Cummins is a global manufacturing giant that is composed of individual business units that manufacture, maintain, and distribute a wide variety of power solutions. The company is introducing revolutionary new technology that will transform the manufacturing process by making it quicker and cheaper while ensuring high volume production (“Cummins Implementing New Technologies,” 2019). The company has partnered with GE additive which produces binder jet printers that are modern high precision 3D metal printers (Sochol et al., 2016). Binder jet printing technology is a form of additive manufacturing in which a print head moves over a platform of powder and deposits liquid binding compound following a predetermined shape of the section being manufactured (Sochol et al., 2016).
The liquid binds the specific areas forming a solid part after repeatedly laying down the structure, layer by layer. The technology can print at a rate that is sixty to a hundred times much faster than similar processes that are laser-based. This means that such technology has the potential to hasten the manufacturing process while maintaining high product quality.
How Cummins’ Additive Manufacturing Technology Can Improve Quality and Performance
Additive manufacturing is a form of disruptive technology that has the potential to revolutionize the processes of product making and design (Klahn, Leutenecker, & Meboldt, 2015). In the current industrial setup, additive manufacturing of metal parts is not viable for mass production of identical pieces. The following metrics and KPIs will be used to measure success: production time, efficiency, reduction of risk and errors, flexibility, and sustainability. These KPIs measure the effectiveness of the new production process and are the core of the company’s competitive advantage. These indicators are also crucial in measuring customer satisfaction because they are the critical differences between Cummins’ and other manufacturers’ products (“Anhui Cummins manufacturing,” 2019).
Additive manufacturing introduces efficiency to the industrial process. Also, there are limited to no additional costs involved when switching the equipment to 3D printing technologies. The high capacity printing capability that comes with the technology is an assurance that large volumes can be manufactured cheaply. This cost efficiency can then be transferred to the market place in the form of competitive pricing. It is further supported by the fact that most companies that still utilize injection molding in manufacturing parts use 3D printers to create the ideal designs in the form of prototypes before mass production.
The manufacturing technology leads to a significant reduction of errors and risks in the manufacturing process (Das, Chandran, Samant, & Anand, 2015). Designers can print multiple prototypes using the actual material to verify and select the final design before mass production. Changes to the models are made using software, therefore, reducing extra costs from modifications of manufacturing equipment. The manufacturing process is carried out layer by layer; therefore, the designers have total control of the final product, translating to higher quality. designers have total control.
Additive manufacturing introduces high flexibility into product manufacturing (Eyers, Potter, Gosling, & Naim, 2018). This flexibility allows product designers to fully harness their talents by allowing them to design goods with complex fluid organic forms and geometry. 3D printing offers designers a simple one-stop-shop for all types of designs without requiring product assembly.
The incorporation of additive manufacturing into production introduces sustainability (Ghobadian et al., 2018). Traditional methods, like CNC machining, result in excess material consumption and wastage as the surplus cannot be reused. In instances where it can be recycled, the process translates to extra time and labor requirements. 3D printing uses only the required amount of material.
Communicate A Strong Value Proposition for Cummins’ Customers
A strong value proposition needs to identify who the target client is, what the client needs and what the company is offering, and why the product is uniquely valuable to the client. Cummins products target clients that need dynamic metal parts of varying geometry. These clients need durable, reliable components that are delivered on time. Cummins’ products are valuable to their customers as they fulfill all the above conditions.
The Impact of Additive Technology on Other Facets of Cummins’ Operations and Supply Chain
The technology will enable Cummins and its constituent businesses to be more dynamic in meeting customers’ demands (Oettmeier & Hofmann, 2016). The company will be able to provide clients with customized, high-quality goods on-demand. The company will also not require a minimum order policy because there will be no extra costs of production. Many businesses using traditional technologies need customers to commit themselves to large-volume product orders to ensure the economic viability of the manufacturing process. This may, in some instances, inconvenience customers because there may not be sufficient demand to warrant the production of large volumes. 3D printing and on-demand production ensure that customers do not incur extra costs on the excess inventory in the form of warehousing and other logistical considerations.
Additive manufacturing will result in shorter processing times, making of medium to larger sized parts, and increased product surface quality and precision (Oettmeier & Hofmann, 2016). As a revolutionary technology, its adoption is bound to increase; therefore, increasing its demand and the accompanying materials. The need for metal powder is bound to grow as well as parts and other equipment used to maintain the printers. Increased adoption of the innovation will promote the development of products that were previously considered to be too expensive to be a viable investment. There are, therefore, bound to be more upcoming manufacturers of 3D printers and printing materials in the market.
There is bound to be increased demand for parts using additive manufacturing technology. The technology has the promise of a higher speed of production, improved quality, accelerated performance, cost-effectiveness, and precision. Such requirements are especially critical in sensitive industries such as aviation and aerospace. Cummins, therefore, has the opportunity to position itself as a leader in the supply of parts to such industries creating a unique niche.
The technology is heavily dependent on software as opposed to the initial soft tooling followed by hard tooling and then fixtures that are utilized in traditional manufacturing. This will enable the company to downscale its operation while maintaining product quality and efficiency. There will be a reduction in the number of parts and equipment in the assembly, translating to reduced requirements for suppliers. As a result, there will be a drop in expenditure on order management, logistics, quality management, and risk management (Durach, Kurpjuweit, & Wagner, 2017).
How the Partnership Between Cummins and GE Additive Will Impact the Three Aspects of Supply Chain Sustainability
Supply chain sustainability is a wholesome view of its procedures, technologies, and logistics that address the social, environmental, and economic aspects. Factors affecting it include carbon footprint, emissions, amount of waste, air pollution, deforestation, health and safety of workers, and labor violations. Supply chain sustainability relies on the principle that socially responsible practices and products are beneficial to the planet and human beings and also play a role in creating positive awareness of the brand, improving long-term profits, and reducing environmental impact.
A company’s supply chain links the company’s inputs and outputs and outlines the process of production and delivery of consumer goods. Paying attention to it is one way of realizing the viability of the business because it addresses various aspects that require improvement. In previous times, the supply chain was concerned with logistics and the awareness of the movement of goods and services. However, in recent times, there has been growing interest in how well each aspect of the supply chain contributes to corporate social responsibility. This has created transparency, promoting responsible sourcing of materials, and encouraging partners in the supply chain to develop best practices for logistics and green operations. It has encouraged the partners involved to comply with industrial recommended standards with regards to business ethics, worker safety, and environmental protection (Jin et al., 2017). These are the three critical aspects of supply chain sustainability.
Impact on Business Ethics and Profitability
Additive manufacturing will lead to improved business practices for Cummins. When compared to injection molding and subtractive manufacturing, additive manufacturing will decrease the cost of production in three main areas: tooling and machine expenses, materials, and labor. The significant cost incurred is in the acquisition of precision 3D additive manufacturing equipment. However, once the equipment is purchased and installed, the tooling expenses are much lower than those associated with injection molding equipment. As a result, tooling costs are responsible for about five percent of the total cost of production when additive manufacturing is used, and ninety percent of the production cost when traditional methods are used.
Additive manufacturing leads to reduced cost of labor due to intensive automation and elimination of the need for tooling and molding. Products made via additive manufacturing cost more than those using previous methods on a per-weight consideration by a factor of eight. In spite of the high per-weight cost of raw material, parts that are produced using additive manufacturing are less complex to develop, consume less time, and use up much less raw materials by up to ninety percent.
This addresses the high cost of raw materials, which only accounts for between 18% and 30% of the total cost of production. Overall, the prices of the inputs are not significantly high and are expected to decrease as more manufacturers embrace the technology. Additive technology will, therefore, allow Cummins to produce products faster and boost productivity. The company will thus be in a position to grow into new, more profitable areas.
Impact on Worker Safety
Additive manufacturing promotes worker safety more than traditional methods, such as mold injection. There is extensive digitization of the manufacturing process and elimination of the need for tooling and molding. As a result, the adoption of additive manufacturing results in reduced occupation injuries as there is reduced contact between human beings and the materials, and machinery. Additionally, it enables the incorporation of engineering controls to ensure operator safety. These include the presence of physical barriers restricting access to the printer rooms and installation of automatic fail-safes that halt the printing process once an access restriction barrier is breached.
Impact on Environmental Protection
Compared to traditional methods, additive manufacturing has a less negative impact on the environment. Goods are produced much faster, and in smaller quantities, therefore, significantly less energy is consumed during the process. Additive manufacturing results in substantially less demand and wastage of raw materials, and nearly all of the unused powder is used in the next production cycle. Less raw material and metal components are, therefore, deposited in the environment. There are concerns about emissions during the printing process concerning the generation of harmful vapors. This can be addressed through engineering controls such as the installation of pollution filters in the printing rooms to prevent the fumes from escaping into the environment.
Porter’s Five Forces
Threat of New Entry
There is a high risk of new entrants because the new technology is currently being rolled out by GE Additive. However, the initial cost of new equipment is very high and requires skilled employees to operate.
Competitive Rivalry
There are many competitors in the market. However, they are utilizing older, less efficient technology. Additive manufacturing offers superior product quality and reduced production time.
Supplier Power
Cummins currently has one key supplier, GE Additives, that solely distributes the new technology. Cummins is unable to acquire a different one, but as the sector grows, more suppliers are expected to join the market.
Buyer Power
Products made using additive manufacturing technology have multiple customers primarily in the aviation and aeronautical industries that are considerably big. Hence, they are bound to make larger orders. Cummins can supply their needs faster and at a lower cost than the competition.
Threat of Substitution
There is a very minimal threat of substitution as additive manufacturing is the most recent technology with the advantage of speed, precision, and lower cost. From the analysis, Cummins has a sustainable competitive advantage over its competition. The company should, therefore, carry on with its current investment strategy.
How Industry 4.0 Will Transform Skill Requirements for Employees Operating and Managing the Supply Chain at Cummins
The digitization of the manufacturing process mainly drives industry 4.0. Employees must acquire critical skills that will enable them to be competent and effective in handling its requirements. They will also need to be skilled at manipulating advanced information technology infrastructure (Benešová & Tupa, 2017). Employees will also have to acquire skills and qualifications in 3D additive printing, designing using CAD, and material technology. They have to be competent in basic computing skills, such as communicating with customers and suppliers through IT infrastructure.
The approach will require employees to acquire the necessary skills in business process management with a focus on flexibility. Industry 4.0 proposes a highly dynamic business environment requiring the adoption of flexible processes that enable them to grow and evolve with the dynamic changes of the market. Cummins must, therefore, adopt business practices that allow it to keep its systems and manufacturing processes up to date to remain competitive. Employees and the company itself must adopt modern methods in sales, business development, purchasing, service, and support.
Industry 4.0 requires the staff at Cummins to be skilled in communication, cooperation with other stakeholders, and creating ecosystems. The digital transformation that comes with it will be accompanied by fresh business models that require collaboration with customers and other partners. Cummins’ supply chain managers will need to create strong links with stakeholders across the value chain and multichannel interactions with clients.
Training programs will, therefore, be required to impart skills and learning in handling IT infrastructure, computing, and business management. Development programs will also be necessary to improve the employees’ skills in communication and networking continuously. These training and development programs will provide the core competencies required for competence during the industry 4.0 era.
Increased demand for employees with the skills necessary for the industry 4.0 era will lead to Cummins having a competitive advantage over other manufacturers because it will be more lucrative as an employer. It will attract talent both from other companies and top training institutions. The employees will be attracted to the already established technology and superior manufacturing capability available at Cummins.
Conclusion
Technology has gained a significant role in everyday activities in the current world. It is a reliable means of improving efficiency and productivity in every aspect of the economy. This is the case in the industry and manufacturing sector where technology has continuously been used to develop new innovative products, reduce operation and production costs, and promote efficiency and improved productivity.
Cummins has adopted new disruptive technology in manufacturing, which it has acquired through its partnership with GE Additive. This novel method, called binder jetting, is a more efficient and precise method of additive printing that will enable Cummins to produce higher quality products faster and at lower production costs. The technology will improve quality and performance through improved design management and efficiency, reduced errors and risks, and ensuring sustainable manufacturing.
References
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