How 3D printers will change the supply chain management in Industry 4.0

The 2nd International Conference on 4th Industrial Revolution28th of February 2017Diogo Quental

How 3D printers will change the supply chain management in 4th industrial revolution

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Summary

1. What is 3D Printing2. From Mass Production to Batch size 13. Massification of Mass Customization4. Similar processes in other industries5. Use Cases

1. What is3D Printing

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1. What is 3D Printing

By doodlesplash.co.uk

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1. What is 3D PrintingEvolution

Its not a new technology... The development started in the 1980s.

The exponential growth of 3DP, however, only startedrecently when patents expiration triggered the use by theopen source community.

Evolved from what can I print? to what can I not print?

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1. What is 3D PrintingTypes

3 big groups of printers

Desktop: < 3,000 EUR Professional: > 3,000 < 50,000 EUR Industrial: > 50,000 EUR

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1. What is 3D PrintingTechnologies

Several different technologies: FFF (Fused Filament Fabrication)

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Several different technologies: SLA (Stereolithography)

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Several different technologies: HP Multi Jet Fusion

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Several different technologies: DLP (Digital Light Processing) SLS (Selective Laser Sintering) SLM (Selective Laser Melting) EBM (Electron Beam Melting) LOM (Laminated Object Manufacturing)

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1. What is 3D PrintingAdvantages & Impacts

Rapid PrototypingNow its possible to have a prototype in just hours, instead of weeks or months.

(this will leverage the tech revolution and contribute to substantial cost saving)

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Full geometrical freedomProduct design is no longer constrained by the manufacturing process and can fully focus on functionality, making unique shapes that could not be produced in any other way.

The production of complex products without tools and assembly is now possible.

(this will contribute to design revolution)

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Complexity ReductionBy replacing assembled parts with a 3D printed single component, the manufacturing process can be simplified substantially.(this will shorten the supply chain)

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Lower physical stocks

Stocks become mainly digital 3D model files + raw materials.

(this will shorten the supply chain and contribute to substantial cost saving)

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Resource Efficiency3DP wastes less material, results in lowerwasted stocks, lower footprint and it canenhance the full recycling of wastedmaterials.

(this will contribute to ecological manufacturing)

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Rapid ManufacturingToday 3D Printing is already being used in manufacturing, which allows a much faster time-to-market response.(this will lead to demand-driven manufacturing)

Decentralization of ManufacturingManufacturing can take place closer to customers.(this will shorten the supply chain)

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1. What is 3D PrintingDifficulties

Slow process for large volume manufacturing

The traditional manufacturing processes will not disappear, but may be combined with 3D Printing to increase efficiency

Material choices still limited

Not enough skilled people knowledgeable about the technology

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1. What is 3D PrintingStats

A PriceWaterhouseCoopers survey in 2015 to US manufacturers in showed that:

> 70% had adopted 3D Printing

> 50% expected 3DP to be used for high-volume

production in the next 3-5 years

> 20% predicted it will be disruptive on supply chains

2. From Mass Production to Batch size 1

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Mass Production is today still the common approach to goods manufacturing.

Its main advantage is the production at a low cost per unit, due to the economies of scale.

In most situations, production is far from the place of consumption, but the cost of the transportation is outweighed by the low cost of production.

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However, Mass Production has several disadvantages or risks:

It is capital and energy intensive, so its not adequate for small or uncertain markets

It has a high set-up time, so its not good to respond to sudden demand increases

It has a complex supply chain, so theres a higher risk of halting production due to a missing component

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Image by: Bill Conerly, Forbes, The Economics Of 3-D Printing: Opportunities

Its true that in 3D Printing the price per unit produced is higher than in traditional manufacturing, but the tooling cost is zero and the time-to-market is very short.

Therefore, in situation where: Its important to test the market The market size is limited or

fully customization is required The financial capacity is limited

3D Printing can be the solution!

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In short,

3D Printing is particularly suitable for small runs,

that can be as small as a batch size 1.

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ExampleEnd-of-product-life replacement parts

Thousands old cars are still on the road, and there is a demand for replacement parts.

Traditional manufacturing is too expensive to produce those parts.

3D printing can be the solution!

3. Massification of Mass Customization

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Despitethevalueaddedforcustomers,overtheyearslowpricesofmassproductionpushedcustomizedproducts(usuallyhand-made)outofthemarket.

With3DPrinting,however,isnowpossibletocustomizeproductsatalowcost.

Because3Dprintingutilizesadigitalformat,partscanbecompletelydifferentfromonetotheotherandthecostofchangingthemisverylow.

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Products can now easily be made for just one customer.

Instead of a one-size-fits-all approach, medical devices, footwear and many other applications will start being customized to fit an individuals anatomy.

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Mass customization by established industries is becoming a reality,but there is another process running in parallel that we cause a strong impact:

The beginning of Manufacturing as a Service (MaaS).

MaaS is the shared use of a networked manufacturing infrastructure to produce goods.

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MaaS:

Can provide manufacturing solutions directly or close to the end-user

Can provide the potential of large volume production of traditional manufacturing, while making possible to provide a mass customised product

Can disrupt the economies-of-scale model

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Example

UPS 3D Printing serviceCustom solutions to meet your unique business needs.

With this distributed, on-demand manufacturing network, UPS customers will be able to get their products to market faster and more cost-effectively because parts can be produced exactly in the quantity they need and when they need them.

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Mass Production Mass CustomizationDistributed Manufacturing

Long supply chain Short supply chainHigh rigidity of the manufacturing process

High flexibility of the manufacturing process

High market risk Low market riskHigh investment Low investmentSlow development Fast development

4. Similar processes in other industries

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4. Similar processes in other industriesThe Steel Making Industry

Source: adapted from The Steel Making Industry: http://www.istc.illinois.edu/info/library_docs/manuals/primmetals/chapter2.htm

In the 1970s: High demand encouraged the production of large quantities of steel Large steel mills with high capital costs and limited flexibility were used

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4. Similar processes in other industriesThe Steel Making Industry

In the 1980s and 1990s: Increased compliance requirements and increased competition Steel makers were forced to reduce expenses to remain competitive Just-in-time technology has become more prominent and large steel plants were partially replaced with smaller plants, called mini-mills.

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4. Similar processes in other industriesTextile retailing: Marks & Spencer vs Zara

Zara High customization Low volume: new collections every 7 days Impressive performance

Marks & Spencer High standardization High volume

5. Use Cases

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5. Use Cases3D printed car components for time and cost savings - Tucci Hot Rods

Source: Ultimaker

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Challenge Before 3D printing, Tucci Hot Rods would either fabricate custom aluminum or plastic

parts using laser cutting and CNC milling techniques, or create custom pieces by hand.

Both processes: expensive and time consuming; no way of ensuring that a newly-created piece would 100% fulfill its purpose.

Iterations may mean starting from scratch; wasting time and money.

Solution 3D printing has allowed the Tucci team to speed up and refine the entire production

process, from design and testing, through to production and post-processing. Tenfold savings have been made in producing test part iterations, in turn, has encouraged greater creativity and raised production standards of

custom aftermarket car components.

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5. Use CasesBoeing: 20,000 3D printed parts used on Aircraft

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5. Use CasesBoeing: 20,000 3D printed parts used on Aircraft

Source: Adapted from 3dprint.com - https://3dprint.com/49489/boeing-3d-print/

3D printing of replacement aircraft parts Instead of storing parts at their various hubs, or requiring parts to be shipped to them,

possibly causing extensive delays, the company can now just pull up a specific file for a part thats needed, and have it fabricated within minutes or hours in the nearest location where they have a printer available.

There are around 300 different aircraft production parts that are being 3D printed.

It is estimated that there are over 20,000 parts currently being used on their aircraft (for now, only parts that can be 3D printed out of plastics).

Thank you!

How 3D printers will change the supply chain management in Industry 4.0

Technology

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