Industrial 3D Printing and the Extended Supply Chain

Transcription

1 Industrial 3D Printing and the Extended Supply Chain Alan Amling, UPS Steven Kim, SAP March 8, 2016

2 Drivers of the 3D Printing Evolution Army, Navy & The Aerospace Industry Applications Types of 3D Printers Materials Scalability & Printer Farms The Road Ahead

3 Drivers of the 3D Printing Evolution

4 How has 3D printing evolved? 3D printing is not new, but its potential to transform the supply chain in the near future is Evolution of 3D Printing 80 s 90 s 00 s Now 80- First patent for Rapid Prototyping filed in Japan 87- Charles Hull introduces 3D Systems first commercial RP system- SLA-1 90 EOS sells its first 3D printing Direct Metal Laser Sintering DMLS 92 Stratsys issued a patent for Fused Deposition Modelling Several 3D printing companies were established, Arcam, Envision Tec, ExOne..etc 07 Stratasys introduces a $10K 3D printer Stratasys acquires MakerBot 15 Cloud DDM launches facility at UPS SCS Louisville, KY 2016 SAP SE or an SAP affiliate company. All rights reserved. Internal 4

5 What makes 3D printing attractive? 3D printing removes many of the incurred costs and penalties associated with a traditional manufacturing process Unlike traditional manufacturing (machining and injection molding), there are four unique benefits tied to additive manufacturing: No minimum quantities order what you need, when you need it No upfront tooling costs because parts are printed, no special tooling is required No tax for complexity there is no corresponding increase in cost for complexity No tax for ramp up parts are immediately ready to print and do not require lead time The Bottom Line: Rapid increases technology are lowering 3D production costs, which is making additive manufacturing a viable alternative to traditional manufacturing methods 2016 SAP SE or an SAP affiliate company. All rights reserved. Internal 5 5

6 How is 3D different from traditional manufacturing? 3DP offers significant value by accelerating the time to market for new products and reducing inventory/production costs 3D Printing Traditional Manufacturing Speed Often less than 1 day 1-3 weeks or more (new products) Cost Low Upfront Cost, no molds required No complexity cost High upfront cost Mold cost + production cost Complexity Cost Flexibility Designs can be updated instantaneously, no tooling required. Effort to print complex, hollow or simple items are the same Limited materials Retooling can make it cost prohibitive to test multiple designs Complex or hollow designs can be impossible to produce in a single piece Vast array of materials 2016 SAP SE or an SAP affiliate company. All rights reserved. Internal 6 6

7 How are the economics of 3D printing evolving? Recent advances in technology are driving down the cost for 3D production Price / Unit New Demand A small change in price generates a very large Increase in 3D demand New demand initially comes from high-value, high-cost production like prototyping Bottom Line Increased computing power and the expiration of key patents are spurring investment in the 3D space, which is pulling down average unit costs 3D Production Supply Curve Traditional Production Supply Curve Current demand tied to traditional manufacturing methods Production Demand Demand Curve Quantity Demanded SAP SE or an SAP affiliate company. All rights reserved. Internal 7

8 and how is this translating into value? The 3D market is poised for rapid growth Global 3D Printing Market ($B) $21 Primary: 3DP systems, materials, supplies, and service $13 Secondary: Tooling and production benefiting from 3DP Not Included: Value of R&D activity $4 $6 $7 CAGR: 30% $3 $4 $1 $ The Bottom Line: the 3D printing market represents ~0.05% of the global manufacturing market; growing this to 1% of capacity would make 3D printing a $128B opportunity 2016 SAP SE or an SAP affiliate company. All rights reserved. Internal 8

9 How is 3D printing being used? While 3D printing is still predominantly reserved for industrial prototyping, it is beginning to move into more manufacturing steps New Opportunity Tooling components, 4.7% Education/research, 8.7% Other, 1.8% Traditional Strength Area Functional parts (for prototyping, short run and series production, etc.), 29.0% Presentation models (inc. architectural), 8.7% New Opportunity Patterns for metal castings, 9.0% Traditional Strength Area Patterns for prototype tooling (inc. patterns for silicone rubber molds), 9.9% Visual aids (for engineers, designers, medical professionals, etc.), 10.3% Prototypes for fit & assembly, 17.8% 2016 SAP SE or an SAP affiliate company. All rights reserved. Internal 9

10 Adopters are Deriving Multiple Manufacturing Benefits from 3D Printing Key Benefits Manufacturing Advantages : Streamlined for Small Batches Cost Advantages: Efficiencies for Certain Applications New Markets: Unprecedented Flexibility Finished Product Enhancement: New Properties Customization: Cost-Effective Additive Manufacturing Technology: Potential Implications for U.S. Manufacturing Competitiveness, Journal of International Commerce & Economics, December Is 3D Printing Right for You?, PwC, 11 June 2014, Costs and Cost Effectiveness of Additive Manufacturing: A Literature Review and Discussion, National Institute of Standards & Technology (NIST Special Publication 1176), December 2014, The Impact of 3D Printing on the World Container Transport, M. Ye, Delft University of Technology, Innovation Lessons from 3D Printing, Sloan Management Review, Winter D Printing: The New Industrial Revolution, Kelley School of Business Indiana University, SAP SE or an SAP affiliate company. All rights reserved. Internal 10

11 Manufacturing Efficiencies from 3DP Can Provide More Bang For Your Buck How Significant is the is 3D Printing Opportunity? By 2025, we expect additive manufacturing methods will be used in the design and manufacture of more than 20% of GE s new product concepts. According to a 2014 survey by Gartner, Inc., organizations are starting to move beyond design & prototyping to embrace 3D printing as a way to create short-run production quantities of finished products. We predict that by 2018, almost 50% of consumer, heavy industry and life sciences manufacturers will use 3D printing to produce parts for the items they consume, sell or service. -Pete Basiliere, Research Director at Gartner, Inc. Testimony of Dr Edward Herderick, GE, House Energy & Commerce Subcommittee Hearing, Feb. 26, 2016 Wohlers Report 2015: 3D Printing and Additive Manufacturing State of the Industry Annual Worldwide Progress Report, Wohlers Associates, Gartner Survey Reveals That High Acquisition and Start-Up Costs are Delaying Investment in 3D Printers, Gartner, Inc. Press Release, 9 December 2014, SAP SE or an SAP affiliate company. All rights reserved. Internal 11

12 3D Printers, Army, Navy & The Aerospace Industry

32 3D Printers

37 Materials

43 Scalability & Printing Farms

49 Industrial 3D Printing UPS offer industrial scale 3D printing via Cloud DDM and consumer services via The UPS Store + + Global footprint and express delivery network provide comprehensive supply chain partner Industrial-scale on-demand 3D-printed parts Greater supply chain efficiencies via rapid prototyping and virtual inventory Consumer / hobbyist grade 3D offering Available in major metro US markets 2016 SAP SE or an SAP affiliate company. All rights reserved. Internal 49

50 The Road Ahead

53 The Road Ahead 1. SAP & UPS are looking for up to 3 Co-Innovation partners to collaborate on On-Demand 3D Printing Cloud Manufacturing Integrating SAP manufacturing systems with UPS 3D Printing & logistics services 2. On March 14 th we will be holding a 4 days workshop at MIT on new business models and use cases of IoT & supply chain logistics leveraging Blockchain & 3D printing Participants: UPS, Caterpillar, Stratasys, CloudDDM, MIT Media Lab, SAP and the MIT MBA class of 2017 We are happy to offer 5 individuals an invitation to join the workshop Participation in 2 days out of the 4 opening day March 14th and on the final day March 17th SAP will cover the event participation cost. Participants will cover their T&E costs Interested companies/individuals - please contact Steven or Alan after the presentation 2016 SAP SE or an SAP affiliate company. All rights reserved. Internal 53

54 Thank you