Counterfeit Cores and Counterfeit Cores and the Importance of the - PowerPoint PPT Presentation

Counterfeit Cores and Counterfeit Cores and the Importance of the Importance of Supply Chain Management Supply Chain Management Micrometals, Inc. Micrometals, Inc. IBM 2005 Power and Cooling IBM 2005 Power and Cooling Symposium Symposium 21 September 2005 21 September 2005 1

Overview Overview • Review of Information Previously Presented • Micrometals Registered U.S. Trademarks • The Danger of “OR EQUIVALENT” • Case Study of T106-52 “equivalent” • Source Approval and Verification • China Manufacturing 2

Review Review • Thermal Aging Overview and Prediction • Design Guidelines for Iron Powder • 200C Series High Temperature Materials 3

U.S. Trademarks U.S. Trademarks • Micrometals Color Codes ~ 50 years • Competitor Core Identification • Original Trademark Registration 1998 • Additional Registrations 2002 • Implied Equivalence • Violation of U.S. Trademark Law • Damage Control 4

Registered U.S. Trademarks Registered U.S. Trademarks Protect Micrometals Color Codes Protect Micrometals Color Codes Micrometals has been granted U.S. trademark protection for its unique material color codes. Competitor parts that use these trademarked color codes are in violation of U.S. law, even if the are in equipment as wound components 5

Micrometals Color Codes Micrometals Color Codes 6

Which Core is Reliable? Which Core is Reliable? 7

“OR EQUIVALENT” OR EQUIVALENT” “ • Who decides what qualifies as an acceptable “equivalent”? • What tests are performed? • Incoming tests and long term reliability • Unique identification of “equivalents” • Disclosure or deception • The cost of control • The cost of lack of control 8

Catalog Examples of “Equivalents” Catalog Examples of “Equivalents” • Core vendor said they were “equivalent” • Cores had “equivalent” appearance • Cores passed incoming inspection • End user unaware of change in source • The field failures start to occur….. 9

Catalog Example - - Competitor A Competitor A Catalog Example 240 Micrometals Micrometals - - 60C Ambient 60C Ambient Competitor - - 55C Ambient 55C Ambient Competitor 220 Operating Temperature (°C) 200 180 160 140 Micrometals - Micrometals - 55C Ambient 55C Ambient 120 T90- -26, 633G, 75kHz 26, 633G, 75kHz T90 100 1,000 10,000 100,000 1,000,000 Time (Hours) 10

Catalog Example - - Competitor B Competitor B Catalog Example 200 T184-26, 50kHz, 500G 190 Competitor Core - 55°C Ambient 180 Competitor Core - 35°C Ambient 170 Operating Temp (°C) 160 150 140 130 120 110 Micrometals Core - 55°C Ambient 100 100 1000 10000 100000 1000000 Time (Hours) 11

Recent Case Study: T106- -52 52 Recent Case Study: T106 • Micrometals provided assistance in evaluating p/s field failures involving a competitor’s “equivalent” to T106-52 • The Micrometals design software indicated a genuine T106-52 would not fail in the manner being experienced • 6 manufacturing lots of the competitor’s cores were provided for thermal aging characterization 12

Recent Case Study: T106- -52 52 Recent Case Study: T106 • The 6 lots of the competitor’s cores along with 2 lots of Micrometals cores were characterized for thermal aging • The predicted thermal life based on operation at 125 kHz with 400 gauss of ripple flux and 2 watts of copper loss in a 65°C ambient is represented 13

Competitor C “Equivalent” Competitor C “Equivalent” Comp-4 Comp-6 Comp-3 Comp-5 Comp-2 1 - p m o C 200 Operating Temperature (°C) 175 150 125 100 1,000 10,000 100,000 1,000,000 10,000,000 Time (Hours) 14

Competitor C vs vs Micrometals Micrometals Competitor C Comp-4 Comp-6 Comp-3 Comp-5 Comp-2 1 - MM-1 p MM-2 m o 200 C Operating Temperature (°C) 175 150 125 100 1,000 10,000 100,000 1,000,000 10,000,000 Time (Hours) 15

Micrometals T106- -52 52 vs vs Model Model Micrometals T106 MM Model MM-1 MM-2 200 Operating Temperature (°C) 175 150 125 100 1,000 10,000 100,000 1,000,000 10,000,000 Time (Hours) 16

Competitor C, #4 vs vs Micrometals Micrometals Competitor C, #4 MM Model Comp-4 MM-1 MM-2 200 Operating Temperature (°C) 175 150 125 100 1,000 10,000 100,000 1,000,000 10,000,000 Time (Hours) 17

Recent Case Study: T106- -52 52 Recent Case Study: T106 • There is a great deal of lot-to-lot variation with the competitor’s cores leading to a 65 times variation in predicted life - 6 months up to 32 years! • The Micrometals cores tested exhibited a minimum predicted life of 62 years; well in excess of the standard model • The aging model incorporated in the Micrometals design software is only valid for genuine Micrometals cores 18

Recent Case Study: T106- -52 52 Recent Case Study: T106 • The cost of the competitor’s cores is about $.08 each • The cost of the Micrometals’ core is about $.10 each • If there are 20,000 power supplies in the field with 2 cores in each, the vendor saved $800 on the cores • The cost of a field recall can be staggering both in terms of dollars as well as reputation 19

Source Approval and Verification Source Approval and Verification • Avoid “or equivalent” on drawings for critical components - define approved sources after thorough evaluation • Establish a written understanding with subcontractors regarding the use of approved sources only • Monitor/audit subcontractors to verify compliance • Advise vendors of critical materials which subcontractors are being used to allow follow up 20

Micrometals Organization Micrometals Organization Corporate Headquarters Anaheim, California Factory Factory Future Factory Anaheim, California Abilene, Texas Zhongshan, China Hong Kong European China Warehouse Warehouse Sales/Engineering Office 21

Micrometals China Micrometals China Zhongshan, China 22

Micrometals China Micrometals China • Currently building 45,000 sq. ft. facility • Building completion by Oct. 2005 • Production to start Dec. 2005 • Initial manufacturing to focus on toroids and E-cores in -26, -40, -52 Materials • Other shapes and materials will be added with time 23

Summary Summary • There are numerous sources of iron powder cores that copy Micrometals appearance • Thoroughly evaluate the long term, high temperature performance of every source of cores as initial performance can be misleading • Source control of iron powder cores is essential to insure reliability • Avoid counterfeit cores that violate U.S. Trademark Law 24

Micrometals, Inc. Micrometals, Inc. 5615 East La Palma Ave. 5615 East La Palma Ave. Anaheim, California 92807 Anaheim, California 92807 Phone: 714- -970 970- -9400 Fax: 714 9400 Fax: 714- -970 970- -0400 Web: www.micrometals.com 0400 Web: www.micrometals.com Phone: 714 25