Impact of 3D Printing on Global Supply Chains by 2020 Varun Bhasin & Raheel Bodla
Agenda What is 3D Printing Methodology 3D Printing vs Traditional Manufacturing 3D Printing Growth & Cost Projection Results Conclusion
Research Question Quantification of the Impact of 3D Printing on Automotive and Life Sciences Supply Chains
What is 3D Printing Source : CNN Talk About the capabilities of 3D Printing, Materials Used Source : CNN
Methodology Create Process Flows for current Supply Chain Define Assumptions for adoption of 3D Printing Create Process Flows for TO-BE Supply Chain with the adoption of 3D Printing Understand Cost Components of Supply Chain Collect Data for each cost component Develop a Mathematical Model to Compute and Compare Total Supply Chain Cost Perform Sensitivity Analysis
Total Supply Chain Cost Inventory Holding Cost Pipeline Inventory Cost Methodology Total Supply Chain Cost Product Cost A Order Cost B Transportation Cost C Inventory Holding Cost D Pipeline Inventory Cost E Stock Out Cost F Order Cost = Order Cost x (Demand/Order Quantity) Pipeline Inventory Cost = Product Cost x Holding Rate x (Demand over Lead Time) Transportation Cost = Demand x (Cost/Mile) x Distance in Miles Stock Out Cost = Stock Out Penalty x No. of Orders x Probability of Stock Out Per Cycle Inventory Holding Cost = Product Cost x Holding Rate x (Cycle Stock + Safety Stock) Product Cost = Cost Of Manufacturing
Key Deliverables Mathematical Model to Compute and Compare Total Supply Chain Cost for Current vs. Future Supply Chain Cost (After adoption of 3D Printing) Use Case on adoption of 3D Printing in Automotive Industry Life Sciences Industry
Difficulty in Quantifying the Impact Literature covers qualitative descriptions only Lack of primary data Adoption of 3D Printing Decrease in product cost due to adoption Limited sources of data Automotive & Life Science industry only 2 US Locations only By explicitly stating all assumptions, our model is amenable to what-if analysis
3D Printing vs Traditional Manufacturing Simple product for preliminary analysis Currently produced by 3D printing & traditional Manufacturing iPhone Case
3D Printing vs Traditional Manufacturing
3D Printing Growth & Cost Projection
3D Printing Growth & Cost Projection
Results We looked at the impact from two different echelon in Supply Chain using use cases Case I – The Warehouse Case II – Life Sciences Case III – Automotive
Case I – The Warehouse
Case I – The Warehouse 76% 87% 35%
Case I – The Warehouse 85% 78% 70%
Sensitivity Analysis
Case II – Life Sciences
Case II – Life Sciences 62% 98% 98% 95% 60%
Case III - Automotive
Case III - Automotive 33% 96% 99% 95% 20%
Conclusion What does this mean for Automotive & Life Sciences Industry End Customer Logistics Industry
Questions