Brett Conner PhD, Associate Professor, Youngstown State University
Ashley Martof, Graduate Research Assistant, Youngstown State University
The Department of Defense is exploring the potential of Additive Manufacturing (AM) to produce spare parts because of the benefits in reducing production lead time, the cost savings of producing spare parts at low production quantities, the reduction in warehouse costs, and at the point of need. This presentation contains an analysis of the business relationship between industry and government in a situation where industry has designed and currently produces a part, but the government itself wants to produce the same part for spare. In this case, the digital technical data package (TDP) becomes the product that industry provides to the government. Industry must now determine a way to maximize value in this situation. A set of business models involving the TDP and associated services are developed and then investigated from the perspective of industry. Several variables are explored to include the production cost per part, non-recurring costs associated with qualification and certification, expected value, and order quantities. The effect of each variable on each business model is analyzed for a given case study involving AM metal part production. This analysis provides industry and government a reference for discussions on approaches toward future maintenance and sustainment manufacturing operations.