AM offers design freedom opportunities and speed to market with a seamless digital value chain capable of eliminating a physical inventory. The digitalised value chain of AM extends beyond the physical premises of manufacturing companies. The new form of digital inventory and warehousing, digital design and manufacturing support all-LC phases of products. The digital AM thread offers opportunities to innovate from the product design, production, use and EOL stage. The digital value chain of AM reduces the workload and costs that companies bear in their efforts to promptly respond to the needs of production or customers (Jimo et al., 2019). Some conventional manufacturing methods also use a digital supply chain when creating CAD models and the corresponding machining coding that can be modified or used directly to manufacture components.
3.2.1 Value chain
Value chain refers to the step-by-step internal activities in which companies engage to transform services, ideas and materials into physical output (Ovidijus, 2013). Companies
may either perform all aspects of the primary activities of the value chain, from product design to finished part or use the facilities of service providers for reasons such as cost reduction and low volume production (Jimo et al., 2019). Service providers in this thesis may refer to third party companies that offer design, manufacturing and consultation such as business advice on the strategic use of AM, but which do not engage in direct sales of components to end-users.
Value chain analysis (VCA) is a process that helps companies identify primary and supporting activities and understand potential sources of competitive advantage (Fisher et al., 2020; Ovidijus, 2013, The Royal Academy, 2012). Corporate social responsibility (CSR) creates values from the social dimension for companies to succeed and not as a threat that will increase their operational costs. A company can use the aspects of sustainability to achieve CSR goals for the planet, people and profit (Youmatter, 2020).
The needs of customers and society can trigger innovation, for example, creating tailor-made material of a specific quality to satisfy a specified function (Tofail et al., 2018) and enhancing sustainability practices to enhance the reputations of the company (N. Lee &
Lee, 2019).
VCA may be used as a tool to enhance the differentiation advantage or cost advantage (Ovidijus, 2013). Differentiation advantage is achieved by creating superior products and adding more features to satisfy varying customer needs. Such an approach may increase costs but offers better durability and functionality of components during the use phase.
The approach to VCA is based on three steps: (1) identify activities that create value for the customer, (2) evaluate the differentiation strategies that most facilitate the improvement of customer value and (3) identify the most sustainable differentiation options (Agada, 2020; N. Lee & Lee, 2019; Mingione & Abratt, 2020). A cost advantage aims to enhance resource efficiency by delivering the most cost-effective components.
This approach tries to understand the sources of cost advantage or disadvantage and the factors that drive these costs. Ovidijus, (2013) identifies five steps in the cost advantage:
(1) identify the primary and support activities such as inbound material, outbound goods, after-sales services in delivering customer value, (2) establish the relative importance of each activity to the overall costs. Inefficient activities can be identified and addressed in a benchmarking scenario, (3) identify cost drivers for each activity to understand their driving factors and take the necessary measures to reduce them, (4) identify links between activities to understand and identify effective ways of reducing the cost and (5) identify opportunities for reducing costs in order to understand and plan ways of improving the most influential activities and cost drivers.
Figure 3.3: Representation of AM value chain in manufacturing.
Figure 3.3 shows the value chain in L-PBF. The machine and powder materials form part of the value chain. AM allows co-creation between the system, powder manufacturers and their customers to meet the specific needs and requirements of strategic CSR or sustainability. The essential reason for using a new process is to enhance efficiencies, productivity, quality, seamless data chains, security and to reduce costs. The digital value chain is an example of how AM is positioned as an enabler of sustainable value manufacturing in the current industrial revolution, industry 4.0 (Tofail et al., 2018). The digital value chain enables faster product development and on-site production for a simplified supply chain. A holistic approach that incorporates the entire value chain (see Figure 3.3) in consideration of strategic cooperate sustainability could lead to better sustainable competitiveness. A holistic evaluation refers to analysing the required properties and effectiveness of components throughout their cycle life using a simulation tool, LCC and LCA models.
3.2.2 SWOT analysis
SWOT is a technique for analysing specific aspects of strengths, weaknesses, opportunities and threats (Narsimlu et al., 2017) and can be conducted along the value chain to identify internal and external competing factors. The technique can reduce the likelihood of a company failing, by understanding what is lacking and eliminating unexpected risks. A SWOT analysis allows companies to make the most use of their portfolio. The SWOT model can be used to assess the current position of a company before deciding to undertake a new strategy (Scandura & Gower, 2020). It can serve as a situation analysis tool based on internal (strengths and weaknesses) and external (opportunities and threats) competition conditions, as Figure 3.4 illustrates.
Figure 3.4: Applicability of SWOT analysis as a strategic approach to the adoption of metal AM.
A SWOT analysis, as in Figure 3.4, can give conclusive indicators for companies to excel both present and future through listing the elements of the four segments. A SWOT analysis is very company dependent and relies on the position of the companies in the value chain. Strengths and weaknesses must be considered internally and opportunities and threats externally from a competitive perspective. Strengths and weaknesses refer to the positive and negative traits that respectively give or prevent a company from having a competitive edge. Opportunities are feasible factors that can help companies succeed.
Threats are the likely harmful factors that are often beyond the control of companies (Mindtools, 2020; Scandura & Gower, 2020). One threat in powder-based AM is the toxicity of metal powder. ASTM F3049-14 does address any safety and health concerns.
Precaution must be taken to avoid the risk of inhaling the fine metal powder or to the skin.
Protective clothes and safety glasses must be taken to ensure no external or internal body is exposed to powder.