How to Create a Comprehensive Business Case
Learn the 4 steps to writing a successful business plan for metal additive and move toward production–faster.
Download our playbook "Building the Business Case: Identifying Criteria to Measure ROI for Additive Manufacturing" and learn why developing a business case can help ensure your investment in additive yields a higher return on investment.
For metal additive, getting to ROI is more than just assessing the cost of the part. Manufacturers must look at how additive can impact the whole system—from part cost to product performance improvement to supply chain impact to new revenue streams. If manufacturers look only at the cost to make a part, they lose out on the larger ROI and potential new business opportunities additive can enable while competitors forge ahead.
Learn more about the 4 steps to creating an AM business case:
- Build a Cost Model
- Evaluate Performance Factors
- Identify Supply Chain Disruption
- Determine the ROI
Download the ROI playbook
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In addition to downloading the ROI playbook our AddWorks™ team at GE Additive can help your business find a faster path to full-scale metal additive production. Learn how to select the right parts for AM. Create your business case by drafting a strategic roadmap that includes your project list with cost analysis, benefits, and an implementation strategy.
Frequently asked questions from our customers
Our AddWorks experts understand the challenges and questions your organization faces in all stages of incorporating additive manufacturing into your production process. We’re users of additive technology; so, we’ve experienced the journey first-hand. Below is a short list of questions we get asked all the time.
Q: How does an additive part or additive system make money for my business?
Additive manufacturing can be leveraged a few different ways. First, design flexibility of the AM process allows for new designs, adding capabilities to products or creating new products to serve an existing or new market space. Second, in some cases AM can provide complexity of components at a lower price and faster lead time than conventional processes.
Q: How does the cost of an additive part compare to a traditionally manufactured part? I’ve heard it’s often much more expensive on a part cost basis. Is this true?
In some cases, a part produced with AM will be less expensive than conventional, for example, parts with heavy complex post-processing and assembly. While AM may not be directly cost competitive with simple parts that would otherwise be cast or forged, re-thinking the function or physical constraints of a part will yield new designs, some of which AM will be the best solution.
Q: Aside from cost, what are other factors I need to consider to build a comprehensive business case?
Consider the implications of disruption to your supply chain and overall business model. Is there a sole-source provider for a critical part? Are your lead-times way too long? Or is your supply base resilient to global issues like a pandemic or climate change? Are your products still competitive, or do you need to re-invent your product offering to serve a rapidly changing marketplace?
Q: If I want to learn how to better understand how to calculate ROI, what is a good first step?
The first step in any ROI calculation is determining costs, both for capital and recurring expenses. Machine performance will give insight into recurring expenses, while capital expenses will be dependent on the type of post-processing your component requires. The other half of the equation is how much money can be generated from the investment. It’s best to analyze this not from a “cost” perspective, but rather, did using AM allow you to change the market price?
Additive manufacturing makes it possible to produce geometries that cannot be achieved using traditional manufacturing methods. In addition, the parts have greater performance capacity or functional precision.
– Alex Berry, Director and Shareholder at Sutrue Ltd.