TY - JOUR
T1 - Choosing between additive and conventional manufacturing of spare parts
T2 - On the impact of failure rate uncertainties and the tools to reduce them
AU - Peron, Mirco
AU - Coruzzolo, Antonio Maria
AU - Basten, Rob
AU - Knofius, Nils
AU - Lolli, Francesco
AU - Sgarbossa, Fabio
N1 - Publisher Copyright:
© 2024 The Authors
PY - 2024/12
Y1 - 2024/12
N2 - Recently, there has been great interest in using additive manufacturing (AM) to produce spare parts: allowing to produce spare parts with short lead times and close to the point of use, AM reduces the need for large inventories otherwise required by conventional manufacturing (CM) techniques to deal with intermittent spare parts demand. However, using AM to produce spare parts is limited by two main drawbacks: high production costs and uncertain failure rates arising from AM still being a relatively new production technique. While the former can be counterbalanced by inventory cost reductions, it is unclear how the latter impacts the sourcing option decision (i.e. AM or CM). We aim to fill this gap by studying a periodic review model in which spare parts demands follow a Poisson process. To make our analysis accurate and reliable, we leverage a material science approach to obtain realistic values for the failure rate uncertainties. From the results, it emerges that AM is heavily penalized by failure rate uncertainties much higher than those of CM. Consequently, we then focus on some recent tools developed to reduce AM failure rate uncertainties: porosity assessment and in-situ monitoring. We find that the failure rate uncertainty should be reduced by five and six percentage points to make it worthwhile to invest in porosity assessment and in-situ monitoring, respectively. Finally, we determine under which circumstances each tool is preferred over the other and found that porosity assessment is typically the most competitive uncertainty reduction tool.
AB - Recently, there has been great interest in using additive manufacturing (AM) to produce spare parts: allowing to produce spare parts with short lead times and close to the point of use, AM reduces the need for large inventories otherwise required by conventional manufacturing (CM) techniques to deal with intermittent spare parts demand. However, using AM to produce spare parts is limited by two main drawbacks: high production costs and uncertain failure rates arising from AM still being a relatively new production technique. While the former can be counterbalanced by inventory cost reductions, it is unclear how the latter impacts the sourcing option decision (i.e. AM or CM). We aim to fill this gap by studying a periodic review model in which spare parts demands follow a Poisson process. To make our analysis accurate and reliable, we leverage a material science approach to obtain realistic values for the failure rate uncertainties. From the results, it emerges that AM is heavily penalized by failure rate uncertainties much higher than those of CM. Consequently, we then focus on some recent tools developed to reduce AM failure rate uncertainties: porosity assessment and in-situ monitoring. We find that the failure rate uncertainty should be reduced by five and six percentage points to make it worthwhile to invest in porosity assessment and in-situ monitoring, respectively. Finally, we determine under which circumstances each tool is preferred over the other and found that porosity assessment is typically the most competitive uncertainty reduction tool.
KW - Additive manufacturing (AM)
KW - Conventional manufacturing (CM)
KW - Failure rate uncertainty
KW - Spare parts
UR - http://www.scopus.com/inward/record.url?scp=85206674063&partnerID=8YFLogxK
U2 - 10.1016/j.ijpe.2024.109438
DO - 10.1016/j.ijpe.2024.109438
M3 - Article
AN - SCOPUS:85206674063
SN - 0925-5273
VL - 278
JO - International Journal of Production Economics
JF - International Journal of Production Economics
M1 - 109438
ER -