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Additive manufacturing

What concrete benefits?How to exploit them?

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Three precautions to take

Born in the 1990’s for quick tool manufacturing, industrial applications of additive manufacturing now reached a maturity level allowing the production of small and medium batches. The basics of this technology are well assimilated and major groups are actively publishing in specialized press about demonstrators and occasional success stories. Besides advertisement effects, we notice that practical use of additive manufacturing remains extremely marginal in reality, its actual benefi ts being not clearly identifi ed.

However, every industrial company should give more attention to the potential of this innovating technology, worth qualifying as “strategic” according to Geroski and Marksides1, considering it represents a major technological breakthrough substantially impacting companies’ organizations and skills.

Evaluating a priori the benefi tsSuccessive failures of large audience 3D printing and associated resounding bankruptcies had been another reminder that reasoning about uses and added value of additive manufacturing is needed prior to any investment action.

Some industrials set up open access plastic printing machines in “creativity” rooms. Resulting objects (mugs, fi gurines, etc.) are generally disappointing.

Getting advice exlusively from machine manufacturers and powder suppliersActual benefi ts of additive manufacturing still being not well identifi ed, machine manufacturers all adopt the same “techno push” argument : Additive manufacturing should be used due to its innovating nature.

This commercial message, driven by both machine manufacturers and powder suppliers, is based on the presentation of the technical abilities of their products rather than showing how this innovating technology will create added value for their clients.

Protecting its product portfolioContrary to conventional manufacturing technologies, additive manufacturing processes available today are not “open”, material and process cannot be decoupled.

Machine manufacturers are usually the only supplier of the powders its machines exclusively accepts.

For a non experimented industrial, the risk is to design products according to one process and be forced to buy powder to this manufacturer.

1. Markides, C.C. and Geroski, P.A. (2005) Fast Second: How Smart Companies Bypass Radical Innovation to Enter and Dominate New Markets, London, Jossey-Bass Inc Pub.

To avoid these pitfalls and take advantage of all the benefi ts additive manufacturing has to offer, one must question the value this process creates for industrial activities.

For this purpose, it is needed to stay away from announced reachable performances and to focus methodically on evaluating potential added value on a product portfolio.

After pointing out that benefi ts of additive manufacturing are primarily indirect, the 3 main categories where this technology has a notable contribution will be explained. This paper will then focus on the different methodologies allowing to identify and collect benefi ts among industrial activities. Finally, the approach IAC established with its industrial clients to support them in building their additive manufacturing roadmap will be presented.

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First priority: Evaluate what added value additive manufacturing may bring to your activity As this new technology is currently raising attention, articles from specialized press divide into 2 categories:

• New machinery or enhanced process announcements, usually (co-)written by the machine manufacturer or material supplier.

• Examples of technical achievements of some large companies, like indirect manufacturing of molds for Michelin’s latest Cross Climate tires, or large dimensions aluminum antenna supports by THALES Alenia Space for Koreasat 5A and 7 projects.

The process economical relevance is rarely addressed, and when it does, it’s always vague, only pointing out long term benefits.

Every industrial, curious about the potential of this innovating technology, follows the same approach: request the quotation of one of their existing parts. Whichever manufacturing technology is consulted (metal, plastics), results are always disappointing, prices usually exceeding conventional manufacturing ones.

Today, and for some years to come, unit production cost of parts made with additive manufacturing will exceed those of parts made with conventional processes.

By reasoning only on cost of parts intended to be manufactured by conventional processes, additive manufacturing is currently not competitive.

Competitiveness projects recently driven by IAC attest that this technology’s benefits are mainly indirect. These benefits are not measurable by the cost analysis of a product as it is usually calculated.

Indeed, we will detail in the next pages how additive manufacturing breaks the industrial paradigm of mass production, aiming at scale effects, which almost exclusive indicator is the recurring cost of products.

Added value with this process is nevertheless significant, as the 2 following examples, directly taken from past IAC’s initiatives, will prove.

Industrials recently supported by IAC focus on indirect benefits from additive manufacturing.

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20% reduction on cumulated expenditures

Improved time to market:• - 1 month to obtain the

fi rst mass production part• Certifi cation procedures

launched 1,5 month earlier

Reduced project risks: struggles with mold supplier, travel expenses in Asia to defi ne mold evolutions, ...

Implementation of additive manufacturing

Several prototypes of sand molds are successivelyproduced with additive manufacturing.

These iterations allow joint adjustment of the moldand the part.

Prototype parts are exactly identical to massproduction parts, contrary to traditional machining.

GO Hard tooling can be delayed and certifi cationprocedures can be launched earlier.

Context

Medical equipmentdevelopment on a tightschedule.

Signifi cant investments to be quickly made for aluminum pressure casting molds.

Unfavorable cooperation history with the Asian mold supplier.

Two practical cases

Implementation of additive manufacturing

• Correct parts are obtained with 5% reduction on recurring.

• The process allows 2 design optimizations: QLatticed walls → 30% mass reduction. Q Improved thermic decoupling → internal heating signifi cantly reduced.

• 2 notable indirect benefi ts inducted by this change of process:

QRemoval of rejects due to shell deformation during welding process. QSimplifi ed industrial supply chain : 1 partner rather than 3.

Context

Titanium ammunition body with precise tolerance.Current manufacturing process: machined shell, machined fi ns thenwelded on the shell.

A complex industrial scheme:

Q Supplier 1: Shell machining

Q Supplier 2: Fins machining

Q Supplier 3: Welding and dimensional control of fi nal part

-5%

Additive manufacturing

Conventional manufacturing

Fins manufacturing

Shell

Welding

TimeConventional processAdditive manufacturing

Prototyping

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The 2 previous examples enlighten the benefi ts induced by this innovating technology, and show that the exclusive use of products’ cost as a competitiveness indicator is not relevant to measure the added value of this new process.

However, these punctual examples are not necessarily transferrable to other industrial sectors. But, they also do not reveal all the potential benefi ts this technology can bring.

To explain its capabilities, the use of ROCE as key indicator, as proposed by Max Blanchet in Industrie 4.02, is appropriate.

*ROCE (Return On Capital Employed) is a fi nancial measure which compares the margin rate of a company to the amount of invested capital to achieve this result. It is therefore representative of the company’s effi ciency and competitiveness.

ROCE may be splitted into 2 key ratios: profi tability and capital turnover.

Additive manufacturing directly impacts these two ROCE improving levers, listed below in a generic way for all technologies in Industrie 4.0:

ROCE Profi tability

Q Customization of products

Q Added value product

Q Lower total cost

Q Negative/digital complexity cost

Q Lean fl ows, better quality, less waste

The economic levers of the industry 4.0(2)

Q Asset fl exibility

Q Transfer of the complexity cost to digital

Q Better assets utilization (TRS)

Q Stock reduction

Capital turnover

2. Blanchet M. (2016) Industrie 4.0 : Industrial new situation, new model economic, Lines of Marks

Additive manufacturing is a powerful lever to increase

ROCE, true indicator of industrial companies’

competitiveness.

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3 main benefit types highlited

Additive manufacturing improves products value: optimized designs, increased

Products with increased performances can be offered to customers : improved mechanical strength via lattice structures, reduced pressure losses for channels network unfeasible with conventional processes, optimized heat exchanges, ...

These improvements increase product value and sometimes allow the achievement of innovations impossible with conventional

technologies (Michelin’s Cross Climate tires for example).

Additive manufacturing opens new commercial opportunities :Smaller markets become adressable, product portfolio can be expanded in a cost effective way.Additive manufacturing obviates the production of expensive specific tools, such as injection molds, while ensuring identical design to the one obtained with mass production resources.

Therefore, this technology gives the opportunity to reduce fixed development costs for new ranges of products, as well as optimizing the timeframe for reaching the break-even point of a project while reducing financial commitment and, accordingly, risks level.

New perennial markets and opportunities can thus be won, and product portfolio can be extended in a cost effective way.

Pushed to its optimum, the process allows product personalization regarding individual clients with the use of platforming principles:

The generic platform is manufactured in a cost effective way with conventional processes while personalized parts are additively manufactured.Thus, the search for the economically most efficient batch sizes, mass production paradigm limiting targets to large markets in order to absorb important investments, is null.

after reviewing ROCE improving levers.

Assets rotation can also significantly be improved with additive manufacturing.Besides indirect tool manufacturing (as shown page X), additive manufacturing offers a wide range of opportunities on “hidden” indirect costs of companies.

• Stock optimization by means of manufacturing on demand.

• Substitution of physical stocks by digital models printable on demand.

• Non-quality reduction on complex, multi-

process parts involving several suppliers:

Q Global lead-time optimization. Q Decrease the number of involved partners, which simplifies the logistic scheme and limits risks of responsibility arguments about transport costs.

Q Removal of constraining special processes. Q Reduction of rejects rate.

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Product value strategy: optimized performances, improved performances.

The tool to put this strategy in place is functional analysis, which will enable identification of :

• Combinations of functions in a single part

• Axes of improvement on the product key performances (Mechanical strength, temperature resistance, …) thanks to topological optimization of designs as well as lattice structures.

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Effective benefits identification in an activityAs stated in the previous sections, effective benefits of additive manufacturing are not easily revealed by quoting existing parts designed for conventional manufacturing processes. 3 complementary strategies must therefore be applied, combined with adapted tools:

Capital Turnover strategy:

Possible optimizations within this strategy will mostly remain hidden for clients. However, they are crucial for industrials. By improving capital turnover, the operational performance of the company’s activities increases, inducing a greater capacity to launch new projects.

Assorted tools to this approach are:

• Product life cycle analysis, especially during development and prototyping phases, in order to focus on time-to-market reduction and investments reduction.

• Analysis and optimization of financial indicators :• Stock level and turnover rate• Expensive transport costs (urgencyplane

delivery)• Loss of stocks due to parts’ definition

evolutions• In-house team costs to support LLC

suppliers or non-quality analysis

Market strategy:

Consideration must be done to identify which new markets can be adressed and according to which extent it becomes profitable to expand the product portfolio.

In order to reveal these opportunities, 2 complementary tools are relevant:

• A discovery matrix, double entry table enabling to cross-check two types of information. Empty cells are “innovation windows” on which research must be focused on.

• A blue ocean strategy(4), consisting in staying away from competition logic to promote innovation and originality in order to reach new market, free from competition.

Engine part with lattice structure fabricated by EBM using Ti6A14V to reduce engine weight while enhance stiffness (3)

3. Ming C. LEU,Nannan GUO. Additive manufacturing: technology, applications and research needs[J]. Front Mech Eng, 2013, 8(3): 215-243.4. CHAN KIM W., MAUBORGNE R., Blue Ocean Strategy, Harvard Business School Press, 2005.

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During 3 to 4 months, phase 1 is dedicated to the identifi cation and evaluation ofpotential benefi ts.

The 2nd phase, lasts approximately 6 months and specifi es the roadmap with short and mid-term objectives. Quick win savings made on operational effi ciency allow to communicate positively on these process’ tangible benefi ts, as well as comfortably starting to design new breakthrough products.

In so approaching additive manufacturing under an added value perspective, this 2 steps methodology gives practical results. It allows to comfortably consider the strategic mutation that the future widespread adoption of this revolutionary process represents.

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Olivier SAINT-ESPRITDirectorolivier.saint-esprit@iac.fr

Olivier is IAC’s advisor on additive manufacturing issues.

He oversees projects where this technology is implemented among various industrial sectors : aerospace and defense, medical, railways...

The defi nition of an additive manufacturing roadmap helps to formalize short-term and mid-term objectives regarding the 3 approaches described in the previous page.

IAC methodology : two steps to identify and quantify opportunities

Identify benefi ts in 3 axes

Product conceptionoptimized performances, improved performances

Launch of POCs*Evaluate the potential of designs and get to knowthe additive manufacturing ecosystem.

New range of products with best results

Settle new internal skills and make the organization evolves

Larger product offerNew marketsNew business models

Identify quick-wins opportunitiesFinance future projects and communicate withinthe organization about the benefi ts of additive manufacturing

Defi ne new business opportunitiesBuild related business models

Short-term Mid-term

Business effi ciencyBetter capital turnover

New marketLarger offer and new markets

Build and animate the additivemanufacturing roadmap01 02

(*) Proof of concept

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