Course presentation at the John-Molson School of Business of Concordia University (Montréal) on the emergence of 3D printing and how it impacts on business models and the supply chain

1. 3D Printing drives
the «Always-on»
Supply Chain
Marc-André Léger, MScA, MBA, eMBA,
PhD Candidate, C.Adm.

2. https://johndeerejournal.com/2019/03/3d-printing-changes-the-shape-of-manufacturing/

3. Before we talk about 3D
printing…

4. Case questions from class
Compare and contrast the predictions made by Goldman Sachs, Gartner,
MHI/Deloitte, and McKinsey on the impact of 3D printing.
Discuss the differences between the traditional linear supply chain and the
always-on supply chain.
Explain how the manufacturing supply chain will be changed by 3D printing.
In what situations is 3D printing most valuable?
Explain why medical use of 3D printing is growing at an extremely rapid pace.
Name four industries in which 3D printing is changing the supply chain.
Do you consider 3D printing an important technology? Explain.
Q1
Q2
Q3
Q4
Q5
Q6
Q7
Turban(2018)

5. Supply Chain: journey of a product
• the flow of materials, data, and money
• The journey from raw material suppliers to customers
• A pipeline of multiple stakeholders that coordinate activities to
differentiate themselves from their competitors.
Turban(2018) page 313
Q3

6. We all need a simple tool to
make 3D objects. It’s the dream of the Star
Trek replicator.
Ultimaker, Prusa and multiple
vendors are developing new products, STEAM
educators, engineers, designers, architects and
many others are interested in this technology.
The biggest change was the
expiry of the patents a few years ago and the
arrival of new vendors of low priced printers.
New materials are emerging that are stronger. Faster and cheaper printers
are making this more affordable. They are getting easier to use. Larger sizes are coming
soon.
3D printing enables a shift from designing for ideal manufacturing to manufacturing the ideal design. It has beneficial impact on finances by cutting production, inventory and manufacturing
costs. 3D printing enable new value propositions that transform existing and facilitate new customer relationships. It can be a disruptive technology that enables radically new business
models such as mass customization. It allows increased readiness for the digital revolution, Internet of Things or Industry 4.0.
DIY and Maker movement,
Maker Faire and arrival of
makerspaces and Fab Labs in
schools and communities.
Potentially affect all industries.
Education sector.
Speed up innovation, allow short run of products,
create now light products, improve inventory
management. Increased readiness for the digital
revolution, Internet of Things or Industry 4.0.
Speed up product development and prototyping,
make it simple to create model to later make
injection molds. Simplify early product testing
and market identification.
Rather than stocking parts they can be made on
demand and near to the point of use.
Reduced production costs and times.
Less need for expensive and dedicated tooling.
There are more opportunities for training in K-12,
colleges, universities and non-profit centers like
makerspaces and FabLabs. The skills required to
operate are more available.
The biggest issue is creating
reliable fast large size printers or developing
environmentally sustainable materials.
Reduced environmental impact, reduced energy usage and material waste.
Possible environmental issues (emissions). Sustainability may be an issue. Many players in
the industry.
Emerging Technology Assessment Canvas: 3D printing
Created by Marc-Andre Leger, John-Molson School of Business, Concordia University, ma.leger@Concordia.ca

7. Technologies that
can increase
competitive
advantage or disrupt
an organization:
• Robotics and automation
• Inventory and Network Optimization Tools
• Sensors and automatic identification
• Predictive Analytics
• Wearables and mobile technology
• Driverless vehicles and drones
• Inventory and network optimization tools
• Cloud computing and storage
•3D printing
From Turban p.317Q1

8. Segars, A. H. (2018). Seven technologies
remaking the world. MIT Sloan Management
Q1

9. Q1
Turban(2018)

10. OK, now on to 3D printing…

11. What is 3D printing ?
• Additive manufacturing
• X-Y then move up Z
• Many processes:
• SLA
• SLS
• FDM
• Many materials :
• Plastics and polymers
• Ceramics
• Cement
• Food paste, chocolate, sugar
• Biological materials
• Metal

12. Potential benefits of additive manufacturing
over subtractive manufacturing
• reduced production costs and times;
• ability to create objects, with extremely complex
geometries, optimized for their specific function;
• capacity to radically redesign products and to create
materials with enhanced properties;
• cost-effective, low-volume and flexible production;
• less need for expensive and dedicated tooling;
• reduced environmental impact, reduced energy
usage and reduced material waste;
• better-distributed manufacturing;
• increased readiness for the digital
revolution, Internet of Things or Industry 4.0.
Imperial College London, Institute for Molecular Science
and Engineering, Briefing paper No 2, September 2017,
The value of additive manufacturing: future opportunities

13. What changed
since 1983 ?
• 20 year patent protection end
• Reprap project
• STEAM education
• DIY movement
• MAKE: magazine
• Fab Labs
• Makerspaces
• Hackerspaces

14. Q1

15. https://interestingengineering.com/start-your-own-3d-printing-business-11-interesting-cases-of-companies-using-3d-printing
Q1

16. https://www.gartner.com/document/3895593?ref=solrAll&refval=214539464&qid=
Q7
Q1

17. How 3D printing impact
business models

18. The IT Impact of 3D Printing on Business Models
• Enables a shift from designing for ideal manufacturing to
manufacturing the ideal design.
• Beneficial impact on finances by cutting production, inventory and
manufacturing costs.
• Enable new value propositions that transform existing and
facilitate new customer relationships.
• Can be a disruptive technology that enables radically new business
models such as mass customization.
Gartner group report published 28 March 2018 - ID G00348118

19. “Agile” 3D printing-enabled product introduction
Q3

21. https://www.globenewswire.com/news-release/2019/02/21/1739701/0/en/New-SmarTech-Report-Forecasts-3D-Printing-in-Eyewear-to-Generate-3-4-Billion-by-2028.html

22. How 3D printing impact
supply chains
Q2

23. The “always-on” supply chain
• “an integrated set of supply networks characterized by a continuous,
high-velocity flow of information and analytics, creating predictive,
actionable decisions that better serve the customer.”
2016 MHI Annual Industry Report
Q2

24. How does 3DP impact the Supply Chain ?
Advantages Challenges
• Lowers barriers to market entry
• Direct production from CAD
• Designs easily shared
• Reduced lead times
• No switchover costs
• Direct interaction local consumer – producer
• Enables the radical localization to demand locations
• Goods are paid prior to manufacturing
• Optimized supply chains
• Small batches of customized products
• Reduced inventory of spare parts
• On-demand manufacturing
• Making to order reduces inventory risk
• Material savings
• Reduced raw material consumption
• Ability to reuse waste material
• Cost and speed of production
• Perception of only for rapid prototyping
• Changing the way that designers think
• Development and standardization of new materials
• Validation of mechanical and thermal properties
• Development of multi-material and multi-color
• Automation of systems and process planning
• Post-processing is often required
• Support structure materials cannot be recycled
• Intellectual property issues
• Deficits in skilled designers and engineers
• Non-linear, localized collaboration
• Ill-defined roles and responsibilities
• Continuously changing competitive landscape
Cotteleer (2014), Mellor et al.(2014) in Garmulewicz et al.(2018); Ford(2005)
Q2Q3

25. Industry / Sector Examples of use and applications
Consumer-product designers • Building prototypes
• Wearable / smart products
Automotive • Replacement, vintage or customized parts and products
Medical / Healthcare • Orthopedics, prosthetics and biosynthetic composites
• Bone repair, skull or cartilage,
• Skin reconstruction, stem cells and organ replacement
• Medical instruments and spare parts
• Bioprinting, custom and designer drugs, drug delivery mecanisms
Defence industry & Military • Production of parts in the field, repairs, special projects
Dental labs • Bridges, implants and crowns, dentures
Retail • Parts
• On-demand products
• Inventory reduction
Aerospace • Prototypes and lightweight parts
Jewellery • Finished products or model for casting
Manufacturing • Rapid, iterative prototyping of products for existing and new markets
• Making tooling, jigs and fixtures used to make or assemble parts
• Finished goods or component of a larger product
• Model to create a mold used in injection molding
Q5
Q6

26. According to the 400 plus companies
survey in the 3D Hubs report, 3D printing
serves two major functions across its
wide range of industries
prototype
and
additive
manufacturing
Q4
https://www.3dhubs.com/blog/3d-printing-trends-q1-2019/

27. • Essentium recent survey on production 3D printing usage.
• n = 114 In positions of authority for acquiring and dealing with 3D printers
https://www.fabbaloo.com/blog/2019/3/23/essentiums-survey-results?utm_source=Fabbaloo+Daily+Newsletter&utm_campaign=c77e0bc6bd-
RSS_EMAIL_CAMPAIGN&utm_medium=email&utm_term=0_f52584965b-c77e0bc6bd-116537717

28. Adidas: production of soles of sneakersQ4

29. 54% less
than normal
aircraft seatQ4

31. Medical use Q5

32. Q4

33. The challenges for
management

34. Top challenges in using additive manufacturing
now and in the future.
• Equipment costs
• Manufacturing costs
• Post-processing requirements
• Limited materials
• Lack of clear business case to
justify investment,
• Lack of talent to utilize the
technology effectively,
• Poor technical integration
• Cultural aversion to risk.
https://www.stratasysdirect.com/manufacturing-services/3d-printing/3d-printing-adoption-challenges Gartner(2018), (Turban 318)

36. Recommendation
for managers
3D printing has not yet reached the
point where its cost, speed, and
scalability can compete with
traditional manufacturing.
It’s great for product development,
testing and prototyping.
As new materials arrive, cost
decrease and speed increases,
managers need to have it on their
radar.

37. Ethics and
Corporate Social Responsibility

38. Sustainability
https://preciousplastic.com/

39. Intellectual property

40. The future of 3D printing…

41. Locally productive, globally connected cities
Enabling a shift away from the industrial paradigm of Product-in Trash-out, by
enabling the return of manufacture to cities supported by a Data-in Data-out urban model.

42. Maniruzzaman, M. (2018), 3D and 4D Printing in Biomedical Applications: Process Engineering and Additive Manufacturing, Wiley, ISBN: 978-3-527-81369-8 November 2018, 300 Pages

43. Gartner group
recommendations on
4D printing for CIOs seeking
to accelerate digitalization:
• Determine the innovation
trends by monitoring
VC investments
• Ensure supply chain resiliency
by working with partners
• Implement an innovation center
• Have R&D teams evaluate
4D Printing potential now

44. Questions ?