Report: Economic Efficiency of 3D Printing Technology

This report investigates the economic efficiency and operational effectiveness of 3D printing technology for product manufacturing. It begins with an introduction outlining the background of a medium-sized manufacturing organization exploring the potential of 3D printing for business expansion. The report then defines 3D printing, explains its technology, and explores its applications in manufacturing, medical sciences, and construction, highlighting both benefits and disadvantages. It delves into the potential of 3D printing to create products cheaply and effectively, addressing the technology's impact on various industries and its role in potentially reducing inflation. The methodology involves an in-depth review of existing literature and secondary sources to synthesize current knowledge on the subject. The report provides recommendations and a conclusion based on the findings, aiming to guide corporate decisions on whether to invest in 3D printing as a strategic tool for achieving operational and economic goals. The report also discusses the benefits of 3D printing compared to conventional manufacturing methods.

3D Printing Technology Report on
ECONOMIC EFFICIENCY AND OPERATIONAL EFFECTIVENESS OF PRODUCT
MANUFACTURING THROUGH 3D PRINTING
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Table of Contents
Executive summary.....................................................................................................................................2
1 Introduction..............................................................................................................................................2
1.1 Background of the organization.........................................................................................................2
1.2 Problem Statement.............................................................................................................................3
1.3 Purpose..............................................................................................................................................3
1.4 Method..............................................................................................................................................4
2. 3D Printing..............................................................................................................................................4
2.1 3D printing in context........................................................................................................................4
2.2 The Technology of 3D printing.........................................................................................................5
2.3 Use of 3D printing to create products cheaply and effectively in Manufacturing..............................6
2.4 3D printing in Medical sciences........................................................................................................6
2.5 3D printing in Construction Industry.................................................................................................7
2.6 3D printing in other industries...........................................................................................................7
2.7 Benefits of 3D Printing......................................................................................................................8
2.8 Disadvantages of 3D printing............................................................................................................9
3. Recommendations and Conclusions......................................................................................................10
3.1 Recommendations...........................................................................................................................10
3.2 Conclusion.......................................................................................................................................10
References.................................................................................................................................................11

Executive summary
One among the many effects of technological advances on humans is the element of
surprise. Less than a decade ago, members of the society had to travel long distances to retrieve
household appliances and other consumer goods (3D Printing Industry, para 1-5). Currently,
through the aid of technology, people are able to order items from the retail stores to be delivered
at their premises through e-commerce. This change in the manner the society functions has
influenced innovation such that the need to order for products is no longer necessary. Through
the innovative technological invention of 3D-printers, members of the society have no business
ordering for the items they require for their daily activities. Although the time factor is one
among the major benefits of using 3-D printing, this paper discusses 3D technology and
highlights some of its industrial applications.
1 Introduction
1.1 Background of the organization
You are the Head of ICT in a medium-sized manufacturing organisation that was
established around 10 years ago. The Head Office of your organisation is based in an industrial
suburb of Melbourne in Victoria. Currently your organisation has both retail and corporate
clients, and has various retail branches within Victoria and is just starting to move into online
business operations. At the moment the organisation is mainly producing computers and printers
for businesses in Victoria. The organisation is now exploring options to expand the business in
the next five years to other States of Australia and to the Oceania region, as well as expand its e-
commerce (on-line) activities. As a part of their expansion plans the organisation wants to look at
the prospect of expanding into the use of 3D printing to create products cheaply and effectively.
They feel that is a way that the business could expand without the need to create a large amount
of infrastructure in other locations across Australia and in the Oceania region. They are

concerned about the security, authentication and other technology problems that it may face as it
looks to expand its business.
The CEO of your organisation has recently heard about 3D Printing Technology and its
various uses in manufacturing. She has asked you to investigate the technology and types of
applications that use 3D Printing Technology with the prospect of deciding if 3D Printing
Technology would be an efficient and effective way to expand the business. You have to
complete this investigation in the next three weeks and draft a report with some
recommendations for the next Executive Management meeting.
1.2 Problem Statement
3D printing is increasingly becoming one of the most disruptive technologies of the 21st Century.
The key benefits lie in its use for cost-effective manufacturing of products in a way that allows
the designers to first test their design solutions before rolling them out for full scale commercial
manufacturing. The technology is changing the ways manufacturing businesses operate; it opens
up new avenues and possibilities that allow companies to better achieve their corporate goals.
However, much of the benefits is still anecdotal; there is a need for thorough and systematic
investigation of the potential and evidence-based benefits of the technology prior to decisions to
commit to its investment and utilization. This report aims to meet this need.
1.3 Purpose
The purpose of this report was to investigate the operational effectiveness and economic
efficiency of the use of 3D printing technology for the manufacturing of products. The report
presents discussions on the technology and types of 3D printing, benefits of the technology and
its applications in medical and manufacturing industries. The report also looks at the key issues
and limitations of 3D printing technology. Recommendations are provided to guide corporate

decision on whether or not to invest in the technology as a strategic means for achieving its
operational and goals.
1.4 Method
Investigations were based on in depth review of existing literature and other secondary
information sources with a view to synthesizing the current state of knowledge on the key
aspects being investigated.
2. 3D Printing
2.1 3D printing in context
3D printing is also named as added substance fabricating as it alludes to the way toward
printing a three dimensional protest of any shape utilizing advanced technology. It is called
added substance fabricating in light of the fact that the printing is finished utilizing layers of
materials which are set down in an unexpected way. This strategy is an advanced method which
contrasts from various perspectives from the machine strategies that were customarily utilized.
The conventional techniques depended on the strategies including evacuation of materials, for
example, cutting (de Jong & de Bruijn, 2013). This is the reason they were known as subtractive
procedures while 3D printing is known as added substance process. This paper centers on
various research around 3D printing advances and its applications in different modern fields.
The 3D printing utilizes the advanced technology and these printers were at first made by
China. These printers came in the late 1980's and as far back as then they have been
progressively utilized everywhere throughout the world. In the start of the 21st century, as the
computerized technology turned out to be more well-known and propelled, the development in
the offers of the 3D printers was significantly watched (Manning et al., 2018). The offers of
these printers expanded in different parts of the world where they were utilized for new and

imaginative purposes. Steadily, as the deals and the request developed, the expenses of these
printers fell enormously since they were first fabricated. A portion of the reasons for which these
machines were utilized were in modern uses, design, adornments, aviation, building, restorative,
instruction, data frameworks and numerous others (Griffith, 2012).
2.2 The Technology of 3D printing
3D printing is the technology to make materials and items utilizing a consecutive layers
method. The materials which are delivered by utilizing the layering procedure can be anyplace in
the item life cycle. Be that as it may, the subtractive strategies for assembling articles can be
utilized as conventional techniques in assembling. 3D printing was created by Charles W.
Structure (Chuck). In the mid 1980's the point at which it was developed, it utilized a
stereolithography procedure. This method utilized an UV laser which was sparkled in the vat of a
bright touchy photopolymer, and after that it followed the question with the goal that it was made
at first glance. Toss additionally established an organization which was called 3D Systems. The
organization made stereolithography machines which costly machines of over $100,000 utilized
as a part of business systems. 3D Systems is as yet working today and now it offers the 3D
printers of cutting edge technology (Wang et al., 2017). There is an assortment of printers that
are fabricated utilizing distinctive propelled advances extending from section level units to the
propelled business frameworks. The organization additionally gives on-request benefits
fabricating parts for business clients. Numerous organizations and businesses utilize the 3D
printers and they require the machines to be up and coming and kept up.

2.3 Use of 3D printing to create products cheaply and effectively in
Manufacturing
Manufacturing involves the process of transforming raw materials into consumable
products for commercial, personal or final use. With reference to technological advancements,
3D-printing has brought the manufacturing process closer to the end user (Zheng et al., 2017).
Through 3D-printing, individuals are able to manufacture the items they require from the
convenience of their living areas. However, when considering the processes involved in
manufacturing, it is evident that 3-D printing has varying effects on the community as a whole
and the manufacturers in particular. For instance, the use of 3D-printing is a solution-driven
invention that aims at eliminating the costs associated with the manufacturing process,
distribution, storage, and security of products. On the other hand, it eliminates an employment
segment as manufacturing processes that required vast categories of labor are replaced with
machines functioning through the use of virtual intelligence (Youssef et al., 2015). While the
manufacturing process making use of 3D-printing is likely to put a number of people out
employment, it allows great deal of diversity for the options available to customers. In addition,
the use of 3D-printing engages the customer with the manufacturing process making it easy for
customers to manipulate design, taste, content, and feel of various objects to match personal
preferences.
2.4 3D printing in Medical sciences
A machine is an operational device which combines various parts working in various
patterns to form a system. Through the application of virtual logic, a system is directed or
programed to perform various specific duties. A 3D-printer is an example of a machine
programed to print items as they are conventionally designed, developed, and used. Through the
use of 3D-printing, it is likely that the quality of products produced through this method will be

higher as uniformity following logical programing will result in the transformation of theoretical
blueprints into finished products (Yang et al., 2017). In addition, based on the type of item and
design, customers will be able to tweak the desired features through virtual intelligence means
such as computer applications. However, based on the current position, phase of development,
and acquisition of 3D-printing as means of production, quality issues are inevitable as different
types of objects cannot be perfectly reproduced using 3D-printing. Additionally, while societies
expect the quality of products to improve, 3D-printing may not be the solution as some consumer
products are categorized as heavy duty and printers of that magnitude may never come to
existence.
2.5 3D printing in Construction Industry
With the invention of 3D-printers, one of the most affected areas is likely to be the
socioeconomic aspect of community survival. To many, 3D-printers show how much technology
has enabled humans to invent unimaginable innovations. However, besides proving this point,
the cumulative effects of these inventions include the deconstruction of the society’s social order.
Firstly, members of the society will be jobless since manufacturing industries will be out of
business (Vijayavenkataraman, Fuh & Lu, 2017). Secondly, based on the resulting high rate of
unemployment, crime rates will skyrocket. Thirdly, the users of the 3D-printers will have to
pocket the initial cost of acquiring the printers – which in practice may not be universally
capable of reproducing any item.
2.6 3D printing in other industries
Can 3D-printing reduce inflation? Ideally 3D-printing can reduce inflation provided that
some variables are assumed or ignored. Ignoring the fact that 3D-printing would send a lot of
people out of work due to the collapse of the manufacturing industries, 3D-printers can save the

society from inflation. The high prices and inflated costs of products customers have to deal with
are a result of the accumulated costs of production (Yazdi et al., 2016). Through the use of 3D-
printers, the manufacturing process will be the only cost customers will deal with as distribution,
security, storage, and time management will be eradicated from the entire process. At a cheaper
cost, customers will be able to manage their spending wisely.
2.7 Benefits of 3D Printing
The advantages of 3D printing can also be viewed in comparison with the conventional
methods of manufacturing products. As mentioned earlier, 3D printing is done at a speedy rate.
This means that mass production can be done only when necessary or when demand for the
product is high (Walther, 2015). Manufacturers are thus able to save money as there is no need
of renting or building storage facilities. Equally, public needs are constantly changing.
Manufacturers are always coming up with new products that are captivating and attractive to the
customers. In other words, manufacturers are always changing the shapes or designs of their
products to align them with the changing trends in the society. The fact that only small volumes
are produced when 3D printing or technology is used means that there will be no accumulation
of out-of-date stock and thus safeguards manufacturers from incurring huge losses.
(Lee & Dai, 2017) mentions that new designs of 3D printers are being developed and
introduced in the market almost on a daily basis. This shows that 3D printing technology has
created job opportunities for many people particularly innovators. Unemployment rate is very
high especially in the developed world today. The fact that people are able to create and print
three-dimensional objects or products has created business opportunities for many individuals.
Other than providing employment opportunities in terms of new innovations, the accumulation
of 3D printers will necessitate the need for skilled individuals to repair them. People skilled in

blueprint designs will also be more marketable with the spread of 3D printing technology.
Changing conditions in the global market have made it compulsory for people to find alternative
ways to provide for their families. 3D printing provides people from across the globe with that
opportunity to earn a living. (Lee & Dai, 2017) additionally assert that 3D printing is currently
being used almost in all sectors of the economy globally. Some of the examples where 3D
printing has generated tremendous benefits according to (Lee & Dai, 2017) include the aerospace
and automotive industries. (Lee & Dai, 2017) posit that 3D printing has prompted the
development of new innovations and as well improved productivity through enhancement of
efficiency in these sectors.
2.8 Disadvantages of 3D printing
Johansen and Ronn points out that "3D printing will be amazing, but what gets printed
will be up to the people doing the printing”. Additionally, (Alhnan et al., 2016) further assert that
people are increasingly sharing their blueprints on how to design and produce various products
online, among them, guns. This assertion can be construed to mean that people will be able to
design and manufacture dangerous weapons at the comfort of their homes. Guns, in essence,
would increase rates of crime and thus increase insecurity within the society. Autonomy in terms
of production of products made possible by 3D, as postulated by (Alhnan et al., 2016), could also
prompt people to start manufacturing unnecessary items. Since much of the products produced
through 3D printing are made of plastic, disposing them could be a challenge and could in fact
contribute to environmental pollution. For instance, plastic wastes do not decompose easily and
burning them could pollute the air and as such contribute to global warming.

3. Recommendations and Conclusions
3.1 Recommendations
(i) Since current 3D printers mainly use plastics for printing, this limits production capacity.
There are many products that must be produced using other raw materials such as metal
and therefore, people are less likely to come up with new innovations made of metal and
other substances since they give much attention to items that could only be produced
using plastic as a raw material.
(ii) Another disadvantage is in relation to the size of products manufactured. As mentioned
earlier, 3D printers are used to produce products in 3D technology.
(iii) In comparison with the conventional method of manufacturing which involved
physically molding items, there is a limit in terms of size in items that can be produced
through 3D printing. This further restricts the types of items that a manufacturer or
producer can create.
(iv)While the manufacturing process making use of 3D-printing is likely to put a number of
people out employment, it allows great deal of diversity for the options available to
customers.
(v) Through the use of 3D-printing, it is likely that the quality of products produced through
this method will be higher as uniformity following logical programing will result in the
transformation of theoretical blueprints into finished products
3.2 Conclusion
Every technological invention aims at solving a specific socioeconomic need. For the
need of convenience, 3D-printers were invented. Considering that customers have a higher level
of control with 3D printing in the manufacturing process, it is evident that a higher customer

satisfaction level is inevitable. However, the foreseeable impacts of 3D-printing include the
increase in mass layoffs, unemployment, and social imbalance. Thus, as much as 3D-printing is
seen as an economic solution, it is equally affective in destabilizing an economy.

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