We Need to Rethink How We Find AM Use Cases
3YOURMIND's Chief Operations Officer, Bas de Jong , shares his thoughts on how to strategically find strong additive manufacturing use cases.
Additive manufacturing has made a lot of big promises over the years. We’ve watched the 3D printing industry bubble with excitement over new materials, design capabilities, and print technologies, proclaiming that 3D printing is the match that will spark the powder keg of the next industrial revolution.
And yes, now is an exciting time to be in additive manufacturing (AM). However, the industry has the steep task of ‘crossing the chasm’ from theoretical applications to sound manufacturing business cases. Despite how much we may want to believe otherwise, AM isn’t always the smart or cost-effective solution. In most cases, traditional manufacturing will still win over AM. However, there are many compelling AM opportunities where AM doesn’t just replace conventional manufacturing methods; it outperforms them.
Instead of persuading industries to swap low-cost parts for expensive AM alternatives, we need to identify business cases where AM adds value beyond novelty. This article will discuss three ways to identify valuable business cases to help your organization adopt more efficient and effective additive manufacturing practices.
Is Your Business Experiencing Longtail Effect?
Companies, especially original equipment manufacturers (OEMs), often experience what is known as the longtail effect. The longtail effect describes businesses that maintain a large inventory of infrequently used or sold spare parts to reduce the lead time required to produce a new spare part.
When a part breaks and is urgently needed, warehousing spare parts can result in crucial cost savings. However, when a part is stored without use for months, years, or even decades, it risks obsolescence, and the annual cost of keeping longtail parts decreases its value over time.
In addition to storing costs long-term, organizations may distribute parts over several locations. So, even if the part is available in a warehouse, it may take days, weeks, or even months (given current logistical challenges), for that part to arrive where it is needed. As a result, when a part breaks and no replacement is available, the time spent not operating at total capacity can directly eat into a company’s bottom line.
For example, let’s look at the railway industry. If a train delivers goods across long distances and a critical spare part breaks en route to its destination, that can create significant challenges. Even in a warehouse, spare maintenance parts may not be available nearby, so costly delays may occur. Furthermore, if the part isn’t available and needs to be remanufactured, that can lead to production lead times of up to two years. So, in this instance, producing a part on-demand using additive manufacturing can further avoid downstream transportation delays that impact the rest of the supply chain.
See how Germany’s Deutsche Bahn ?leverages its employees to identify AM applications.
Fortunately, evaluating these longtail spare parts through an additive manufacturing lens can create valuable on-demand manufacturing use cases. By analyzing conventionally manufactured parts for 3D printing compatibility, businesses can create a digital inventory of 3D spare parts. Then, when the part is needed, it can be printed locally within hours. As a result, the business gets its operation back up and running more quickly, generating significant time, revenue, transportation, and warehousing savings.
Consider the Total Cost of Ownership
When you speak to OEMs or tier suppliers, one of the first questions is, “How much does the part cost?” And it doesn’t come as a surprise. For decades, the globalized manufacturing industry has created a culture dominated by cheap, just-in-time parts...
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