Bouke WullmsTU/e18 November 2014

Additive manufacturing in the spare part supply chain

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

Additive manufacturing3D printing

Layer by layer

Additive manufacturing

Examples

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

AM in the spare part supply chainNo economies of scale

AM in the spare part supply chain

Additive manufacturing offersProduction on demandProduction on location

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

3D printing

Spare parts characteristics

Low demand rates

Required locally

Critical response times

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

Philips HealthcareMedical systems for hospitals

These systems are• High tech• Complex• Expensive• Used for many years• Service contract

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

AM in the last time buy processLast time buySupplier 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)

ModelMinimum expected costs

Order up to level at the LTB moment

Inventory level using additive manufacturing

Model resultsResults

– 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

ConclusionsAdditive manufacturing suitable for

– Small, slow moving mechanical spare parts

Limited scope of AM: Small portion of spare part portfolio

No replacement of current technologiesFocus 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

RecommendationApply additive manufacturing in last time buy process

– Cost savings– Build experience with AM

Gradually extend the use of AM in the coming years

Further researchQuality 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

Discussion

Appendix

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

Material extrusionMaterial dispensed through nozzleBasic process in consumer 3D printingPlastics

Advantages– Most used– Widely available– Relatively cheap

Disadvantages– Slow– Weak parts– Rough surface finish

Applications– Consumer 3D printing– Prototyping– Low volume production

Vat photopolymerizationVat filled with liquid resinLight source hits the liquid surfacePlastics

Advantages– High resolution– Smooth surface finish

Disadvantages– Post processing– Support structures– Weak parts

Applications– Prototyping– Jewelry– Mockups

Powder bed fusionPlatform filled with powderLaser melts powderConsidered best technology for industry applicationsMetals 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

Binder jettingLiquid binder material sprayed on powderTraditional inkjet printingPlastic, metal, glass, sand ceramics

Advantages– Full color parts– Inexpensive

Disadvantages– Weak, not durable– Post processing

Applications– Prototyping– Tooling

Material jettingDroplets of material are sprayed on the build platformMaterials is hardened with UV lightPlastics

Advantages– Multiple materials– Very precise– Smooth surface

Disadvantages– Low durability– Support material– Post processing

Applications– Prototyping– Mockups – Jewelry

Sheet laminationBonding layers of sheetsCut the sheet in desired formPaper, plastic, metal

Advantages– No heat– Embed wires– Fuse different materials

Disadvantages– No complex shapes– Weak

Applications– Testing – Tooling– Low complex parts

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 depositedAdd material to existing partMetal wires or metal powder