Additive Manufacturing can be used to produce spare parts. When adopting new business models full use can be made of AM

1. Berenschot on AMT
(Additive Manufacturing Technology)
Business opportunities, issues and a vision for the future
Onno Ponfoort,
Wouter de Wolf,
Martijn Laar,
Gerben van den Berg,
Joost Krebbekx
January 2012
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2. AMT is becoming real business
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3. Agenda
1. AMT is shaping our future
2. What is ‘AMT’ ?
3. Why ‘AMT’ ?
4. Realizing the business potential
5. The future is yours
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4. AMT is shaping our future
What’s
?
1900 1940 1960 1980 2000 2010
In the lab in the army in the company at home on the move
rapid rapid
prototyping manufacturing
next =
on demand printing
from your own desktop
Price? < €10K
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5. AMT is shaping our future (2)
Wireless
technology breakthroughs in hearing aids technology?
Nano
Technology?
Bio
Technology?
Additive
manufacturing
technology!
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6. AMT is shaping our future (3)
From...
‘X-thousand spareparts
also to be shipped’
To…
On demand and on location printing of one part
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7. Agenda
1. AMT is shaping our future
2. What is ‘AMT’ ?
3. Why ‘AMT’ ?
4. Realizing the business potential
5. The future is yours
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8. 2. What is ‘AMT’ ?
‘Additive manufacturing technology’ (AMT) = “A technique for
manufacturing series of unique (solid) objects by the sequential
delivery of energy and/or material to specified points in (3-D)
space ‘directly’ from design (CAD-models).”
Idea
AMT Machine
CAD
Finished product
Computer design
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9. 2. 4 Principle processes
• SLA
stands for Stereo Lithographic Apparatus, better known as
stereolithography . This 3D laser technique produces 3D objects by hardening
(polymerising) photosensitive epoxy
resin. http://www.youtube.com/watch?v=ShX_qXSTj_E&NR=1
• SLS
stands for Selective Laser Sintering . With this technique, 3D
objects are produced by particle welding of powder base materials (nylon or other
material) layer over layer. http://nl.youtube.com/watch?v=C9awF5te_2w
• FDM
stands for Fused Deposition Modelling . This RP technique
constructs a 3D object by extruding a thermo- plastic material through a temperature-
controlled head , layer on top of layer.
http://www.youtube.com/watch?v=oYLjyI5honM&feature=related
• 3D printing : process similar to ink-jet printing, but in 3D shapes
http://www.youtube.com/watch?v=sNyIOPrXhd8&feature=related
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10. 2. Multiple application areas
• Automotive & aerospace: (spare) parts, reverse engineering
• Medical: (dental / bone) implants, prosthesis, orthopedics
• High-end equipment: tools, grips, turbines, machine parts
• Construction and Architecture: maquettes, testmodels
• Consumer durables: chairs, computer mouse, shoes, jewellery
• Military: equipment packs, vests, helmets
• Toys: cars, bikes, puzzles, avatars
• Consumer products: lamps, key rings glasses
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11. 2. Durables example
Scan  Data processing  CAD model  AMT  Helmet
• custom fit helmet
• comfort, safety and status benefit for the user
• brand and customer relation benefits for the company
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12. Agenda
1. AMT is shaping our future
2. What is ‘AMT’ ?
3. Why ‘AMT’ ?
4. Realizing the business potential
5. The future is yours
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13. 3. Automotive example
Automotive : on demand, on location spare part production
• superior leadtimes
• lower costs
• no inventory of spare parts
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14. 3. AMT allows for new business models
Traditional automobile spare part supply chain
Design Transport
WASTE
Transport (30-80%)
Final transport
Production Storage Repair/
(Inject. Mould) (Bulk/ assembly
Regional)
Receipt
(local service)
AMT automobile spare part supply chain No waste (0%)
Final transport
Repair/
assembly
Design 3 D Printing (local shop)
Shorter value chain, supreme lead times, lower costs
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15. 3. AMT has clear technical and design benefits
• Reduction of waste, material use, tooling, cycle
and lead times, stocks, warehousing and transport
• Decentralisation of manufacturing;
• Direct manufacturing from designs (automated process)
• Freedom of design in 3D (freeform, no moulds)
• Co-creation of all design (products designed by consumers)
• Materials can be used beyond their intrinsic properties
• Complex designs manufactured first time right
• Compounded multipart products manufactured as one product
• Unique, fully customised and/or geometrically
shaped products
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16. 3. AMT can be more customer friendly
Fitting,
again and again Standard hearing aid
o time consuming
old o costly process
o uncomfortable
Audiogram & Mass
wax model o power in the chain
production manual
shaping with labs / audiologists
& tuning
Customized hearing aid
o perfect fit
new o invisible & comfortable
o first time right
direct scanning CAD model
& audiogram Additive manufacturing technology o no middlemen
o power with manufacturer
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17. 3. AMT can lead to USP
• “Adding a personal touch” to existing products (customized add-ons)
• Driven by consumer demand
• “Engineering the impossible” (new functionalities)
• Driven by technology / engineering
• The affordable alternative enabling very small batch sizes
• Driven by process
economics
• Full customization,
driven by consumer demand
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18. 3. Still some issues
•
± A limited number of commercially available materials,
mostly polymers : limited specifications & functionality
•
± Few machines for processing metals or non-polymers
•
± Machines able to handle few materials or colours
•
± Machine size limits product sizes (avg. 40*40*40cm)
•
± Machine speed is limited
•
± Costs are coming down rapidly. In the near future
‘production machines’ available from $5.000 up ?
‘desk top machines’ available from $ 1.500 up ?
but most materials are still expensive
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19. Agenda
1. AMT is shaping our future
2. What is ‘AMT’ ?
3. Why ‘AMT’ ?
4. Realizing the business potential
5. The future is yours
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20. Business opportunities
Three main topics
• Individualisation  personality
• Ergonomics  productivity
• Efficiency  profitability
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21. Example: Digital Forming Inc. Individualisation
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22. Step 1: Start with the customer:
what is the benefit for the end user?
Does AMT offer your product a:
Low Cost Status,
• relevant advantage? Exclusivity
• significant advantage?
Quality, 0 Effective-
reliability ness
• sustainable advantage?
Injury
• perceived advantage? Well being
prevention
over innovative alternative solutions?
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23. Tennis grips
Easy to make ……
…...but no added value
Body protection (bands, tapes etc)
Technique of the player
Abandon
AMT
Material, shape and wrappings for the grip
Material, size & weight of the racket
Health and training of the player
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24. Dental implants
Traditionally a lot of inconveniences.......
........... now a much smoother process
 revolution in the traditional chain : whole new business concept
 cost, time and convenience benefit for the end user
 large efficiency gains in the total chain
 first time right products
total costs in € time in days
2500 40  Happy dentists
2000
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 Happy insurance co’s
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25  Happy customers
1500
old old
new
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new  Happy company
1000 15
10
500
5  Extremely unhappy dental labs
0 0
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25. Agenda
1. AMT is shaping our future
2. What is ‘AMT’ ?
3. Why ‘AMT’ ?
4. Realizing the business potential
5. The future is yours
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26. Efficiency: AM for spare parts
impact of
Remarks
AM
Selling price On demand, on location (ODOL) service
Use / re-sell potential Multiple use of 3D printers
Engineering costs
Less new tools, more tool write-off, costs per
Manufacturing costs
unit are higher
Assembly costs
Service costs
Aftersales costs
Requirement of centralised IT management,
IT/datamanagement costs
switching costs
Quality costs
Warehousing & working capt No stocks, no write-offs
Transportation costs Requirement of decentralised production
Environmental costs Waste, energy and transport gains
Issues :
integral costs of current spareparts unknown, financials are business model dependent
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27. Indications on impact of AM for spare parts:
Small series, complex part: costs per spare part
Original total Total costs
Machines used for: costs AM
(mass produced) (ODOL)
One sparepart 2000 2896,76
10 spareparts 832 420,44
100 spareparts 500 159,054
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28. Some valid business models*
* Based on Direct Spare project findings
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29. The future is yours… but how do you get there?
1) Scoping: targets, partners, criteria, alternatives
 Project set up
2) Current situation: market research: customer demand, business
constraints, system requirements, competition, current production/
design, improvements, legal issues, environment, patent check
 Characteristics of AMT solution
3) Feasibility study, Physical principles, function vs process check,
detailed research, data capturing
 Feasible AMT solution
4) Business case: gain over current, benefits over other alternatives,
proposed supply chain, business plan, financial implications
 Commercial feasibility
5) Implementation plan: development and introduction planning,
milestones, partners and responsibilities, action planning
 Turn key plan
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30. Berenschot approach towards succesful AMT
1. Current 5. Action
2. Alternative 3. Technical 4. Commercial
situation and plan
solutions feasibility feasibility
scoping
• Activities: • Activities: • Activities: • Activities: • Activities:
• market research • solution long list • benefits and • Determine gain Define:
• current production/ • selection criteria constraints, over current and • development and
design, • Outsider input • physical principles alternatives introduction plan
• legal issues • Visualisation of • function & process • Sketch proposed • milestones,
• environment, solution check supply chain, • partners and
• patents • Highlight plan • data capturing • Make business & responsibilities
• Decide on solution investment plan, • Investment
• Market issues • Long list •Short list • Business Case •Product per-
& requirements alternatives alternatives • Supply chain fection process
• Project Set Up • AMT possibility • AMT solution • Partners
& timing • Set up Techni- •Set up Commer- • Investments • Implemen-
• SWOT cal feasibility cial feasibility tation guide
Week1 Wk 3 Wk 4 Wk 8 Wk 11 Wk16
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31. When you consider AMT
DO DON’T
 think about the business  see AMT as the only way forward:
implications of AMT up-front other innovations might provide
 take an integral view on AMT: better solutions to your problem
manage your buy-in in the chain  overestimate the market impact
 regard AMT as a strategic priority of AMT : customers care about
as an innovation trial or status project it will fail products, not how they are made
 go for total business gains of AMT  isolate scanning, software,
instead of just tool reduction machines, materials, processes
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32. More information on AMT
Onno Ponfoort
o.ponfoort@berenschot.nl
Gerben van den berg
g.vandenberg@berenschot.nl
Wouter de Wolf
w.dewolf@berenschot.nl
Martijn Laar
m.laar@berenschot.nl
Joost Krebbekx
j.krebbekx@berenschot.nl
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