LEVERAGE 3D PRINTING FOR MANUFACTURING OPERATING MODEL TRANSFORMATION

In the HFS Industry 4.0 value chain, we identified 3D printing as a core technology component for Industry 4.0. Often called “additive manufacturing,” 3D printing has typically been used for rapid prototyping, product innovation, and other similar purposes.

As the design principles, materials, and other components of this technology have matured, 3D printing applications have gained traction in critical applications across the automotive, aerospace, industrial manufacturing, and medical devices industries. For example, recently, researchers 3D printed collagen-based anatomical structures such as a heart and parts of a heart. Some manufacturers, like Volkswagen, have begun experimenting with 3D printing technology. In this PoV, we discuss how 3D printing is influencing the manufacturing industry and how the manufacturers can accelerate their 3D printing journey.

3D printing is influencing the entire Industry 4.0 value chain

The applications of 3D printing are spread across the Industry 4.0 value chain in Exhibit 1.

Exhibit 1: HFS Industry 4.0 value chain

 Source: HFS Research, 2019

Several manufacturers have 3D printing initiatives, as Exhibit 2 describes. 

Exhibit 2: 3D printing initiatives across the Industry 4.0 value chain

Source: HFS Research, 2019

3D printing is best suited for low-volume manufacturing

Traditional mass manufacturing techniques still have a cost advantage over 3D printing, and 3D printing benefits ore from the economy of scope than from economy of scale. Thus, at present, 3D printing is restricted to low-volume manufacturing. For example, the technology is ideal for limited edition car development (Local Motors, for example), medical device manufacturing (components based on individual measurement), spare parts development (for models that are no longer manufactured), and high-value density goods (such as jewelry). This type of manufacturing is a shift from mass manufacturing to micro-manufacturing, which has limited quantity production with a short lead time.

3D printing will change the manufacturing operating model

3D printing is fundamentally shifting manufacturers’ operating models. We’ve identified a few of the latest trends:

• Establishing micro-factories: Manufacturers are focusing on creating a responsive supply chain rather than an efficient supply chain. As consumers’ demands vary widely with shorter lead times, flexibility is the most important criterion for the supply chain. So, we will observe more 3D-printing-enabled micro-factories in the future; for example, Local Motors Industries has established 3D printing micro-factories.
• Accelerating the mass-personalization journey: Enabling differentiated offerings for each customer is the new competitive positioning for manufacturers. As customer demand for mass personalization increases, 3D printing will enable differentiated design development in terms of structure, durability, weight, etc.
• Providing a “design-as-a-service” model for end customers: “Design-as-a-service” is a business model that allows customers to buy the only the design instead of the finished product and print on their own at home or small-run manufacturing. At present, the capital expenditures (equipment, set-up) required for 3D printing are high, but the operational expenditures (printing material and other expenses) are on the lower side. With ongoing innovations, the capital expenditure required to print diverse material types will decrease. As the economy shifts from product-based to service-based, we expect that in the future, a “design-as-a-service” model will be popular.
• Enabling the next frontier of lean management: When manufacturers use digital simulations to perfect 3D printing designs, the printing process produces less waste than traditional manufacturing. Thus 3D printing is a new method for managing waste management. 3D printing also enables manufacturers to maintain lower finished goods inventory level because they can accomplish manufacturing within a short period.

Four steps to accelerate 3D printing journey for manufacturers

The opportunities for 3D printing looks promising, but manufacturers need to accomplish a lot of background work to pave the way for 3D printing applications. 3D printing application is an unfamiliar territory for the manufacturers as it involves several software applications. We have outlined the steps that can facilitate the implementation process.

1. Digitize the manufacturing processes. Before manufacturers print the components, they need to verify the digital design and manufacturability validation process. Also, they must execute simulation testing to validate components’ structural properties based on different materials and design parameters.
2. Deploy a robust cybersecurity practice. Cybersecurity is of paramount importance as manufacturers use the internet for design and development processes and provide “design-as-a-service” directly to the clients. For many manufacturers, these designs differentiate their offerings from their competitors’. They need to focus on building a powerful cybersecurity team to protect their intellectual property. HFS already analyzed how manufacturers can focus on cybersecurity in 3D printing and leverage blockchain in this space.
3. Leverage 3D printing as an innovation tool. 3D printing removes the boundary of design principles (i.e., less constraint in geometries), enabling innovative design with infinite possibilities. Manufacturers need to shift their focus from execution (cost engineering, mass personalization) to an innovation mindset to reap the full potential of 3D printing.
4. Leverage the partnership ecosystem. 3D printing is an emerging area, and many innovations are happening in the areas of 3D printing technology, materials, and equipment. A core group of emerging start-up companies is fueling most of the 3D-printing innovations, so manufacturers need to establish partnerships with these promising start-ups to accelerate their additive manufacturing journey.

The Bottom Line: 3D printing is an essential lever for smart manufacturing. Include the tenets of 3D printing across manufacturing activities.

3D printing can accelerate the new product development, testing, and validation journey for manufacturers, and it can provide better aftermarket services to customers. Manufacturers must focus on their internal landscape to pave the way for 3D printing implementations and leverage 3D printing for both execution (cost efficiency, time-to-market) and innovation (new design, lightweight structure). Manufacturers have begun to embrace Industry 4.0, and 3D printing remains a critical puzzle in the adoption of smart manufacturing.