Stratasys, Ltd. · NASDAQ:SSYS
Stratasys — Conference Presentation (March 2018)
26 slides from Stratasys's conference presentation, March 2018
Slide 1: Justifying a 3D Printer Investment For Rapid Prototyping
Justifying a 3D Printer Investment For Rapid Prototyping 1
Slide 2: Today's Topic
TODAY’S TOPIC The Challenge Making the Case Justification Strategies Expense Calculation Measuring Return 2
Slide 3: Our Speaker
OUR SPEAKER TODD GRIMM | president T.A. Grimm & Associates, additive manufacturing consulting and communications 3
Slide 4: Justifying a 3D Printer Investment for Rapid Prototyping
Justifying a 3D Printer Investment for Rapid Prototyping Todd Grimm
Slide 5: Value Obvious | Justification Unclear
Value Obvious | Justification Unclear
Slide 6: The Challenge
The Challenge • Make value real • Benefits undermined • Outcome: justify on weakest advantage
Slide 7: Example: Medical Device
Example: Medical Device • Primary gain: acceleration • 42 days saved • Justifiable gain: part cost reduction • $58K saved
Slide 8: Making the Case
Making the Case • Executive Summary • Situational Analysis • Financial Justification
Slide 9: Justification Strategies
Justification Strategies • Tiered Approach • Substitution • Augmentation • Extension • Target • Cost reduction • Current problems • Leverage • Shared budgets
Slide 10: Financial Justification
Financial Justification • Value delivered • Investment required • Performance metrics expected
Slide 11: Value: Substitution
Value: Substitution • As alternative to: • In-house/outsourced • Additive, subtractive, formative • Collect historical data • Project near-term demand • Suggestion: buckets
Slide 12: Value: Substitution
Value: Substitution • Calculate cost • Outsourced • Tally invoices • Consider labor • In-house • Tally internal cross charges • Estimate with guidance • Enter results
Slide 13: Value: Substitution
Value: Substitution • Calculate cost Year 0 Year 1 Year 2 • Outsourced Capital Equipment • Tally invoices Operating • Consider labor Expense Total • In-house Investment • Tally internal cross charges Ongoing • Estimate with guidance Expense • Enter results Return $75,000 $75,000 Total $75,000 $75,00
Slide 14: Value: Augmentation
Value: Augmentation • Value of doing more • Examples: • Reduce rework • Accelerate product development • Reduce manufacturing cost
Slide 15: Example: Wood Group Pressure Control
Example: Wood Group Pressure Control • Primary gain: increased sales • More sales communication models • Replace prints • Alternative to aluminum
Slide 16: Value: Extension
Value: Extension • Value of doing something new • Examples: • Different stages • Different product types • Different applications
Slide 17: Example: Instrumentation Laboratory
Example: Instrumentation Laboratory • Reengineering for manufacturing • Lower production cost • $600K/year • $7.2M/product life • No rework • $50K on project
Slide 18: Expense Calculation: Initial
Expense Calculation: Initial • All cost to acquire • All cost to become operational • From CAD to finished prototype
Slide 19: Expense Calculation: Ongoing
Expense Calculation: Ongoing • Estimate build cost • Estimate run time • Estimate labor • Estimate maintenance & repair
Slide 20: Expense Calculation: Ongoing
Expense Calculation: Ongoing • Estimate build cost Year 0 Year 1 Year 2 • Estimate run time Capital <$50,000> Equipment • Estimate labor Operating Expense <$5,000> • Estimate maintenance & repair Total Investment <$55,000> Ongoing Expense <$34,000> <$34,000> Return $75,000 $75,000 Total <$55,000> $4
Slide 21: Return Calculation
Year 0 Year 1 Year 2 Return Calculation Capital Equipment <$50,000> Operating Expense <$5,000> • Get guidance Total Investment <$55,000> • Run the numbers Ongoing • Revise to meet hurdle rates Expense <$34,000> <$34,000> Return $75,000 $75,000 Total <$55,000> $41,000 $41,000 Cumulative Total <$55,00
Slide 22: Time is Money
Time is Money Strategy 1: Past consequences Strategy 2: $/day Strategy 3: Bonus benefit
Slide 23: Wrap Up
Tiered approach Solve current problems Wrap Up Make it your own Make it real Todd Grimm | Todd.Grimm@TAGrimm.com
Slide 24: Questions?
Questions? stratasys
Slide 25: Keep the conversation going…
Keep the conversation going… http://www.stratasys.com/justifycost 25
Slide 26: Justifying a 3D Printer Investment For Rapid Prototyping
Justifying a 3D Printer Investment For Rapid Prototyping 26