Browsing by Author "Dirkse-van Schalkwyk, Theunis Gysbert"

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    A Techno-economic and pricing strategy simulation model of multiple manufacturing companies supplying micro milling
    (Stellenbosch : Stellenbosch University, 2017-03) Dirkse-van Schalkwyk, Theunis Gysbert; Van der Merwe, A.; Dimitrov, D. M.; Stellenbosch University. Faculty of Engineering. Dept. of Industrial Engineering.
    ENGLISH ABSTRACT: Micro milling is a fairly new machining technology and is still developing in leaps and bounds. Many new products are also smaller than the products they replace, driven by microprocessing, portability advantages and resource scarcity. This allows micro manufacturing in general and micro milling specifically to increase market share at the expense of traditional manufacturing technologies. Advantages in capital cost, labour, materials volumes and operating costs all add to the attractiveness of micro manufacturing. The ability to manufacture smaller batches economically promotes local manufacture and has a smaller carbon footprint than traditional approaches. It also fits well with the concepts of mass customisation and tailor-made products in the medical implants area. Other, more esoteric concepts, such as cloud storage and design coupled with local manufacture, have impacts to potentially simplify local manufacture and lower overheads. Such new technology and rapid changes in the market require timely and informed decisions by businesses to become more efficient and stay competitive. Simultaneously, business risk must be considered. A techno-economic feasibility studies or business plans are common ways to support such a complex decision making process. A methodology to do a comprehensive techno-economic feasibility study is described and followed. The techno-economic feasibility study depends on various aspects such as market demand, a model of a typical business process, generating of potential outcomes through applying simulation and evaluating the simulation output. By way of a market analysis and literature study, the most advantageous markets to consider for micro milling were identified as medical implants, research and prototyping, small and medium batches of complex 3D shapes, electronics devices and dental accessories. One way to explore the business potential of new technology and simultaneously consider risks is through simulation. A simulation model of the technology environment was set up and simulated outcomes were used to assess risks versus opportunities. The simulation used in conjunction with the techno-economic feasibility study allowed a thorough investigation of the issues involved, conclusions to be drawn and recommendations to be made. Some conclusions include the following. Companies which are interested in new technologies should have at least some human resources available to allow technology transfer to be successful. Software and hardware training, time to gain experience and insight into the financial aspects of the new technology will all have an impact on the success of the investment. If the company is already active in the macro milling market, the techno-economic feasibility study shows that such knowledge should be sufficient to allow the company to become more efficient and competitive if they invested in micro milling. The market size, competing companies and minimum required rates of return all have bearing on these decisions. Using a simulation model more completely identifies the probable outcomes, but also shows that the future will not limited to deterministic outcomes. The market analysis of potential products that can be manufactured using micro milling showed that there is ample space in the manufacturing sector to invest in this technology and that the uptake of the technology is far from saturation. Many of the identified markets are in growth phases and will continue to grow for many years according to forecasts. Some barriers to success include skill requirements, complex process chains, compatibility issues with software and hardware and penetration of high technology markets. Universities are in favourable positions to facilitate some of the technology transfer by using their research capacities wisely. The simulations showed that the initial market size, required minimum interest rates or hurdle rates, growth rates of the markets, pricing strategy and number of competing companies in the market will have the greatest impact in the choice of investing.