• In-house 3D printing has been successfully implemented across multiple plants at PEP, generating large savings. 
• This is a lower cost way to source a part previously purchased from supplier even when calculated on TCO basis and net CAPEX depreciation plus plant OPEX.

• the in-house 3D printing activities are tracked using an offline excel file and do not show on any ERP system or productivity database. 
• There is no longer a part to purchase externally since they are printed on-site at the plant. Only raw materials for printing must be purchased. 
• Budget cuts executed by PBNA ($5MM) and PFNA ($2.5MM) in 2025 due to ORP now no longer counted towards Procurement Productivity and is a significant in-year change. 

• Since this MRO tactic generates significant savings (e.g.,~800MM/YR), how can we ensure that it is accounted for in the productivity framework in Procurement?
• How do we handle in-year changes on what counts and does not count towards Procurement Productivity?

Cost reduction per unit due to In-House 3D Printing counts as P&L Productivity if we can determine a sound baseline, there is a YoY rate reduction, and the process is of recurring nature. 

Governance:

• Establish a process and policy to keep track of parts that are locally-printed (or locally-fabricated) in concert with Plant operations. 
• Track & count productivity based on the cost of a new part vs. cost of in-house fabrication 
• Use the TCO approach and consider impact on life of repaired part, additional expenses i.e. cost of material, printer depreciation, labor, freight, supplier spend/margins, etc.
• Yse the formula (PY cost - Current cost) x current year volume