business models for additive manufacturing
DESCRIPTION
Additive Manufacturing can be used to produce spare parts. When adopting new business models full use can be made of AMTRANSCRIPT
Business opportunities, issues and a vision for the future
Onno Ponfoort,
Wouter de Wolf,
Martijn Laar,
Gerben van den Berg,
Joost Krebbekx
January 2012
1
Berenschot on AMT (Additive Manufacturing Technology)
AMT is becoming real business
2
Agenda
1. AMT is shaping our future
2. What is ‘AMT’ ?
3. Why ‘AMT’ ?
4. Realizing the business potential
5. The future is yours
3
next =
on demand printing
from your own desktop
4
AMT is shaping our future
1900 1940 1960 1980 2000 2010
In the lab in the army in the company at home on the move
What’s
?
rapid
manufacturing
rapid
prototyping
Price? < €10K
AMT is shaping our future (2)
5
Wireless
technology?
Nano
Technology?
Bio
Technology?
technology breakthroughs in hearing aids
Additive
manufacturing
technology!
AMT is shaping our future (3)
‘X-thousand spareparts
also to be shipped’
From...
6
To…
On demand and on location printing of one part
Agenda
1. AMT is shaping our future
2. What is ‘AMT’ ?
3. Why ‘AMT’ ?
4. Realizing the business potential
5. The future is yours
7
‘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).”
2. What is ‘AMT’ ?
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AMT Machine
Finished product
Idea
Computer design
CAD
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• 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
2. 4 Principle processes
2. Multiple application areas
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• 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
2. Durables example
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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
Agenda
1. AMT is shaping our future
2. What is ‘AMT’ ?
3. Why ‘AMT’ ?
4. Realizing the business potential
5. The future is yours
12
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3. Automotive example
Automotive : on demand, on location spare part production
• superior leadtimes
• lower costs
• no inventory of spare parts
3. AMT allows for new business models
Repair/
assembly
Design
No waste (0%)
3 D Printing (local shop)
Final transport
AMT automobile spare part supply chain
Repair/
assembly
WASTE
(30-80%)
Design Transport
Transport
Production
(Inject. Mould)
Storage
(Bulk/
Regional) Receipt
(local service)
Final transport
Traditional automobile spare part supply chain
Shorter value chain, supreme lead times, lower costs
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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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3. AMT can be more customer friendly
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Audiogram &
wax model
Fitting,
again and again
manual
shaping
& tuning
Standard hearing aid
o time consuming
o costly process
o uncomfortable
o power in the chain
with labs / audiologists
CAD model
Additive manufacturing technology
old
new
Customized hearing aid
o perfect fit
o invisible & comfortable
o first time right
o no middlemen
o power with manufacturer
direct scanning
& audiogram
Mass
production
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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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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±
±
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Agenda
1. AMT is shaping our future
2. What is ‘AMT’ ?
3. Why ‘AMT’ ?
4. Realizing the business potential
5. The future is yours
19
Business opportunities
Three main topics
• Individualisation personality
• Ergonomics productivity
• Efficiency profitability
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Example: Digital Forming Inc. Individualisation
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Step 1: Start with the customer:
what is the benefit for the end user?
Does AMT offer your product a:
• relevant advantage?
• significant advantage?
• sustainable advantage?
• perceived advantage?
over innovative alternative solutions?
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0
Status,
Exclusivity
Effective-
ness
Well being Injury
prevention
Quality,
reliability
Low Cost
Tennis grips
Easy to make ……
…...but no added value
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Health and training of the player
Technique of the player
Material, size & weight of the racket
Material, shape and wrappings for the grip
Body protection (bands, tapes etc)
Abandon AMT
Dental implants
time in days
0
5
10
15
20
25
30
35
40
old
new
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total costs in €
0
500
1000
1500
2000
2500
old
new
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
Happy dentists
Happy insurance co’s
Happy customers
Happy company
Extremely unhappy dental labs
Agenda
1. AMT is shaping our future
2. What is ‘AMT’ ?
3. Why ‘AMT’ ?
4. Realizing the business potential
5. The future is yours
25
Efficiency: AM for spare parts
impact of
AM Remarks
Selling price On demand, on location (ODOL) service
Use / re-sell potential Multiple use of 3D printers
Engineering costs
Manufacturing costs Less new tools, more tool write-off, costs per
unit are higher
Assembly costs
Service costs
Aftersales costs
IT/datamanagement costs Requirement of centralised IT management,
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
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Issues :
integral costs of current spareparts unknown, financials are business model dependent
Indications on impact of AM for spare parts:
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Machines used for:
Original total
costs
(mass produced)
Total costs
AM
(ODOL)
One sparepart 2000 2896,76
10 spareparts 832 420,44
100 spareparts 500 159,054
Small series, complex part: costs per spare part
Some valid business models*
* Based on Direct Spare project findings
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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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1. Current situation and
scoping
2. Alternative solutions
3. Technical feasibility
• Long list alternatives • AMT possibility • Set up Techni- cal feasibility
• Market issues & requirements • Project Set Up & timing • SWOT
•Short list alternatives • AMT solution •Set up Commer- cial feasibility
4. Commercial feasibility
• Business Case • Supply chain • Partners • Investments
Berenschot approach towards succesful AMT
5. Action plan
•Product per-
fection process
• Implemen-
tation guide
• Activities:
• market research
• current production/
design,
• legal issues
• environment,
• patents
• Activities:
• solution long list
• selection criteria
• Outsider input
• Visualisation of
solution
• Highlight plan
• Activities:
• benefits and
constraints,
• physical principles
• function & process
check
• data capturing
• Decide on solution
• Activities:
• Determine gain
over current and
alternatives
• Sketch proposed
supply chain,
• Make business &
investment plan,
• Activities:
Define:
• development and
introduction plan
• milestones,
• partners and
responsibilities
• Investment
Week1 Wk 3 Wk 4 Wk 8 Wk 11 Wk16
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When you consider AMT
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DO
think about the business
implications of AMT up-front
take an integral view on AMT:
manage your buy-in in the chain
regard AMT as a strategic priority
as an innovation trial or status project it will fail
go for total business gains of AMT
instead of just tool reduction
DON’T
see AMT as the only way forward:
other innovations might provide
better solutions to your problem
overestimate the market impact
of AMT : customers care about
products, not how they are made
isolate scanning, software,
machines, materials, processes
More information on AMT
Onno Ponfoort
Gerben van den berg
Wouter de Wolf
Martijn Laar
Joost Krebbekx
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