1. 3D Printing Your Supply Chain May 22, 2014 Presented by: Hala Jalwan and Gregory Israel Advisor: Dr. Alexis Hickman Bateman 1 MIT - SCM – ResearchFest 22 May 2014 - MIT ResearchFest

2. Outline 2 2 Problem Background ……………............................................. 4 3 Solution & Results ……………………………………..………... 10 1 Key Question ………………………………………............................. 3 4 Challenges ……………………………………............................…. 15 2.1. Product Innovation …………………………………………...... 5 2.2. Critical Path Method ………………………………………..…. 7 2.3. 3D Printing ………………………………………..............…........ 9 5 Findings and Recommendations ………….......... 17 22 May 2014 - MIT ResearchFest 3.1. Rapid Tooling …………………………………………………… 10 3.2. Case Study ………………………………………………...…….. 13

3. How long do you think it takes to bring this product to market? 3 1 KEY QUESTION 3 years 22 May 2014 - MIT ResearchFest

4. 1 year6 months Sales samples are very challenging to produce 2 PROBLEM BACKGROUND 4 22 May 2014 - MIT ResearchFest

5. The CPG industry has to constantly innovate to remain competitive 5 2.1 PRODUCT INNOVATION 4.2% 20142013201220112010 Growth in the cosmetic industry Number of cosmetics companies 20182017201620152014 3.5% Cyclical with economy Growth faster than GDP (North America & Europe) Disruption of niche manufacturers Disruption of niche retailers Competitive prestige New technology in formula and packaging Higher margins and market shares 22 May 2014 - MIT ResearchFest

6. Consumers’ feedback is most important during the innovation phase of the product lifecycle 6 2.1 PRODUCT INNOVATION Idea Management Concept Development Manufacturing & Testing Commercial Portfolio Product Development Innovation Product Launch End- of - Life Medium ImportanceHigh Importance Low Importance Source: Accenture & (GMA), 2009 22 May 2014 - MIT ResearchFest

7. Sales samples are part of the critical path of product development 7 2.2 CRITICAL PATH Preliminary Design & Iterations Pilot Run Mass Production Experimen tal Mass Productio n Unit Mold Production Mold 40 000 units Consumer testing Mold design testing Manufacturing & functionality testing Sales sample 1 000 000 + units Mass production 22 May 2014 - MIT ResearchFest

8. Packaging/Mfg. Engineering Sales & Marketing Product Design R&D Packaging Supplier New product “big idea” developed Primary package design drawings Develop specs, tooling CAD file Consumer feedback testing Casting of unit tooling Testing of unit tool volumes Release sales samples to retail customers Modifications to design Iterative consumer feedback testing Executive design freeze Time Develop pre-unit tooling 22 May 2014 - MIT ResearchFest 8 2.1 PRODUCT INNOVATION Sales samples are part of the critical path of product development

9. 3D Printing technology used to produce the pre-unit tooling 9 2.2 3D PRINTING 22 May 2014 - MIT ResearchFest Repeat Cycle Print LayerDrop pistonSpread Powder Intermediate Stage Last Layer Printed Finished Part

10. 3D Printing technology used to produce the pre-unit tooling - video 10 2.3 3D PRINTING 22 May 2014 - MIT ResearchFest

11. Introducing a pre-unit tooling early in the development process 11 3.1 RAPID TOOLING 14 to 26% of reduction in time to market 22 May 2014 - MIT ResearchFest

12. Tradeoff between the different mold options 12 3.1 RAPID TOOLING 22 May 2014 - MIT ResearchFest Mold typeCostLead timeUnits Steel Mold$100,0003 - 4 weeks0 - 1,000,000+ Aluminum Mold$5,000 - $20,0002 - 3 weeks0 - 10,000 Pre-unit tool$3,00010 hours0 - 100

13. EyeDust Mascara Project with unit tool 13 3.2 CASE STUDY Year 1 Year 2Year 3 4 2345678910101 1212 12345678910101 1212 12345678910101 1212 1 Project Establishment Preliminary Design-Pre unit Consumers Session – 1 Design Iteration – 1 Consumers Session – 2 Design Iteration -2 Consumer Session – 3 Design Iteration 3 Project Confirmation Unit tool production & test Unit tool modification Shipping to US Package testing & assembly Sales Samples kit Production and Launch 22 May 2014 - MIT ResearchFest MilestoneSame activityNew activity

14. Considerations and challenges in data collection 14 4 CHALLENGES 22 May 2014 - MIT ResearchFest Sales Samples Sales & Marketing R&DDesign Pack- aging Manuf- acturing Regu- latory Finance Sales samples high impact, but little concern Interviews to capture qualitative data Status tracker documents (Excel, Project)

15. Supply Chain Strategy: using an efficient supply chain for an innovative product 15 4 CHALLENGES 22 May 2014 - MIT ResearchFest The trap large companies fall into Segmenting supply chain strategies based on product Match Mismatch Functional Innovative Efficient Responsive

16. 3D Printing is a promising technology for product development in the CPG industry 16 5 CONCLUTION & RECOMMENDATION 22 May 2014 - MIT ResearchFest The technology is still not very mature but is advancing quickly Rapid tooling is the second most mature type of additive manufacturing after rapid prototyping Start with a non- strategic product Ensure the integration of people and the process Pilot Project Evolving technology

17. We will gladly take any of your questions! 17 22 May 2014 - MIT ResearchFest