{"id":31943,"date":"2018-11-13T14:07:32","date_gmt":"2018-11-13T19:07:32","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-rctom\/submission\/product-innovation-requires-production-innovation-additive-manufacturing-as-an-enabler\/"},"modified":"2018-11-13T14:08:39","modified_gmt":"2018-11-13T19:08:39","slug":"product-innovation-requires-production-innovation-additive-manufacturing-as-an-enabler","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/product-innovation-requires-production-innovation-additive-manufacturing-as-an-enabler\/","title":{"rendered":"Product Innovation Requires Production Innovation: Additive Manufacturing as an Enabler"},"content":{"rendered":"

INTRODUCTION<\/strong><\/p>\n

While much of the discussion around additive manufacturing\u2019s applications has centered around building parts of an end product,[1]<\/a> worth also raising is the way additive manufacturing can enable dramatic innovation through novel and more nimble production processes<\/strong>. Lumiena,[2]<\/a> a manufacturer of LED lighting products with a patented chip technology that enables unprecedented color modularity, is a good illustration of how this technology can be leveraged and the challenges associated with that strategy.<\/p>\n

About Lumiena[3]<\/strong><\/a><\/u><\/em><\/p>\n

Lumiena was founded in 2008 with the intent of bringing innovation to the large and growing LED lighting market by making LEDs with superior color and dimness controls. Doing so required building new hardware and software, therefore the company could not rely on traditional LED processing equipment to make its products. Lumiena\u2019s team spent six years developing the technology and finally had some commercializable luminaires by 2014.<\/p>\n

Lumiena\u2019s use of additive manufacturing<\/u><\/em><\/p>\n

LEDs arrived from Lumiena\u2019s suppliers in \u201craw\u201d form with variation in their brightness and hue.[4]<\/a> As part of its production process, Lumiena needed to process these raw LEDs to make their light quality consistent. With no viable \u201coff the shelf\u201d tools for them to do this, they developed their own LED processing tech that involved several pieces of 3D-printed equipment. The company tasked a couple of its hardware engineers to design this equipment in CAD and purchased a single 3D printer to make the equipment needed for them to produce initial volumes of product. The system was up and running effectively within a couple months, with all processing happening in a warehouse space adjacent to Lumiena\u2019s corporate offices.[5]<\/a><\/p>\n

Scaling production \u2013 In-house[6]<\/strong><\/a><\/u><\/em><\/p>\n

During the company\u2019s first few quarters of production, output was minimal since Lumiena only needed product to pitch to lighting designers and contractors \u2013 nothing in bulk. However, as the company\u2019s sales team started landing larger deals in 2015 with pressure from its board to grow revenue, this LED processing step quickly became a bottleneck.<\/p>\n

In response, the company 3d-printed a second set of processing equipment, also kept in the warehouse adjacent to the company\u2019s office, which allowed them to meet customer demand without backorder issues for another three quarters.<\/p>\n

Scaling production \u2013 Move out-of-house?[7]<\/strong><\/a><\/u><\/em><\/p>\n

By 2016, Lumiena\u2019s board began to discuss planning for more industrialized manufacturing of the company\u2019s products. Conversation revolved around how the company would be able to accommodate the kind of \u201chockey stick\u201d sales growth that the board was hoping for. As this discussion progressed, what became increasingly clear was that the company would need to further systematize its custom processes to make larger volumes.<\/p>\n

Unforeseen challenges[8]<\/strong><\/a><\/u><\/em><\/p>\n

At first, it seemed that Lumiena could just keep making new 3D-printed production equipment for LED processing to meet demand. However, as time passed, the company also started noticing signs of wear and tear in its existing 3d-printed equipment. This was likely due to poor material choice, but made the board more concerned about the continuation of this method. Could Lumiena create or find processing equipment that didn\u2019t have to be so \u201chomegrown?\u201d<\/p>\n

Next steps for CEO<\/u><\/em><\/p>\n

I don\u2019t see an issue with continuing to use additive manufacturing to produce the processing equipment. While I recognize the risk to having a homegrown system if customer demand takes an unprecedented upturn and production capacity can\u2019t handle it, though the process of printing this equipment on a relatively regular basis doesn\u2019t seem too onerous. As for the machine breakdown, I think it\u2019s worth having Lumiena\u2019s team investigate what other materials might perform better, though I don\u2019t see that as a reason not to continue to use additive manufacturing.<\/p>\n

 <\/p>\n

LEARNINGS FROM LUMIENA\u2019S USE OF ADDITIVE MANUFACTURING<\/strong><\/p>\n

Developing new products might require development of new machines to make them. Additive manufacturing presents a uniquely useful way for companies to overcome this challenge, therefore it is a key enabler of innovation. Whether this can scale appropriately is a concern given costs,[9]<\/a> though since production equipment typically offers a lot of leverage, I think these costs are less of a concern for additive manufacturing of production tools than for that of end products. In the case of Lumiena, additive manufacturing was critical to the company\u2019s ability to make product.<\/p>\n

 <\/p>\n

Word Count: 792<\/em><\/p>\n

 <\/p>\n

[1]<\/a> Brown. Chain Reaction: Why additive manufacturing is about to transform the supply chain<\/strong>. Mechanical Engineering <\/em>140, no. 10 (October 2018): 30-35; W.J. Lim, K.Q. Le, Q. Lu, and C.H. Wong. An overview of 3D printing in manufacturing, aerospace, and automotive industries<\/strong>. IEEE Potentials<\/em> 35, no. 4 (2016): 18-22; Spaeth. 3d printing is changing the face of multiple industries<\/strong>. ECN: Electronic Component News<\/em> 61, no. 9 (October 2017): 21-23.<\/p>\n

[2]<\/a> Fictitious name for company privacy<\/p>\n

[3]<\/a> Engagement with company<\/p>\n

[4]<\/a> Wikipedia, \u201cLight-emitting diode,\u201d https:\/\/en.wikipedia.org\/wiki\/Light-emitting_diode.<\/p>\n

[5]<\/a> Engagement with company<\/p>\n

[6]<\/a> Ibid<\/p>\n

[7]<\/a> Ibid<\/p>\n

[8]<\/a> Ibid<\/p>\n

[9]<\/a> Holwef. The limits of 3D printing<\/strong>. 性视界 Business Review Digital Articles <\/em>(June 23, 2015).<\/p>\n","protected":false},"excerpt":{"rendered":"

Lumiena, a startup making “smart” LED lighting systems, couldn’t find the processing equipment it needed to make its novel products since the technology didn’t exist. 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