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Making the Business Case for Additive ManufacturingJune 1, 2016
Making the Business Case for
Additive Manufacturing
June 1, 2016
3 Copyright © 2016 Deloitte Consulting LLP. All rights reserved.
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Our goal for today
Learning objectives:
• Defining AM and how might it apply to my business
• Understanding financial drivers for AM justification
• Framing Quality considerations when implementing AM
• Exploring the AM “digital thread”
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Agenda
Workshop Sessions Timeframe
Introduction 10 minutes
Understanding and Applying AM 40 minutes
Applying AM to my Business: Drivers of
Return on Investment (ROI)40 minutes
Applying AM to my Business: Quality 40 minutes
Applying AM to my Business: Digital Thread 40 minutes
Questions and Conclusion 10 minutes
Understanding and Applying
Additive Manufacturing
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The marriage of advanced manufacturing techniques with information technology,
data, and analytics is driving another industrial revolution - paving the way for AM.
We are in a 4th Industrial Revolution
The 4th Industrial Revolution invites manufacturing leaders to combine information
technology and operations technology to create value in new and different ways
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Additive Manufacturing encompasses a range of materials and industries.
Intro to Additive Manufacturing
CAD model defines
part geometry
Software slices the
model into thin layers
Printer builds part
layer by layer
Final object produced
with little/no waste
AM is the process of joining materials to make objects from 3D model data, usually layer
upon layer, as opposed to subtractive manufacturing methods like milling and machining
8 Copyright © 2016 Deloitte Consulting LLP. All rights reserved.
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VAT PHOTOPOLYMERIZATION
Stereolithography (SLA)
Digital light processing (DLP)
MATERIAL JETTING
Multi-jet modelling (MJM)
POWDER BED FUSION
Electron beam melting (EBM)
Selective laser sintering (SLS)
Selective heat sintering (SHS)
Direct metal laser sintering (DMLS)
MATERIAL EXTRUSION
Fused deposition modeling (FDM)
DIRECTED ENERGY DEPOSITION
Laser metal deposition (LMD)
BINDER JETTING
Powder bed and inkjet head 3D
printing (PBIH)
Plaster-based 3D printing (PP)
SHEET LAMINATION
Laminated object manufacturing (LOM)
Ultrasonic consolidation (UC)
Note: AM processes are written in upper case and constituent technologies are in italics.
AM is not one thing; it includes different processes
and constituent technologies
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Manufacturing technologies and the application
spectrum
ConceptsDesign /
EngineeringPrototype
Low Volume
Production
Mass
Production
Te
ch
no
log
y
Phase
Binder Jetting
Stereolithography
Fused Deposition Modeling
Selective Laser Sintering
Direct Metal Laser Sintering
CNC Machining
Cast Urethanes (silicon mold)
Die Casting
Multi-Jet Modeling
Tooling & Injection Molding
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AM breaks two existing performance trade-offs: capital required to achieve
economy of scale and capital required to achieve scope.
AM implementation and scaling
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Speed to delivery
Design scope and flexibility
Too often, the emphasis is on producing the same part and pushing it through the
same supply chain.
Business model
evolution
Mass customization
Manufacturing at point of
use
Supply chain
disintermediation
Customer empowerment
High
Impact
on
Product
High Impact
on Supply
Chain
Low Impact
on Product
and Supply
Chain
Product evolution
Customization to customer
requirements
Increased product
functionality
Market responsiveness
Low/zero cost of increased
complexity
Stasis Design and rapid
prototyping
Production and custom
tooling
Supplementary or
“insurance” capability
Low rate production/no
changeover
Supply chain
evolution Manufacturing closer to point
of use
Responsiveness and flexibility
Management of demand
uncertainty
Inventory reduction
1
43
2
Pro
du
ct
Imp
ac
t
Supply Chain Impact
Additive Manufacturing Impact
on Products and Supply Chains
The AM business case rests on more than direct part
substitution
New business models
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Manufacturing low volume, high
complexity, high cost components.
Ability to efficiently produce at low
volumes through reduced tooling,
machining, material investment offers
immediate opportunity for qualified
parts.
Joint Strike Fighter Components
Technology used:
Electron Beam Melting
Reduces “Buy-to-fly” from 33:1 to
~1:1, reduces costs 50% and
maintains component
performance*.
Source: 1. DU Press. 3D Opportunity in Aerospace and Defense – Additive Manufacturing Takes Flight.
AM can help support production, maintain/improve
performance
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Rapid mold development
enhances productivity and
reduces cost.
e.g., 60% Injection mold cost
savings, 50% cooling time reduction,
66% lead time reduction.
Shaping Tooling
Technology used: Various
Molding (blow, injection, paper pulp,
fiberglass lay-up, etc.…)
Casting (investment, sand, spin,
etc.…)
Forming (thermoforming,
hydroforming, stretch forming
etc.…)
AM supports tooling and production
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Manufacturing closer to the end
customer
Ability to shift end-part production
closer to end-use customers so as
to streamline the logistics of
distribution and accelerate delivery
AM can alter speed to delivery, for example, to save
lives
Military Mobile Parts
Hospitals
Technology used:
various
The U.S. military is investing in
mobile production facilities that
can manufacture parts in the
combat zone to get rarely
requested, but vital,
replacement parts quickly to
the field.
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Component
consolidation/simplification
Provides opportunities to use AM in
support of simplified product structures
requiring fewer components, less
assembly, and improved quality
AM can alter design, for example, to improve
performance
Aviation Company
Technology used:
direct metal laser sintering
Fuel nozzles formerly involved
assembly of 20 parts. The
aviation company now uses
AM to produce as a single unit
reportedly 5x more durable
than before.
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New business model development
Provides opportunities to use AM to
simultaneously alter both products and
supply chains to create new ways of
doing business.
AM can facilitate entirely new business models
Orthodontic Device
Company
Technology used:
Stereolithography
Dentist creates digital model
by scanning patient mouth and
transmitting file to printing
facility for creation of series of
“trays” to move teeth to proper
location in mouth.
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Each quadrant presents distinct opportunities to
create value
High
Impact
on
Supply
Chain
Low Impact
on Product
and Supply
Chain
Design for FunctionalityBusiness Model
Innovation
Manufacturing
On Demand
Pro
du
ct
Imp
ac
t
Supply Chain Impact
Production Support
Exploring and using AM to create
components with high quality, low
cost, and reduced lead times in
support of product development and
delivery.
An orthodontic device company
deploys additive manufacturing to
produce millions of patient-specific
trays for patients in perhaps the
single largest global application of
the technology.
U.S. Military is making significant
investments in piloting and
deploying additive manufacturing
supported supply chain processes.
Printed metal alloy nozzles for
engines have ~5X more
durability and weigh 25% less.
Previously the nozzles were
produced from 20 separate
machined pieces.
High
Impact
on
Product
Approaches to capturing value in each quadrant vary widely, but all depend on
additive manufacturing as an enabling capability.
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What to keep in mind
1
2
3
4
5
Material options play a significant role in the production
decision
Tooling can shift the calculus toward AM
Machine and material costs are typically the biggest cost
drivers
Production time and delivery time should both be
considered
“Designing for AM” can reduce material and other costs,
while also helping to improve performance
6Product complexity is typically less limited by
manufacturing capabilities
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Deloitte Eminence: AM Makes its Business Case
• Our entire AM collection is
available at DU Press
http://dupress.com/3d
• 3D Opportunity Primer –
http://deloi.tt/3dprimer
• 3D Paths to Performance –
http://deloi.tt/3dopp
Applying Additive
Manufacturing to my
Business:
Drivers of Return on
Investment (ROI)
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Why are we here?
• Discuss how companies can evaluate the business
potential and impact of AM
• Examine the important role that AM plays in the pursuit of
performance improvement, innovation, and growth
IMP
AC
TO
UT
CO
ME
S
• Determining how to:
• CHOOSE between the divergent AM paths and the associated capabilities
• CONSIDER the direct costs that drive AM and traditional production economics
• EVALUATE the indirect factors and establish how they can add dramatic value for
your company and your customers
PU
RP
OS
E
• Understand the strategic framework for identifying AM paths and value
• Understand the direct and indirect costs associated with AM
• Understand how AM can be used to drive differentiation
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How can we understand AM paths?
• Path I – Companies do not seek radical
alternations in either supply chains or
products, but they may explore AM
technologies to improve value delivery
for current products within existing
supply chains.
• Path II – Companies take advantage of
scale economics offered by AM as a
potential enabler of supply chain
transformation for the products they
offer.
• Path III – Companies take advantage of
scale economics offered by AM
technologies to achieve new levels of
performance or innovation in the
products they offer.
• Path IV - Companies alter both supply
chains and products in pursuit of new
business models.
Understanding AM Paths & Value
Most current available perspectives on the economics
of AM reflect a “Path I” bias. Companies deploy AM
without significantly changing their business models.
Current State
Path I: Stasis
Strategic Framework
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How can AM add value?Research suggests that AM can add value in two fundamental ways: Direct and Indirect Costs and
Differentiation. Examining the value of these key components can determine AM’s ROI for your business.
Time
InvestDirect
Costs
Key Analysis Components
AM has the potential to match
traditional manufacturing methods
on a direct and indirect cost basis
for production applications.
• However, the drivers of direct and
indirect cost differ substantially
between the two approaches.
AM technologies can help companies
differentiate themselves by creating
unique market offerings and
positions, thanks to its ability to
transform supply chains, products,
and business models.
• Differentiation is driven by time and
design.
Adding Value
Indirect
Costs
ROI
Design
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Direct CostsCurrently, studies comparing the direct costs associated with AM and traditional manufacturing methods
identify two elements as driving factors of ROI:
Materials
Traditional v. AM: Material costs in AM are significantly higher
than the costs for traditional manufacturing.
Differences are due to the extreme cost
differentials that exist in the market between AM
and traditional material.
Impact:Analyses place material cost at around 30
percent of the unit cost for AM compared to 0.2
– 2.7 percent for traditional methods.
Additional Considerations: Material recyclability rates also drive costs.
These rates vary by process, system, and
application and should be evaluated as part of
the business case.
Traditional v. AM: No clear evidence exists of differences in the
costs associated with labor rates. With AM,
however, part simplification could result in
substantial labor savings.
Impact: Part simplification in certain cases for AM have
led to a 67 percent reduction in assembly time.
Additional Considerations: Training staff in AM technology increases the
skills and capabilities of the workforce leading to
increased retention and employee engagement.
Retention is particularly important, given that
losing talented workers in the competitive AM
labor market can be a major issue for
businesses, with the cost of replacing an
employee estimated to be 150 percent of what
the employee would earn annually.
Labor1 2
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Indirect CostsCurrently, studies comparing the indirect costs associated with AM and traditional manufacturing
methods identify three elements as driving factors of ROI:
Traditional v. AM:For traditional manufacturing, the
cost of tooling far outweighs the unit
cost of each additional part. A key
attribute of AM is its ability to
improve or eliminate the costs of
tooling.
Impact:By eliminating the costs of tooling,
AM can cut as much as 93 percent
of the cost structure of traditional
manufacturing.
Additional Considerations: Beyond its production, AM also
eliminates the need to maintain,
store, and track tooling over long
periods of time.
ToolingFederated
Model
Centralized
ModelMachine Costs Inventory
1 2 3
Traditional v. AM: Machine costs tend to dominate
cost structures for AM
applications, representing 60-70
percent of total direct costs.
Impact:Build volume, machine utilization,
and depreciation can dramatically
influence business-case
comparisons of AM with traditional
manufacturing methods.
Additional Considerations: Managers must also think carefully
about issues related to expected
machine life and maintenance, as
well as the implications of tax
incentives.
Traditional v. AM: AM brings production and delivery
closer to their corresponding demand
requirements. As a result, AM may
significantly reduce the need for
large inventory and lead times, a
considerable cost in traditional
manufacturing.
Impact: AM reduces the costs associated with
transportation of parts produced in
multiple locations, inventory carrying
costs, and obsolescence.
Additional Considerations: Analyses identify that AM can also
decrease the costs associated with
holding and storing inventory.
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Time is moneyPerformance trade-offs related to speed over different segments of the business cycle are important
considerations when analyzing the overall AM business case.
Product Life
Cycle
Design
Cycle
Delivery
Speed
Production
Speed
Market
Responsiveness
As product life cycles continue to decrease, capital investment
in traditional industrial tooling becomes less advantageous
when considering ROI.
Impacted by decreased product life cycles as well as the
increased demand for user customization, speed to market
becomes a crucial determinant of customer value.
Where traditional production methods may require centralized,
even offshore, production, AM-enabled manufacturers are
positioned to respond more quickly to customer demand.
AM technologies deliver product “near net shape,” in a single
process, while steps related to casting, machining, and other
processing for more traditional approaches must be considered.
Accelerated product modification and changeover, due to
reductions in tooling will improve market responsiveness. Market
risk may also be reduced.
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Designing for AMVenturing beyond path I in the AM framework to take advantage of these higher-value-added
opportunities also means taking advantage of the inherent scope, functionality, and flexibility of AM
technology set.
Flexibility
Economies
of Scope
Functionality
The inherent flexibility of AM enables
responsiveness to market demands, improving
functionality and manufacturability with respect
to more traditional models.
AM lets designers focus on supporting the
intended function of an object rather than on
its manufacturability
AM utilizes economies in scope to facilitate
an increase in the variety of products a unit
of capital can produce, reducing costs and
impacting design.
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InvestmentInformation Management
• Developing an AM capability will require the necessary supporting Information
Technology to develop and manage products through their lifecycle
• Some factors to consider include data storage, computing capacity,
modeling and simulation software
Production Equipment
• New production-capable AM systems can require millions of dollars of
investment
• Investment considerations include machine purchase, housing, and
maintenance
Raw Material
• AM requires a continued investment in its raw materials for production. Kilo
for Kilo, material costs can exceed their TM counterparts by 10-100 times
• Increasing adoption of AM may lead to a reduction in raw material cost
through economies of scale
Workforce Development
• Organizations must invest in developing and delivering extensive training to
establish a skilled workforce for design, engineering, and production
• Investment in technical training, leadership development and academic
partnerships are potential ways to address talent gaps
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AM in Practice
What is AM’s ROI?
Invest
Optimize
• GE announced their plan to build 3 new manufacturing facilities to
drive innovation and implementation of AM across the company.
The new facilities represent a $229 million investment.
• Rolls Royce invests $21.5 million to open its UK government-
backed AM facility
• GE’s LEAP jet engine will power narrow-body planes like the Boeing
737MAX and the Airbus A320neo. GE has already received 8,500
orders for the LEAP engine.
• Using AM decreased Rolls Royce’s lead time for engine
development, while providing significant design freedom. The Trent
XWB is the fastest selling civil aircraft engine, with more than 1,500
engines sold to 41 customers.
• GE redesigned its fuel nozzle using AM, taking an assembly of 20
parts that were joined by hand and reducing it to a single printed
component. The updated nozzles will be 25% lighter and 5x more
durable than the existing nozzles.
• Rolls Royce utilized AM to build the a 1.5 diameter front bearing
housing for the Trent XWB-97 engine, the largest AM aero-engine
part ever manufactured. The Trent XWB-97 will be the highest
thrust engine ever certified by Rolls Royce.
Examining how 2 companies used AM to redesign parts
for better performance and increased revenue.
ROI
Of all jobs in
the US are
linked to AM
industries.113%
Growth in the
revenues of AM
production
equipment and
supplies in the
last year.2
40%
The overall
impact of AM
industries on
the economy.
This equates
to 19% of US
GDP. 1
$3.1 trillion
AM by the Numbers
Sources:
1. GE, “The Workforce of the Future: Advanced manufacturing’s impact on the global economy.” April 2016.
2. Wohlers Associates, “Wohlers Report 2015: 3D Printing and Additive Manufacturing State of the Industry Annual Worldwide Progress Report.”
Reviewing the impact and return derived from two organizations investment in AM technologies
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• Strong potential to match traditional
manufacturing methods on a direct-cost
basis for low and moderate volumes
(e.g. up to 100,000+ units).
• The drivers of direct cost substantially
differ between the two approaches.
• AM can help companies differentiate by
creating unique market offerings and
positions.
Three key themes to the research and experience
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In a typical comparison with plastic injection molding
• We find no clear evidence that labor rates
systematically differ based on IM vs. AM
• Part simplification may reduce total labor rate: e.g.,
Reducing sub-components from three to one led to a 67%
reduction in assembly time
Labor
• There are extreme cost differentials between AM and
traditional material feedstock. For example
o Thermoplastics for AM can cost $175–250 per kg, while
those used for IM cost just $2–3 per kg
o Metal powders at 100X!!
• Material recycle rates should be carefully evaluated.
• Consider process yield (e.g. “buy-to-fly” in aerospace)
Materials
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In a typical comparison with plastic injection molding
• The cost of IM tooling can far outweigh unit costs for
each additional part.
o Studies show 93.5 percent of IM cost due to tooling!
o Tooling must also be maintained, stored, and often tracked
over long periods of time.
• A key attribute of AM is its ability to reduce or
eliminate tooling costs.
Tooling
• Machine costs can dominate the business case,
representing 60–70 percent of total direct costs
• Consider acquisition, depreciation, and taxes
• Build volume, utilization, and maintenance
Machine costs
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• Material Availability – High, titanium is a
relatively common material in this space.
• Multi-Material – Not applicable, single
material.
• Quality Concerns – Low due to superior
strength characteristics of titanium vs.
most common material used for
application (aluminum).
• Size Limitations – DMLS build platform
restricted to 25.4x25.4 cm. Objects not
stackable. Limited to six units per
production run. Systems cost ~$1 million
each.
• Speed Limitation – Estimated build time
per production run is between 12 and 16
hours (depending on final object density).
• Material Cost – Cost of materials nearly
10x that of titanium billet.
Service provider estimates that this object could be
delivered to the customer for approximately $1250.
The same object machined out of titanium billet
would cost approximately $80, a difference of
approximately 1500 percent!
Example of a struggling business case
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Sample of an analysis of the business case for AM
Tooling!
Everything else!
Machine
Material
Tooling!
Everything
else!
Comparison of AM (SLS) and Injection Molding for a small electrical component.
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The flat cost curve for AM is well-established
Average unit cost in
AM is commonly
viewed as invariant
on volume.
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3636
Speed to delivery
Design scope and flexibility
Too often, the emphasis is on producing the same part and pushing it through
the same supply chain.
Business model
evolution
Mass customization
Manufacturing at point of
use
Supply chain
disintermediation
Customer empowerment
High
Impact
on
Product
High Impact
on Supply
Chain
Low Impact
on Product
and Supply
Chain
Product evolution
Customization to customer
requirements
Increased product
functionality
Market responsiveness
Low/zero cost of increased
complexity
Stasis Design and rapid
prototyping
Production and custom
tooling
Supplementary or
“insurance” capability
Low rate production/no
changeover
Supply chain
evolution Manufacturing closer to point
of use
Responsiveness and flexibility
Management of demand
uncertainty
Inventory reduction
1
43
2
Pro
du
ct
Imp
ac
t
Supply Chain Impact
Additive Manufacturing Impact on Products and
Supply Chains
The AM business case rests on more than direct part
substitution
New business models
© 2014 Deloitte Services LP
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1. Emphasis on small, relatively complex,
plastics
2. Watchful for larger metallic applications,
especially with high material cost, machining,
and/or buy-to-fly
3. Tooling can shift the calculus toward AM
4. Material costs key driver? Non-vendor
sourcing?
5. Clear financial picture on machine costs:
Depreciation, utilization, other incentives
6. Broad perspective on time: production vs.
delivery
7. Aggressive pursuit of “design for AM” to
reduce material & cost, improve performance
What to keep in mind
© 2014 Deloitte Services LP
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Deloitte Eminence: AM Makes its Business Case
• Our entire AM collection is
available at DU Press
http://dupress.com/3d
• Additive Manufacturing
Makes its Business Case –
http://deloi.tt/businesscase
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Applying Additive
Manufacturing to my
Business:
Quality Assurance and Quality
Control
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Why should we care about quality?Overcoming the quality barrier can enable widespread adoption of additive
manufacturing across industries. However, many challenges remain.
• Traditional parts qualification negates
the advantages of AM.
• Goal: qualify ‘n of 1’ parts produced
anywhere. Alternatively, know when
parts will NOT meet spec.
• A coordinated approach to the R&D
challenges ahead is essential.
“One of the most
serious hurdles to the
broad adoption of
[AM] of metals is the
qualification of [AM]
parts.” 1
Source: 1. Lawrence Livermore National Laboratory, “Building the Future: Modeling and Uncertainty Quantification for Accelerated Certification,” Science and Technology Review, January/February 2015.
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Achieving quality in AM parts is a multidimensional challenge. The QAAM pyramid
is a framework for considering the most important elements.
The QAAM Pyramid: Starting at the top
Reverse the paradigm. Focus on
qualifying the combination of design,
material, process, rather than end
items. More than geometry – ask:
will this part do its job?
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Most quality assurance R&D focuses on digital simulations of the build process and
sensing technologies within the build chamber.
Tier 2: Mod/sim, sensing and feedback control
Build PlanningModelling & Simulation
Build MonitoringIn-Situ Sensing
Feedback
Control
• Digital simulations of the build
process which predict
resulting performance.
• Complete thermophysical
system, generally with HPC.
• Examples: LLNL, LANL
• Sense what’s going on inside
the build chamber
• Measure heat, light, vibration
and also recording high speed
video of the build process.
• Examples: UTEP, CONCEPT
Laser
• What if you could use
sensor data to inform and
update the build plan?
• Tightly control resulting
material properties, geometry
and performance.
• Examples: KU Leuven,
3DSIM, PSU
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Experimental results demonstrate the effect of feedback control on a 5 mm closed
overhang – a particularly challenging AM application.
Tier 2: Mod/sim, sensing and feedback control
Without Feedback With Feedback
Source: 1. J.P. Kruth, P. Mercelis, et al. "Feedback control of Selective Laser Melting," available at: https://lirias.kuleuven.be/bitstream/123456789/185342/1 accessed October 21, 2015
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Four quality enablers underpin the vision described above and together comprise
the next layer of the pyramid.
Tier 3: Supporting factors
• As of October 2015 there are no broadly recognized, published standards for the
production of AM parts. The area is, however, evolving rapidly.
• ASTM F42, AMF/3MF, America Makes, ANSI.
Standards
• A cake is only as good as the ingredients that go into it. Also true for additive.
• Care needs to be taken to help ensure quality of the of raw material, from sourcing, to
handling, to shelf life to disposal.
Raw Materials
• Robust protocols should be developed to manage and guarantee machine calibration.
• Maintenance also critical.
Calibration
• Share detailed information about results of a build and the factors that contributed to its
success/failure. Includes design, material, machine, build parameters, environment, etc..
Build Data Body of Knowledge
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Advancement and adoption of additive manufacturing will likely drive considerable
IT requirements in the future.
Tier 4: Strong information technology base
Data volumes will
increase dramatically,
primarily due to sensor
data and records.
Storing data is not
enough, must be
managed and accessible
via digital thread.
Securing data may also
be challenging. Need
to consider deliberate
lapses in quality.
Information Management Information Assurance
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Achieving quality in AM parts is a multidimensional challenge. The QAAM pyramid
is a framework for considering the most important elements.
QAAM Pyramid
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With perhaps a decade of R&D ahead, businesses should ask what the most
appropriate quality tools are today, while also planning for the future.
Business & Practicality: QAAM continuumQ
uality
Assu
ran
ce
Req
uir
em
en
t
Low MediumHigh
Manual inspection and
mechanical testingAuditable process control QAAM pyramid
To
ols
/
Ap
pro
ach
PRESENT A&DFUTURE A&D
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You don’t need an exotic sports car to drive to the grocery store. In some cases,
the normal way of guaranteeing quality is just fine.
QAAM Continuum: Low
Principal QA tool(s) and description:
• Manual inspection – visual or manual measurement of finished parts and comparison
against specifications.
• Mechanical testing – testing of parts under laboratory loading conditions to design load
(non-destructive) or to failure (destructive).
• Result: individual parts pass/fail.
Business enablers/conditions:
• Investment in existing test and inspection technology
• Training of workforce in traditional T&E methods
• Low QA requirements or non-critical application
MLH
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The concept of auditable process control focuses on guaranteeing with sensors
that the particular “recipe” for a part was followed exactly.
QAAM Continuum: Medium
Principal QA tool(s) and description:
• Auditable process control – rigorous testing of a part printed under known conditions,
quantification/codification of those conditions, and traceable, auditable reproduction of
those conditions on other printers.
• Result: all parts pass as long as desired conditions are maintained.
Business enablers/conditions:
• Creation of an auditable manufacturing process, enabled by manufacturing IT.
• Robust protocols to manage calibration
• Integration of sensing technologies to verify compliance
• Information assurance becomes important
MLH
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The QAAM pyramid, realized and applied.
QAAM Continuum: High
Principal QA tool(s) and description:
• QAAM pyramid – advanced modelling, sensing, and feedback control work together to
guarantee the quality of any part, on any machine with the capability to print it.
• Result: quality for almost any part, or rejection of build plan up front if it cannot be built.
Business enablers/conditions:
• Significant investment in R&D to develop modelling, sensing and feedback control
capabilities.
• Marriage of high-performance computing with manufacturing
• Supported by enablers (see pyramid)
• Information management (10s-100s of TB) and information assurance are critical
MLH
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Quality is situational and significant R&D challenges remain. Firms seeking to
qualify AM parts should plan for both today and tomorrow.
Conclusion
• Evaluate the level of QA needed for
each part/application.
• Consider using the “low” end of the
QAAM continuum while developing
“high” end capability for the long term.
• Understand the data management
challenges that lie ahead.
• Assess not only which path to value
you are on today, but where you want
to be tomorrow. QAAM may enable
that shift.
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Deloitte Eminence: Quality Assurance in Additive
Manufacturing
• Our entire AM collection is
available at DU Press
http://dupress.com/3d
• Quality Assurance and
Parts Qualification –
http://deloi.tt/qa
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Applying Additive
Manufacturing to my Business:
Digital Thread
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Effectively turning an invention into an innovation at scale requires that the
invention be part of the right system.
Invention vs. Innovation
Invention Right System Innovation
• 1802: Humphry Davy invented
the first electric light
• 1800-70s: Multiple inventors also
created “light bulbs” but no designs
emerged for commercial application
• July 24, 1874: a Canadian patent was
filed by a Toronto medical electrician
named Henry Woodward and a
colleague Mathew Evans who were
unable to commercialize, so they sold
the patent to Thomas Edison in 1879
• 1879, Edison filed a patent for
an electric lamp with a carbon
filament, extending the life of
the bulb for practical use
• 1800: Italian inventor Alessandro
Volta developed the first practical
method of generating electricity, the
voltaic pile
• 1879-80: Edison develops
wiring system that could
support multiple lamps and
built his own power system to
support multiple users with
multiple lamps
• 1881: Edison set up an electric light
company
The Light Bulb
Source: Acton, Jim. "Light Bulb." How Products Are Made. 1994. Encyclopedia.com. 24 Feb. 2016. <http://www.encyclopedia.com>.
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The Digital Thread is the system that links models
and data required to produce quality AM parts
BUILD + MONITORSCAN / DESIGN + ANALYZE TEST + VALIDATE DELIVER + MANAGE
Per-Part
Post-
Processing
+ Finishing
Part Field
Service
Sensing +
Inspection
Part
Inspection
(Testing,
NDE, etc..)
Data
Verification
+ Twinning
Part
EOL
3DP
Build
Process
(Physical
Part)
In-situ
monitoring
In-situ feedback
Traditional
Analysis
(FEA, CFD)
Adv. Multi-
physics
Modeling /
Simulation Machine
Data
Detailed
Build Plan
Build
Simulation
Design
Scan
CAD
File
Machine
Selection
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Many components make up the DTAM but where
does one start to build it?
Finite Element Analysis / Method
Computer Aided Design
3D ScanningAnalysis Tools
Order Management
PLM Configuration
Computational Fluid Dynamics
Additive Manufacturing
Computing Power
Integrated Computational
Materials EngineeringQuality Management
Nondestructive Inspection / Examination
Product Data
Management
Enterprise Management Tools
Internet of Things
AM Design AM File Format
AM Designers
Multiphysics Modelers
Multidiscipline Engineers
Build Sensors
Post-Processing
Equipment
Certified Raw
MaterialsBuild Analytics
AM Simulation
Feedback Loop
to Simulations
Dynamic Network
OptimizationCost
Optimization
Training Standards
Certified Machine
Standards
Data Transfer
Machine Selection
3DP Operators
Version Control
Data Warehousing
Digital
Twin
NDE EquipmentCertified Quality
StandardsNDE Handling
Certified Performance
Standards
Supply Chain
Tracking
CRM for AM
Dynamic Demand
Analysis
Usage Sensors
Licensing & Attribution
Light Weighting
Rendering
File Analysis
Secure Storage Watermarking
In-Process
Monitoring Version Control
Machine Control
Post Production
TrackingReporting
How can we conceptualize DTAM?
BUILD + MONITORSCAN / DESIGN + ANALYZE TEST + VALIDATE DELIVER + MANAGE
Per-Part
Post-
Processing
+ Finishing
Part Field
Service
Sensing +
Inspection
Part
Inspection
(Testing,
NDE, etc..)
Data
Verification
+ Twinning
Part
EOL
3DP
Build
Process
(Physical
Part)
In-situ
monitoring
In-situ feedback
Traditional
Analysis
(FEA, CFD)
Adv. Multi-
physics
Modeling /
Simulation Machine
Data
Detailed
Build Plan
Build
Simulation
Design
Scan
CAD
File
HA
RD
WA
RE
SO
FT
WA
RE
DA
TA
SK
ILL
S
Computing
Power
Multiphysics
Modelling
AM SimulationAM Design
3D Scanners Build
Sensors
Build Analytics
Certified Raw
Materials
Post-processing
Equipment
AM
Designers
Multiphysics
Modelers
Feedback Loop
to Simulations
3DP Operators Post Production Qualify 3DP
& Materials
AM File
Format
PLM
Configuration
Multidiscipline
Engineers
Machine
Selection
Machine
Selection
PLM & ERP Integration
Intellectual Property Protection
Cyber Security
Dynamic Network
Optimization
Digital TwinCost
Optimization
Data
Warehousing
NDE
Equipment
Version Control
Certified Quality
Standards
Certified Performance
Standards
Usage
Sensors
3D Scanners
Supply Chain
Tracking
Training
Standards
Certified Machine
Standards
Data
Transfer
BOM &
Config Mgmt
Qualify Assurance
& Mgmt
NDE Handling CRM for AM Dynamic Demand
Analysis
Still Evolving
The ecosystem is just starting to form and has major gaps.
Deloitte proprietary. Please do not copy or distribute without the permission of Deloitte Consulting, LLP
What are the critical demands of DTAM?
BUILD + MONITORSCAN / DESIGN + ANALYZE TEST + VALIDATE DELIVER + MANAGE
Per-Part
Post-
Processing
+ Finishing
Part Field
Service
Sensing +
Inspection
Part
Inspection
(Testing,
NDE, etc..)
Data
Verification
+ Twinning
Part
EOL
3DP
Build
Process
(Physical
Part)
In-situ
monitoring
In-situ feedback
Traditional
Analysis
(FEA, CFD)
Adv. Multi-
physics
Modeling /
Simulation Machine
Data
Detailed
Build Plan
Build
Simulation
Design
Scan
CAD
File
Machine
Selection
Needs to be developed
The ecosystem is just starting to form and has major gaps.
Co
mp
uti
ng
Po
we
r D
ata
Vo
lum
es
Deloitte proprietary. Please do not copy or distribute without the permission of Deloitte Consulting, LLP
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Deloitte proprietary. Please do not copy or distribute without the permission of Deloitte Consulting, LLP59
Stand alone machines are fine for a prototyping lab but distributed and/or advanced
production will depend on much more.
Escaping “Stasis” will depend on integrating elements
of DTAM
59
Business model
evolution
Mass customization
Manufacturing at point of
use
Supply chain
disintermediation
Customer empowerment
High
Impact
on
Product
High Impact
on Supply
Chain
Low Impact
on Product
and Supply
Chain
Product evolution
Customization to customer
requirements
Increased product
functionality
Market responsiveness
Low/zero cost of increased
complexity
Stasis Design and rapid
prototyping
Production and custom
tooling
Supplementary or
“insurance” capability
Low rate production/no
changeover
Supply chain
evolution Manufacturing closer to point
of use
Responsiveness and flexibility
Management of demand
uncertainty
Inventory reduction
1
43
2
Pro
du
ct
Imp
ac
t
Supply Chain Impact
Additive Manufacturing Impact
on Products and Supply Chains
• Breaking the Scope (Product)
tradeoff will largely (if not
exclusively) depend on the ability
to verify the quality and design of
complex manufactured
components.
• Breaking the Scale (Supply
Chain) tradeoff will largely (if not
exclusively) depend on the ability
to verify delivery, security,
execution, and consistency of
digital model-based production.
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DTAM enables AM to function at the high end of the quality continuum.
Why is DTAM important for Quality/Complexity?
• Standalone Machines
• “Good enough” geometry
• Less precision required / necessary
• Less focus on high end quality
• Existing test and inspection technology
• Training of workforce in traditional
testing and evaluation methods
• Advanced modelling, sensing, and
feedback control capabilities.
• Specialized high-performance
computing resources
• Management and assurance of 10s-
100s of TB of data produced
• Increase quality standards with
enhanced geometries, functionality, and
melt pool
• Enables high precision with increased
microstructures through AM
DTAM is an enabler
to achieve precision
En
ab
lers
to
Ac
hie
ve
Pre
cis
ion
Quality/Complexity Continuum
Less Precision High Quality/Complexity
DTAM enables high precision, high quality parts.
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DTAM enables distributed manufacturing.
Why is DTAM important for Distributed Manufacturing? D
esig
n
Man
ufa
ctu
re
Dis
trib
ute
Cu
sto
me
rs
Design
Manufacture at
point of use
Distributed Manufacturing
Distributed Manufacturing Continuum
• QA certification at a distance
• Delivery assurance despite geographic
dispersal
• Real-time synchronization of “promiscuous
associations” with vendors and partners
• Common data standards
• Information assurance – IP protection and
cybersecurity
• Data management and storage
• Dynamic optimization of vendors – price
competition
• Visibility throughout system on vendor
availability
• Diversified points of production
• Temporary associations
• Exponentially larger data
amounts
• Total landed cost optimization
• Large info flows to/from
temporary partners
• Complexity is not free
Traditional Manufacturing
• Asset intensive production
• Single points of production
• Long term cost recoup
• Disparate data sets / control
Key Enablers of
Distributed Manufacturing
DTAM enables distributed manufacturing.
DTAM is an enabler
of digital distribution
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Verticals that will likely adopt the DTAM are driven by high quality requirements
and wide-spread distribution.
Who might be some early adopters of DTAM?
No
Distributed
Manufacturing
Full
Distributed
Manufacturing
High
Quality//Complexity
Low
Quality/Complexity
Transportation
EquipmentMedical
Devices &
Implants
DTAM Not Required Optimal Network Economics
Optimal Process Control Network Economics &
Process Control
Apparel/Textiles
Computer/Electronics
Oil/Gas Production
Appliances
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• Additive manufacturing offers the promise of true product and
supply chain innovation…
o …. But full realization requires a system, not a machine.
• Digital Thread technologies are still very much fragmented
and emerging
o Identify ecosystem partners that are tracking and investing in point and
integrated solutions (reminds me of our pre-ERP days )
• Developing an overall strategic intent for AM will help target
DTAM investment. Are you trying to:
o Produce what you could not before?
o Produce where you could not before?
What to keep in mind
© 2014 Deloitte Services LP
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Deloitte Eminence: Digital Thread
• Our entire AM collection is
available at DU Press
http://dupress.com/3d
• 3D Opportunity and the
Digital Thread–
http://deloi.tt/dt
Conclusion
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Recapping our session….
• Engaging in additive manufacturing is not simply buying a
printer… You need to be aware of the implications to your
ROI, your workforce, the quality of your product and the
digital thread …
• Now, when you think of additive manufacturing, what comes
to mind? Let’s hear from you
sme.org/smartmfgseries
Thank You for Joining Us!