Cutting Precision for Environmental Provision

Description

Avto Engineering Holding Group Ltd., a market leader in manufacturing specialized vehicles and equipment for sectors such as fire-fighting, emergency-rescue, police, airport operations, and various state institutions, owes its success to honed core competencies. The company specializes in the precision mechanical processing of diverse metal components, with proficiency in CNC turning and CNC milling. Their portfolio includes the fabrication of intricate parts, complex assemblies, and a wide array of metal elements, spanning lightweight aluminum and its alloys, durable titanium and titanium alloys, heavy metals, as well as various forms of steel (structural, stainless, and tool steel), and even plastic.

In addition to this, Avto Engineering extends its offerings to encompass a comprehensive suite of services for metal sheet processing and profiles. This comprehensive range includes metal element cutting, bending, and painting, facilitating meticulous oversight throughout the entire production chain. Notably, their precision sheet material bending process is executed with cutting-edge digital control-equipped sheet bending press machines. The crucial laser cutting process, integral to maintaining the superior quality of Avtofactory''s branded products, has exposed a bottleneck within their production chain. Despite operating at full capacity, the existing laser cutting equipment hinders overall delivery timelines. As a solution to this challenge, the company will embark on the acquisition of an Innovative Automatic Fiber Laser Cutting Platform as part of the Project.

To ensure the project''s seamless execution, International Development Norway, their Norwegian partner, will play a pivotal role in optimizing the investment''s impact, particularly concerning the new laser cutter. Their contribution will involve a comprehensive analysis and the optimization of production layout, workflow, and processes, guided by lean principles to enhance operational efficiency.

Summary of project results

The project aimed to address the following issues or challenges:

1. Bottlenecks in Production: Avto Engineering Ltd. identified inefficiencies in its production process, specifically with its existing laser cutting equipment. The equipment had limited capacity, longer adjustment periods, slower processing, and higher energy consumption, leading to production delays and material waste.

2. Energy Inefficiency and Waste: The current equipment''s energy consumption was high, and a significant portion of materials was wasted during processing. This inefficiency was environmentally and economically costly.

3. Capacity Constraints: With operations expected to peak in 2022, the company needed to expand production capacity to meet growing demand and avoid delays in order fulfilment.

4. Technological Advancement: Emerging technologies provided more efficient, precise, and energy-saving solutions. The company aimed to upgrade to an innovative automatic fiber laser cutting platform to stay competitive and improve overall production.

5. International Competitiveness: Avto Engineering Ltd. sought to enhance its competitiveness in global markets by adopting more advanced and sustainable manufacturing practices.

6. Environmental and Material Efficiency: The project sought to reduce CO2 emissions, energy consumption, and material waste, aligning with green industry innovation objectives.

These challenges underscored the need for investment in modern technology and process optimization to enhance efficiency, profitability, and sustainability.

The project, titled "Cutting Precision for Environmental Provision," focused on modernizing and optimizing Avto Engineering''s production processes. Below is an overview of the activities and outputs:

Project Activities

1. Purchase and Installation of Equipment:

   • Acquired an Innovative Automatic Fiber Laser Cutting Platform, which offers high cutting precision, energy efficiency, and material optimization. The equipment features:
     • Direct Drive Rack & Pinion for smoother operation.
     • Automatic Sheet Position Locator for efficiency.
     • Intelligent Auto Focus Capacitive Cutting Head for precise cutting.

2. Know-How Exchange and Process Optimization:

   • Partnered with International Development Norway to:
     • Optimize production layout/flow, mapping the production process and identifying potential bottlenecks.
     • Enhance production planning and scheduling using digital tools and integration with ERP systems.
     • Improve production monitoring/control with recommendations for digitalization strategies and industry 4.0 practices.

Project Outputs

1. Technological Advancements:

   • Introduced one innovative technology (fiber laser cutting platform) into operations.

2. Enhanced Efficiency:

   • Reduced energy consumption by 41 MWh annually.
   • Improved material efficiency, saving 28 tonnes of raw materials annually.
   • Decreased CO2 emissions by 61 tonnes per year.

3. Economic Growth:

   • Achieved an estimated 38% increase in turnover.
   • Realized a 60% increase in operational profit.

4. Job Creation:

   • Created two new jobs by the end of the project.

5. Sustainability and Green Innovation:

   • Implemented measures to enhance energy efficiency and material usage while reducing environmental impact.

Key Outcomes

• Increased production capacity and efficiency.
• Strengthened competitiveness in international markets.
• Aligned operations with green industry innovation principles.

By addressing production bottlenecks and adopting advanced technologies, the project successfully enhanced Avto Engineering''s operational capabilities and environmental sustainability.

Outcomes and Impacts

1. Enhanced Production Efficiency:

   • The introduction of the innovative fiber laser cutting platform significantly increased production speed and precision.
   • Reduced energy consumption and improved material efficiency, saving 28 tonnes of raw materials annually.
   • Decreased CO2 emissions by 61 tonnes annually, contributing to a greener and more sustainable production process.

2. Economic Growth:

   • Achieved an increase in turnover and rise in operational profit.
   • Enhanced profitability allowed the company to strengthen its financial resilience and reinvest in further growth.

3. Job Creation and Workforce Development:

   • Created two new jobs, contributing to local employment opportunities.
   • Improved workforce skills through training on the new equipment, supported by the supplier and project partner.

4. Technological Advancement:

   • Adopted state-of-the-art laser cutting technology and integrated it into the production process.
   • Optimized production layout and monitoring practices, aligning with Industry 4.0 digitalization trends.

5. Sustainability and Green Innovation:

   • Supported the company’s long-term strategy for green development and compliance with EU environmental standards.
   • Reduced the environmental footprint of the production process, benefiting the global community by mitigating climate impact.

6. Strengthened Competitiveness:

   • Improved Avto Engineering''s ability to meet international market demands.
   • Positioned the company as a leader in the Bulgarian market for specialized vehicles, with enhanced capacity to handle complex orders and reduce lead times.

Beneficiaries

1. Primary Beneficiary:

   • Avto Engineering Holding Group Ltd.:
     • Improved production capacity, efficiency, and profitability.
     • Strengthened position in local and international markets.

2. Employees:

   • Received training and skill enhancement opportunities.
   • Gained job security and better working conditions due to improved operational stability.

3. Customers:

   • Public authorities and private entities benefited from faster delivery times and higher-quality products.
   • Access to more cost-efficient and sustainable solutions tailored to their needs.

4. Community and Environment:

   • The reduction in CO2 emissions and energy consumption positively impacted the local and global environment.
   • Supported Bulgaria''s green innovation objectives and contributed to broader EU sustainability goals.

5. Project Partner (International Development Norway):

   • Gained experience in collaborative innovation projects, contributing to the exchange of knowledge and expertise.

The project achieved significant advancements for Avto Engineering Ltd. while delivering economic, environmental, and social benefits for employees, customers, and the wider community.

 

Summary of bilateral results

The project benefited significantly from the involvement of International Development Norway (IDN) as the donor project partner. IDN''s expertise and contributions enhanced various aspects of the project, particularly in production optimization, knowledge exchange, and alignment with best practices in sustainability and Industry 4.0.The success of the current project has opened doors for continued collaboration with IDN, particularly in areas like advanced manufacturing, green innovation, and digital transformation.The collaboration with IDN not only improved the project''s immediate outcomes but also laid the groundwork for future partnerships. Avto Engineering Ltd. has gained valuable knowledge and tools to enhance its operations, while IDN has strengthened its portfolio of international cooperation in green industry innovation. The partnership exemplifies how bilateral cooperation can foster innovation and sustainability while building long-term, mutually beneficial relationships.