Phil Schultz of 3D Systems on 3D Printing Supply Chain Assurance

Phil Schultz is executive vice president of Operations at 3D Systems. As a seasoned 3D printing exec, he leads all on-demand operations there. Before that, he lead Foxconn’s printing business and spent 25 years at HP, ultimately leading their consumer inkjet offering. I interviewed Phil and enjoyed his measured, thoughtful responses, which showed his deep understanding of the possible and impossible of additive. 

The current crisis has exposed the brittleness of our just-in-time manufacturing world. Small ripples in the system can propagate, reinforce themselves, and cause waves that, in turn, build up to a storm, collapsing the system. A factory in Thailand closing or a freighter being diverted can wreak havoc on the intricate supply chains that connect our globalized society. A system that is so massive and world-spanning as global commerce and transport turned out to shatter easily in a difficult situation. Many global organizations are now discovering that they need to do more to audit and update their supply chains. Supply chain resilience once meant that you had more than one supplier for critical components. But now we all know that we need to look further to assure supply. What role can 3D printing play in this? 

Phil differentiates between “short-term and long-term supply chain interruptions.” “Especially in an emergency…3D printing can help” and do so much faster than other technologies can. If “additive is a contingency or it is used in bridge manufacturing,” it is often an excellent choice. We “don’t need any tooling…and we’re not bound to a geography” with 3D printing “through a distributed manufacturing model…or one order being delivered globally” we can respond in a crisis, and we’re “lightning fast.” Especially for “small parts in runs of a 100, 1,000 or 10,000…additive has the advantage.” 

The “downside with 3D printing is the materials…that your parts are different than injection molded parts,” and “part properties and strength may not be the same.” “Your parts could be good enough for the application,” but he cautions customers against entering into production “without qualification…because then you’re carrying a lot of risk.” There will also be “cost differences…and often increased costs mean that without mass customization additive may not always make sense.” 

He likes to take customers through “a simple calculation…that often shows that pricing represents “multiples of an injection-molded part—not 20% or 30% higher—multiples” and, in that case, if “you’re going to do a replacement of a conventional part,” the business case falters. In that case, “you’d only do it because you have no choice.”

However, if you “learn to design for the technology…and use it to combine parts…lose weight…bring value,” it changes the equation. “Why would you want this is part to be 3D printed…and what does that mean for your business?” He maintains that “3D printing is…not a replacement for CNC or injection molding…it is just another tool” and “you must use it wisely.” 3D printing can help you “guard against the future…and find your future more quickly,” but it is no panacea. 

A 3D Systems On Demand site in Lawrenceburg, TN.

A 3D Systems On Demand site in Lawrenceburg, TN.

There are often overlooked alternatives, made possible by 3D printing, that allow for more scale and lower costs. This includes “3D printing positive investment casting print patterns,” “using Real Wax for lost wax casting,” or “directly 3D printing low-pressure injection molds.”

“By casting urethane..or through thermoforming inserts” relatively low-cost parts can be made in the millions, as Invisalign already does with the latter technology. In “thermoforming, some customers are making over 400,000 parts a day,” through the use of 3D printing as an intermediate. Yes, in an emergency, he understands that people are printing face shields. But, if we step back, then we can consider making the headband through thermoforming or urethane casting and using an acetate screen to sterilize the parts more easily. Phil continually seeks to use additive for the right applications, the right parts. “We are geometry agnostic, require no tooling, and we are fast to the first part, but must be aware of the tradeoffs in materials and more expense.” 

3D Systems MJP Wax

He’s excited “by making spare parts out of polyamide…through sintering…especially of filled materials” and, also, “new possibilities in TPU.” Higher temperature resins for SLA are also pushing the envelope of what is possible there. Now, “we are getting resins with good flexural strength, elongation…that make parts that can bend well while being less brittle.” 

When he does introduce 3D printing for manufacturing at a firm, he likes to “start with the applications people..and walk the (production) lines…to see how we can help… We can evaluate our services…your parts…and see what sense it makes to outsource or do in-house.” Ideally, he’d like to “get into the design phase…and help companies with qualification..or share with them how to qualify products for additive.” Surprisingly, one of the sectors that he is most excited about is EMS and contract manufacturing firms.

“They have tonnes of injection molded parts…many indirect parts…and can often use additive in the short term…but have not considered it for more.” With these businesses, “almost every fixture and tool can be improved, adjusted or is now more quickly consumed,” making it more suitable for additive. “An iPhone production line may have 600 people on it and as many steps. Imagine a five percent improvement.”

He likes asking manufacturing firms, “what do you need?” and then “having complex conversations about matching material properties to needs…avoiding tooling…and the level of proof required for them to proceed.”  He’s now increasingly seeing “ducts, knobs, connections, functional parts in gear trains…and on the whole, things that are more functional in assemblies” being made with additive. A few years ago, he only used to “talk to R&D, and now we talk with [operations]…about things that I care about, such as cycle time.”

3D printing “is emerging as a backup plan….but you have to design for it… 3D printing services could, through their hundreds of machines…solve customer problems,” but firms could also have 3D print capacity in-house for the most relevant materials to them. Either way, qualified parts can be manufactured at scale, but not all parts can be made cost-effectively through 3D printing.

It is clear from Phil’s recent experience that additive is maturing and new applications are being discovered all the time. New realism is unlocking actual manufacturing and, in due time, we could provide true supply chain reassurance through 3D printing. Ultimately, “I want to go in front of every industrial engineer in the world and show them how their creativity can be unleashed with 3D printing.” 

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Musical Chairs: GKN Buys Forecast3D

We’ve known already for a number of years that aerospace, automotive and defense company GKN is serious about 3D printing. The company acquired one of the first Additive Industries systems, collaborated with GE Additive also, set up a powdered metals sales and production business, printed new steels with Porsche,  opened the prerequisite to be one of the big boys: the center of excellence. Now the firm has doubled down once again acquiring Forecast3D.

Carlsbad California based Forecast3D was long focussed on short-run production, molds and 3D printing. The firm moved and expanded into 3D printing early, bet big on HP MJF, bet more on MJF, and in an interview with us seemed to really know where they were headed. With a strong focus on manufacturing end use parts, especially out of polymers and deep experience Forecast3D seems to complement GKN well. It could let GKN make millions of polymer parts for its automotive business in PA 11 GF grades for automotive for example.  Or it could let GKN do more polymer mold making in house. The firm could also let GKN enter very different new businesses such as footwear manufacturing.

On the whole, this looks like an astute move by both parties. Increasingly manufacturing as a service looks to be either a super niche or global business. Either you’re the best 3D printing shop in Juneau Alaska or the most specialized EOS titanium acetabular cup producer on the niche end or you have a true global network and the scale and scope to compete. Essentially this completely changes the 3D printing service market. Strong regional players and national powerhouses now have to fear that GKN will play in their backyard while direct to customer firms such as Shapeways, Materialise and Xometry now have a 500 pound gorilla playing in their space. The combination of GKN with a strong direct to customer firm such as Shapeways would make the firm seem damn neigh unstoppable in 3D printing as a service.

We’re faced with the reality that GKN could make this move based solely on a strong polymer 3D Printing commitment by one automotive customer such as Volkswagen. Our industry is but small fry in the world of giant corporates. Along with established regional service bureaus and players such as FKM and Pro-Fit the service industry looks to be dominated by Jabil and GKN. What will the people at FKM and companies such as 3TRPD do? Will 3D printing as service be a two or three-horse race? or is it even a winner takes all? Or could firms using clusters of much cheaper desktop systems still make inroads? Or will local service and production mean that granular local companies will still stay strong? I believe that Jabil and GKN will play a huge role perhaps together with UPS, Shapeways and Xometry. Although the hunters now look like the hunted. Meanwhile, super trusted niche players will dominate their respective niches eg FIT for cutting edge orthopedics and Materialise for cutting edge medical devices. And for local hands-on services that offer high quality, there will always be a place.

Peter Oberparleiter, CEO, GKN Powder Metallurgy said, 

“FORECAST 3D is a perfect fit…They are everywhere we aren’t – geographies, markets, technologies and base materials. Combining our individual capabilities will present unparalleled advantages to our customer bases and enable us to cross-promote additive manufacturing in metal and plastic over more diversified markets. It is an important step on our journey to become No. 1 in this high growth market.”

At FORECAST 3D, our roots run deep in the world of nimble, low volume polymer additive manufacturing. As we continue to branch out and focus on high volume additive production, what better partner to pair with than GKN; a company that produces over 13 million parts per day?GKN’s resources, production experience and footprint will be the perfect fuel for this new FORECAST 3D engine as we prime it for the new world of local, on-demand manufacturing.” Corey Weber, CEO and co-founder, FORECAST 3D stated.

This will have everyone toss their business plan into the trash and has big ramifications for the industrialization of manufacturing for 3D printing. It also brings together two large HP customers which could be good for HP in giving them a quasi instant network but also could put pressure on their margins.

 

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Interview with Ken Burns of Forecast3D on Manufacturing as a Service

I was very impressed with Ken Burns’ presentation at Additive Manufacturing Strategies in Boston. Ken is the technical sales director of the 3D printing services and manufacturing company Forecast3D. Originally set up to do urethane casting, the company now deploys HP MJF, FDM, DMLS, SLA, and Polyjet 3D printing technologies as well as casting. Focusing on bridge manufacturing and short-run production the company recently has bet big on MJF as a manufacturing technology. Many bureaus are continually under threat and expanding because of renewed interest in 3D printing. On the one hand, 3D printing news brings in new customers but some of these then switch to desktop and in house 3D printing. Can service bureaus cross the chasm and play a role in manufacturing millions of products with 3D printing? Or will they succumb to pressures from much larger firms? In different verticals we see that companies are taking very different approaches to adopt 3D Printing while in some industries there is a sharp division between the outsourcers and companies that do in house 3D printing. In medical device, for example, some companies are making huge investments in doing in house production while others immediately outsource. Millions of hearing aids are made in house while only car companies have significantly invested in taking prototyping in house. It is a very exciting time to be a pioneering 3D printing service so we asked Ken to tell us more.

How did Forecast3D get started?

Forecast 3D started with two brothers: Corey & Donovan Weber when they were in their early 20’s. They started in their garage and eventually purchased a single SLA machine (with the help of a loan from their grandfather). Corey developed an innovative method for urethane casting, which helped establish them and differentiate them from other service providers.

How did you go from a regional player to a national one?

Having a strong, reliable, and passionate team that gave our early customer base a unique customer experience and dedicated customer service – this helped us to grow our technology offerings and be able to afford to adopt the latest equipment. It sounds cliché but we listened to what customers needed and answered by creating a national team. Whether it is a phone call or a face-to-face meeting we were committed to the resources to engage with our customers however the needed us. We have also never been complacent with our technology, processes and business systems.

You seem to have always been at the forefront of adopting new technologies. In hindsight, it all looks beautiful but surely you’ve also gotten bitten by adopting new technologies?

We wouldn’t say any of the technologies “bit us” but we have certainly had more success with some over others. The technologies all promise something “ground-breaking”; which is true to an extent, but it doesn’t mean they are the right fit for our business model. We have target customers and industries so we focus on technologies that can help us be successful with that lens. So if we miss the mark, it is usually a small miss.

Do you still do a lot of casting?

Absolutely. Like most traditional processes, they are not going away. In fact, 3D printing has helped improve some of these services like casting. We can do hybrid processes with casting and 3D printing. Casting is and remains a long term focus for us.

What do your customers use Polyjet for?

Fast prototypes – attractive show models. When they want full color parts, or parts with multiple materials and durometers in a single piece. Often used in the entertainment industry.

And FDM?

Robust parts – used in aerospace and automotive mostly, often when demanding environments (high heat resistance, chemical resistance, UV stability) are present. When part strength (and not so much aesthetics) is a priority.

What do you use DMLS for?

Prototype and end-use parts. Often times when a smaller quantity of metal parts is needed, and the geometry would be impossible or too difficult to machine.

SLA Chrome plated award part.

What was it like buying an SLA machine in 1996?

Exciting. It is still exciting to buy new 3D printing equipment in 2019. To be on the forefront of the 3D printing industry in the 90s was an incredible opportunity.

A ProCast Part.

What is ProCast?

Our proprietary urethane casting process, used for producing a short-run (4 to 400) quantity of parts. Often times the next step after a single prototype, and used when only low volume production is needed (product lines that don’t require thousands of parts). We typically start by 3D printing a master model using SLA, FDM, or PolyJet. Then the master model is sanded and finished to the customer’s desired surface finish/texture, and then that part is encapsulated into a silicone mold (which is the soft tool). And from that mold, we produce 20-30 parts at a time. We can cast in any color or texture.

What new technologies are you excited about?

There is a lot to be excited about these days. On the metals side you have a lot of movement with HP’s Metal Jet, DesktopMetal’s Production System, GE Additive and a few others. In the plastics space we are watching a lot of the OEMs looking at solving new problems…HP MJF’s color printer, Carbon, Evolve and Titan Robotics are a few that seem to be doing something different. We are also looking at a lot of technologies surrounding the printer ecosystem from software to automation equipment.

What advice would you give me if I were a company new to 3D printing?

Be realistic with what you are going to do with 3D printing. It’s not the silver bullet that solves all problems. It can be an amazing tool for prototyping or production if you have a good approach. Working with a service provider to test and qualify which technology is always a great start as you can assess lots of technologies.

What about if my firm wanted to use 3D printing for manufacturing?

Yes, there are several technologies now capable of manufacturing. We primarily use the HP’s Multi Jet Fusion (MJF), Stratasys Fused Deposition Modeling (FDM) and SLM (metals) technologies for manufacturing. Our 3D Manufacturing center has 24 of the HP MJF systems so we have the capacity to print tens of thousands of production parts a day. Industries like Aerospace and Healthcare have been taken advantage of FDM and SLM processes in production.

Is lack of automation in post processing holding 3D printing back?

Yes. Until recently there wasn’t a big demand for this type of equipment because there wasn’t a lot of production in high volumes happening in 3D printing; outside of a few niche applications. We have surveyed the market and while some equipment works we have spent a lot of our time developing these tools.

You seem to have taken a big bet on MJF?

Oh yes. We believe in the technology, and its ability to take 3D printing to the next level (beyond being used primarily for prototyping).

Why?

One word. Production. We want to go after high volume production opportunities in manufacturing. We firmly believe this technology is solving new problems and creating new opportunities for our customers. We have already seen it utilized in many great applications and expect that it grows exponentially over the next several years.

What do you use the MJF machines for?

Production. We also do a lot of prototyping with them. There are certainly applications and industries it is better suited for as we are limited by materials, part size, surface finish and a few other constraints.

What is the market like now for a service bureau?

The service bureau market has certainly changed over the last few years. There are several companies focusing on the software component and it some ways attempting to commoditize the space while others have differentiated with specific technologies. We have been position Forecast 3D as a Digital Manufacturing company. Going beyond typical service bureau capabilities to meet the requirements for production. With so many service bureaus we think it is important to focus on what you do best and execute that with laser focus.