How and Why to Avoid Using Counterfeit Bearings
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1 How and Why to Avoid Using Counterfeit Bearings EASA Convention 2017 Tampa Convention Center Tampa, FL June 26, 2017 Presented by Antun Peakovic Schaeffler, Group USA, Inc. Troy, MI Representing the American Bearing Manufacturers Association (ABMA)
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3 EASA 2017 Convention Tampa, FL Counterfeit Bearings: How and why to avoid using counterfeit bearings Antun Peakovic Schaeffler Group USA, Inc (ABMA) Troy, MI Agenda Fälschungen Schaeffler, ABMA, WBA Einführung Bearing Basics and Applications Safety Risk and Bearing Failures Supply Chain and Detecting Counterfeits 5 Reporting Counterfeits 6 Anti-counterfeit activities EASA
4 Schaeffler at a glance Schaeffler Group A leading global technology company At a glance Continuous sales growth Integrated automotive and industrial supplier More than 82,000 employees in 50 countries Above industry average profitability and revenue growth Strategic participation in Continental AG in EUR bn Three strong product brands Sales by division and region in 2016 Clutches and systems for transmissions 27% Rolling bearings, linear guidance systems and engine 73% components Ball bearings, high-precision bearings, OEM and distribution Industrial 27% Americas 21% Greater China 11% 58% 58% 73% 10% 10% Asia/Pacific Automotive Europe¹ ) 1) Incl. Germany, Western, Southern and Eastern Europe, Middle East, Africa, Russia and India Schaeffler at a glance Global customer proximity Production (74) R&D Centers (16) Germany BÜHL ELFERSHAUSEN ELTMANN GUNZENHAUSEN HAMM/SIEG HERZOGENAURACH HIRSCHAID HÖCHSTADT (2) HOMBURG (3) INGOLSTADT KALTENNORDHEIM LAHR LUCKENWALDE MAGDEBURG MORBACH SCHWEINFURT (2) STEINHAGEN USA CHERAW (2) DANBURY FORT MILL (2) JOPLIN SPARTANBURG TROY WOOSTER Canada STRATFORD (2) Mexico IRAPUATO PUEBLA Russia ULJANOWSK Vietnam BIEN HOA CITY China ANTING NANJING SUZHOU TAICANG (3) YINCHUAN South Korea ANSAN CHANGWON Japan JEONJU YOKOHAMA Thailand RAYONG Great Britain LLANELI PLYMOUTH SHEFFIELD SUHL UNNA WUPPERTAL Brasil SOROCABA (2) South Africa PORT ELIZABETH India HOSUR PUNE VADODARA (2) France CALAIS CHEVILLY HAGUENAU (2) Portugal CALDAS DA RAINHA Spain ELGOIBAR Italy MOMO Czech Republik LANSKROUN Slovakia KYUSCE NOVE MESTO SKALICA Hungary DEBRECEN Austria SZOMBATHELY BERNDORF-ST. VEIT Romania Switzerland BRASOV ROMANSHORN EASA
5 WBA and ABMA Schaeffler is also a member company of the AMERICAN BEARING MANUFACTURERS' ASSOCIATION (ABMA) and the WORLD BEARING ASSOCIATION (WBA) along with the below manufacturers: Fälschungen Schaeffler, ABMA, WBA Einführung Bearing Basics and Applications Safety Risk and Bearing Failures Supply Chain and Detecting Counterfeits 5 Reporting Counterfeits 6 Anti-counterfeit activities EASA
6 Why Do We Need Bearings? Bearings are highly engineered, precision-made components, enabling machinery to move at extremely high speeds and carry high loads. Bearings allow for reliability and durability, as well as the ability to rotate quickly with minimal noise and vibration. Basically, anything that twists, turns or moves probably has a bearing in it. Examples Automobiles, Airplanes, CT Scan Machines, Industrial equipment (Bulldozers, Oil Rig, etc.) Bearing Features EASA
7 Bearing Types There are many distinct bearing types, each with particular characteristics which are suited to specific applications Ball Bearings rolling function is provided by a ball Lower friction, lower load capacity Varied applications depending on load - Fans, roller blades, wheel bearings on cars etc. Roller Bearings Where the rolling function is provided by a roller of some kind. Higher friction, Higher load capacity Roller bearings can be needle, tapered and spherical and determined by the application load and other factors. Bearings Big & Small Bearings can vary from 2 mm (0.079 inch) to 6 m (20 ft) in diameter EASA
8 Precision is Essential Without high levels of precision, a machine cannot offer top performance which can lead to vibration, noise and eventually unexpected failure. Ball with high level surface finish Bearing raceway failure caused by poor surface finish EASA
9 Fälschungen Schaeffler, ABMA, WBA Einführung Bearing Basics and Applications Facts, Safety Risk and Bearing Failures Supply Chain and Detecting Counterfeits 5 Photograph Guideline 6 Cooperation with Customs 2015 Training Schaeffler Brand Protection Team Page 13 Counterfeits the facts Single most important issue facing our industry. Counterfeits are in all shapes and sizes. Come from and through many global markets. Complex network of criminals manufacturing small amounts. Criminals understand the rules and how to get around them. Counterfeit bearings negatively impact the global economy. More important significant safe risk. EASA
10 Counterfeits the facts Between fiscal year 2012 and fiscal year 2016*, U.S. Customs and Border Protection has seized counterfeit bearing products through numerous entry ports: With a total piece count of over 100,000 With a retail value totaling over $90 million The World Bearing Association (WBA) and individual members of the WBA raided suspected Chinese facilities and found millions of counterfeit products since Counterfeit Failure Electric Motors Counterfeits are found in all sectors The below recent example is from a large OEM EASA
11 Counterfeit Failure Steel Mills Changed during 2 year preventative maintenance schedule. Operated for 2 hours prior to failure! Counterfeit Failure Mining Bearings were seized in Miami just prior to being shipped to a mining operation in Brazil. Of poor quality, at over 1 m (3.2 feet) diameter and over 2500 lbs, they represented a significant safety hazard and financial risk if installed in key equipment. EASA
12 Counterfeit Failure Panama Canal Motor Traction Bearings Wheel Bearings Reduction Bearings Panama Canal Mule uses NSK wheel bearings, traction motor bearings and Reducing bearings. Counterfeit bearings caused the motor and wheels to seize Fälschungen Schaeffler, ABMA, WBA Einführung Bearing Basics and Applications Safety Risk and Bearing Failures Supply Chain and Detecting Counterfeits 5 Reporting Counterfeits 6 Anti-counterfeit activities EASA
13 Brand Owners Bearing Producer Counterfeit Box/Marking Shop Counterfeit Trader Authorized Distributor Surplus House Unauthorized Distributor O End Users Counterfeit certificates Counterfeiters produce fake bearings, but also fake documentation such as Certificates of Origin and Certificates of Quality and Letters Paperwork and certificates should be verified by the mark owners EASA
14 Counterfeit certificates Detection is Difficult Counterfeiters are getting better Authentication is becoming more challenging Each brand has unique overt/covert features Brand owners have designated experts assigned to authentication Always contact the manufacturer 24 EASA
15 Fälschungen Schaeffler, ABMA, WBA Einführung Bearing Basics and Applications Safety Risk and Bearing Failures Supply Chain and Detecting Counterfeits 5 Reporting Counterfeits 6 Anti-counterfeit activities Brands and Products Samples for packaging EASA
16 Brands and Products Samples for product marking Brands and Products Samples for product marking EASA
17 Brands and Products Samples for product marking Fälschungen Schaeffler, ABMA, WBA Einführung Bearing Basics and Applications Safety Risk and Bearing Failures Supply Chain and Detecting Counterfeits 5 Reporting Counterfeits 6 Anti-counterfeit activities EASA
18 First Pillar: Law Enforcement Contact and Customs Training Prevents counterfeit goods entering the market and may lead to criminal prosecution Second Pillar: Fast and Effective Action/Enforcement Within each Country Law Enforcement Civil Measures Awareness Reduces potential of further sale of counterfeit product Third Pillar: Trusted Source Strengthening and Awareness Addresses problems as they arise Strengthens value of authorization and trust in distributors Cooperation with customs Worldwide Trainings for customs officials in African countries (e.g. Algeria, Morocco) China Europe (e.g. Germany, Poland) Middle East (e.g. United Arabian Emirates, Saudi Arabia) South America USA South East Asia Customs seizures in many countries (about per year) Member of the Enforcement Database Steering Group (HABM Observatory) EASA
19 Cooperation with customs Sample: China Destruction activities Thank you for attending EASA s 2017 Convention EASA 1331 Baur Blvd., St. Louis, MO EASA
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