© 2011 Rochester Electronics, LLC

Page 14

September 2011

All Rights Reserved

 

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“Buy parts directly from OCMs and authorized distributors, rather than from parts brokers, independent

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Require suppliers to trace parts back to OCMs – certificate of conformance.

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Number of years in business

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References from past/present customers

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Counterfeit screening, tracking, and testing procedures

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Adherence to industry and government standards

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Membership in industry associations

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Previous problems recorded

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Quality of warehouse/storage facilities

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Existing counterfeit avoidance policies

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Use a third-party escrow service to hold payment while parts are tested for authenticity.

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Ensure that procurement schedules are realistic.

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Establish contracts with suppliers that include improved notices for final life-time part purchase

opportunities and of termination when electronic components will no longer be manufactured.

“Organizations should also have proactive obsolescence management plans when parts go out of

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Physically destroy all defective, damaged, and substandard parts.

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Increase the use of authentication technologies by part manufacturers and/or their distributors.

Therefore, no one is checking!

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Employ testing protocols that conform to the latest industry standards.

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Verify the integrity of test results from contract testing houses.

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Perform supplier site audits; evaluate product return, buy back, and inventory control practices, and

quality processes. “Inventory should be kept under strict control. Parts for different customers should be

These recommendations are also being made by the automotive and avionics industry standardization

organizations in their AS5553 document and are likely to appear soon as an International Electrotechnical

Commission (IEC) TC107 standard.

The short life cycles of parts used in the production of products that have long life cycles has created an industry

situation formally known as Diminishing Manufacturing Sources and Material Shortages (DMSMS). Traditionally,

the approach to this condition has been reactive, but that has proven to be less than effective and has opened the

door to the acquisition of substandard and counterfeit components. Unauthorized solutions to an “emergency”

semiconductor shortage that offer low cost and quick turnaround may sound really good, but should raise red

flags. The old adage still applies: If it sounds too good to be true, it’s probably not true.

A proactive approach to DMSMS should begin with system design. Even if the system is up and running,

however, proactive strategies can eliminate stressful and expensive system re-designs. Companies can do a little

research to determine the life cycle status for every component on a bill of materials (BOM). Some companies

offer free BOM analysis. Rochester Electronics offers such a service. Customers receive a detailed report that