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economic analysis of additive manufacturing for final products

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Garrett White<br />

Daniel Lynskey<br />

Impacts on environmental sustainability<br />

One <strong>of</strong> the main focuses <strong>of</strong> the sustainable movement<br />

today is on the environment. Above all, sustainability<br />

focuses on preserving a healthy environment that will allow<br />

human life to continue flourishing. Attempting to create<br />

such an environment while also developing new<br />

technologies involves the reduction <strong>of</strong> energy consumption,<br />

and material consumption. AM machines have the potential<br />

to reduce the amount <strong>of</strong> energy used in the <strong>manufacturing</strong><br />

process. First <strong>of</strong> all, as previously mentioned, having a rapid<br />

<strong>manufacturing</strong> machine on site eliminates the need <strong>for</strong><br />

transportation, there<strong>for</strong>e greatly reducing the amount <strong>of</strong> fuel<br />

used. Even if the AM machine cannot be located on site, if<br />

it is being used to produce light weight <strong>products</strong> it will be<br />

significantly more energy efficient to transport the items<br />

because “lighter structures require less energy to move”<br />

[12]. The United States Department <strong>of</strong> Energy, “anticipates<br />

that <strong>additive</strong> processes would be able to save more than 50%<br />

energy use compared to today’s ‘subtractive’ <strong>manufacturing</strong><br />

processes” [13]. It is also stated that typical subtractive<br />

methods such as CNC (computer numerical control) milling<br />

<strong>of</strong>ten find scrap rates as high as 95% when milling from a<br />

block <strong>of</strong> existing material [14]. This number can be<br />

significantly reduced by the bottom up approach <strong>of</strong> AM. The<br />

goal <strong>of</strong> product redesign <strong>for</strong> AM is to recreate <strong>products</strong> in<br />

the most efficient ways possible. This can be done by<br />

utilizing AM abilities to create complex interior structures<br />

and reducing the amount <strong>of</strong> waste in the process. Since,<br />

ultimately, less material is used, AM can prove to be very<br />

cost effective.<br />

Impacts on social sustainability<br />

The social dimension <strong>of</strong> sustainability involves<br />

improving the quality <strong>of</strong> life <strong>of</strong> humans, through healthrelated<br />

advancements, increased consumer satisfaction, and<br />

financial improvement. Additive <strong>manufacturing</strong> poses the<br />

ability to make changes to each <strong>of</strong> these realms. First, in<br />

health-related fields, AM shows perhaps even more promise<br />

than one would immediately think. Although not discussed<br />

at length previously in this paper, AM does possess unique<br />

capabilities to produce very high quality devices <strong>for</strong> human<br />

health improvement. In the Bioengineering field, AM is<br />

currently being researched as a possible means to create very<br />

high quality scaffolds, <strong>for</strong> skin and organ regeneration.<br />

Scaffolding requires very precise structure, which AM can<br />

produce unlike any other <strong>manufacturing</strong> process be<strong>for</strong>e. On<br />

top <strong>of</strong> this, AM is also being used <strong>for</strong> custom-fit prosthetics,<br />

because <strong>of</strong> its ability to create unique <strong>products</strong>. Along with<br />

prosthetics, other medical devices, such as custom-fit<br />

hearing aids, orthopedic implants, and dental braces [3].<br />

Beyond medical advances, AM also provides the ability to<br />

greatly change customer satisfaction. As previously<br />

mentioned, “consumers are becoming increasingly refined in<br />

their tastes and desires <strong>for</strong> new <strong>products</strong>” [7]. AM processes<br />

make mass customization viable, which would obviously<br />

greatly impact a customer’s sense <strong>of</strong> satisfaction. Most<br />

consumers typically enjoy individualized <strong>products</strong> that are<br />

geared towards their own desires. Since AM machines<br />

require only a 3D digital model <strong>of</strong> the product to create it, it<br />

is even possible <strong>for</strong> consumers to become their own<br />

designers. This is a vast concept that would revolutionize<br />

consumer satisfaction. Increased customer satisfaction not<br />

only benefits consumers, but also benefits the producers,<br />

because <strong>of</strong> potential increase in sales. Increase in sales is<br />

something that all producers are currently striving <strong>for</strong>, in an<br />

attempt to stabilize the American economy.<br />

Impacts on <strong>economic</strong> sustainability<br />

Sustainable <strong>economic</strong>s are yet another focus <strong>of</strong> the<br />

sustainability motion, and nearly all other aspects <strong>of</strong><br />

sustainability can be indirectly connected to <strong>economic</strong>s, as<br />

well. The <strong>economic</strong> dimension <strong>of</strong> sustainability involves<br />

present actions that will allow <strong>for</strong> future generations to enjoy<br />

equal or greater wealth, welfare, and consumption abilities.<br />

AM is perhaps most disruptive here, because <strong>of</strong> its ability to<br />

revolutionize <strong>manufacturing</strong> <strong>economic</strong>s. Each <strong>of</strong> the topics<br />

previously mentioned in this paper discuss some <strong>of</strong> the<br />

<strong>economic</strong> changes AM brings about. These changes would<br />

be effective <strong>for</strong> the long-run <strong>of</strong> the <strong>manufacturing</strong> paradigm<br />

we see today. As far as wealth preservation is concerned,<br />

AM also shows the ability to greatly change overall cost <strong>of</strong><br />

production.<br />

COST ANALYSIS OF ADDITIVE<br />

MANUFACTURING<br />

The previous sections in this paper focus on effects that<br />

<strong>additive</strong> <strong>manufacturing</strong> <strong>of</strong> end-usable parts could bring to<br />

the economy <strong>of</strong> an industry. Each <strong>of</strong> these topics has been<br />

related to the production and distribution <strong>of</strong> parts, but they<br />

each also have connection to the actual cost <strong>of</strong> production.<br />

For example, using mass customization techniques in AM<br />

production leads to a higher rate <strong>of</strong> customer satisfaction [7].<br />

Although customer satisfaction does not affect the cost <strong>of</strong><br />

production <strong>of</strong> each part, it does lead to more purchases,<br />

which obviously leads to more revenue <strong>for</strong> the producer.<br />

This revenue then allows the manufacturer to pay <strong>for</strong> the<br />

costs <strong>of</strong> production. Next, lightweight parts created with the<br />

use <strong>of</strong> product redesign make an obvious <strong>economic</strong> impact.<br />

In particular application to the aircraft industry, a lower<br />

massed part can lead to astronomical differences in fuel<br />

consumption, and there<strong>for</strong>e cost. A consortium based in<br />

Germany and consisting <strong>of</strong> Laser Zentrum Nord (LZN)<br />

GmbH, the Institute <strong>of</strong> Laser and System Technologies<br />

(iLAS) <strong>of</strong> Hamburg University <strong>of</strong> Technology, and Airbus<br />

Operations GmbH, has shown, “Eliminating 100 kg (220<br />

lbs) is said to save an airline $2.5 million annually in fuel<br />

costs <strong>for</strong> short haul flights” [14]. Along with this reduction<br />

5

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