Fake airplane parts from AOG Technics grounded Boeing and Airbus aircraft in 2023. History shows military and civilian aircraft with high risks due to take parts.
The USA Federal General Accounting Office reported fake military parts in 2010 (GAO-10-389). Military aircraft found with fake parts are the F-15, F-16, F-22, B-52, C-5, C-27, C-130, and J-Stars. Fake parts have been found at many points in the supply chain and installed in aircraft. Electronics have been a serious area due to global supply chains and difficulties in detecting fraudulent parts. The USA/NATO Defense Industrial Base problems are continuing even after identification more ten years ago.
Fatal airplane crashes due to fake parts have been known for more than 34 years. A well publicized crash of a 36-year-old Convair CV-580 passenger airplane occurred in September 1989. The crash was directly caused by four pin/sleeve parts, best described as fakes and un-serialized, used to attach the vertical stabilizer. "Documented traceability" was a recommendation to "establishing airworthiness of aircraft parts". Fake parts killed 55 people and the problems were clear.
Manufacturing enterprises selling globally all have the same problem. Manufacturing enterprises sell products to global supply chains with many distributors, brokers, dealers, and others. Regulators and lawyers see a product’s liability based on product sales. Governments and courts want to hold manufacturers responsible for the quality of their products – anything from manufactured goods, to food, or toys. The “middle companies” want no part of any responsibility or liability. This creates an inherent conflict worsened when counterfeit, fake, or mislabeled (‘used for new’) parts are bought or sold. New scandals create more pressure to find better answers starting with the most safety critical products – with no care about price or common usage.
EkaLore has been providing analysis and notes on manufactured products with data from our deep experience and perspective.
Scandals are getting worse. Historical scandals where the data, certifications, or fraud have killed people are still happening. Contamination has affected food, medicine, water, and products. Criminal fraud has killed and injured people in aerospace, medical, chemical, automotive, consumer, and energy sectors. Estimates (OECD) place growth in fraudulent and counterfeit goods at 0.5% of global trade per year. At USD$28-30T of trade per year the scale could exceed USD$1T of bad products and growing. The size of the problems are uncertain though all agree the global scope and frequency of criminal fraud and civil certification fraud are gigantic.
The data going with products is now as critically important getting to the end user. Data tracing the history and provenance has its own custody and transfers that must be assured. Definitions and formats of the data are just as important as taxes and payments. Harmonized tariff codes, descriptions on negotiable Bills of Lading, and other historical documents are only a portion of current requirements. Data accompanying products covers:
Original manufacturing processes
Materials used in manufacturing
Locations of manufacturing
Qualifications of manufacturing plants
Qualifications of staff touching the product
Parametric and quality measurements
Products manufactured at the same time
Identity sufficient to relate product specifications
Dates, times, and locations throughout
… and more
“Manufactured” covers many processes from growing food (or drug substances) to very high tech metals and electronics. Uses are as ordinary as food found on a street vendor’s cart to the inner workings of implantable medical devices. Uses are as small as microgram drug doses to critical parts in jet airplanes. The critical distinction is market demand for data to lower the risks and harms from counterfeit and fraudulent products. Criminal drug cartels have resorted to “brand products” to reach a level of customer confidence in products. Consumers demand recognized certifications for “organic”, “ESG”, or other product attributes. Government demands for data aim to regulate access to gigantic pools of subsidies, incentives, and market demands. The simple prevalence of these demands means manufacturers, and their channels getting product to end users, will see even more requirements to pass along the data to the end users.
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