Additive manufacturing: A qualitative analysis of AM's potentinal in a value chain framework

Abstract

Abstract In this master thesis, the purpose was to look at how and why using additive manufacturing can further improve relevant firms’ value chain through the activities they perform. Additive manufacturing was first introduced in the 1980s as a prototyping technology, but its scope has extended far beyond its original use.

Through literature study and qualitative research, it was possible to identify how and why additive manufacturing offers certain benefits compared to traditional manufacturing methods. Contacting 5 different firms who shared their experience working with the technology revealed some key benefits with using AM (additive manufacturing) in manufacturing. In the analysis, the objective was to go through the 5 primary activities and 4 supporting activities defined in Michael Porters’ value chain theory and categorize different activities where AM excels when it comes to offering a competitive advantage and why. Based on our qualitative study, key activities and benefits were identified for the material manufacturer, the 3D CAD model designer, the part manufacturer and the end-user.

One of the main beneficial activities identified for the material manufacturer was recycling. For the 3D CAD model designer, it was primarily design optimization, customization, and product adjustment. For the part manufacturer some activities and benefits were local production, home sourcing, digital inventories, mass customization, production of complex geometry parts and reduced weight parts. Lastly, for the end-user digital inventories as well as purchasing customized parts were some of the main activities and benefits associated with AM. Reduced cost, time and material wastage was also found to be a clear benefit when using additive manufacturing for many of these activities.

The find from this research creates a basis for firms to further evaluate their own specific value chain. Through identifying their own activities first, it is then possible to consider different benefits associated with AM presented in this thesis and evaluate if they are relevant for improving their own value chain. Also through this thesis, it becomes apparent how additive manufacturing needs to be looked at from a different perspective, rethinking how manufacturing has been done in the past.

Abstract In this master thesis, the purpose was to look at how and why using additive manufacturing can further improve relevant firms’ value chain through the activities they perform. Additive manufacturing was first introduced in the 1980s as a prototyping technology, but its scope has extended far beyond its original use.

Through literature study and qualitative research, it was possible to identify how and why additive manufacturing offers certain benefits compared to traditional manufacturing methods. Contacting 5 different firms who shared their experience working with the technology revealed some key benefits with using AM (additive manufacturing) in manufacturing. In the analysis, the objective was to go through the 5 primary activities and 4 supporting activities defined in Michael Porters’ value chain theory and categorize different activities where AM excels when it comes to offering a competitive advantage and why. Based on our qualitative study, key activities and benefits were identified for the material manufacturer, the 3D CAD model designer, the part manufacturer and the end-user.

One of the main beneficial activities identified for the material manufacturer was recycling. For the 3D CAD model designer, it was primarily design optimization, customization, and product adjustment. For the part manufacturer some activities and benefits were local production, home sourcing, digital inventories, mass customization, production of complex geometry parts and reduced weight parts. Lastly, for the end-user digital inventories as well as purchasing customized parts were some of the main activities and benefits associated with AM. Reduced cost, time and material wastage was also found to be a clear benefit when using additive manufacturing for many of these activities.

The find from this research creates a basis for firms to further evaluate their own specific value chain. Through identifying their own activities first, it is then possible to consider different benefits associated with AM presented in this thesis and evaluate if they are relevant for improving their own value chain. Also through this thesis, it becomes apparent how additive manufacturing needs to be looked at from a different perspective, rethinking how manufacturing has been done in the past.