On October 10th, the Second Thursday panel will speak to current trends in advanced manufacturing, including additive manufacturing (3D Printing), and the impact these current trends are having on the manufacturing industry and the companies that operate in this environment.
How do these trends impact companies and their future value?
How can companies position themselves to take advantage of these trends and maximize their future value?
What will investors and strategic partners expect from companies in the future?
Where do leaders in the industry see these trends going?
A panel of experts will answer all these questions with the goal of helping companies find opportunities to harness the power of these exciting trends.
Manufacturing Value, A CVG Second Thursday Event, 10/10/13
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2. 2013 - 2014 Boardroom Series Topics
Foreign Investments into US Ventures: Incentives and Structures
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Effective Integrated Online Strategies
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Fundraising Strategies for Growth Companies
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Governance Dynamics Among Entrepreneurs, Boards of Directors and Investors: Affirmative
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Attracting and Working with Chinese Investors
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Health Care Transactions in CT: Recent Market and Process Developments
Presented by Murtha Cullina, Attorneys at Law
Offered weekly on Wednesdays.
Includes continental breakfast, networking and a presentation.
No cost to participate, but seating is limited and registration is required.
3. Manufacturing Value
Trends in Advanced Manufacturing and How to Maximize Value
Welcome by
Frank Milone
Matt Monteith
Partner
Associate
Fiondella, Milone & LaSaracina
Shipman and Goodwin LLP
5. Manufacturing Value
Trends in Advanced Manufacturing and How to Maximize Value
Moderator
Jack Crane
Director of Growth Services
CONNSTEP, Inc.
6. Manufacturing Value
Trends in Advanced Manufacturing and How to Maximize Value
Panelists
Dave Babcock
Lynn Gambill
Partner
nPlusOne Consulting
Chief Engineer, Manufacturing Engineering and
Global Services Engineering
Don Hardie
Severine Zygmont
Partner
Kidd & Company
COO & Co-Founder
Oxford Performance Materials
Pratt & Whitney
@CTVenture
8. NASA Plans First 3D Printer 2014
“3D printing in the International Space
Station could reduce the cost and frequency
of resupply missions. US space agency
NASA is planning to launch a 3D printer into
space next year to help astronauts
manufacture spare parts and tools in zero
gravity.”
30 September 2013 BBC
9. Begin With The End In Mind
Vision, mission, culture and values...
Where and how will you compete?
Must be strategically focused
Know why your company matters, i.e. why
are you relevant to world and customers?
Must be customer focused – have a view
through the customers eyes
10. Focus On The Right “Few”
Things
Profitable sales
Earnings Before Interest Taxes Depreciation
and Amortization (EBITDA)
Operating cash flow
Innovate constantly; Intellectual Property
(IP) is important to creating value
11. Extracting Value
Succession planning:
Does not get enough attention
Without it, you can hurt value
Chaos at critical points in time
Advisors vs. Independent Board ?
Adding
value to company’s strategic
execution through accountability
12. Final thoughts
Measure yourself and your team
Quantitative measures related to value
creation
Dashboards and monthly financials
Agility: strategy adjustments – very
important – exit strategy fast when
strategy does not work
Presume nothing- presumption is the
mother of all disasters.
13. Advanced Manufacturing (AM)
Advanced manufacturing attributes….
• Technology is integral to the overall process
• Computer and information
technologies
• Advanced design
• Advanced sensing and measuring
• Robotics/automation
• New processes or/and new materials (evolutionary and revolutionary)
• Nanomanufacturing
• Composites
• Computer controls/automation/robotics
• Powdered metallurgy (PM)
• Additive manufacturing
• Chemical/Biochemical
manufacturing
• Innovation
new way to do old stuff; new way to do new stuff
• Utilize technology, process and materials to improve cost and finished product
Bottom Line: How to create a sustainable competitive advantage?
1
16. Advanced Manufacturing
Broad Investment considerations:
• Disruption/change is good…potentially
•
Backing the right horse is about more than just the technology
• Fast follower v. bleeding edge innovator
•
Pioneers with arrows in their backs
• Industry and product attributes will dictate adoption rates
•
The “land grab” trap – know your market and your customer
• Policy considerations
•
Report to the President on Capturing Domestic Competitive Advantage in Advanced
Manufacturing (July 2012)
potential headwinds and tailwinds
4
17. Thoroughly Non-Scientific AM Continuum
Investment Stages
Start-up/Venture
Capital
Growth equity
Transformation of
mature
industries/consolidati
ons/LBOs
AM Attributes
Breakthrough Technologies/
R&D
•Nanotechnology
•Additive manufacturing (new areas)
•Biomanufacturing
•Sustainable manufacturing
Applied Research/
Product Development
Roll-out/Design for
Manufacturing
•Additive manufacturing (medical; consumer) •Advanced manufacturing and testing
equipment
•Visualization, informatics and
•Advanced forming and joining
digital manufacturing
•Sensing, measurement and process
•Flexible electronics manufacturing
control
5
18. 3D Manufacturing (Additive Manufacturing)
• Broad Potential Applicability:
o Consumer
o Industrial
o Medical
• Competitive Advantages
o Better quality
o Less waste/scrap
o Shorter cycle times
o Increased design flexibility
o Lower cost (material & labor)
• Barriers to Adoption
o Capital
o Technology/know how
o End-use applications (product strength and size of market)
6
19. Aerospace Case Study - Additive Manufacturing
“Conventional wisdom:” 3D’s applicability will be limited to small, non-flight-critical
and non-load-bearing parts.
• GE Example:
o Fuel nozzles for CFM Leap (GE JV with Parker)
o By 2020 >100,000 parts on GE & CFM engines will use AM
o Investing $3.5bn over next five years to develop AM in-house
• China as the Spoiler?
o AVIC Heavy Machinery
16 ft. 3D Ti part
• Claims AM being used in major load bearing parts (J15 landing gear)
o COMAC C919 (large structural AM parts)
o AVIC: AM reduces costs 90%
Source: Aerospace’s Next Disruptive Technology (Kevin Michaels)
7
20. In Conclusion
• Advanced manufacturing matters tremendously, both economically and as a
matter of driving innovation and maintaining competitiveness
• US has under-invested, but the tide seems to be turning…hopefully
• Numerous opportunity to create winners by allocating resources to deploy
“evolutionary” AM techniques in existing enterprises
o Requires capital AND skilled workforce
o Especially true in consolidating supply chains like aerospace
• Numerous potential “break-through” technologies, particularly in life sciences
and nano-technology
8
22. What do we mean by Advanced Manufacturing?
• If you ask wiki: Advanced manufacturing is the use
of innovative technology to improve products or
processes
• If you ask OPM: Advanced manufacturing is the use
and convergence of advanced technologies to best
manufacture critical components and highly
specified parts
–
–
–
–
Material technologies
Design technologies
Manufacturing process technologies
Inspection/measurement technologies
23. What it means to OPM: Differentiation
• OPM is a small business specializing in innovative
material solutions for the biomedical & aerospace
industries
• Advanced Manufacturing means having:
– The right material: high performance polymer [PEKK]
– The ability to design organic or complex structures
– A validated manufacturing process: 3D printing or
additive manufacturing [HTLS]
– The right tools and systems to assure repeatability and
dimensional & mechanical accuracy
• Certified Quality System
• QC lab with metrology capabilities [Structured Light Scanning]
24. What it means to OPM: Value Creation
Part manufacturer not “job shop”
Commercial production not prototyping
Critical components not b-spoke
Deliver a solution not a model
Differentiation = value creation
OXFAB™ Industrial Parts
OXPEKK® Raw Materials
OsteoFab™ Biomedical Parts
Metrology Sciences
25. Rapid Prototyping vs. Additive Manufacturing
• 3D printing exists since the early 1980’s
– quickly fabricate a scale model of a physical part using 3D CAD data
– perfect for inexpensive marketing/demo objects and prototyping
→ Rapid Prototyping
– No need for validated processes
– No need to control dimensions
– No differentiation
→ Additive Manufacturing: means MANUFACTURING
– Certified to ISO13485, ISO9001 & AS9100C and FDA compliant (21
CFR 820)
– Growth
– Connecticut
We differentiate ourselves by our ability to deliver commercial parts
and critical component to the industry using 3D printing
26. Where did it lead OPM to?
• FDA Clearance in 2013FEB for 3D printed cranial implants
• Contract from Northrop Grumman Corporation for the
development of design parameters for 3D printed PEKK parts
HTR-PE
KK
• 100th cranial implant shipped on Oct 1st of
this year
• 12,000 sq-ft facility expansion in South
Windsor for additional 3D printing capacity
to support the growing demand of the
biomedical and aerospace markets
Manufactured using O
steoFab™ T
echnology.
Introducing Poly-Ether-Ketone-Ketone
Proven biocompatibility1, greater strength2
This product is not currently available in the U.S.
Patient-Matched Implant
29. CVG Upcoming Events
Second Thursdays
November 14
Private Investors in CT
Stamford
November 7, 2013
Boardroom Series
Holiday Party
December 5, 2013 | Fairfield
Full schedule
on cvg.org
30. THANK YOU CVG SPONSORS
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Venture Capital Sponsors
Professional Service Firms