What is 3D Printing?
3D printing, also known as additive manufacturing, is the process of building objects layer by layer from a digital file. 3D printing uses additive processes, compared to the standard molding or subtractive techniques to create objects from a variety of materials such as plastic, metal, ceramics, and paper. Materials can come in a variety of forms as well, ranging from powders to liquids. The process begins by creating a virtual design using a CAD file in a 3D modelling program. Existing objects can be copied using a 3D scanner, which creates a 3D copy and transfers it into the modelling program. Before the object is printed, the software divides the object into horizontal layers. The layers can number up to thousands, and are printed in sequential order on top of each other to create the 3D object.
The three most common forms of 3 dimensional printing are selective laser sintering, fused deposition modelling, and stereo lithography. Selective laser sintering uses powder and does not require any supportive structure which allows for very complex parts to be created. The process begins by inserting a layer of powder onto the building surface and a laser then designs the first layer into the powder. The platform is lowered and this process is repeated for every layer until the object is finished. Selective laser sintering is normally used to produce prototypes as well as finished products. This process is popular in the airplane industry. Elizabeth Palermo, a staff writer at Live Science states “it isn’t cost-effective for companies to produce physical molds for airplane parts. These molds would be too expensive to make and would then need to be stored for long periods of time without being damaged or corroded” (2013). 3D printing is a more efficient and inexpensive way for these airline companies to create components. Companies such as General Electric have acquired engineering firms using this process to build parts.
Fused deposition modelling requires two kinds of materials, one for the object being created and another that acts as a support. Elizabeth states “These materials take the form of plastic threads, or filaments, which are unwound from a coil and fed through an extrusion nozzle” (2013). This nozzle melts the materials onto the building surface, and creates the cross sections of the objects layer by layer which cools and hardens into each additional layer. Compared to stereo lithography and selective laser sintering, this is a slow process. However, this process is the most widely used in 3 dimensional printing and is used in the automotive industry (BMW), consumer goods manufacturing (Nestle), as well as in the medical industry. A report by the Mckinsey Global Institute suggests that “FDM is mainly used for single- and multipart prototyping and low-volume manufacturing of parts, including structural components” (2013).
Stereo lithography is the oldest form of 3D printing. The Mckinsey Global Institute describes the printing process: “a laser or other UV light source is aimed onto the surface of a pool of photopolymer (light-sensitive resin). The laser draws a single layer on the liquid surface; the build platform then moves down, and more fluid is released to draw the next layer. SLA is widely used for rapid prototyping and for creating intricate shapes with high quality finishes, such as jewelry” (2013).
Advantages and Limitations
Current advantages for companies using 3 dimensional printing include rapid prototyping, rapid manufacturing, reducing materials wasted, and the creation of objects that are extremely difficult or impossible to create otherwise. Perhaps the most important feature of 3 dimensional printing is the ability to create a 3d image on a computer and then being able to transfer to the printer to be created. This feature can “potentially skip traditional manufacturing steps, including procurement of individual parts, creation of parts using molds, machining to carve parts from blocks of material, welding metal parts together, and assembly” (Mckinsey Global Institute, 2013). Skipping these traditional steps increases efficiency exponentially.
Stratasys, EOM, and Archam are a few of the companies that make 3 dimensional printers. Their prices range from hundreds of dollars, to thousands of dollars, to over a million dollars depending on the size and technical components of the printers. When developing new products, all companies want to develop prototypes to test and further develop the specifications and functionality. 3 dimensional printing allows companies to develop their own prototypes. For example, without 3D printing Nike would have to outsource prototype creation; this results in a more costly and time-consuming development. However, with 3D printing, not only can Nike potentially change the size, coloring, and design of their prototype for a cheaper cost, these changes to the product can be reprinted the very same day.
Materials do not go to waste in 3 dimensional printing. An example of material conservation would be the powder used in selective laser sintering. While an object is being carved out of the powder material, all powder etched off of the final object can be used in creating the next object. This would save companies the cost of additional supplies and minimize the risk of spoilage or lost inventory.
3 dimensional printers have the ability to create objects “that are difficult or impossible to produce with traditional techniques, including objects with complex internal structures that add strength, reduce weight, or increase functionality” (Mckinsey Global Institute, 2013). These printers can produce highly complex and intricate structures, like objects featuring an internal honeycomb structure or organs with channels of blood vessels.
3D printing has the possibility of slashing the manufacturing process down to three steps: scanning, modelling, and printing. This has been the case in the development of hearing aids. This was previously a nine step process due to the high customization required for an individual’s ear structure. Now with the ability to scan ones ear and create a product from that scan, the process has been made faster and easier.
“Typically, the use and introduction of technology in a labor-intensive industry promotes efficiency and reduces costs. While machines reduce labor charges and optimize efficiency, they increase capital investment costs” (Sharma, 2013). This principle makes it difficult to measure if 3D printing is in fact less costly. “For low-volume manufacturing direct digital manufacturing is more cost-effective and simpler than having to pay and wait for machining or tooling, with on-the-fly design changes and just-in-time inventory being possible”(Barnatt, 2014).
Despite these advantages, there are limitations of 3 dimensional printing, which “include relatively slow build speed, limited object size, limited object detail or resolution, high materials cost, and, in some cases, limited object strength. However, in recent years rapid progress has been made in reducing these limitations” (Mckinsey Global Institute, 2013). As technology improves these limitations will be even further reduced, but each individual company must weigh the advantages and constraints of 3D printing.
3D Printing in Business Operations
“Most current 3D printers are not used to create final consumer products. Rather, they are generally employed for rapid product prototyping, or to produce moulds or mould masters that will in turn allow the production of final items” (Barnatt, 2014). “Typically, the use and introduction of technology in a labor-intensive industry promotes efficiency and reduces costs. While machines reduce labor charges and optimize efficiency, they increase capital investment costs” (Sharma, 2013). This principle makes it difficult to measure if 3D printing is in fact less costly. “For low-volume manufacturing direct digital manufacturing is more cost-effective and simpler than having to pay and wait for machining or tooling, with on-the-fly design changes and just-in-time inventory being possible”(Barnatt, 2014). The range of products using this technology is growing, and the variety of industries using it includes the automobile, weapons, jewelry, food, and medical industry. “3D printing for producing complex, low volume and highly customizable products is already accelerating” (Mckinsey Global Institute, 2013).
“The use of 3D printing to manufacture end-use parts is also now occurring. This is becoming known as direct digital manufacturing” (Barnatt, 2013). This manufacturing process is being used by Boeing and other aircraft suppliers print and use parts, as well as in the healthcare industry to build hearing aid earpieces and acetabular hip cups that are used by patients. “By 2017, Wohlers Associates estimates that sales of 3D printing products and services could hit $6 billion worldwide. It forecasts that by 2021, industry-wide sales could reach about $11 billion” (Tracy & Wagreich, 2013). 3D printing is a growing, profitable industry. In 2012, Stratasys controlled 56% of 3D printer market (Tracy & Wagreich, 2013), but as the sales grow, so will Stratasys’ competition.
Future Impacts
As 3D printing advances, so too will its adoption rate and usage. 3D printing technology still lacks the ability to create substantially large objects and is still questioned as to whether its object’s quality and strength are sufficient in many industries. The capital investment costs are also still very high. “However, these costs are widely expected to decline rapidly in coming years as production volumes grow. Advances are also under way that could dramatically improve the output speed and quality of 3D printers” (Mckinsey Global Institute, 2013). The materials used in 3D printing still remain costly, but prices are declining rapidly and can be expected to decline further as volumes increase. Improvements are being made on all of its limitations, especially now that the patents protecting the development are ending or are very close to ending (Mckinsey Global Institute, 2013). This will encourage the development of better systems, lower costs, and more capabilities.
It is even projected by the Mckinsey Global Institute that in “2025, traditional manufacturing techniques will almost certainly have a large cost advantage over additive manufacturing for most high-volume products. However, 3D printing could become an increasingly common approach for highly complex, low-volume, highly customizable parts” (2013).
“The first big implication is that more goods will be manufactured at or close to their point of purchase or consumption. Many goods that have relied on the scale efficiencies of large, centralized plants will be produced locally. China has grabbed outsourced-manufacturing contracts from every mature economy by pushing the mass-manufacturing model to its limit. It not only aggregates enough demand to create unprecedented efficiencies of scale but also minimizes a key cost: labor. Under a model of widely distributed, highly flexible, small-scale manufacturing, these daunting advantages become liabilities. No workforce can be paid little enough to make up for the cost of shipping across oceans, and few managers raised in a pro-producer climate have the consumer instincts to compete on customization” (D’Aveni, 2013). Even if the per-unit production cost is higher, it will be more than offset by the elimination of shipping and of buffer inventories” (D’Aveni, 2013). With the projected rise of personal 3D printing, it is conceivable to think that they can buy or download the programs and modules to copy objects already being made, or even develop their own objects.
Managerial Implications
Managers today must understand what 3D technology is and how it can affect their respective industry and business model. It is not a dominant process being used at this moment, but in the very near future it certainly can be. If managers do not keep up to date with technological advances that affect the overall health of their business, they risk falling behind their competition and perhaps going out of business.
Managers today may want to outsource developing prototypes or the production of small, complex pieces to firms with 3D printing capabilities. This requires managers to have the personal skills to find and maintain new relationships with firms, while also maintaining pre-existing supply chain relationships that may be altered.
Managers must have cost analysis skills to make the right decision to switch from traditional manufacturing to 3D printing, as well as have knowledge on the new process’ technology, costs, quality, and all other factors.
The most important task for managers today is to ready themselves for a potentially massive overhaul on manufacturing processes. Managers must identify how they would change their factories, staff, machinery, location, product mix, and every other aspect of the business model to incorporate 3D printing if its impact on their industry is significant enough to promote change. Those managers that delay for long term planning will be too slow and ineffective to diversify and compete.
What are the advantages/disadvantages of using 3D printing?
References
Barnatt, Christopher. (2014). 3D Printing. Explaningthefuture.com. Retrieved from: http://www.explainingthefuture.com/3dprinting.html
D’Aveni, Richard. )2013). 3-D Printing Will Change the World. Harvard Business Review. Retrieved from: https://hbr.org/2013/03/3-d-printing-will-change-the-world
Hadhazy, Adam. (2013). Will 3D Printers Manufacture your Meals? Popular Mechanics. Retrieved from: http://www.popularmechanics.com/technology/gadgets/a8816/will-3d-printers-manufacture-your-meals-15265101/
McKinsey Global Institute. (2013, May). Disruptive technologies: Advances that will transform life, business, and the global economy. Retrieved from: http://www.mckinsey.com/insights/business_technology/disruptive_technologies
Molitch-Hou, Michael. (2015). Hershey & 3D Systems Unveil New Cutting-Edge Chocolate 3D Printer at CES. 3d Printing Industry. Retrieved from: http://3dprintingindustry.com/2015/01/06/hershey-3d-systems-unveil-new-cutting-edge-chocolate-3d-printer-ces/
Palermo, Elizabeth. (2013). What is Selective Laser Sintering? Livescience.com. Retrieved from: http://www.livescience.com/38862-selective-laser-sintering.html
Palermo, Elizabeth. (2013).Fused Deposition Modeling: Most Common 3D Printing Method. Livescience.com. Retrieved from: http://www.livescience.com/39810-fused-deposition-modeling.html
Palermo, Elizabeth. (2013).What is Stereolithography? Livescience.com. Retrieved from: http://www.livescience.com/38190-stereolithography.html
Purvis, Andrew. (2012). Will 3D Printers Make Food Sustainable? The Guardian. Retrieved from: http://www.theguardian.com/environment/2012/may/18/3d-printers-food-sustainable
Sharma, Rakesh. (2013). The 3D Printing Revolution You Have Not Heard About. Forbes. Retrieved from: http://www.forbes.com/sites/rakeshsharma/2013/07/08/the-3d-printing-revolution-you-have-not-heard-about/
Tracy, Abigail, & Wagreich, Samuel. (2013). Thinking of Starting a Business? Print Profits in 3-D Printing. Inc.com. Retrieved from: http://www.inc.com/best-industries-2013/samuel-wagreich/3-d-printing-overview.html
3D Printing.com. (2015). What is 3D Printing? 3d printing.com.Retrieved from: http://3dprinting.com/what-is-3d-printing/