Risk reduction in new product launch: A hybrid approach combining direct digital and tool-based manufacturing

The research contributes to the body of knowledge on new product development by considering the potential use of a major emerging production technology in the early phase of final production. Direct digital manufacturing (DDM) methods such as additive manufacturing (AM) have been introduced as a production method for some small and complicated parts, mostly in the aerospace and medical industries (in batches of one or a few). However, it still is not viewed as a suitable method for producing numerous parts in small batch sizes. In this study, we will utilize scenario-modeling based on real-world case data to illustrate the potential of a novel production method which we call "hybrid production" in new product launch. This production method combines DDM with conventional production methods over the product life-cycle. Our case study data is on a toolless production method called Incremental Sheet Forming (ISF) which is theoretically a DDM method. The cases have been analyzed to understand the economic feasibility and benefits of DDM utilization throughout new product life-cycle. Results of our study suggest, while implementation of conventional production from the beginning does not present a significant cost savings over the hybrid production, when product succeeds in the market, conventional method yields a high cost when the success does not materialize on the first attempt. This directly translates to investment risks (related to the cost of tool modification or replacement and inventory obsolescence), in addition to loss of flexibility to respond to market feedback and consequently lower chance of market acceptance. Additionally, DDM at the beginning of our proposed hybrid production can shorten the products' time to market which is considered to be an essential factor for success. (C) 2015 Elsevier B.V. All rights reserved.