{"id":33781,"date":"2018-11-13T18:11:01","date_gmt":"2018-11-13T23:11:01","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-rctom\/submission\/additive-manufacturing-at-ford-a-long-way-from-the-model-t\/"},"modified":"2018-11-13T18:11:01","modified_gmt":"2018-11-13T23:11:01","slug":"additive-manufacturing-at-ford-a-long-way-from-the-model-t","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/additive-manufacturing-at-ford-a-long-way-from-the-model-t\/","title":{"rendered":"Additive Manufacturing at Ford: A Long Way from the Model T"},"content":{"rendered":"

Henry Ford revolutionized manufacturing by promoting standardization and economies of scale. He made only one standard car model and drove down prices by producing many units efficiently in an assembly line with continuous flow.[1] So why is the Ford Motor Company interested in additive manufacturing (AM), which is touted for customization and has limited scale benefits?<\/span><\/p>\n

\"\"<\/a>
Ford used 3D printers to make engine covers for its 2015 Mustang. [A]<\/figcaption><\/figure>\n

First, 3D printing technology can manufacture \u201ccomplex geometric structures\u201d that lead to better-performing products.[2] For example, China\u2019s Shining 3D Tech Co Ltd makes exhaust pipes for Ford that weigh one-third of what simpler conventional pipes weigh.[3] Less weight means lower transportation costs to Ford and better fuel economy for the consumer.<\/span><\/p>\n

Second, and perhaps more important, with AM, Ford gets new products to market sooner, because the fabrication of prototype components has a shorter throughput time (e.g., 40 hours instead of the 10 weeks it could take with the CNC lathing machines of the past). With 3D printing, Ford can easily produce multiple designs simultaneously, so the company can use parallel testing to achieve more rapid iteration.[4] One researcher has estimated that a two-month delay in reaching the market is associated with a 23.6% loss in a product\u2019s lifetime revenue.[5] Therefore, AM\u2019s benefits to Ford\u2019s top line outweigh the high cost. Moreover, some parts may actually be less expensive to produce with 3D printing.[6]<\/span><\/p>\n

* * * * *<\/span><\/p>\n

Ford is taking steps to integrate AM into product development and production.<\/span><\/p>\n

For now, in the short term, Ford emphasizes the use of AM to create prototype parts that it can test in vehicles under development. It is rapidly increasing the number of parts that it produces with AM. The company\u2019s history with AM actually goes all the way back to the 1980s, when Ford purchased SLA 3, a stereolithography device that was the third 3D printer ever produced.[7] By the mid-2000s, Ford was printing about 4,000 prototype components each year.[8] Now, the company makes over 100,000 components per year across five 3D prototyping centers.[9]<\/span><\/p>\n

For the longer term, Ford is working to broaden the application of AM in its business. The company has purchased a Stratasys Infinite Build System. Unlike conventional AM products, which build pieces vertically, this machine works horizontally. As a result, it can fabricate larger parts.[10]<\/span><\/p>\n

\"\"<\/a>
Stratasys Infinite Build System [B]<\/figcaption><\/figure>\n

And Ford\u2019s newly created 3D printing research division is experimenting with emerging technologies \u201cin hopes of using 3-D printing to manufacture more complex designs that can\u2019t be created using traditional methods.\u201d[11] One drawback of standard 3D printing is that it works one layer at a time, which not only is slow but also creates \u201ctiny fault lines that can crack when stressed,\u201d as vehicles on the road frequently are. Ford is testing a method from startup Carbon3D, which is faster and produces stronger, more solid, non-layered items that look \u201cjust like a molded part.\u201d[12] In the future, AM may be commonly used in parts that actually make it into purchased Fords driven by consumers.<\/span><\/p>\n

* * * * *<\/span><\/p>\n

I recommend that Ford take additional steps to tap the potential of AM. The company has hinted at how it envisions the future: at least some production (as opposed to prototype) parts will be made with 3D printing, and consumers will even be able to create their own replacement parts at their local 3D printer.[13]<\/span><\/p>\n

To achieve that vision, Ford must address two key factors: materials and cycle time. It needs to develop more 3D printing materials that resemble the ones used in its conventional parts.[14] Ford\u2019s 2018 investment in Desktop Metal, which specializes in innovative technology for printing in metals like stainless steel, is likely a step in this direction.[15] But Ford should remain on the lookout for other companies with whom it can partner on materials development. If partners\u2019 technology is sufficiently compelling, Ford should acquire them outright. On cycle time, too, Ford should be on the lookout for partners who can help reduce the build time of 3D printers.[16]<\/span><\/p>\n

\"\"<\/a>
Larger parts built with Stratasys [C]<\/figcaption><\/figure>\n

Ford is considering using the Stratsys machine to produce larger portions of vehicles (e.g., body panel),[17] and I recommend testing these possibilities soon.<\/span><\/p>\n

I would fold Stratasys tests into a broader goal: to build a road-usable car that is 70% lighter than its conventionally fabricated counterpart. Italian startup XEV is taking orders for a car that is about 60% lighter thanks to 3D printing.[18] Ford should task a team with exceeding this weight reduction. Even if the result is not immediately marketable, the ambitious goal should spur innovation and stretch the possibilities for AM at Ford, just as the Jeopardy<\/i> project developed IBM\u2019s capabilities in machine learning.<\/span><\/p>\n

* * * * *<\/span><\/p>\n

The main question for Ford is: Is there a plausible future in which customization becomes sufficiently important to car buyers that they will pay the premium for 3D printing? If so, how does Ford prepare for it?<\/span><\/p>\n

(799 words)<\/span><\/p>\n

 <\/p>\n

Endnotes<\/strong><\/p>\n

[1] Richard Koch, \u201cHow Ford Created a Huge Market by Lowering its Prices,\u201d Entrepreneur<\/i>, October 11, 2016, https:\/\/www.entrepreneur.com\/article\/282218<\/span><\/a>, accessed November 2018.<\/p>\n

[2]\u00a0Lucas Mearian, \u201c3D printing is now entrenched at Ford,\u201d CIO<\/i>, August 21, 2017, via ProQuest, accessed November 2018.<\/span><\/p>\n

[3] Ma Si and Cheng Yu, \u201c3D printing is booming,\u201d China Daily<\/i>, August 21, 2017, p. 13, via Factiva, accessed November 2018.<\/p>\n

[4]\u00a0Lucas Mearian, \u201c3D printing is now entrenched at Ford,\u201d CIO<\/i>, August 21, 2017, via ProQuest, accessed November 2018.<\/span><\/p>\n

[5] Biren Prasad, \u201cAnalysis of pricing strategies for new product introduction,\u201d Pricing Strategy & Practice<\/i> 5, no. 4 (December 1997): 132\u2013141. For clarification of the relationship to the automotive industry, see \u201cWhat is the cost of delay in the automotive industry?\u201d ResearchGate, https:\/\/www.researchgate.net\/post\/What_is_the_cost_of_delay_in_the_automotive_industry<\/span><\/a>, accessed November 2018.<\/span><\/p>\n

[6] Lyndsey Gilpin, \u201c3D printing: 10 companies using it in ground-breaking ways,\u201d TechRepublic, March 26, 2014, https:\/\/www.techrepublic.com\/article\/3d-printing-10-companies-using-it-in-ground-breaking-ways<\/span><\/a>, accessed November 2018.<\/span><\/p>\n

[7] \u201cBuilding in the Automotive Sandbox,\u201d Ford Motor Company, https:\/\/corporate.ford.com\/innovation\/building-in-the-automotive-sandbox.html<\/span><\/a>, accessed November 2018.<\/span><\/p>\n

[8] Lucas Mearian, \u201c3D Printers Churn Out Ford Prototypes,\u201d Computerworld<\/i> 48, no. 11 (June 23, 2014): 4.<\/span><\/p>\n

[9] Lucas Mearian, \u201c3D printing is now entrenched at Ford,\u201d CIO<\/i>, August 21, 2017, via ProQuest, accessed November 2018.<\/span><\/p>\n

[10] Gary S. Vasilash, \u201cFord\u2019s Approach to AM,\u201d Automotive Design & Production<\/i>, March 20, 2017, https:\/\/www.adandp.media\/blog\/post\/fords-approach-to-additive-manufacturing(1)<\/span><\/a>, accessed November 2018.<\/span><\/p>\n

[11] Loretta Chao, \u201cFast 3-D Printers Earn New Respect,\u201d Wall Street Journal<\/i>, April 26, 2016, p. B1.<\/span><\/p>\n

[12] Loretta Chao, \u201cFast 3-D Printers Earn New Respect,\u201d Wall Street Journal<\/i>, April 26, 2016, p. B1.<\/span><\/p>\n

[13] Lucas Mearian, \u201c3D printing is now entrenched at Ford,\u201d CIO<\/i>, August 21, 2017, via ProQuest, accessed November 2018; Clint Boulton, \u201cPrinting Out Barbies and Ford Cylinders,\u201d Wall Street Journal Online<\/i>, June 5, 2013, via Factiva, accessed November 2018.<\/span><\/p>\n

[14] Loretta Chao, \u201cFast 3-D Printers Earn New Respect,\u201d Wall Street Journal<\/i>, April 26, 2016, p. B1.<\/span><\/p>\n

[15] Yuliya Chernova, \u201cFord Leads $65 Million Investment in Desktop Metal,\u201d Wall Street Journal Online<\/i>, March 19, 2018, via Factiva, accessed November 2018.<\/span><\/p>\n

[16] Gary S. Vasilash, \u201cFord\u2019s Approach to AM,\u201d Automotive Design & Production<\/i>, March 20, 2017, https:\/\/www.adandp.media\/blog\/post\/fords-approach-to-additive-manufacturing(1)<\/span><\/a>, accessed November 2018.<\/span><\/p>\n

[17] Lucas Mearian, \u201c3D printing is now entrenched at Ford,\u201d CIO<\/i>, August 21, 2017, via ProQuest, accessed November 2018.<\/span><\/p>\n

[18] Wang Ying, \u201c3D-printed electric cars coming,\u201d China Daily<\/i>, March 13, 2018, p. 13, via Factiva, accessed November 2018.<\/span><\/p>\n

 <\/p>\n

Image Sources<\/strong><\/p>\n

[A] Ford, published in\u00a0Lyndsey Gilpin, \u201c3D printing: 10 companies using it in ground-breaking ways,\u201d TechRepublic, March 26, 2014, https:\/\/www.techrepublic.com\/article\/3d-printing-10-companies-using-it-in-ground-breaking-ways<\/span><\/a>, accessed November 2018.<\/span><\/p>\n

[B] Published in\u00a0Gary S. Vasilash, \u201cFord\u2019s Approach to AM,\u201d Automotive Design & Production<\/i>, March 20, 2017, https:\/\/www.adandp.media\/blog\/post\/fords-approach-to-additive-manufacturing(1)<\/span><\/a>, accessed November 2018.<\/span><\/p>\n

[C]\u00a0Published in\u00a0Gary S. Vasilash, \u201cFord\u2019s Approach to AM,\u201d Automotive Design & Production<\/i>, March 20, 2017, https:\/\/www.adandp.media\/blog\/post\/fords-approach-to-additive-manufacturing(1)<\/span><\/a>, accessed November 2018.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

How can Ford use additive manufacturing to speed up its product-development process, improve its competitiveness, and create value for the consumer?<\/p>\n","protected":false},"author":11227,"featured_media":34062,"comment_status":"open","ping_status":"closed","template":"","categories":[4102,3340,4351,344],"class_list":["post-33781","hck-submission","type-hck-submission","status-publish","has-post-thumbnail","hentry","category-3dprinting","category-additive-manufacturing","category-product-design","category-product-development","hck-taxonomy-organization-ford-motor-company","hck-taxonomy-industry-auto","hck-taxonomy-country-united-states"],"connected_submission_link":"https:\/\/d3.harvard.edu\/platform-rctom\/assignment\/rc-tom-challenge-2018\/","yoast_head":"\nAdditive Manufacturing at Ford: A Long Way from the Model T - Technology and Operations Management<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/additive-manufacturing-at-ford-a-long-way-from-the-model-t\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Additive Manufacturing at Ford: A Long Way from the Model T - 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