MACHINE BUILDING
Rethinking Procurement in Machine Building Midlands 3D, one of the largest 3D print manufacturers in the UK, shares 5 principles to unlock the benefits of the strategic use of 3D Printing.
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nformation about adopting 3D Printing is often centred on the technology and its applications. As manufacturers move greater volumes of parts over to 3D Printing, it becomes more important to build an appropriate procurement strategy – one that unlocks the true value of adopting the process.
Principle 1: the economics of 3D print production are different In most manufacturing processes, producing more of a single part in one run is key to getting a lower cost per part, and therefore a lower price. For procurement, the trade-off becomes price per part versus the cost of stockpiling what might be many months of actual requirement. To get a true part cost, the money tied up in excess stock must be considered. With 3D print manufacturing, and especially with technologies like HP MJF printing, that is not the case. Due to 3D Printing’s minimal start-up costs and zero machine downtime, the cost to the manufacturer of making the last part is practically the same as the price of the first, mitigating the need to tie up money in excess parts. Therefore, the “per part” cost of a 3D printed part is a much truer reflection of the actual cost to the business.
Principle 2: better pricing comes from better machine utilisation The real variable cost in technologies such as MJF printing comes from running the machines themselves. In every production run, there is a volume of print space to fill. The more efficiently the 3D printer fills that cube with parts, the lower the overall cost of the production run, and the more attractive the pricing they are able to offer.
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Principle 3: variance rather than volume becomes your friend In each order, it actually makes more sense to order a variety of different parts at the same time, rather than trying to maximise the volume of a single part and storing the excess. This enables the print provider to maximise machine utilisation.
Principle 4: consolidate the 4 P’s: Prototype, Part, Product & Process As soon as a customer lets go of the notion of ordering large volumes of a single variant as the key to getting the best price, then consolidating what might have been separate orders with differing suppliers all into a single manufacturing agreement, and even a single order within that agreement, makes most sense. • Prototypes can be made cost effectively, right alongside anything else the business needs using the same process as the final product. • Parts for a wide variety of products, or indeed sets of parts for individual products, can all be made simultaneously. • Products can be manufactured alongside everything else, and the more printed parts, the better the pricing becomes. • Process: additional applications for 3D Printing present themselves as customers review their assembly line and related business processes.
Principle 5: a 3D Printing procurement strategy can be a win-win These principles provide a more competitive edge as adoption of the technology grows. By consolidating the 4 P’s into a strategic agreement with a single manufacturer, the greater this competitive advantage becomes. And it’s a win for the manufacturer too; the more “printed part” variance in each order, the greater their production efficiency.
Summary Procurement strategy for 3D Printing must evolve from “one off” prototyping and low-variance volume production. Building a higher value and more strategic relationship between manufacturer and customer can unlock a wealth of opportunities. It’s all part of the maturation of an industry, still only a decade or two in the making, and that Midlands 3D is willing to provide guidance to make happen. midlands3d.com