Evaluation of Cost Structures of Additive Manufacturing Processes Using a New Business Model

Abstract

The individualization and customization of products is one the most important trends for industrial companies. New technologies like additive manufacturing (e. g. 3D-printing) are enablers for the further development of this trend. Companies offering production systems for those technologies are more and more required to embed Industrial Product Service Systems (IPSS) to assert theirselves on the market.The aim of this research is to develop a business model which evaluates process costs of additive manufacturing technologies. The relevant technologies are Stereolithography, Selective Laser Melting, Fused Deposition Modeling, Selective Laser Melting, Electron Beam Melting and Laser Cladding. Product costs can be calculated easily and the outcome of the evaluation will serve as a valuable decision base for industrial decision makers on how to invest in a special technology. By embedding this service in the production system/ machines software, a big step for a new industrial service is provided.The paper is structured in four steps. Firstly, based on a detailed description of the state of the art research, an analysis of the most important process steps in additive manufacturing is presented. A new business model for additive manufacturing technologies is introduced afterwards including the implementation of this business model in a software tool. Furthermore case studies for different product types and product quantities are explained and detailed values for process costs are provided. In the last step, a sensitivity analysis is done to find the most important parameters (cost drivers) for those case studies.The business model and the evaluation of cost structures for additive manufacturing technologies is unique in the field of IPSS. Using a cost and investment calculation, the companies can significantly increase the effort and quality of price calculations for their products. Furthermore cost drivers are evaluated and recommendations for technology related investments are given.