Building a How to build a business case:

4 key factors to consider

business case
Building a winning business case requires: 1 2
• Accurate cost prediction Build time Cost accounting
• Deriving benefits in product performance The primary drivers of build time predictions, are the Once a build time is known, cost accounting is based on
machine architecture and how the machine controls it’s a fixed and variable cost-per-build basis. This includes all
• Accounting for supply chain changes energy source. The material choice will determine how the process consumables like powder, inert gas, electricity,
parameters are built. plates, and recoaters.
• You’ll also need to account for the machine itself which
Machine productivity is the cornerstone of cost modeling, and Build time will change as input geometry changes. More includes the factory and management overhead, and
complex parts will have a higher build time. maintenance.
understanding machine behavior is the secret to success. • Post-processing steps required will be component-
dependent.

3 4
Thinking through the bigger business case

Metrics Supply Chain

• New customers Define reasonable performance metrics: Using AM means a change in supply chain strategy. Consider
and markets • CC/Hr. is good to determining the material consolidation single-source suppliers, changes in logistics from faster
• Increased selling rates, which can signal the rate at which machine turn-around times, sourcing machine consumables, and
price due to product consumables are being used. other factors.
differentiation • $/CC can indicate how much work is being done on the
input material. Once you know the cost of your part using AM, accounted
• $/Hr. can determine the premium paid by the hour for the for performance enhancements and supply chain changes,
• Part consolidation process. Higher values mean a more productive process. you’re ready to analyze internal KPI’s like NPV and IRR.
• Inventory reduction • $/Part is ultimately the best metric, directly comparing to
• Freight savings other AM processes and conventional manufacturing.
• Purchase order reduction • All AM processes are influenced by: geometry, material
• Streamlined supply base and machine

If you have any derivative adjustments for increased

• Improved packaging part performance (lower weight, longer life, lower fuel
• Weight reduction consumption, etc.), adjust the business case.
• Increased fuel economy
• Greater efficiencies
• Enhanced reliability