Here is something for you to read. Case Study: 3D Printing a...

Here is something for you to read.
Case Study: 3D Printing a place in the New Manufacturing landscape
Date: July 2014
Business:

3D Industries Pty Ltd (formerly ART3D)
A start-up technology company developing and commercialising a large scale Fused Filament Fabrication (FFF) 3D Printer.
Opportunity/Assignment:

VCAMM is an Intermediate Technology Organisation (ITO) working to bridge the gap between Industry and the Public Science and Research community.
One of VCAMM’s roles as an industry connected ITO is to support Government by shaping new technology opportunities that can generate new capabilities and businesses for Victoria.  One avenue of activity is for VCAMM to explore technology related leads that are identified by DSDBI’s account managers.
One such lead emanating from Terry Finch of the Bundoora office in late 2013, was that there was a two man operation in Thomastown trying to take on the world of 3D printing by building a “giant” 3D printer. A visit to ART3D and a meeting with the co-founders, Jason Simpson and Dejan Popovski, confirmed that the building of a vision as a global player in the 3D Printing industry was underway.
At that August 2013 meeting the first prototype, emerging from within a graveyard of small open source printers, was in fact 25 times the build size of the largest available desktop printer. Jason and Dejan had embarked on the journey armed with deep backgrounds in mechanical engineering, automation and electronic controls. In nine months Jason and Dejan had climbed an enormous learning curve about digital model slicing software, limitations of polymer flows,  …………………………..
The avalanche of open source material following the expiry of some key international 3D printing patents as well as a home based development marketplace excited by the prospects and benefits of 3D printing meant that Jason and Dejan could learn by sharing knowledge with other “earlyvangelists” of home 3D printing.    
A confident Jason indicated to VCAMM in August 2013 that the first prototype would be finished within a couple of months. Hindered by technical shortfalls including poor quality mechanical and electrical parts sourced from China, a couple of months turned into a few but the first prototype was up and running by Christmas.
However, a running prototype and a high performing prototype were two different things.  The next four months were consumed by technical challenges such as getting a thin plastic extrusion to lock strongly to the large build platform, stretching the limits on non-supported build angles, exploring different materials and build strategies, managing the heating of the different materials…………..
The backdrop to the development project was that this was financially structured as a boot strap project whereby the expectation for early sales of either printed parts or equipment were anticipated. However, the technical challenges had become consuming of both time and money.
Having decided that the project was worth supporting VCAMM provided a few helpful nudges. By pre-purchasing, cash with order, some time on the yet to be produced printer ART received some welcome cashflow for the business. By providing some initial business model development for the firm using the one page Business Model Canvas ART’s future business options were captured on paper. A vast array of options existed from making and selling machines through to being a service provider of large parts. With VCAMM’s awareness of local industry some preliminary market research identified prospective customers and contacts.  To broaden ART’s awareness of challenges and opportunities for big printers VCAMM arranged for a tour of RMIT’s Advanced Manufacturing Precinct where all parties immediately realised the benefits of sharing insights into the challenges of big part manufacture.
Throughout the journey the willingness to share knowledge generated mutual benefits. VCAMM’s own capability in relation to additive manufacturing has grown through its association with ART3D.
Since quality build at speed was a critical ingredient for a successful product VCAMM helped ART3D access a Victorian Government Business R&D Voucher to undertake work to find the optimum nozzle arrangement for the printer. This included identifying and utilising nozzle material options including specialty steels, some with special coatings, alloys and even the first ceramic nozzles made in Australia. While the research project is still in train, ART now believes it has by far the fastest build time for FFF of any equipment on the market. To help create market awareness of the new device VCAMM also ran articles in its e-news.
A critical juncture in the commercialisation story came when ART3D proclaimed via a ???? 2014 article in Manufacturers Monthly that the Giant printer was being developed.  Unbeknown to ART, a visionary Australian health care business with a deep involvement in 2D imaging was seeking to position themselves in the emerging 3D printing market for health devices.  John Conidi CEO of Capital Health (CH) had been inspired by a recent trip to the US and contacted Jason to explore a possible collaboration.
As a partner, John Conidi would bring to the table critical developmental and commercial cash and above all experience in business development and management. In addition through the connection to Capital Health he would open the opportunity to generate market pull to nurture the commercialisation of the giant printers. This would complement ART3D’s technical expertise.
After appropriate due diligence checks and negotiations a proposal for a new entity, 3D Industries, as part of a larger 3D Group, has been created with the prospect of it becoming Australia’s first additive manufacturing listed stock.
Part of the agreement was that a commercial grade printer would be built in time for the July 2014 Inside 3D Printing Expo.  After many long nights and with only days to go, the 2^nd generation printer was assembled for display.  The sheer size of the 3D Industries machine made it the stand out display at the show.
The new generation machine, with a build space of 2cubic metres has embedded many new innovations, some of which 3D Industries are patenting. Over the coming months the combined efforts of the technical leadership of Jason and Dejan will start delivering high quality large parts as a service to industry and will be commencing construction of giant printers to order. Meanwhile the board will be determining the next step in the corporate growth of this new Aussie manufacturer.
Results:

Through a lot of inspiration, hard work and personal sacrifice the ART3D team has built a credible piece of kit that fits into a niche within the growing additive manufacturing marketplace. Through engagement with an existing firm in the Health Care industry ART has been transformed into a viable business entity with great future prospects.
VCAMM has supported these smart product developers along the tough path of developing and commercialising their vision. A combination of some small but timely financial support plus some complimentary effort to help with initial business model options and some research activity have all played a small part in the ART3D story.

The future prospects for 3D Industries as part of 3DGroup are now bright. The additive manufacturing market is currently growing at over 30% per annum and projected to do so for the next decades. 3D Industries will be focussing on local and export sales for their equipment as well as providing a bureau service for large part production.
3D Industries is keen to establish collaborative links with R&D providers such as RMIT whereby the flexible machine design will enable researchers to explore aspects of additive manufacturing not readily accessible from the large proprietary equipment of multinational competitors.
While VCAMM will continue to work with 3D Industries on the nozzle project, if all goes according to plan, over the coming months 3D Industries will have emerged from the “valley of death” and be travelling under its own steam to a commercially viable future that sees Australia as having secured a niche of the high growth additive manufacturing industry.
While still a fresh development, it is time for other Australian manufactures and service providers to capitalise on this novel capability to enhance their own business propositions.

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AT A GLANCEBusiness: 3D IndustriesIndustry: Additive Manufacturing - A start-up technology company developing and commercialising Fused Filament Fabrication (FFF) technology being delivered by a large scale printerSummary: 3D Industries is globally the largest FFF printer. Over a 2 year period the start-up has gone from concept, through design and development, to commercialisation of a large scale FFF printer at an affordable price. The business has plans to become a listed stock to enable continued growth of this home grown technology.VCAMM assistance: Business development advice and assistance with occasional help on technology linkages and market development.