141118 Additive Manufacturing in the spare part supply chain (Bouke Wullms)

1. Bouke Wullms
TU/e
18 November 2014
Additive manufacturing
in the spare part supply chain

2. Contents
Does additive manufacturing change the supply chain
of Philips Healthcare?
What is additive manufacturing
Additive manufacturing in the spare part supply chain
Thesis
Results and conclusions
Further research

3. Additive manufacturing
3D printing
Layer by layer

4. Additive manufacturing

5. Examples

6. Technology development
Invention by
Chuck Hull
Stratasys
1986 1989 2007
First consumer
3D printing
First patent
expires
2009 2014
Increased adoption in:
• Medical
• Aerospace
• Automotive
3D systems
2012
Increase in
attention
Development,
Rapid prototyping

7. AM in the spare part supply chain
No economies of scale

8. AM in the spare part supply chain
Additive manufacturing offers
Production on demand
Production on location

9. AM in the spare part supply chain
Main objective in current service supply chains
– obtain the highest possible service levels at the lowest possible costs
 high inventory costs and transportation costs
We want:
• No inventories
• Small batch sizes
• Local production
Current supply chains
Mass production
Global supply chains
High complexity
Spare parts characteristics
Low demand rates
Required locally
Critical response times

10. Thesis
Application of additive manufacturing in the spare parts supply chain
Selection of spare parts
Model for additive manufacturing in the last time buy process

11. Philips Healthcare
Medical systems for hospitals
These systems are
• High tech
• Complex
• Expensive
• Used for many years
• Service contract

12. Selection procedure
Technical criteria
Materials: plastics & metals
Max dimensions plastics
2100 x 700 x 800 mm
Max dimensions metals
550 x 550 x 750 mm
No electronic components
Economic criteria
High value
High inventory level
Low demand rate
(slow moving parts)
Long lead time
High Minimal order
quantity (MOQ)
Target group
Small
Slow moving
Plastic or metal
Mechanical spare parts
Preferably:
– complex geometries
– high MOQ
– “under the hood parts”
Pins, covers, grips, and
cooling vents
c c

13. AM in the last time buy process
Last time buy
Supplier stops production
– Service contract with the customer
– Large order
– Safety stock
– High inventory costs
Additive manufacturing
– Print on demand
– Reduce inventory
– Eliminate last time buy
– Use a 3D printing service provider
Mathematical model
Production +/- 10 year service only
Service period
End of Production (EOP) End of contract
(EOC)
New product
introduction (NPI)

14. Model
Minimum expected costs
Order up to level at the LTB moment
Inventory level using additive manufacturing

15. Model results
Results
– Reduced order up to level
– Lower inventory required
– Cost savings
Replacement of the safety stock
When additive manufacturing becomes cheaper, the inventory can be reduced further
and more parts should be produced using additive manufacturing

16. Conclusions
Additive manufacturing suitable for
– Small, slow moving mechanical spare parts
Limited scope of AM: Small portion of spare part portfolio
No replacement of current technologies
Focus on added value
Cost savings in the last time buy decision through inventory reduction
Rapid technology developments
Costs of AM are decreasing, so benefits will increase in future

17. Recommendation
Apply additive manufacturing in last time buy process
– Cost savings
– Build experience with AM
Gradually extend the use of AM in the coming years

18. Further research
Quality standards of additively manufactured parts
Redesign of spare parts using additive manufacturing
Additive manufacturing when no molds are available anymore
– Reversed engineering
Insourcing vs outsourcing
Network design
Intellectual property rights and liability issues

19. Discussion

21. Appendix

22. Build processes
• Additive manufacturing is a collective term for all processes that built up products
layer by layer
– Material extrusion
– Vat photopolymerization
– Powder bed fusion
– Binder jetting
– Material jetting
– Sheet lamination
– Directed energy deposition

23. Material extrusion
Material dispensed through nozzle
Basic process in consumer 3D printing
Plastics
Advantages
– Most used
– Widely available
– Relatively cheap
Disadvantages
– Slow
– Weak parts
– Rough surface finish
Applications
– Consumer 3D printing
– Prototyping
– Low volume production

24. Vat photopolymerization
Vat filled with liquid resin
Light source hits the liquid surface
Plastics
Advantages
– High resolution
– Smooth surface finish
Disadvantages
– Post processing
– Support structures
– Weak parts
Applications
– Prototyping
– Jewelry
– Mockups

25. Powder bed fusion
Platform filled with powder
Laser melts powder
Considered best technology for industry applications
Metals and plastics
Advantages
– Strong metal parts
– Fast
– No support structures
Disadvantages
– High costs
– Lack of surface quality
– Post processing
Applications
– Medical: Implants
– Aerospace: End parts

26. Binder jetting
Liquid binder material sprayed on powder
Traditional inkjet printing
Plastic, metal, glass, sand ceramics
Advantages
– Full color parts
– Inexpensive
Disadvantages
– Weak, not durable
– Post processing
Applications
– Prototyping
– Tooling

27. Material jetting
Droplets of material are sprayed on the build platform
Materials is hardened with UV light
Plastics
Advantages
– Multiple materials
– Very precise
– Smooth surface
Disadvantages
– Low durability
– Support material
– Post processing
Applications
– Prototyping
– Mockups
– Jewelry

28. Sheet lamination
Bonding layers of sheets
Cut the sheet in desired form
Paper, plastic, metal
Advantages
– No heat
– Embed wires
– Fuse different materials
Disadvantages
– No complex shapes
– Weak
Applications
– Testing
– Tooling
– Low complex parts

29. Directed energy deposition
Advantages
– Two materials
– Large parts
– Fast
Disadvantages
– Low accuracy
– Support structures
– Post processing
Applications
– Repair parts
– Repair tools
– Large parts
Fuse materials by melting while they are deposited
Add material to existing part
Metal wires or metal powder