UCL - BSc Management Science, 2017/2018 – Cohort 4. Scenario Week I. Alexander Briscall Bowker, David Herbert, Leina Hatch, Jade Krishna, Eyad Al Naamani

1. Senior Analyst
Board Meeting
Investigating the Potential Impact of 3D Printing
Analysts: David, Thomas, Eyad, Alex, Jade and Leina

2. “The Ultimate Driving Machine”
CEO - Harald Kruger
Chairman - Norbert Reithofer
Revenue (2016) : 94.16B Euro
Employees (2016) : 124 729
BMW Group:
● BMW
● MINI
● Rolls Royce

3. R&R
(By Sales Volume)

4. “The targeted use of
innovative additive
procedures at an early
stage has made us one
of the pioneers and
leaders in 3D printing
over the past years”
BMW’s head of
Production Strategy,
Technical Integration
and Pilot Plant,
Dr. Udo Haenle

5. BMW
BMW Global Sales Volume

6. 94.16 billion EUR // $109.6 billion // Sales volume up 5.3%
Segmented
“distinguishing
between market
segments with
slightly different
needs and
problems.
● Personal
Assistance
24/7
emergency care
extensive
warranty
● (Minimal)
Automated
services
BMW Revenue Streams
➔ Vast majority of revenue is from the sale/lease of physical goods
● Direct Sales of products
● Income of lease instalments
● Sales of previously leased products
● Interest of loan financing
● Other
72.9%
9.8%
10.1%
3.8%
3.4%

7. 77.16 billion EUR // £68 billion
annual costs
Cost up by 1.88% (2015-2016)
● Over 100 auto-
part suppliers.
50% are based
in Germany.
Magna and
Brembo are
examples
● 13,000 dealers
in 70 countries
● 3D Printing
company
Stratasys for
tool
manufacturing
94.16 billion EUR // £83 billion
Sales volume up 5.3%
(2015-2016)
● Manufacturing of
engines
● Research &
Development
● Advertisement &
sales
● Raw Materials
● Distribution
networks
● Production chain
● BMW’s strong
brand identity
● Workforce
Cars which offer:
● Performance
● Safety
● Status
● Through
registered
dealerships
● Personal
assistance
● Social
networking
● Targets live in
urban areas
● Wide age range
(20-65)
● Males and
females
● Relatively high
income
● social media
outlets
● dealers &
workshops
● online store
(merch)

8. Why consider 3D Printing?
Potential economic impact by 2025: $0.2 trillion - $0.6 trillion (Mckinsey & Co.)
Overview:
● The automotive industry is under significant price and cost pressure.
● Manufacturers are chasing an operational edge to remain competitive.
● Consumers demand customisation. This adds complexity into the production, as low-volume and high-
variation parts can bring inefficiencies into the system.
3DP Definition: “the action of making a physical object from a three-dimensional digital
model, typically by laying down many thin layers of a material in succession.”

9. Current restraining factors:
• Costs : Material and system costs for 3DP are still high.
• Production speed : 3DP has drastically advanced in speed and quality in the last decade.
Nevertheless, production speed of the current 3DP technologies is still a limitation.
• Mind-set : 3DP has been used in automotive for prototypes since the 1990s. A mental
shift in the industry could help 3DP be viewed as a means of creating unique value-adding
products only producible with additive manufacturing.

10. The potential of 3D Printing in the Automotive industry is “high”

11. Source: Deloitte
2012 2016 2020
Growth of the 3D Printing Industry

12. Specialist areas of Companies
3D Printing Methods and Companies

13. Competitors (Applications)
● Ford – 3DP for Prototyping (Design Iterations), Carbon Partnership, Production
Tests
14%
● Impact in Manufacturing – Ford (Components), Volkswagen (Tool Manufacturing &
Beetle), Aerospace, Motorcycles, Software Development
12%
● Carbon – BMW & Google Investments + CLIP Expansion & Ford Alliance 8.6%
● Economic Impact (Analysis) – Carbon, HP & Stratasys 7.2%
● Supply Chain – DHL Impact in Logistics (Analysis) 6.1%
● Impact of 3DP in the Automotive Industry (Reports & Forecasts) – $7B by 2025 6.0%
● Peugeot & Citroen (Divergent 3D) + Local Motors + Concept Cars (Jaguar, Land
Rover, Bentley, Tesla, Volvo, Nissan, Mercedes)
5.7%
● Interior (seats, dashboard) – Audi, BMW, Mercedes, Jaguar, Peugeot, Nissan &
Toyota
5.6%
● HP's First Production Ready Commercial 3D Printer – Jens Ertel (BMW) 5.1%
● Honda – 3D Concept Car Files (Public Release) 4.2%
● Honda – 3DP EV Microcar 3.9%
● Audi Toolmaking (& Volkswagen Group) 3.8%
● Stratasys – McLaren Racing Partnership, Ford Partnership & GMC Partnership
(Manufacturing)
3.2%
● 3D Systems acquires Robtec (Subsidiary) – Relationship with Volkswagen, Fiat &
Mercedes
3.1%
● BMW Thumbs (Assembly) 3.0%
● GKN Expansion with Stratasys – 3DP in Mass Production 2.2%
● Peugeot – Fractal Concept (80% Interior Printed) 2.0%
● Honda – Prototyping with Stratasys 1.9%
● Volvo Trucks – Manufacturing with 3DP (94% time reduction in production) 1.5%

14. Applications of 3D Printing in BMW
Prototyping Manufacturing
3D Printing
Product Enhancement
Benefit to BMW Benefit to Consumer
Process improvements

15. Car
Body and Chassis Engine
SteelPlastic
SteelAluminum
Interior
Rubber Plastic
Prototyping
Impact of 3DP on car components

16. 3DP Prototyping Advantages
● Faster & Cheaper → No need to design tools
→ Leads to lower labour cost
● Fewer design restrictions → Allows complex geometries
● Quality enhancement → Allows for more iterations
No tooling
required
↓6-12 months
prototyping
process

17. Some competitors’ applications in Prototyping

18. ↓92% $
↓80% time
Source: Stratasys
⅙ scale
design
Lamborghini Aventador Prototype

19. Cost Lead time
Traditional Prototyping $500,000 4 months
3DP Prototyping $3,000 4 days
Savings $497,000 3 months and 26 days
↓99.4% $
↓96.67% time
Ford Air Intake Prototype
Source: Stratasys

20. 3DP Manufacturing Advantages
● Faster → Decrease in number of parts → shorter & more basic assembly
● Cheaper → Less inventory on-hand
○ No stock & no warehouses → Manufacture parts on-demand
● Quality enhancement → Reduction in number of parts → More reliable

21. Competitors’ applications in Manufacturing

22. Number of Parts Production time (chassis & body)
AVERAGE CAR 30,000 10 weeks (1,680 hours)
LOCAL MOTORS Less than 100 44 hours
Savings 29,900 parts 9 weeks 5 days and 4 hours
↓99.6% #
of parts
↓97.4% time
Source: CNET
Local Motors 3D Printed Car

23. Competitors’ applications in Product enhancement

24. Body and Chassis
3D Printing could
replace traditional
manufacturing
techniques for body and
chassis
Less weight means:
● Better
performance
(Higher power-to-
weight ratio)
● Better fuel
economy (4.1%
mileage boost,
Aluminum
Association Inc.)
Weight reduction of
10%-15% (Czinger)
induced by using
advanced materials and
reducing number of
parts
03
01 02
Current Suppliers that could be
replaced:
● Magna: Aluminum alloy body castings
● GKN Driveline: Steel axle assemblies
● Gestamp: Front and rear hood
assemblies
● Thyssenkrupp: Steering columns

25. Weight Reduction Cost Analysis:
● Lightweight components, lead to a car weight reduction and as such a better fuel economy
Average midsize car
weight 1590 Kg and
SUV is 1936 Kg
3DP weight reduction possibility
10%-15% (Kevin Czinger) = 238 Kg
(midsize) and 290 Kg (SUV)
Possible saving of $1556 and
$1900 over 200,000 km

26. Engine
Less engine parts reduce
risk of breakdown
3D Printing replaces traditional
manufacturing techniques
Reduces total number of
engine components
Additive manufacturing greatly cuts down the number
engine parts which:
● Reduces assembly time
● Lessens parts required → lower risk of breakdowns
● Reduces repair time in case of breakdown

27. Traditional Production vs. Additive Manufacturing:
Case study: Bosch - May 2017
Shortage of BMW
steering systems
from Bosch (supplier)
Result in loss of 400-500
Million EUR per week
(Financial Times)
Switch over to 3DP alternatives for
steering systems which do not rely on
the traditional “just-in-time” production
approach.
Solution

28. Interior
3. Increase in
interior panel
design options
1. 3D Printing
could replace
traditional
manufacturing
techniques
2. Complex
shapes are
now
available for
production

29. Model of applications of 3D printing (current and future)

30. 3DP Companies Available:
MANAGEMENT

31. Stratasys
($664 M)
Carbon ($181 M)
≈ 65% of investment
Stratasys ($190 M)
≈ 76% of investment
Desktop Metal ($115 M)
≈ 38% of investment

32. Types of 3D printing available for BMW
Fused deposition modeling (FDM) Stereolithography (SLA)
3D
Printing:

33. - Type of 3D printing: FDM
- The process:
Pre-processing → Production→ Post-processing
- The materials that stratasys uses are the following plastics:
● ABS
● ASA
● NYLON
● PC
● PLA
● PPSF/PPSU
● ST-130
● ULTEM

35. Advantages of applications from
Stratasys for BMW
● Applications in prototyping:
- As mentioned earlier with
Ford and Lamborghini
- Volvo CE
- Joe Gibbs Racing
- Gordon Murray
● Applications in part manufacturing:
- Dash CAE: reduced parts production
lead time by 83%
- GKN driveline: reduced production lead
time by 70%
1. BMW could potentially reduce costs
of manufacturing prototypes by 87.6%
Adopt FDM 3d printing
to prototyping
2. Reduces production time of prototypes by 84.2% → more
iterations → increases reliability of products and reduces the time
from prototype to production → getting the final product to consumers
faster to meet demand

36. Printing Technique: Stereolithography (SLA)
Plastics: Polyurethane, Elastometric Polyurethane, Cyanate Ester, Urethane Methacrylate &
Epoxy

37. How is Carbons 3D CLIP unique?
= Smoother finish, better resolution & more robust (materials are embedded
with a second heat activated chemistry which causes the materials to
strengthen)

38. Areas that Carbon’s 3D printing could impact:
Rigid Polyurethane ~ ABS

39. Outcomes from Carbon for BMW
Reduction in cost and time
→ Rapid printing → Generate prototypes faster and more reliably → Reduce time between prototyping
and production.
Improved performance & quality
→ Rapid prototyping → Increase in iterations of design → greater level of quality assurance → higher
quality products
[e.g. Elastometric polyurethane, flexible as elongates 320% it’s original length before breaking →
facilitates design as it can take on more complex shapes ]
→ Car parts have smooth finish & better rigidity → Better value propositions delivered to clients →
[e.g. lighter, more resistant to strain → durability]

40. What does this
all mean?

41. Cost reductions
● Reduction in
number of
suppliers
● 13,000 dealers
in 70 countries
Revenue increase
● 3DP
Manufacturing
● Research &
● Development
● Advertisement &
sales
● Raw Materials
● Distribution
networks
● More simple
production chain
● BMW’s strong
brand identity
Cars which offer:
● Better
performance
● Safety
● Status
● Better fuel
efficiency
● Interior
customization
● Reduced time
for dealerships
to order
parts/products
● Personal
assistance
● Social
networking
● Targets live in
urban areas
● Wide age range
(20-65)
● Males and
females
● Relatively high
income
● New customer
segments● social media
outlets
● dealers &
workshops
● online store
(merch)