how and why to avoid using counterfeit bearings · pdf file2014 11.1 2012 12.6 13.5 2016 14 in...

How and Why to Avoid Using Counterfeit Bearings

EASA Convention 2017Tampa Convention Center

Tampa, FLJune 26, 2017

Presented by

Antun PeakovicSchaeffler, Group USA, Inc.

Troy, MI Representing the American Bearing Manufacturers Association (ABMA)

EASA Convention 2017 - Tampa, FL June 2017

EASA © 2017 1

Counterfeit Bearings: How and why toavoid using counterfeit bearings

Antun PeakovicSchaeffler Group USA, Inc (ABMA)

Troy, MI

EASA 2017 Convention — Tampa, FL

Agenda

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Fälschungen – Einführung

Safety Risk and Bearing Failures

Supply Chain and Detecting Counterfeits

Bearing Basics and Applications

Schaeffler, ABMA, WBA

5 Reporting Counterfeits

6 Anti-counterfeit activities


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At a glance Continuous sales growth

Schaeffler Group – A leading global technology companySchaeffler at a glance

73%

27%

58%

10%

2013

11.7

2014

11.1

2012

13.512.6

2016

14

in EUR bn

2015

§ 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

Sales by division and region in 2016Three strong product brands

1) Incl. Germany, Western, Southern and EasternEurope, Middle East, Africa, Russia and India

73%

Automotive

27%

Industrial

58%

Europe¹)

11%Greater China

Asia/Pacific

10%

21%Americas

Clutches and systems fortransmissions

Rolling bearings, linear guidancesystems and engine components

Ball bearings, high-precisionbearings, OEM and distribution

Global customer proximitySchaeffler at a glance

Brasil• SOROCABA (2)▪

▪

USA• CHERAW (2)

• DANBURY

• FORT MILL (2)

• JOPLIN

• SPARTANBURG

§ TROY

• WOOSTER

Mexico• IRAPUATO

• PUEBLA

Canada• STRATFORD (2)

Vietnam• BIEN HOA

CITY

Russia• ULJANOWSK

China§ ANTING

• NANJING

• SUZHOU

• TAICANG (3)

• YINCHUAN

South Korea• ANSAN

• CHANGWON

• JEONJUJapan§ YOKOHAMA

Thailand• RAYONG

• HOSUR

• PUNE

• VADODARA (2)

IndiaSouth Africa• PORT

ELIZABETH

Germany• BÜHL

• ELFERSHAUSEN

• ELTMANN

• GUNZENHAUSEN

• HAMM/SIEG

• HERZOGENAURACH

• HIRSCHAID

• HÖCHSTADT (2)

• HOMBURG (3)

• INGOLSTADT

• KALTENNORDHEIM

• LAHR

• LUCKENWALDE

• MAGDEBURG

• MORBACH

• SCHWEINFURT (2)

• STEINHAGEN

• SUHL

• UNNA

• WUPPERTAL

▪

▪

▪▪

▪

Great Britain• LLANELI

• PLYMOUTH

• SHEFFIELD

France• CALAIS

• CHEVILLY

• HAGUENAU (2)▪

Portugal• CALDAS DA RAINHA

Spain• ELGOIBAR

Italy• MOMO

Switzerland• ROMANSHORN

Austria• BERNDORF-ST. VEIT

Czech Republik• LANSKROUN Slovakia

• KYUSCE NOVE MESTO

• SKALICA

▪

Romania• BRASOV▪

Hungary• DEBRECEN

• SZOMBATHELY

▪

▪

• Production (74)

§R&D Centers(16)


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WBA and ABMASchaeffler is also a member company of the AMERICAN BEARINGMANUFACTURERS' ASSOCIATION (ABMA) and the WORLD BEARINGASSOCIATION (WBA) along with the below manufacturers:

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3

4









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Why Do We Need Bearings?

§ Bearings are highly engineered, precision-made components, enabling machinery tomove at extremely high speeds and carry high loads.

§ Bearings allow for reliability and durability, as well as the ability to rotate quickly withminimal 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


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Bearing Types§ There are many distinct bearing types, each with

particular characteristics which are suited to specificapplications

§ 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 carsetc.

§ 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 loadand other factors.

Bearings – Big & Small

§ Bearings can vary from 2 mm (0.079 inch) to 6 m (20 ft) in diameter


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Precision is Essential

§ Without high levels of precision, a machine cannot offer top performancewhich can lead to vibration, noise and eventually unexpected failure.

Ball with high level surface finish Bearing raceway failure caused by poor surface finish


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2015 Training © Schaeffler Brand Protection TeamPage 13

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Facts, Safety Risk and Bearing Failures




5 Photograph Guideline

6 Cooperation with Customs

Counterfeits – the facts

§ Single most important issue facing ourindustry.

§ Counterfeits are in all shapes andsizes.

§ Come from and through many globalmarkets.

§ Complex network of criminalsmanufacturing small amounts.

§ Criminals understand the rules andhow to get around them.

§ Counterfeit bearings negatively impactthe global economy. More important –significant safe risk.


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Counterfeits – the facts

Between fiscal year 2012 and fiscal year 2016*,U.S. Customs and Border Protection has seizedcounterfeit bearing products through numerousentry ports:

§ With a total piece count of over 100,000

§ With a retail value totaling over $90 million

The World Bearing Association (WBA) andindividual members of the WBA raided suspectedChinese facilities and found millions ofcounterfeit products since 2009.

Counterfeit Failure – Electric Motors§ Counterfeits are found in all sectors§ The below recent example is from a large OEM


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Counterfeit Failure – Steel Mills

Changed during 2 year preventative maintenanceschedule.

Operated for 2 hours prior to failure!

Bearings were seized inMiami just prior to beingshipped to a miningoperation in Brazil.

Of poor quality, at over 1 m(3.2 feet) diameter and over2500 lbs, they representeda significant safety hazardand financial risk if installedin key equipment.

Counterfeit Failure – Mining


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WheelBearings Reduction

Bearings

Motor TractionBearings

Panama Canal Mule uses NSKwheel bearings, traction motorbearings and Reducing bearings.Counterfeit bearings caused themotor and wheels to seize.

Counterfeit Failure – Panama Canal

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BrandOwners

AuthorizedDistributor

BearingProducer Counterfeit

Box/MarkingShop

OEnd Users

CounterfeitTrader

SurplusHouse

UnauthorizedDistributor

Counterfeiters produce fake bearings, but also fake documentation such as Certificatesof Origin and Certificates of Quality and Letters

§ Paperwork and certificates should be verified by the mark owners

Counterfeit certificates


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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

2424


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First Pillar:Law Enforcement Contact and CustomsTraining• Prevents counterfeit goods entering the

market and may lead to criminal prosecution

Second Pillar:Fast and Effective Action/EnforcementWithin each Country• Reduces potential of further sale of

counterfeit product

Third Pillar:Trusted Source Strengthening andAwareness• Addresses problems as they arise• Strengthens value of authorization and trust

in distributors

Law

Enf

orce

men

t

Aw

aren

ess

Civ

ilM

easu

res

Cooperation with customsWorldwide

§ 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 40 – 60 per year)

§ Member of the Enforcement Database Steering Group (HABM Observatory)


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Cooperation with customsSample: China – Destruction activities

Thank you for attendingEASA’s 2017 Convention

EASA — 1331 Baur Blvd., St. Louis, MO 63132 • www.easa.com

how and why to avoid using counterfeit bearings · pdf file2014 11.1 2012 12.6 13.5 2016 14 in...

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