & SECURITY COSTSReliability, Tin Whiskers, Counterfeits…
JapaneseElectronics OEM
Recall
Regulatory event = $160M+ governmentseizure of 1M+ product units due to highcadmium concentration levels found insystem cables suspected to violate EU law.
Now… EU REACH is a Huge DealEuropean Commission roadmap includes 106 priority SVHC by 2012
15
Source: “EU and industry REACH different conclusions”, Jane’s, September 2009
“Airbus UK’s director of operations andcompliance, said the cost of REACH had
been evaluated at several million Euro overthree years, with provisions up to hundreds
of millions of Euro over five years”…
“…[He] said there is a level of ambiguitybecause it will depend ‘on the substancesthat will finally be added to the candidatelist and in Annex XIV’. Airbus UK has set its
• Founded in 1995, ERAI is an information services organization thatmonitors, investigates and reports issues affecting the global hi-techelectronics supply chain.
• ERAI provides tools to mitigate risks on substandard parts, counterfeitparts, vendors and even customers.
• Subscribers include OEMs, CMs, Distributors, OCMs, governmentagencies and industry associations.
• Founding participant in SAE International G-19 Counterfeit ElectronicComponents Committee and several sub-groups
ERAI Inc.A World of Information at Your Fingertips
Source: IHS Component Insight, IHS Inc, 2011* 2011 figures are projected annual estimates based on March YTD 2011 actuals and previous annual proportions.
“The presence of counterfeitelectronic parts in the DefenseDepartment’s supply chain is agrowing problem that governmentand industry share a commoninterest in solving.”
Carl Levin, D-Michigan, andSen. John McCain, R-Arizona
March 2011
Congress Investigation LaunchedEarly in 2011 senators launched the investigation
Industry’s Recognized ReportsGIDEP and ERAI are the counterfeit reporting entities
Recognized by U.S. SenateRecognized by the G-19
IHS + ERAI WorkflowWhat it looks like to thousands of IHS users
AUTHORIZATIONREQUIRED
AUTHORIZATIONREQUIRED
ERAI notices GIDEP notices
Example: Alert to Infineon BTS716GCustomers alerted to counterfeit incident as reported by ERAI
•Subscribers of IHS 4DOnline BOM Manager, COMET, and Parts Universe have access toalerts from ERAI, GIDEP, and other sources.•Subscribers to the IHS-ERAI solution provides ERAI membership, giving them access toERAI’s comprehensive market intelligence community, tools, and services.
Alert!
Example: Infineon BTS716GAlerts are accessible via the IHS product
Users Seamlessly Navigate to ERAIIHS customers browse directly from IHS into ERAI products
It Provides Complete Reported Parts DetailProvides access to ERAI market intelligence
Vet Real Stock from “Available” PartsIt limits risk exposure from fake sources and price games
Ability to Vet the Open MarketExample ERAI Member Details
Ability to Vet Open Market SourcesQualify your suppliers
ASK YOUR SUPPLIERS…
Industry Membership and Reporting?
Quality System and Processes?
Warranty and Insurance?
Supplier Qualification and Purchasing Process?
Non-Conforming Material Control?
Inspection and Test?
Efforts made to verify a Parts’ Authenticity before use?
ASK YOUR SUPPLIERS…
Industry Membership and Reporting?
Quality System and Processes?
Warranty and Insurance?
Supplier Qualification and Purchasing Process?
Non-Conforming Material Control?
Inspection and Test?
Efforts made to verify a Parts’ Authenticity before use?
Search and Monitor Supplier RiskA wide range of incidents pose serious business problems
Example: AAOK ElectronicsPast due invoices, wire fraud, faulty product for example…