141118 Additive Manufacturing in the spare part supply chain (Bouke Wullms)
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This document discusses additive manufacturing (AM) and its potential application in Philips Healthcare's spare parts supply chain. AM, also known as 3D printing, builds parts layer by layer and offers on-demand and localized production without economies of scale. The author's thesis is to apply AM in Philips' last time buy process for spare parts to reduce inventory costs and eliminate large final orders. A mathematical model shows AM can lower inventory levels and costs. The conclusions are that AM is suitable for small mechanical spare parts and will provide more benefits as technology costs decrease.
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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
- 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
Editor's Notes
- A process of joining materials to make objects from 3D model data, layer upon layer, as opposed to subtractive manufacturing technologies