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The economics of additive manufacturing: Towards a general cost model including process failure

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  • Ding, Jin
  • Baumers, Martin
  • Clark, Elizabeth A.
  • Wildman, Ricky D.

Abstract

The interest in Additive Manufacturing (AM) technology, also known as 3D printing, is unbroken. In many industries, however, stakeholders are struggling to understand AM's potential for manufacturing value creation. Most available literature on the cost of AM stresses the importance of ancillary processes and treats the relationship between process efficiency and capacity utilization. The most recently added - and overdue - aspect included in the extant AM costing literature considers the expected impact of so-called ill-structured costs, mainly relating to process failure and product rejection. Available research has investigated this aspect across a variety of technology types and process elements. This paper develops a new AM cost model that is generally specified so it can represent the probability and expected cost effect of failure events for all existing AM technologies. To demonstrate the implementation of this model, this paper applies it to the manufacture of pharmaceutical products (tablets) using the AM technology variant material jetting. The paper thus provides a robust indication of achievable unit cost levels, the cost effect of process failure, and also broaches the usefulness of cost models in guiding further process improvements.

Suggested Citation

  • Ding, Jin & Baumers, Martin & Clark, Elizabeth A. & Wildman, Ricky D., 2021. "The economics of additive manufacturing: Towards a general cost model including process failure," International Journal of Production Economics, Elsevier, vol. 237(C).
    • Handle: RePEc:eee:proeco:v:237:y:2021:i:c:s0925527321000633
    DOI: 10.1016/j.ijpe.2021.108087
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    References listed on IDEAS

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    1. Colosimo, Bianca Maria & Cavalli, Simona & Grasso, Marco, 2020. "A cost model for the economic evaluation of in-situ monitoring tools in metal additive manufacturing," International Journal of Production Economics, Elsevier, vol. 223(C).
    2. Martin Baumers & Luca Beltrametti & Angelo Gasparre & Richard Hague, 2017. "Informing additive manufacturing technology adoption: total cost and the impact of capacity utilisation," International Journal of Production Research, Taylor & Francis Journals, vol. 55(23), pages 6957-6970, December.
    3. Mellor, Stephen & Hao, Liang & Zhang, David, 2014. "Additive manufacturing: A framework for implementation," International Journal of Production Economics, Elsevier, vol. 149(C), pages 194-201.
    4. Yang, Yiran & Li, Lin, 2018. "Cost modeling and analysis for Mask Image Projection Stereolithography additive manufacturing: Simultaneous production with mixed geometries," International Journal of Production Economics, Elsevier, vol. 206(C), pages 146-158.
    5. Prodromos D. Chatzoglou & Vassiliki N. Michailidou, 2019. "A survey on the 3D printing technology readiness to use," International Journal of Production Research, Taylor & Francis Journals, vol. 57(8), pages 2585-2599, April.
    6. Yao Li & Guozhu Jia & Yang Cheng & Yuchen Hu, 2017. "Additive manufacturing technology in spare parts supply chain: a comparative study," International Journal of Production Research, Taylor & Francis Journals, vol. 55(5), pages 1498-1515, March.
    7. Baumers, Martin & Dickens, Phill & Tuck, Chris & Hague, Richard, 2016. "The cost of additive manufacturing: machine productivity, economies of scale and technology-push," Technological Forecasting and Social Change, Elsevier, vol. 102(C), pages 193-201.
    8. Weller, Christian & Kleer, Robin & Piller, Frank T., 2015. "Economic implications of 3D printing: Market structure models in light of additive manufacturing revisited," International Journal of Production Economics, Elsevier, vol. 164(C), pages 43-56.
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    Cited by:

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    2. Haug, Anders & Wickstrøm, Kent Adsbøll & Stentoft, Jan & Philipsen, Kristian, 2023. "Adoption of additive manufacturing: A survey of the role of knowledge networks and maturity in small and medium-sized Danish production firms," International Journal of Production Economics, Elsevier, vol. 255(C).
    3. Naghshineh, Bardia & Carvalho, Helena, 2022. "The implications of additive manufacturing technology adoption for supply chain resilience: A systematic search and review," International Journal of Production Economics, Elsevier, vol. 247(C).
    4. Beltagui, Ahmad & Gold, Stefan & Kunz, Nathan & Reiner, Gerald, 2023. "Special Issue: Rethinking operations and supply chain management in light of the 3D printing revolution," International Journal of Production Economics, Elsevier, vol. 255(C).

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