3D printing technology adoption for Petriot manufacturing company

3D Printing

Petriot is a manufacturing company that seeks to gain a competitive advantage in the manufacturing business. This company competes on a strategy of having products made in America. Nothing could be more made in America than products made via 3D printing at the customer's site. This is an emerging technology that could help Petriot to improve and extend its competitive advantage.

There are many different types of 3D printing, as this is an emerging technology. It is important for Petriot to understand the different types. It is worth considering that the proper way to analyze this issue is to first determine from a strategic point-of-view what the best type of 3D printing option is optimal for Petriot, and then to perform a quantitative analysis via the net present value technique, which weighs the cost of acquiring this new technology vs. The financial benefits that it is expected to bring. It has been determined that the best course of action is to adopt the 3D printing technology in order to capture competitive advantage for American manufacturing.

By using the net present value technique the company will be able to ensure that this project makes sense both in quantitative terms and qualitative terms as well. This makes the recommendation of adopting the 3D printing technology the right one.

Introduction

Petriot should adopt 3D printing technologies. These will assist the company in the manufacturing process, making it more efficient and lowering costs. Adopting 3D printing will allow Petriot to have a competitive advantage over foreign manufacturers in terms of the quality/efficiency balance.

Problem Statement

Should Petriot adopt 3D printing technology for use in its manufacturing business?

Method Used

The stated benefits of 3D printing is that it should help Petriot deliver quality manufactured goods at a competitive price. There is really only one way to look at a decision such as this -- the cost-benefit analysis. What does it cost and what will the benefits be? There are a number of different methods that can be used, but the net present value method is typically the best one because it uses smart assumptions and takes into account the time value of money (Investopedia, 2014). This is especially useful in the manufacturing business where a capital investment is being considered.

Analysis

It is important when a company wants to make an investment, especially in something that will improve a manufacturing process, that the company makes a point to crunch the numbers. Doing this allows management to properly determine if the project genuinely adds value to their organization. In this case, what was found is that the 3D printing technology will add value to Petriot, and give them a competitive advantage that will allow them to have a higher market share. While the technology is currently emerging, it seems like a viable long-term solution for having things manufactured overseas (Baskin, 2014).

Conclusion

It is recommended that Petriot extend its manufacturing competitive advantage through the use of 3D printing technology. This will lower the costs and improve the quality, something that will challenge foreign manufacturers. Further, this plays well with the company's strategy of offering American-made goods and appealing to consumers' inherent "petriotism."