The ins and outs of rapid manufacturing and its consequences for your business model presented by Martijn Laar of Berenschot. This presentation is based on the work of the Custom Fit EU framework 7 program.

1. Agenda
Berenschot on Rapid Manufacturing
1. Rapid manufacturing is shaping our future
2. Why Rapid Manufacturing?
3. Realizing the business potential of Rapid Manufacturing
4. The future is yours
Opportunities, issue and a vision on the future
Berenschot:
Martijn Laar
m.laar@berenschot.com
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Rapid manufacturing is shaping our future Rapid manufacturing is shaping our future
What’s Wireless
? technology breakthroughs in hearing aids technology?
1900 1940 1960 1980 2000 2008
In the lab in the army in the company at home on the move Nano
Technology?
rapid rapid
Bio
prototyping manufacturing Technology?
Rapid
Manufacturing!
Future : widespread on demand printing in your own home?
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Rapid manufacturing is shaping our future Rapid manufacturing is shaping our future
from...
‘anyone that has any
spareparts on him?’
Le sack, your own selfshaped vase
Video 1
To…
Gifts can now be really personal!
on demand and on location printing of spareparts design your object in 2 minutes - Shapeways Creator.flv
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2. Agenda 2. Why Rapid Manufacturing?
When to choose RM:
1. Rapid manufacturing is shaping our future
2. Why Rapid Manufacturing? • “Adding a personal touch” to existing products (customized add-ons)
• Driven by consumer demand
3. Realizing the business potential of Rapid Manufacturing
• “Engineering the impossible” (new functionalities)
4. The future is yours
• Driven by technology / engineering
• The affordable alternative enabling very small batch sizes
• Driven by process economics
• “Unique, individual products at an individual price”
• full customization, driven by consumer demand
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2. RM allows for new business models : spare parts 2. RM allows for new business models : hearing aids
Traditional automobile spare part supply chain fitting
Design Transport
WASTE
o time consuming
Transport (30-80%)
o costly process
final transport
old
Production Storage o uncomfortable
Repair/ Audiogram & Mass
(Inject. Mould) (Bulk/ assembly o power in the chain
wax model production manual
Regional) with labs / audiologists
Receipt Shaping
& tuning
(local service)
RM automobile spare part supply chain Final No waste (0%) customized hearing aid
Transport
o perfect fit
Repair/ new o invisible & comfortable
assembly
o first time right (cost saving)
Design 3 D Printing (local shop) direct scanning CAD model
& audiogram rapid manufacturing o no middlemen (cost saving)
Shorter value chain, supreme lead times, lower costs o power with manufacturer
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2. Why Rapid Manufacturing? 2. Why Rapid Manufacturing?
Issues with the current RM technology:
Benefits: • Just a few dozen commercially available materials,
mostly polymers : limited specifications & functionality
• Reduction of waste, material use, tooling, cycle and lead times,
• Few machines for processing metals or other non-
stocks, warehousing and transport
Video 6? polymers
• Complex designs first time right • Not yet all machines able to handle multi-materials or
colours
• Allows for geometrically customized products • Machine size limits product sizes (avg. 40*40*40cm)
• Freedom of design in 3D (freeform, no moulds)
• Machine speed is limited
• Costs are lowering yearly: machines available from
• Co-creation of all design (products designed by consumers) $5.000 up, but most materials are still expensive
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3. Agenda Start with the customer:
what is the benefit for the end user?
1. Rapid manufacturing is shaping our future
Key question : can RM deliver significant added value on an important
2. Why Rapid Manufacturing? customer requirements?
Does RM offer your product a:
3. Realizing the business potential of Rapid Manufacturing
Low Cost Status,
• relevant advantage? Exclusivity
4. The future is yours
• significant advantage? Quality, 0
Effective-
reliability, 0
Radar ness
• sustainable advantage?
Injury
Well being
• perceived advantage? prevention
over innovative alternative solutions?
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Check the strategic fit of RM technology Identify the business barriers to overcome
barrier Custumization through RM
What is starting the point for your RM-ambitions:
liability
• “we want RM to better respond to consumer demand” Take an data ownership
Legal
• “we want RM to reduce our process time & costs” integral IPR
CE marking
view on RM
Explaining the benefit
What is the strategic impact of RM on the value chain development Cooperation of trade partners
commercial
• supplier base from the early Lead times
Information flows
• trade relations start onwards!
Initial investment (R&D, ICT and equipment)
• government and law makers (release, approbation) Switching costs
financial
As a project, Volumes and price premiums
customization Working capital gains
What is the strategic impact of RM on my organization
through RM Speed
• processes
Technological Dimensions
• people will fail
Materials
• skills
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Barriers along the road: from data to sales Product design : the customer as co-designer has significant impact
Data Product Supply Commer Data Product Supply Commer
capture design chain cialisation capture design chain cialisation
Legal issues
§ data gathering, storage and dissemination
§ customers want to customize aesthetics first
§ privacy laws for geometrical vs. medical data
§ visual impressions: impact on the brand
§ IPR :
o who own it
o differences in local legal frameworks § impact on the design process & the designers
o hard deliverables : potential is not patentable
§ what if design & production are outsourced?
§ product architecture and RM
Practical issues
§ scanning: costs, size, time and privacy issues (modular add-ons or integral re-design?)
§ centralised vs. decentralised data capture
§ data ownership & commercial use
§ health, safety and approbation limits
§ ICT knowledge and storage capacity
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4. The impact of RM on the supply chain Commercialisation: why would RM sell?
Data Product Supply Commer Data Product Supply Commer
capture design chain cialisation capture design chain cialisation
§ logistic impact of RM: § customers care about product benefits,
- fundamental choice: the CODP not about production techniques
(NB Radar model)
- impact on stocks and tooling
- lead times and flexibility
§ market acceptance & product credibility
depend on the brand & communication
§ RM is re-shaping the chain:
(scientific / functional proof is not enough)
- buy-in from the dominant players
in the chain: push or pull? § who will interface with your end user?
- increased need for info sharing - minimalise the hassle
and cooperation - agree early on liability / financial sharing
- support your ambassadors
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The principles applied (1): Abandon
business case dental implants The principles applied (2) : rapid manufactured hand grips
RM
§ revolution in the traditional chain : whole new business concept Easy to make, but traditional technologies deliver the same benefit
§ time and convenience benefit for the end user
§ large efficiency gains in the total chain
Embrace Body protection (bands, tapes etc)
§ first time right products
RM
time in days total costs in €
40
2500
ü Happy dentists Technique of the player
35
30
2000 ü Happy insurance co’s
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ü Happy customers Material, shape and wrappings for the grip
1500
old
20 old
new
15 1000
new
ü Happy company Material, size & weight of the racket
10
500
5 Health and training of the player
0
v Extremely unhappy dental labs
0
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Agenda 6. The future is yours… but how do you get there?
1. Rapid manufacturing is shaping our future 1) Scoping: targets, partners, criteria, alternatives
è project set up
2. Why Rapid Manufacturing?
2) Current situation: market research (customer demand business
constraints, system requirements, competition,
3. The technological state of the art (and its limitations) current production/design, improvements, legal issues, environment,
patent check
è Characteristics of RM solution
4. Realizing the business potential of Rapid Manufacturing
3) Feasibility study, Physical principles, function vs process check,
5. The future is yours detailed research, data capturing
è Feasible RM solution
4) Business case: gain over current, benefits over other alternatives,
proposed supply chain, business plan, financial implications
è Commercial feasibility
5) Implementation plan: development and introduction planning,
milestones, partners and responsibilities, action planning
è Turn key plan
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5. Do’s and Don’ts in realizing the business potential of RM
DO DON’T
§ think about the business § see RM as the only way forward:
implications of RM up-front other innovations might provide
§ take an integral view on RM: better solutions to your problem
§ overestimate the market impact
manage your buy-in in the chain
of RM : customers care about
§ regard RM as a strategic priority:
what products bring them, not
as a innovation trial or status
how they are made
project, it will fail § do not isolate scanning, software,
§ go for the total business machines, materials and
gains of RM instead of just processes from each-other in
tool reduction the R&D process
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