Switchover to industrial additive manufacturing: dynamic decision-making for problematic spare parts

Abstract

PurposeIntroducing additive manufacturing (AM) in a multinational corporation with a global spare parts operation requires tools for a dynamic supplier selection, considering both cost and delivery performance. In the switchover to AM from conventional manufacturing, the objective of this study is to find situations and ways to improve the spare parts service to end customers.Design/methodology/approachIn this explorative study, the authors develop a procedure – in collaboration with the spare parts operations managers of a case company – for dynamic operational decision-making for the selection of spare parts supply from multiple suppliers. The authors' design proposition is based on a field experiment for the procurement and delivery of 36 problematic spare parts.FindingsThe practice intervention verified the intended outcomes of increased cost and delivery performance, yielding improved customer service through a switchover to AM according to situational context. The successful operational integration of dynamic additive and static conventional supply was triggered by the generative mechanisms of highly interactive model-based supplier relationships and insignificant transaction costs.Originality/valueThe dynamic decision-making proposal extends the product-specific make-to-order practice to the general-purpose build-to-model that selects the mode of supply and supplier for individual spare parts at an operational level through model-based interactions with AM suppliers. The successful outcome of the experiment prompted the case company to begin the introduction of AM into the company's spare parts supply chain.