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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

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Counterfeit Cores and Counterfeit Cores and the Importance of the Importance of Supply Chain Management Supply Chain Management

21 September 2005 21 September 2005

Micrometals, Inc. Micrometals, Inc. IBM 2005 Power and Cooling IBM 2005 Power and Cooling Symposium Symposium

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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
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Review Review

  • Thermal Aging Overview and

Prediction

  • Design Guidelines for Iron Powder
  • 200C Series High Temperature

Materials

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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
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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

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Micrometals Color Codes Micrometals Color Codes

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Which Core is Reliable? Which Core is Reliable?

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“ “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
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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…..
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Catalog Example Catalog Example -

  • Competitor A

Competitor A

100 120 140 160 180 200 220 240 1,000 10,000 100,000 1,000,000

Time (Hours)

Operating Temperature (°C)

T90 T90-

  • 26, 633G, 75kHz

26, 633G, 75kHz

Competitor Competitor -

  • 55C Ambient

55C Ambient Micrometals Micrometals -

  • 60C Ambient

60C Ambient Micrometals Micrometals -

  • 55C Ambient

55C Ambient

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100 110 120 130 140 150 160 170 180 190 200 100 1000 10000 100000 1000000

Time (Hours) Operating Temp (°C) Competitor Core - 55°C Ambient Competitor Core - 35°C Ambient Micrometals Core - 55°C Ambient

T184-26, 50kHz, 500G

Catalog Example Catalog Example -

  • Competitor B

Competitor B

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Recent Case Study: T106 Recent Case Study: T106-

  • 52

52

  • 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

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Recent Case Study: T106 Recent Case Study: T106-

  • 52

52

  • 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
  • peration at 125 kHz with 400 gauss of

ripple flux and 2 watts of copper loss in a 65°C ambient is represented

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Competitor C “Equivalent” Competitor C “Equivalent”

125 150 175 200 100 1,000 10,000 100,000 1,000,000 10,000,000

Time (Hours) Operating Temperature (°C)

Comp-4 Comp-3 Comp-6 C

  • m

p

  • 1

Comp-2 Comp-5

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Competitor C Competitor C vs vs Micrometals Micrometals

125 150 175 200 100 1,000 10,000 100,000 1,000,000 10,000,000

Time (Hours) Operating Temperature (°C)

Comp-4 Comp-3 Comp-6 C

  • m

p

  • 1

Comp-2 Comp-5 MM-1 MM-2

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Micrometals T106 Micrometals T106-

  • 52

52 vs vs Model Model

125 150 175 200 100 1,000 10,000 100,000 1,000,000 10,000,000

Time (Hours) Operating Temperature (°C)

MM Model MM-1 MM-2

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Competitor C, #4 Competitor C, #4 vs vs Micrometals Micrometals

125 150 175 200 100 1,000 10,000 100,000 1,000,000 10,000,000

Time (Hours) Operating Temperature (°C)

MM Model MM-1 MM-2 Comp-4

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Recent Case Study: T106 Recent Case Study: T106-

  • 52

52

  • 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

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Recent Case Study: T106 Recent Case Study: T106-

  • 52

52

  • 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

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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

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Micrometals Organization Micrometals Organization

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

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Micrometals China Micrometals China

Zhongshan, China

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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

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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

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Micrometals, Inc. Micrometals, Inc. 5615 East La Palma Ave. 5615 East La Palma Ave. Anaheim, California 92807 Anaheim, California 92807

Phone: 714 Phone: 714-

  • 970

970-

  • 9400 Fax: 714

9400 Fax: 714-

  • 970

970-

  • 0400 Web: www.micrometals.com

0400 Web: www.micrometals.com