icc6 from lab to fab

www.morganadvancedmaterials.com

From Lab to Fab

6th International Congress on Ceramics

Dresden, Germany

Mike Murray

Chief Technology Officer

Morgan Advanced Materials

22/08/2016

1 Morgan Advanced Materials Confidential Information

Abstract

• Innovation and growth opportunities continue at a pace within the

advanced ceramics market place

• Product innovation and differentiation is always important, but

operational and supply chain innovations are just as critical

• The challenges of taking a new technology from the ‘Lab to Fab’

are well documented as you work your way through the ‘valley of death’.

• But creating a company culture that focuses on innovating in all

aspects of the business process can have a dramatic impact on the

chances of success

• Some of the biggest challenges for industrial manufacturing

companies include finding the right partners and suppliers and getting

the right metrics in place to measure innovation progress.

• One such innovation is additive manufacturing and we will discuss the

opportunities and challenges in bringing such an exciting new

technology to market.

Morgan Advanced Materials Confidential Information 2

22/08/2016

Our world has evolved beyond our wildest dreams…..and will continue to do so

"I think there is a world market for maybe five computers."

--Thomas Watson, chairman of IBM

"This 'telephone' has too many shortcomings to be seriously considered as a means of communication. The device is inherently of no value to us,"

--Western Union internal memo, 1876.

"There is no reason anyone would want a computer in their home."

-- Ken Olson, president, chairman, founder of Digital Equipment Corp. 1977.


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We are the midst of a technology revolution

1950’s Tomorrow? Today

Advanced materials play a key role across a

broad range of markets and technologies.


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Growth in Articles, Review, Papers by subject

5

World share of

papers (articles

and reviews)

indexed in Web of

Science for

materials science,

compared with

• Chemistry

• engineering and

• Physics

since 1981.

(Note the separate

axis for materials

science.)


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Material Science is

growing rapidly!

What is Innovation?

What is valuable in

the marketplace?

What is desirable to users?

What is possible

with technology?

Innovation

People, People, People


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For Morgan - Our vision is to be renowned for world-class material science, application engineering and customer focus

Material science

Application engineering

Customer focus

• Customer obsession

• Deep market insight

• Passion for problem solving

• Culture of knowledge sharing & collaboration

• Leading technologists

• Extensive institutional knowledge

Reliable problem solving

Ethically & safely

Answer the three questions:

What is possible with the

technology?

What is desirable to users?

What is valuable in the

marketplace?

Morgan’s Focus

• Scalable global

businesses

• In growing markets

• Where technical

differentiation is valued


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The most innovative companies overall are growing significantly faster than the least innovative

• In recent research across industries, a clear correlation was found

between innovation and success in growing revenues

• The most innovative companies overall are growing significantly

faster than the least innovative.

• The difference for industrial manufacturing companies is dramatic –

The sector’s most innovative companies grew 38% over the last three years—

nearly 12% per year—while the least innovative managed just 10% growth over

the same period.

20% Most Innovative Companies (11.3% year-on-year)

38% 10%

20% Least Innovative Companies (3.2% year-on-year)

Rethinking innovation in

industrial manufacturing

Are you up for the challenge?

PricewaterhouseCoopers LLP

www.pwc.com/innovationsurvey


22/08/2016

http://www.pwc.com/innovationsurvey

For Industrial Manufacturers, innovators expect to significantly outperform the rest over the next five years

100

105

110

115

120

125

130

135

140

145

0 1 2 3 4 5

Expected Growth

All IM

20% Most Innovative IM

20% Least Innovative IM

• Looking forward, the

sector’s top innovators

have more modest

expectations, but they’re

still targeting annual

growth of 6.9%, while

the least innovative

companies expect to

manage just 3.6%.

• Over the course of five

years, that will create a

major gap


22/08/2016

39.8%

26.6%

19.6%

Why does making innovation a priority have such a major impact?

The answer is simple:*

• Top innovators are getting three times as many revenues from new products or services.

• The least innovative group only generated 7.1% of their revenues from new products and services

• Top innovators managed a revenue boost of 22.8%.

• Most industrial manufacturing executives expect that they’ll need to generate the majority of their growth organically going forward.

• While global expansion was the biggest driver of growth for many over the past decades, PwC research shows that the tide is turning and innovation now tops the list.

• To meet their growth targets and start to catch up with the top innovators, PwC believes industrial manufacturing executives will need to:

• Define or refine a solid innovation strategy

• Balance their innovation portfolio

• Make sure they can attract and keep top talent

• Enhance collaboration (including public/ private sector initiatives)

• Accurately measure what they’re getting from their innovation investment.


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* Rethinking Innovation in Industrial manufacturing - PwC

Five Fundamental questions industrial companies need to ask when examining their innovation vision:


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• Where are we now, and where do we want to go?

• Is our current market position good enough in the short term—and in the long term?

• Is our innovation strategy linked to future business opportunities?

• Are we taking into account the possible impact of major trends like the rise of the industrial internet and the emergence of additive manufacturing?

Fundamental questions industrial companies need to ask when taking a closer look at their innovation vision:


22/08/2016

• What balance of innovation do we need?

• Are we focusing solely on product

innovation?

• What can we do to make sure we’re

innovating enough in other areas like

business model, services, supply chain

and technology?

• Do we have the right mix of incremental

vs. radical and breakthrough innovation?



22/08/2016

• Can we attract, keep and motivate key

innovation talent?

• Are we actively working to foster a strong

innovation culture and position our

company as a supportive environment for

top talent?

• Are we able to recruit and integrate skilled

staff from new and emerging markets?



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• Are we collaborating enough outside of the

organization?

• How strong are our strategic

partnerships?

• Are we making good enough use of open

innovation or other strategies like

corporate venturing to identify and

develop new relationships and ideas?



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• How will we know success when we see it?

• What measurement systems for

innovation are in place?

• How well are they working?

• Do they support innovation efforts or stifle

them?

Incumbents versus New Entrants

• For an Manufacturing Company understanding evolutionary vs. revolutionary

technology is important.


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Incumbents nearly always win*

Disruptive

Innovations

New Entrants nearly always win

Time

Measure

of P

erf

orm

ance

*Clayton Christensen

Product innovation and differentiation vs. Operational innovations

• There is a view that companies either have to be product

driven innovators or the lowest cost providers

• Where the two philosophies fit well together is being

driven by both product and operational innovation in order

to provide differentiation

• Process and operational innovation can drive as much,

and sometimes more, product innovation than materials

science alone

• Indeed, the optimum approach needs to consider the

entire supply chain and innovation partners, both

internally and externally


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Innovation in the entire Supply Chain


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Raw Material

suppliers Materials

Science

Manufacturing

process

Properties

and product

performance

• Not only does an innovation strategy that encompasses

the supply chain create the most value, but it also has a

dramatic impact not just on the bottom line, but the

productivity of the entire supply chain.

Today we use the Innovation Pentathlon Framework*

Ideas Prioritization Implementation

Market

• Products

• Services

• Business Models

• Processes

Innovation Strategy

• Goals

• Communication

• Technology

• Metrics

People and Organization

• Culture

• Reward and Recognition

• Appraisal

Rejected Concepts

Recycled Ideas

Projects Terminated

*Innovation Management, Keith Goffin & Rick Mitchell, Cranfield University


22/08/2016

Today we use the Innovation Pentathlon Framework*

Ideas Prioritization Implementation

Market

• Products

• Services

• Business Models

• Processes

Innovation Strategy

• Goals

• Communication

• Technology

• Metrics

People and Organization

• Culture

• Reward and Recognition

• Appraisal

Rejected Concepts

Recycled Ideas

Projects Terminated

*Innovation Management, Keith Goffin & Rick Mitchell, Cranfield University

Sometimes referred to as the Fuzzy Front End


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• As opposed to the well defined

New Product Development

process, the FFE lacks definition

Successful Innovation can also be determined by how well you manage the ‘Fuzzy Front End’*


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*Fuzzy Front End: Effective Methods, Tools and Techniques: Koen. P.A, et al

FFE

Nature of work Experimental/

Chaotic

Commercial Uncertain

Revenue Speculative

Activity Aim to

minimise risk

Progress/

metric

Strengthened

concepts

Typical trends for Cost and Risk as Technology Matures and avoiding the ‘Valley of Death’

Discovery Development,

Validation, &

Commercialization

Building the

Business Case

Ideas Concepts

and

Prototypes

Products

Technology Maturity

Cost Risk

Fred Allen, Ph.D.

RADii Solutions, LLC


22/08/2016

Challenges for Commercialisation of Advanced Ceramics

• Despite many successes, advanced ceramics are still

only used in a small percentage of applications

• Even today, many OEMs and end-users are reluctant to

try them because of concerns about:

• reliability

• higher costs compared to competing materials

• insufficient design and test experience

• inadequate properties to meet the needs of demanding

applications.


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Morgan Advanced Materials

Global Materials Centre of Excellence

Global Materials Centre of Excellence

• Vision Statement

“The Global Material Centre of Excellence will be the acknowledged leader in the materials science supporting Morgan Advanced Materials objective the World’s very best advanced materials company in our chosen technology families. It will deliver differentiated materials technology that is scalable with quantifiable benefits and value for our customers”

• Gives opportunity to increase the effectiveness of R&D spend in accelerating profitable growth

• Owns the fundamental material science developments for Morgan

• Provides critical mass for efforts, ideas and interaction

• Ownership of new formulation and processes

• Delivers materials and processes to global organisation

• Recognized externally and internally as the experts


22/08/2016

26

• The Centre’s aims are to emulate the world-leading

breakthroughs we have already made in chemistries and

processes in our Superwool® insulating fibre range

• On Completion this will give Morgan 4 CoE’s to span its

technologies

• Insulating Fibre, Bromborough, UK (2008)

• Structural Ceramics, Stourport, UK (2015)

• Carbon Science, Penn State, USA (2016-7)

• Metals and Joining, Hayward, USA (2016-7)

In 2016, Morgan Advanced Materials announced the formation of another 2 Materials Centre of Excellence

Morgan Advanced Materials Confidential Information

22/08/2016


New Horizons

Building relationships with

World Leading Academics and Customers

New Horizons – Working with Universities and Research Centre's around the globe (example)


22/08/2016

15

16 5

2 1

2 + 1

6

1

2

3

3

Morgan – University of Manchester partnership

Expertise in Carbon

Expertise in Graphene

Morgan has been an industrial sponsor of the Graphene work at Manchester since 2008

• Exploring New Horizons in materials science

• Understanding of the ultimate properties in carbon science

• In 2015 signed a joint development agreement with Manchester

• Focus on scaling up a patented process

• Morgan embedded 2 R+D engineers to work at the National Graphene Institute

Morgan Brings

• Processing and manufacturing

expertise

• Raw material knowledge and

selection

Manchester Brings

• IP and experience in graphene

exfoliation

• Internationally renowned Research

base


22/08/2016

We were the first company in the new National Graphene Institute in the UK


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Additive Manufacturing

Transforming our Industry?

History of Additive Manufacturing


22/08/2016

A focus on key commercial technologies

1990 2000 2010

Introduction of stereolithography

Fused deposition modelling introduced

Layered Object Manufacturing - Helisys

Selective Laser Sintering by DTM

Inkjet 3D printer

UV inkjet printer

Electron Beam Melting

Mass production

of the LEAP

engine part

FDM

patent

expires

SLS

patent

expires

Additive Manufacturing Patent landscape


22/08/2016

1982 1992 2002 2012

0

100

200

300

400

500

600

700

800

Num

be

r of P

ate

nts

Publication Year

Applications

Granted

First Rapid Prototyping patent

Stereolithography Fused

Deposition

Modelling

Electron Beam Melting

Selective Laser Melting

&

Objet

RepRap

Digital Light Processing Chip invented

Mikro Systems Founded, TOMO developed

Data From: https://www.gov.uk/government/publications/3d-printing-a-patent-overview

7 AM Technology families

Feedstock

Form AM Technology Polymers Metals Ceramics

SL

UR

RY

Material Extrusion ✓ ✓

Material Jetting ✓ ✓ ✓

Vat Polymerisation ✓ ✓ ✓

PO

WD

ER

Binder Jetting ✓ ✓ ✓

Powder Bed Fusion ✓ ✓ ✓

WIR

E

Directed Energy

Deposition ✓

SH

EE

T

Sheet Lamination ✓ ✓


22/08/2016

Materials Extrusion


22/08/2016

• Molten filament or paste material

extruded through nozzle, controlled

in x-y plane.

• Mostly used for polymers,

demonstrated for ceramic pastes.

Pros Cons

Low Cost Surface Finish

Manufacturing Time

*Gartner

http://www.lboro.ac.uk/research/amrg/about/the7categor

iesofadditivemanufacturing/materialextrusion/

Sales ($m) CAGR – 2013-18*

789 94.2%

Materials Jetting


22/08/2016

Pros Cons

Surface finish Heat & light sensitive

Multi materials

*Gartner

http://www.custompartnet.com/wu/jetted-photopolymer

• Polymers and waxes jetted though a

print head, different polymers can be

blended to grade properties across

an object.

Sales ($m) CAGR – 2013-18*

217 100%

Vat Polymerisation


22/08/2016

Pros Cons

Surface State Heat & light sensitive

• High quality polymer parts can be

produced, suitable for the production

of technical ceramic components too.

Sales ($m) CAGR – 2013-18*

273 109%

*Gartner

Binder Jetting


22/08/2016

Pros Cons

High volume Average surface

finish

Multicolour printing

http://www.lboro.ac.uk/research/amrg/about/the7categorieso

fadditivemanufacturing/binderjetting/

• An adhesive component is jetted

through a printhead to selectively

bind areas of a powder bed.

• Used for sand casting moulds, large

scale parts can be produced.

Sales ($m) CAGR – 2013-18*

87 77%

*Gartner

Powder Bed Fusion


22/08/2016

Pros Cons

Big, complex parts Surface finish

Mechanical

resistance

*Gartner

http://www.lboro.ac.uk/research/amrg/about/the7cate

goriesofadditivemanufacturing/powderbedfusion/

• Areas of a powder bed are

selectively melted using a laser or

other energy source.

• Used for metals like stainless steel

and titanium.

Sales ($m) CAGR – 2013-18*

199 30%

Direct Energy Deposition


22/08/2016

http://www.lboro.ac.uk/research/amrg/about/the7categorie

sofadditivemanufacturing/directedenergydeposition/

Pros Cons

Additive to existing

parts

*Gartner

Surface finish

• Used to cost effectively repair, rework

and manufacture metal components.

Sales ($m) CAGR – 2013-18*

19 57%

Sheet Lamination


22/08/2016

http://www.lboro.ac.uk/research/amrg/about/the7cate

goriesofadditivemanufacturing/sheetlamination/

Pros Cons

Low cost Surface finish

Manufacturing time

*Gartner

Materials options

• Paper based models for architecture

etc.

Sales ($m) CAGR – 2013-18*

25 86%

Value Chain - Today


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Manufacturers of 3D

parts

CAD software

providers

Design

Repositories

Feedstock

Manufacturers

Integrated sales

platforms

Machine

OEMs

Value Chain

Vert

ical R

each

3D Systems, Stratasys

Voxeljet, ExOne, Arcam, Lithoz, EOS

HP

Formlabs,

Autodesk

HP

Dassault

Systèmes,

Blender

Foundation

3D Hubs,

Sculpteo,

Shapeways

Value Chain trends


22/08/2016

3D Systems

54 acquisitions since 2001

>$227M spent

Strategy focussed on a software

and patents, and investment in

a distribution network

Stratasys

9 acquisitions since 2001

$2.2B spent

Strategy focussed on acquisition

of printer manufacturers, CAD,

and strategic consulting

http://www.fabbaloo.com/blog/2015/4/5/contrasting-the-corporate-acquisitions-of-stratasys-and-3d-systems

Autodesk

2 recent acquisitions

Strategy focussed on CAD/CAM

and Spark development

platform

Arcam

1 recent acquisition

Vertical integration, purchase of

feed stock manufacturer by

machine manufacturer

What has been delaying industrial Additive Manufacturing?

The reasons for this can be divided into the categories below.

Materials Performance • Engineering grade materials – fully dense, strong materials fully replicating properties

• Control of microstructure – to feed into process stability and quality

• Process Stability • Reliable dimensional control

• Building rates are often slow, but much faster than having equivalent tooling machined for example

• Development of layer by layer inspection required

• Quality Management • Reproducibility between print runs

• Limited number of standards exist

• Cost

• Feedstocks for different techniques can dramatically vary in cost. • Photosensitive resins are expensive


22/08/2016

Benefits of additive manufacturing

Efficient use of materials

• Uncured feedstock can be reused in future builds with

only cured material forming the final part.

• Component geometries can be created to reflect

expected loading conditions rather than as a

consequence of the method of manufacture.

• More efficient designs can allow components to be

miniaturised or for internal volumes to be replaced with

lattice designs


22/08/2016

Source: Lithoz. Glitter/cellular structure

http://www.lithoz.com/en/

Challenges:

Some geometries will need to be printed with supports

Not all AM techniques generate the same benefits for material waste.

Paste systems have much higher material usage due to high viscosity and difficulties to

remove it.

Some feedstock residue left on component which is washed off – for some

techniques/geometries up to 10-15%

Perpetuum Mobile ?!

“I print my own 3D-printer

at home and then I return

the one I just bought.“

Source: Eulenspiegel 2/15


22/08/2016

Some of the biggest challenges

for industrial manufacturing

companies include finding the

right partners and suppliers and

getting the right metrics in place to

measure innovation progress.

While product innovation and

differentiation is always

important, operational

innovations can lead to a more

productive and profitable

manufacturing company.

The importance of creating a

company culture that focuses

on innovating in all aspects of

the business enterprise is key.

Summary

Innovation in the manufacturing

sector has a dramatic impact not

just on the bottom line of

individual companies, but also

on the productivity of the entire

supply chain.


22/08/2016