MARKUS GLASSER

101

SENIOR VICE PRESIDENT, EXPORT, EOS

PRESENTATION:

Digital factories of the future: driven by

AM technology, a digitalized end-to-end

process chain and a partner network

– let’s take production to the next level

30 years in Additive Manufacturing

Digital factories of the future: driven by AM technology, a digitalized end-to-end process chain and a partner network – let’s take production to the next level”

Additive Next 2019

Markus GlaßerSenior Vice President

103

Content

Strategy

Automotive case: New York 1900, Where is the car? Disruption waves might be very small at the beginning.

New York 1913: Where is the horse-drawn carriage? Opportunities for new products vs. niche strategy for old ones

CHANGE also happened more than 100years ago and was underestimated, so it will also in the near future…

People overestimate the short-term effect and underestimate the mid-term power of technology

Driving change in the automotive industry 104

“We have to speed up our pace of innovation.

For this we need massive investments

in the digital infra-structure: in minds

and hardware.”

Dieter Zetsche (CEO, Daimler AG, 2017)

The traditional Automotive business model has to adopt based on multiple changes from the customer till the supplier

Driving change in the automotive industry 105

Change of asymmetric competitors

Tesla, UBER, Google, insurance companies, software companies

Change of customers mindset

Sharing economy thinkers, generation X and Y, sustainability

Change of technology

Industry 4.0, autonomous driving, artificial intelligence, VR/AR

Change of services

More digital solution in current cars, support new services will be possible

Change of supply chain

Distributed manufacturing on global production platforms

Change of suppliers

Additive manufacturing opens new ways to build ad-hoc supply chains

Example BMW iVentures: Automotive OEMs approaching new technology fields to create new digital connected solutions

Driving change in the automotive industry 106Source: BMW I Ventures, https://www.bmwiventures.com/portfolio

Platforms

Hardware

Software

DataManufacturing

More and more AM innovation centers are opening up to accelerate the development of new and innovative AM parts

Driving change in the automotive industry 107

Audi – Center of Excellence, Ingolstadt/ Germany

Ford – Advanced Manufacturing Center, Redford (MI)/USA

BMW – Additive Manu-facturing Campus, Munich/Germany

Fruili Innovazione –AM Center, Udine/Italy

Thyssen Krupp – AM Tech Center, Mühlheim/ Germany

GM – Warren Tech Center, Warren (MI)/USA

Wipro – Additive Manufacturing Solution Center, Bangalore/India

KTM / Pankl – PAMCC, Kapfenberg/Austria

GPS – Training Center, Villach/AustiaSiena Slovenia

108Source: EOS; Logos: Respective companies

Digitalized end to end process chain and partner network

Start Ups

Powered by

EOS GROUP AMP

External Partners

109Source: EOS; Logos: Respective companies

Digitalized end to end process chain and partner network

Start Upspowered by

EOS GROUP

External Partners

Customized machines„Largest 3D printed metal part“

Post-processing of Polymer parts„Unlimited colouring options”

The importance of the AM Technology will further increase, because it offers innovations on part and supply chain level

110

→Innovation on design, variancy and part properties level

Innovative parts

→ Digitally connected and optimized AM Systems and Factories

AM Factory

Image sources: EOS GmbH, Citroen, Daimler, Conflux

Smart & Efficient Factories

On-demand production

Small seriesLocalized

CellsFunctional &

Part IntegrationComplex

StructuresMass

Customization

Daimler

PSA Citroen DS

Conflux Technologies

111

Content

Disrupted Part Cases

Compass – Invest in Parts or Production Optimization?

Driving change in the automotive industry 112

N

E

S

W

Innovative Parts AM Factory

Overview – disruptive cases with AM

Driving change in the automotive industry 113

Disruption with AM

technology

Metal & engine Plastic & interior

After salesSpare parts

Real-life automotive examples of plastic and metal based application are detected and re-designed with AM

Driving change in the automotive industry 114

Plastic based applications

Under the hood▪ VW electric vehicle component fixtures▪ Mann & Hummel air ducting

Exterior▪ Daimler trucks door

handle spares▪ MINI side scuttle

Interior▪ RR arm rest▪ Mini decor cover▪ Classic Mercedes

spare partsElectric/Hybrid Vehicles▪ Chinese Tier 1: Heat

exchangers for battery cooling

Structural components▪ VW A-column joints▪ Italian luxury OEM

car body joints

Metal based applications

Engine & drive system▪ Ferrari motor block▪ Renault motor block▪ Toyota cylinder heads

and drive components

Fixtures and brackets▪ Mercedes-Benz AMG▪ Bugatti brackets▪ VW brake line holder

Metal & engine parts| BMW is also pioneering in metal AM

Driving change in the automotive industry 115

Bionic roof-folding mechanism

Situation:

▪ BMW striving for innovation and perform

Challenge:

▪ Make value adding innovation visible

Solution:

▪ Bionic design of aluminum parts in its roof-folding mechanism

▪ Light weighting and integration of multiple parts

▪ Several thousand in production

BMW i8 Roadster (2018)

KeysDS 3 Dark Side

Source: BMW

Significant cost impact through reducing the post-processing step by “support structure free” design and build

Driving change in the automotive industry 116

No support structures up to 10° degree needed

10°

Plastic & interior| In direct comparison to injection molding, AM saves cost in low and mid volume production

Driving change in the automotive industry 117

Replacement of injection molding (IM)

Situation:

▪ Increasing demand for complex plastic components with demand < 50.000 pc. / a

▪ High cost for injection molding due to tooling cost

Challenge:

▪ Reduce cost for low and mid volume components

Solution:

▪ 12 components defined, transferred and in use

▪ More than 100.000 parts printed

▪ 10-20% cost saving per transferred component

Example Rolls Royce – interior and exterior

Source: https://www.press.bmwgroup.com

Spare parts| Daimler optimizes their after sales supply chains by transfer spare parts from physical to digital

Driving change in the automotive industry 118

Daimler Benz trucks and busses

Situation:

▪ 15+ years of spare parts availability

Challenge:

▪ High life time cost for many components

Solution:

▪ Transfer spare parts from physical to digital

▪ Cooperation with EOS Additive Minds

▪ >380 components identified, and qualified for AM (P&M)

▪ Reduction of cost for >10.000 spare parts/a

Digital spare parts

Source: http://media.daimler.com

Daimler: „Same high quality requirements in terms of reliability and functionality –but more economic.”

119

Content

Asset Flexibility –AM Factory

Compass – invest in parts or production optimization?

Driving change in the automotive industry 120

N

E

S

W

Innovative Parts AM Factory

"You should not show somebody something very cool and then not do it. At Tesla, any prototype that is shown to customers, the production must be better.“Elon Musk

In a digital factory, the producer with the highest asset flexibility and agility will dominate the automotive sector

Driving change in the automotive industry 121

Tesla has ramp-up faster than expected their car assembly line

Driving change in the automotive industry 122

Tesla’s approach: open source design patents

Source: New York Times, 2017

The “race of change” hast started and within the next 10-20 years, we will see significant changes in manufacturing

Driving change in the automotive industry 123

▪ Cannot easily be “digitized”,high asset specificity

▪ High barrier of entry for disruptors

Manufacturing 2018

Traditional manufacturing

▪ Fully digital connected

▪ Industry 4.0

Factory of the future

▪ Barriers of entry for disruptors will come down and give rise to platform business models

Manufacturing 2028 - 2038

Digital (AM) Factory

Asset-heavy

High asset specificity

Tangible, complex product Know-how

Medium-low asset specificity

Asset-light through outsourcing

Source: Sachon, Marc (2019)

AM and robotics will increase agility and flexibility in the future

Driving change in the automotive industry 124

1+1+1

Linear production model

3³

Exponential production model

AM Automationtechnology

Industrial robotics

Joint project with PremiumAerotec, EOS and Daimler

Source: EOS, NextGen AM

Additive Manufacturing on its way towards digital factories of the future

Source: EOS

Digital printing farms are becoming reality: future will be virtual networks of digital AM production cells

Driving change in the automotive industry 128

Automation, robotics and AM technology will drive AM production networks

Digital AM printing farms network

Mass customization

Higher utilization

On demand spare parts Lower warehousing &

transportation cost

Auto rebalanceload

Digital additive manufacturing

Digital manufacturingplatform

Distributed additive manufacturing

The digital factories of the future: evolution from connected to distributed manufacturing

Driving change in the automotive industry 129

Distributedmanufacturing

Source: Siemens, Authentise

s

Recommendations on how to accelerate with AM?

Driving change in the automotive industry 130

Innovative Parts AM Factory

N

E

S

W

131

Speed of innovation is faster than ever beforeSource: EOS

Summary

132Driving change in the automotive industry132

“The factory of the future will have only two employees: A man and a dog. The man will be there to feed the dog. The dog will be there to keep the man from touching the equipment.“ Warren Bennis

133

Thank You!

Source: EOS

Markus GlaßerSenior Vice Presidente-Mail: markus.glasser@eos.infoMobile: +491728459500