Business opportunities, issues and a vision for the future

Onno Ponfoort,

Wouter de Wolf,

Martijn Laar,

Hans Fles,

Joost Krebbekx,

Gerben van den Berg Q1, 2012

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Berenschot on AM Additive Manufacturing Technology

Agenda

1. AM is shaping our future

2. What is ‘AM’ ?

3. Why ‘AM’ ?

4. Realizing the business potential

5. The future is yours

2

next =

on demand printing

from your own desktop

3

AM 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

AM is shaping our future (2)

4

Wireless

technology?

Nano

Technology?

Bio

Technology?

technology breakthroughs in hearing aids

Additive

manufacturing

technology!

AM is shaping our future (3)

‘X-thousand spareparts

also to be shipped’

From...

5

To…

On demand and on location printing of one part

Agenda

1. AM is shaping our future

2. What is ‘AM’ ?

3. Why ‘AM’ ?

4. Realizing the business potential

5. The future is yours

6

‘Additive manufacturing technology’ (AM) = “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 ‘AM’ ?

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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. AM is shaping our future

2. What is ‘AM’ ?

3. Why ‘AM’ ?

4. Realizing the business potential

5. The future is yours

11

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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. AM allows for new business models

Repair/

assembly

Design

No waste (0%)

3 D Printing (local shop)

Final transport

AM 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. AM 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

14

3. AM 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. AM 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

±

±

±

±

±

±

Agenda

1. AM is shaping our future

2. What is ‘AM’ ?

3. Why ‘AM’ ?

4. Realizing the business potential

5. The future is yours

18

AM and business issues

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Suppliers - Purchasing power

- Strategic partnerships,

co creation

- Technology roadmap

Customers - Create customer lock in

- Satisfy individual needs

- Help customer

differentaite

- New business models

- New entrants - New competitors

- Forward and backward

integration

- Globalization

- New role in value chain

Substitutes - Solution oriented

- Alternatives (products,

materials, technologies)

- R&D, engineering

challenges

Industry Rivalry

- USP versus competition

- Enter specific markets

- Escape commoditizaton

Business opportunities

Three main topics

• Individualisation personality

• Ergonomics productivity

• Efficiency profitability

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Example: Digital Forming Inc. Individualisation

21

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?

22

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

24

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

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

25

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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Agenda

1. AMT is shaping our future

2. What is ‘AMT’ ?

3. Why ‘AMT’ ?

4. Realizing the business potential

5. The future is yours

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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 AM solution

3) Feasibility study, Physical principles, function vs process check, detailed research, data capturing Feasible AM 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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Suppliers - Purchasing power

- Strategic partnerships,

co creation

- Technology roadmap

Customers - Create customer lock in

- Satisfy individual needs

- Help customer

differentaite

- New business models

New entrants - New competitors

- Forward and backward

integration

- Globalization

- New role in value chain

Substitutes - Solution oriented

- Alternatives (products,

materials, technologies)

- R&D, engineering

challenges

Industry Rivalry

- USP versus competition

- Enter specific markets

- Escape commoditizaton

Examples of Berenschot support

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Masterclass AM - 1 day, fixed fee

Action plan

Technology

Roadmap - Company specific

- Detailed information on

materials, supliers, partners

Development plan

- Portfolio analysis

- Customer requirements

- Case specific

Investment plan

AM Business case

Market analysis - Competitor analysis

- Customer demand

- Future business model

- Business opportunities

New Business plan

Generic AM Master Class set up

9.00 Introduction and agenda Berenschot

9.30 Developements in AM Berenschot

10.00 Materials and current possibilities in your sector (incl case) (Knowledge partner)

11.00 Break

11.15 State of the art of Manufacturing (incl. case) (Knowledge partner)

12.00 Q&A: feasability and options/requirements All

13.00 Luncheon

13.45 Tokamak AM (structured brainstorm approach)

• Vision on using AM in your organbisation Your people (12* 2 min)

• Selection of most promising options

14.30 Break Out (3 options/ 3 groups) Berenschot moderation

• Round 1: detail options and formulate follow up questions

• Round 2: answer to question and determine action plan

15.30 Break

15.45 Present plans Your people, 3 * 5 min)

16.00 Selection of 1, 2 or 3 options Berenschot moderation

16.30 Decisions on Follow up

17.00 Closure and drinks

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What is

possible?

What do

we want?

What will

we do?

1. Current situation and

scoping

2. Alternative solutions

3. Technical feasibility

• Long list alternatives • AM possibilities • Set up Techni- cal feasibility

• Market issues & requirements • Project Set Up & timing • SWOT

•Short list alternatives • AM solution •Set up Commer- cial feasibility

4. Commercial feasibility

• Business Case • Supply chain • Partners • Investments

Berenschot approach for AM business case

5. Action plan

•Product per-

fection process

• Implemen-

tation guide

• Activities:

• market research

• customer demand

• current production/

design,

• legal issues

• environment,

• patents

• Activities:

• solution long list

• Available

technologies

• selection criteria

• Outsider input

• Visualisation

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 AM

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DO

think about the business

implications of AM up-front

take an integral view on AM:

manage your buy-in in the chain

regard AM as a strategic priority

as an innovation trial or status project it will fail

go for total business gains of AM

instead of just tool reduction

DON’T

see AM as the only way forward:

other innovations might provide

better solutions to your problem

overestimate the market impact

of AM: customers care about

products, not how they are made

isolate scanning, software,

machines, materials, processes

More information on AM

Onno Ponfoort o.ponfoort@berenschot.nl Gerben van den berg g.vandenberg@berenschot.nl Wouter de Wolf w.dewolf@berenschot.nl Martijn Laar m.laar@berenschot.nl Joost Krebbekx j.krebbekx@berenschot.nl Hans Fles h.fles@berenschot.nl

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