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SERVICE LOGISTICS IN 3D:
HOW 3D PRINTING OF SPARE PARTS COULD INFLUENCE YOUR FUTURE
AFTER-SALES SERVICE OPERATIONS
Nils Knofius
SINTAS PROJECT
SUSTAINABILITY IMPACT OF NEW TECHNOLOGY ON AFTER SALES SERVICE SUPPLY CHAINS
Technological
options with 3D
printing
Failure behavior
& maintainability
Inventory control
policies
Supply chain
network design
10/6/16 2n.knofius@utwente.nl
10/6/16n.knofius@utwente.nl 3
3D PRINTING: HOW IS IT DEFINED?
“Process of joining materials to make objects
from 3D model data, usually layer upon layer”
3D PRINTING: WHAT IS IT?
THERE IS NOT ONLY ONE 3D PRINTING PROCESS
10/6/16 4n.knofius@utwente.nl
Laser
Source
Scanner
System
Powder Delivery
system
Build
Chamber
Digital Light ProcessingPowder Bed Fusion
Roller
10/6/16 5
3D PRINTING: WHAT CAN BE DONE?
Organics
Ceramics
Polymers
Metals
Micro print
Nano print
Large scale print
Materials
Size
Normal size print
n.knofius@utwente.nl
Composite materials
10/6/16 6
3D PRINTING: WHEN IS IT CONSIDERED USEFUL?
n.knofius@utwente.nl
Costs
Production volume
3D printing
Conventional
production
Costs
Geometric complexity
3D printing
Conventional
production
POSSIBLE APPLICATIONS IN AFTER-SALES
SERVICE LOGISTICS
10/6/16 8
3D PRINTING IN AFTER-SALES SERVICE SUPPLY CHAINS
THE MAGIC FORMULA?
n.knofius@utwente.nl
10/6/16 9
REASONS FOR 3D PRINTING IN PRACTICE
Design improvements:
1) Weight reduction
2) Waste reduction
3) Improved heat distribution
4) Reduced flow resistance
5) Customization
90% disturbance
force reduction by
flow optimization
with 3D printing
n.knofius@utwente.nl
10/6/16 10
REASONS FOR 3D PRINTING IN PRACTICE
Possible reasons for not observing more applications for after-sales
service supply chains:
1. Bottom-up approach for identifying business cases
2. Engineer-driven implementation of 3D printing
n.knofius@utwente.nl
Prioritize spare part assortment from an after-sales
service supply chain perspective to support identification
10/6/16 11
REASONS FOR 3D PRINTING IN PRACTICE
Possible reasons for not observing more applications for after-sales
service supply chains:
1. Bottom-up approach for identifying business cases
2. Engineer-driven implementation of 3D printing
n.knofius@utwente.nl
Prioritize spare part assortment from an after-sales
service supply chain perspective to support identification
10/6/16 12
IMPROVEMENT POTENTIALS OF 3D PRINTING
FOR AFTER-SALES SERVICE SUPPLY CHAINS
n.knofius@utwente.nl
1) Reduce manufacturing / order costs
2) Reduce direct part usage costs
3) Reduce safety stock costs
4) Improve supply chain responsiveness
5) Reduce effect of supply disruptions
6) Postponement
7) Temporary fix
10/6/16 13
IMPROVEMENT POTENTIALS OF 3D PRINTING
FOR AFTER-SALES SERVICE SUPPLY CHAINS
n.knofius@utwente.nl
1) Reduce manufacturing / order costs
2) Reduce direct part usage costs
3) Reduce safety stock costs
4) Improve supply chain responsiveness
5) Reduce effect of supply disruptions
6) Postponement
7) Temporary fix
REDUCE EFFECT OF SUPPLY DISRUPTIONS
10/6/16 14
Regained supply continuity:
 Reduced
obsolescence risk
 Reduced stock-out risk
3D PRINTING IN AFTER-SALES SERVICE SUPPLY CHAINS
PRINT ON DEMAND
Manu-
facturing
Assembly DistributionEngineering
ETO
(engineer-to-order)
MTO
(make-to-order)
ATO
(Assemble-to-order)
MTS
(Make-to-stock)
DFS
(Deliver from local stock)
Push
Forecast driven
Pull
Order driven
CODP
10/6/16 15
Moving the Customer Order Decoupling Point (CODP) with 3D printing:
 Less inventories
 More Flexibility
Production strategies:
n.knofius@utwente.nl
TEMPORARY FIX
10/6/16 16n.knofius@utwente.nl
Concept US Army’s Mobile Parts Hospital
IDENTIFYING PROMISING SPARE PARTS FOR 3D
PRINTING
10/6/16n.knofius@utwente.nl 18
RELATE SPARE PART ATTRIBUTES TO IMPROVEMENT
POTENTIALS
Improvement potential
Reduce
manufacturing/
order costs
Reduce
direct part
usage costs
Reduce
safety
stock costs
Improve
supply chain
responsiveness
Postponement Temporary
fix
Reduce effect
of supply
disruptions
Sparepartattributes
Demand rate Low Low Low
Resupply lead time Long Long Long Long
Agreed response time Short Short Short
Remaining usage period Long
Manufacturing/ order costs High
Safety stock costs High High
Number of supply options Few Few Few
Supply risk High High
10/6/16 19
INCORPORATE COMPANY GOALS
n.knofius@utwente.nl
Company goals
Reduce
downtime
Secure
supply
Reduce
costs
Supply options
17%
Manufacturing/
order costs
Supply option
26.5% 10.5%
Supply risk
39% 37% 24%
Remaining
usage period
Supply risk
22% 7.5% 16.5%
TWO STAGE ANALYTICAL HIERARCHY PROCESS (SIMPLIFIED EXAMPLE)
Spare part attributes Weights
Supply options 17% + 26,5% = 43,5%
Supply risk 22% + 10,5% = 32,5%
Remaining usage period 7,5%
Manufacturing/order costs 16,5%
Step 1:
Pairwise-comparison
company goals
Stage 2:
Pairwise-comparison
attributes
Resulting weights:
10/6/16 20
INCORPORATE COMPANY GOALS
n.knofius@utwente.nl
Company goals
Reduce
downtime
Secure
supply
Reduce
costs
Supply options
17%
Manufacturing/
order costs
Supply option
26.5% 10.5%
Supply risk
39% 37% 24%
Remaining
usage period
Supply risk
22% 7.5% 16.5%
TWO STAGE ANALYTICAL HIERARCHY PROCESS (SIMPLIFIED EXAMPLE)
Spare part attributes Weights
Supply options 17% + 26,5% = 43,5%
Supply risk 22% + 10,5% = 32,5%
Remaining usage period 7,5%
Manufacturing/order costs 16,5%
Step 1:
Pairwise-comparison
company goals
Step 2:
Assign attributes and
pairwise-comparison
attributes
Resulting weights:
10/6/16 21
INCORPORATE COMPANY GOALS
n.knofius@utwente.nl
TWO STAGE ANALYTICAL HIERARCHY PROCESS (SIMPLIFIED EXAMPLE)
Improvement potential
Reduce
manufacturing/
order costs
Reduce
direct part
usage costs
Reduce
safety
stock costs
Improve
supply chain
responsiveness
Postponement Temporary
fix
Reduce effect
of supply
disruptions
Sparepartattributes
Demand rate Low Low Low
Resupply lead time Long Long Long Long
Agreed response time Short Short Short
Remaining usage period Long
Manufacturing/ order costs High
Safety stock costs High High
Number of supply options Few Few Few
Supply risk High High
= reduce costs = reduce downtime = Secure supply
10/6/16 22
INCORPORATE COMPANY GOALS
n.knofius@utwente.nl
Company goals
Reduce
downtime
Secure
supply
Reduce
costs
Supply options
17%
Manufacturing/
order costs
Supply option
26.5% 10.5%
Supply risk
39% 37% 24%
Remaining
usage period
Supply risk
22% 7.5% 16.5%
TWO STAGE ANALYTICAL HIERARCHY PROCESS (SIMPLIFIED EXAMPLE)
Spare part attributes Weights
Supply options 43,5% (17% + 26,5%)
Supply risk 32,5% (22% + 10,5%)
Remaining usage period 7,5%
Manufacturing/order costs 16,5%
Step 1:
Pairwise-comparison
company goals
Step 2:
Assign attributes and
pairwise-comparison
attributes
Resulting weights:
10/6/16 23
BASIC TECHNOLOGICAL CONSTRAINTS
n.knofius@utwente.nl
Organics
Ceramics
Polymers
Metals
Micro print
Nano print
Large scale print
Materials
Size
Normal size print
Composite materials
10/6/16 24
BASIC TECHNOLOGICAL CONSTRAINTS
n.knofius@utwente.nl
Polymers
Metals
Micro print Materials
Size
Normal size print
10/6/16 25
CALCULATE RANKING OVER ALL SPARE PARTS
Procedure:
Assess technological constraints:
a) If any technological constraint not fulfilled: 𝐼𝑡𝑒𝑚 𝑠𝑐𝑜𝑟𝑒 =
b) Otherwise: 𝐼𝑡𝑒𝑚 𝑠𝑐𝑜𝑟𝑒 =
(Simplified) example:
0
Attributes Value Score Weight Weighted score
Type of part (Metals, Plastics, etc.) M - - Fulfilled
Part size (dm³) 0,5 - - Fulfilled
Supply options (#) 2 0,32 43,5% 0,1392
Supply risk (%) 15 0,105 32,5% 0,034125
Remaining usage period (month) 5 0,11 7,5% 0,0825
Manufacturing/order costs (10.000 x Euro) 48 0,175 16,5% 0,028875
Item score = 0,2847
Technological
constraints
n.knofius@utwente.nl
Spare part
attributes
Weighted
average
 35.933 spare parts considered
Result:
 Already 1.141 technological feasible and
positive business cases identified
Example fitting-stud:
 Resupply lead time reduced by about 40%
 Manufacturing costs reduced by about 70%
10/6/16 26
APPLICATION AT FOKKER SERVICES
n.knofius@utwente.nl
Safety-belt with fitting-Stud
1) Safety stock costs (18%) 4) Supply risk (13%) 7) Supply options (10%)
2) Manufacturing/order costs (17%) 5) Remaining usage period (13%) 8) Part size
3) Demand rate (16%) 6) Resupply lead time (13%) 9) Material type
 11.944 spare parts considered
Preliminary result:
 15% of 175 best scoring parts are assessed
as technological feasible and economical promising
Discussion point:
 Focus on depot level maintenance or operational level
maintenance?
10/6/16 27
APPLICATION AT ARMY
n.knofius@utwente.nl
1) Demand rate (35%) 4) Resupply lead time (11%) 7) Safety stock costs (2%)
2) Supply risk (35%) 5) Manufacturing/order costs (2%) 8) Material type
3) Remaining usage period (11%) 6) Design ownership (2%) 9) Part size
THANK YOU!
Nils Knofius
n.knofius@utwente.nl

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TAL2016 University of Twente

  • 1. SERVICE LOGISTICS IN 3D: HOW 3D PRINTING OF SPARE PARTS COULD INFLUENCE YOUR FUTURE AFTER-SALES SERVICE OPERATIONS Nils Knofius
  • 2. SINTAS PROJECT SUSTAINABILITY IMPACT OF NEW TECHNOLOGY ON AFTER SALES SERVICE SUPPLY CHAINS Technological options with 3D printing Failure behavior & maintainability Inventory control policies Supply chain network design 10/6/16 2n.knofius@utwente.nl
  • 3. 10/6/16n.knofius@utwente.nl 3 3D PRINTING: HOW IS IT DEFINED? “Process of joining materials to make objects from 3D model data, usually layer upon layer”
  • 4. 3D PRINTING: WHAT IS IT? THERE IS NOT ONLY ONE 3D PRINTING PROCESS 10/6/16 4n.knofius@utwente.nl Laser Source Scanner System Powder Delivery system Build Chamber Digital Light ProcessingPowder Bed Fusion Roller
  • 5. 10/6/16 5 3D PRINTING: WHAT CAN BE DONE? Organics Ceramics Polymers Metals Micro print Nano print Large scale print Materials Size Normal size print n.knofius@utwente.nl Composite materials
  • 6. 10/6/16 6 3D PRINTING: WHEN IS IT CONSIDERED USEFUL? n.knofius@utwente.nl Costs Production volume 3D printing Conventional production Costs Geometric complexity 3D printing Conventional production
  • 7. POSSIBLE APPLICATIONS IN AFTER-SALES SERVICE LOGISTICS
  • 8. 10/6/16 8 3D PRINTING IN AFTER-SALES SERVICE SUPPLY CHAINS THE MAGIC FORMULA? n.knofius@utwente.nl
  • 9. 10/6/16 9 REASONS FOR 3D PRINTING IN PRACTICE Design improvements: 1) Weight reduction 2) Waste reduction 3) Improved heat distribution 4) Reduced flow resistance 5) Customization 90% disturbance force reduction by flow optimization with 3D printing n.knofius@utwente.nl
  • 10. 10/6/16 10 REASONS FOR 3D PRINTING IN PRACTICE Possible reasons for not observing more applications for after-sales service supply chains: 1. Bottom-up approach for identifying business cases 2. Engineer-driven implementation of 3D printing n.knofius@utwente.nl Prioritize spare part assortment from an after-sales service supply chain perspective to support identification
  • 11. 10/6/16 11 REASONS FOR 3D PRINTING IN PRACTICE Possible reasons for not observing more applications for after-sales service supply chains: 1. Bottom-up approach for identifying business cases 2. Engineer-driven implementation of 3D printing n.knofius@utwente.nl Prioritize spare part assortment from an after-sales service supply chain perspective to support identification
  • 12. 10/6/16 12 IMPROVEMENT POTENTIALS OF 3D PRINTING FOR AFTER-SALES SERVICE SUPPLY CHAINS n.knofius@utwente.nl 1) Reduce manufacturing / order costs 2) Reduce direct part usage costs 3) Reduce safety stock costs 4) Improve supply chain responsiveness 5) Reduce effect of supply disruptions 6) Postponement 7) Temporary fix
  • 13. 10/6/16 13 IMPROVEMENT POTENTIALS OF 3D PRINTING FOR AFTER-SALES SERVICE SUPPLY CHAINS n.knofius@utwente.nl 1) Reduce manufacturing / order costs 2) Reduce direct part usage costs 3) Reduce safety stock costs 4) Improve supply chain responsiveness 5) Reduce effect of supply disruptions 6) Postponement 7) Temporary fix
  • 14. REDUCE EFFECT OF SUPPLY DISRUPTIONS 10/6/16 14 Regained supply continuity:  Reduced obsolescence risk  Reduced stock-out risk
  • 15. 3D PRINTING IN AFTER-SALES SERVICE SUPPLY CHAINS PRINT ON DEMAND Manu- facturing Assembly DistributionEngineering ETO (engineer-to-order) MTO (make-to-order) ATO (Assemble-to-order) MTS (Make-to-stock) DFS (Deliver from local stock) Push Forecast driven Pull Order driven CODP 10/6/16 15 Moving the Customer Order Decoupling Point (CODP) with 3D printing:  Less inventories  More Flexibility Production strategies: n.knofius@utwente.nl
  • 16. TEMPORARY FIX 10/6/16 16n.knofius@utwente.nl Concept US Army’s Mobile Parts Hospital
  • 17. IDENTIFYING PROMISING SPARE PARTS FOR 3D PRINTING
  • 18. 10/6/16n.knofius@utwente.nl 18 RELATE SPARE PART ATTRIBUTES TO IMPROVEMENT POTENTIALS Improvement potential Reduce manufacturing/ order costs Reduce direct part usage costs Reduce safety stock costs Improve supply chain responsiveness Postponement Temporary fix Reduce effect of supply disruptions Sparepartattributes Demand rate Low Low Low Resupply lead time Long Long Long Long Agreed response time Short Short Short Remaining usage period Long Manufacturing/ order costs High Safety stock costs High High Number of supply options Few Few Few Supply risk High High
  • 19. 10/6/16 19 INCORPORATE COMPANY GOALS n.knofius@utwente.nl Company goals Reduce downtime Secure supply Reduce costs Supply options 17% Manufacturing/ order costs Supply option 26.5% 10.5% Supply risk 39% 37% 24% Remaining usage period Supply risk 22% 7.5% 16.5% TWO STAGE ANALYTICAL HIERARCHY PROCESS (SIMPLIFIED EXAMPLE) Spare part attributes Weights Supply options 17% + 26,5% = 43,5% Supply risk 22% + 10,5% = 32,5% Remaining usage period 7,5% Manufacturing/order costs 16,5% Step 1: Pairwise-comparison company goals Stage 2: Pairwise-comparison attributes Resulting weights:
  • 20. 10/6/16 20 INCORPORATE COMPANY GOALS n.knofius@utwente.nl Company goals Reduce downtime Secure supply Reduce costs Supply options 17% Manufacturing/ order costs Supply option 26.5% 10.5% Supply risk 39% 37% 24% Remaining usage period Supply risk 22% 7.5% 16.5% TWO STAGE ANALYTICAL HIERARCHY PROCESS (SIMPLIFIED EXAMPLE) Spare part attributes Weights Supply options 17% + 26,5% = 43,5% Supply risk 22% + 10,5% = 32,5% Remaining usage period 7,5% Manufacturing/order costs 16,5% Step 1: Pairwise-comparison company goals Step 2: Assign attributes and pairwise-comparison attributes Resulting weights:
  • 21. 10/6/16 21 INCORPORATE COMPANY GOALS n.knofius@utwente.nl TWO STAGE ANALYTICAL HIERARCHY PROCESS (SIMPLIFIED EXAMPLE) Improvement potential Reduce manufacturing/ order costs Reduce direct part usage costs Reduce safety stock costs Improve supply chain responsiveness Postponement Temporary fix Reduce effect of supply disruptions Sparepartattributes Demand rate Low Low Low Resupply lead time Long Long Long Long Agreed response time Short Short Short Remaining usage period Long Manufacturing/ order costs High Safety stock costs High High Number of supply options Few Few Few Supply risk High High = reduce costs = reduce downtime = Secure supply
  • 22. 10/6/16 22 INCORPORATE COMPANY GOALS n.knofius@utwente.nl Company goals Reduce downtime Secure supply Reduce costs Supply options 17% Manufacturing/ order costs Supply option 26.5% 10.5% Supply risk 39% 37% 24% Remaining usage period Supply risk 22% 7.5% 16.5% TWO STAGE ANALYTICAL HIERARCHY PROCESS (SIMPLIFIED EXAMPLE) Spare part attributes Weights Supply options 43,5% (17% + 26,5%) Supply risk 32,5% (22% + 10,5%) Remaining usage period 7,5% Manufacturing/order costs 16,5% Step 1: Pairwise-comparison company goals Step 2: Assign attributes and pairwise-comparison attributes Resulting weights:
  • 23. 10/6/16 23 BASIC TECHNOLOGICAL CONSTRAINTS n.knofius@utwente.nl Organics Ceramics Polymers Metals Micro print Nano print Large scale print Materials Size Normal size print Composite materials
  • 24. 10/6/16 24 BASIC TECHNOLOGICAL CONSTRAINTS n.knofius@utwente.nl Polymers Metals Micro print Materials Size Normal size print
  • 25. 10/6/16 25 CALCULATE RANKING OVER ALL SPARE PARTS Procedure: Assess technological constraints: a) If any technological constraint not fulfilled: 𝐼𝑡𝑒𝑚 𝑠𝑐𝑜𝑟𝑒 = b) Otherwise: 𝐼𝑡𝑒𝑚 𝑠𝑐𝑜𝑟𝑒 = (Simplified) example: 0 Attributes Value Score Weight Weighted score Type of part (Metals, Plastics, etc.) M - - Fulfilled Part size (dm³) 0,5 - - Fulfilled Supply options (#) 2 0,32 43,5% 0,1392 Supply risk (%) 15 0,105 32,5% 0,034125 Remaining usage period (month) 5 0,11 7,5% 0,0825 Manufacturing/order costs (10.000 x Euro) 48 0,175 16,5% 0,028875 Item score = 0,2847 Technological constraints n.knofius@utwente.nl Spare part attributes Weighted average
  • 26.  35.933 spare parts considered Result:  Already 1.141 technological feasible and positive business cases identified Example fitting-stud:  Resupply lead time reduced by about 40%  Manufacturing costs reduced by about 70% 10/6/16 26 APPLICATION AT FOKKER SERVICES n.knofius@utwente.nl Safety-belt with fitting-Stud 1) Safety stock costs (18%) 4) Supply risk (13%) 7) Supply options (10%) 2) Manufacturing/order costs (17%) 5) Remaining usage period (13%) 8) Part size 3) Demand rate (16%) 6) Resupply lead time (13%) 9) Material type
  • 27.  11.944 spare parts considered Preliminary result:  15% of 175 best scoring parts are assessed as technological feasible and economical promising Discussion point:  Focus on depot level maintenance or operational level maintenance? 10/6/16 27 APPLICATION AT ARMY n.knofius@utwente.nl 1) Demand rate (35%) 4) Resupply lead time (11%) 7) Safety stock costs (2%) 2) Supply risk (35%) 5) Manufacturing/order costs (2%) 8) Material type 3) Remaining usage period (11%) 6) Design ownership (2%) 9) Part size