How to Implement 3D Printing in Your Organization Part III

Agenda

1.  Why Bother With 3DP? - recap

2.  Strategic Framework

3.  Implementation Framework

4.  Closing Remarks

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Why Bother?

•  “Innovation in production technology is a powerful competitive weapon, bringing other strategic advantages besides achieving low costs including, superior quality, shorter delivery cycles, lower inventories, lower investments in equipment, shorter new product development cycles and new production economics.” (Skinner, 1984)

•  “Technology is perhaps the most important single source of major market share changes among competitors and is the prominent cause of the demise of an entrenched dominant firm” (Porter, 1985).

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3DP Strategic Framework – Where to Start?

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It can be difficult to align all the elements required for success, such as strategy and operations, human

capital, technology and financial advisory.

Strategic Framework

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Source: Deloitte. (2014). Disruptive manufacturing: The effects of 3D printing. In Deloitte (Ed.)

Initial Questions

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How will you keep your company’s business model relevant? How will you prepare for new competitors, including new entrants and DIYers? Do the current benefits of 3D printing (low cost, high customization, delivery close to point of use) challenge your existing product line? Do future areas of 3D printing research pose a threat?

Investing in 3DP

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Where should your company make capital investments today? What training and education investments are required? What investments should your company avoid?

Networks and Relationships

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What is the new relationship between IT and manufacturing? Between IT and product designers, scientists and engineers? How can IT use 3D printing to enable manufacturing, not overtake it?

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Source: Deloitte. (2014). Disruptive manufacturing: The effects of 3D printing. In Deloitte (Ed.)

3DP Implementation Framework

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Source: Mellor, S., Hao, L., & Zhang, D. (2014). Additive manufacturing: A framework for implementation. International Journal of Production Economics, 149(0), 194-201

Strategic Factors

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•  Requirement of strategic alignment between business, manufacturing, and R&D strategy.

•  The technology benefits from 3DP must be linked to the capabilities required of the manufacturing unit, capabilities derived from the business strategy.

•  Product characteristics: –  Products with increased functionality through

design optimisation –  Products of low volume

Technological Factors

•  Firms must understand the trade-offs in using new manufacturing technology –  material range remains low, –  machine and material costs remain high, and, –  process speeds are relatively slow

•  The lack of technical standards also presents a major barrier to adoption. –  Some of these characteristics of AM are likely due to their relative immaturity and managers should be

aware of this when deciding whether to adopt.

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Organizational Factors •  Implementation for an SME is likely to be different to

that in a large multinational company

•  The structure of an organisation is the key factor to successfully implementing manufacturing technology

–  Workforce experience and skill is also a key factor in 3DP implementation.

•  Companies that adopt without first re-designing organisational structures and processes encounter high difficulties

–  3DP brings change in jobs and tasks, and thus a change in work practices and structure as well

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Operational Factors

•  Impacts on product designs and designers –  require new design tools and practices to be developed –  designers understanding of the new design for 3DP constraints will be an influential factor the

implementation approach

•  Production planning and quality control will also be impacted –  Research on AM process planning is still lacking

•  Substantial information gap regarding the true cost of 3DP systems, implementation and operation.

Four key cost factors : operation times, machine costs, labour costs and material costs.

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Supply Chain Factors •  Restructuring of relationships with suppliers towards

more collaborative forms. –  Vendor support after implementation is a key success

factor

•  Current tendency for machine suppliers to be material suppliers (such as the powders used) following implementation.

–  partly due to the immaturity of the technology (with a shortage of material suppliers) and also likely a strategy on the machine supplier's part to protect future business

•  Distribution of manufacturing according to demand locations

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Closing Remarks •  Substantial planning must be carried out prior to implementation

•  Must ensure internal capacities are sufficient and that market opportunities exist

•  Importance of creating a business case for 3DP

•  Understanding and exploring the potential information gaps: –  Project processes –  Costs –  Technology capabilities

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