Additive Metals Manufacturing: A Growing Disruptive Technology Greg Morris, CEO 9/12/2012 Proprietary Information: This document contains proprietary information of Morris Technologies, Inc. and Rapid Quality Manufacturing Inc., and may not be used for purposes other than that for which it was originally furnished except with the written permission. 11988 Tramway Drive, Cincinnati, OH 45241 513.733.1611 http://morristech.com Email:info@morristech.com 5223 Muhlhauser Road, Hamilton, OH 45011 Phone: 513.889.5150 http://www.rqmfg.com Email: info@rqmfg.com 1
MTI/RQM Who we are Integrated Additive Mfg. Suppliers 21 AM systems installed (Laser/EB) Design/Engineering Conventional machining High precision finishing (MTF) Serving Major Industries: Aerospace / Energy Medical (Devices / Instrumentation) Federal (DoD, DoE) 9/12/2012 2
Brief History of Additive Metals 9/12/2012 3
Early Additive Metals 2003 2005 2007 SLS, SLA Super Alloys Limited means for producing AM components MTI Introduces DMLS to NA CoCr lights a spark! A production supply base is required Courtesy EOS 9/12/2012 4
Today Systems Alloys Laser, EB, Ultrasonic, other Super Alloys Powder bed, powder fed Approaching wrought strengths Wire fed, sheet metal Materials characterized Layer thickness, chamber sizes, tolerances, surface finishes Inco 718 Inco 625 SS 316 L SS 15-5 W Ti6 4 C263 Courtesy EOS Courtesy Realizer Courtesy Concept Laser Courtesy Fabrisonic Cu AlSi1 0Mg Ti 6242 Inco 738 6061 T6 CoCr Hast X Courtesy SLM Courtesy Renishaw Courtesy Arcam Courtesy Optomec 17-4 PH Ma r- M- 247 9/12/2012 5
Laser - Powder Bed Welds sliced layers one on top of another Variable focus 200-400 watt fiber laser Low O2 atmosphere In-process monitoring Build Area: 9.5 x 9.5 x 10.5 Layer Thickness: 20-50 microns 9/12/2012 MTI / RQM Proprietary Information 6
Electron Beam - Powder Bed 3500 watt power source Vacuum atmosphere High-temp build chamber (900C) Two size platforms: 7.8 x 7.8 x 13.5 height 11.5 Dia. x 7.8 height Layer Thickness: ~50-70 microns Ti64 most common alloy running currently 9/12/2012 MTI / RQM Proprietary Information 7
Why Additive Metals? Complex Assemblies Design to Process Direct Replacement 9/12/2012
Applications and Markets Today 9/12/2012 9
Is AM a Disruptive Innovation? A disruptive innovation is an innovation that helps create a new market and value network, and eventually goes on to disrupt an existing market and value network (over a few years or decades), displacing an earlier technology Source: Wikipedia July 2012, http://en.wikipedia.org/wiki/disruptive_innovation 9/12/2012 10
What phase are we in? Courtesy: Geoffrey A. Moore, Crossing The Chasm 9/12/2012 11
AM Markets Luxury Goods Dental Medical Formula 1 Aerospace Federal Unique Designs Cost Effective Immature Market Precious Metals Mass Customs 3 mins /. crown 1.5MM last year CoCr & Ti Tools, Implants Regulatory Env In prod today Ti64eli, CoCr, SS Low Volume Adv Geometries Flowdown Opp Inco, Ti, Al Many Applications Cost Efficient Lead Time Impr Inco, CoCr, Ti, Al Many Applications Cost Efficient Lead Time Impr Inco, CoCr, Ti, Al Courtesy Anthony Tammaro Courtesy EOS Courtesy Trilliant Courtesy Google Courtesy TCT and Concept Laser Courtesy Gliedrige Courtesy Arcam Courtesy Google Courtesy Google $100M s $100M s $1B s $10M s $1B s $100M s 9/12/2012 12
AM supply chain Past, Present & Future 9/12/2012 13
Early AM Suppliers Roots in RP industry Prototype/Development oriented Broad quality/price range Source: Google Images, Steve Jobs & Steve Wozniak start Apple, Inc. Large emphasis on customer education Generalists offering AM parts for many applications 9/12/2012 14
Future AM Suppliers AM Process Mastery Metallurgy for AM Powder handling Orientation & support General Manufacturing Discipline Production control & planning Machine maintenance Auxiliary processes Quality control & traceability Industry focus Regulatory compliance Background technology Quality expectations Resource Depth Financial & Human Capital IP development & protection Primary Value Proposition Expertise & Quality, Cost 9/12/2012 15
Quality Requirements Robust Quality Systems Industry certifications OEM Quality Approvals Auxiliary Process Approvals Controlled processes Industry Standards (ASTM F42) 9/12/2012 16
Supporting Equipment Conventional Technologies Wire EDM CNC Machining Extrude Hone HIP Furnace Connected Technologies MMP Software Tools Organic Structures Combine technologies to enhance value proposition 9/12/2012 17 Images courtesy Within-Lab & MicroTech Finishing
AM Supply Chain Attributes Technology Quality Sys Materials Scale Past Present Future 9/12/2012 18
Risk and Concerns 9/12/2012 19
Macro Concerns OEM s Product risk mitigation (failure not an option) Quality/Qualification (parts/process) Stable/Repeatable process Cost Supply Chain (number, capable, health) IP Creation of and being blocked by Supply Chain Quality Part/Technology failure (shut down use of) Visibility of OEM s needs (VOC) Scalability (how, when) Investment Return (capital intensive) Pace of technology change Market potential Infrastructure growth 9/12/2012 20
Accelerating AM Adoption 9/12/2012 21
Broad Adoption Challenges End users perception of risk using AM parts Qualifying variety of systems, materials and parameters (layer thickness, etc.) Broad awareness of technology and how to leverage it Identifying applications where there is a strong fit Pace of technology change 9/12/2012 22
AM Adoption $1,000.00 $900.00 Cost Deflation - Logarithmic $800.00 $700.00 $600.00 $500.00 $400.00 $300.00 $200.00 $100.00 $- 95% Curve 92% Curve DMLS Curve 87% 1 10 100 1,000 10,000 100,000 1,000,000 DMLS cost deflation curve to outpace conventional technologies 9/12/2012 23
AM Adoption 200W 1kW+ Aero Medical Aero Medical $9M $7M $7M $7M $3M $3M $ 3 M $3M $3M $3 M $3 M $3 M $3 M $ 3 M $ 3 M $ 3 M $ 3 M $ 3 M $ 3 M $ 3 M $ 3 M Higher throughput, lower cost = more markets 9/12/2012 24
Accelerating Adoption Diversified Materials Predictive Analysis Tool Process Automation Accepted Best Practice Surface Finish Process Monitoring Application Specific Machines Gradiated Materials Validation Tools Higher Capacity Machines Accepted Industry Standards Process Variation Present 2014 2016 2018+ Growing Acceptance with Continuous Innovation 9/12/2012 25
AM Summary AM is a disruptive technology Transition from Early Adopters to Early Majority Long productivity runway Many developing opportunities suppliers will need to choose where to play (industries/type of AM) Supply base is maturing Early successes will stimulate exponential growth 9/12/2012 26
Thank You Questions? 9/12/2012 27