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Description
Perfekt Mebel Ltd., founded in 2009 in Blagoevgrad, Bulgaria, has solidified its position as a leading player in the field of home furniture design, manufacturing, and assembly. With a diverse product range that includes custom-made furniture such as living room sectionals, bedroom sets, children''s room furnishings, kitchens, beds with chests, tables, desks, and shoe cabinets, the company has earned a strong reputation for quality craftsmanship.
The primary objective of this project is to empower Perfekt Mebel Ltd. to invest in cutting-edge, environmentally friendly equipment that enhances productivity, cost-efficiency, and profitability. By optimizing production processes, including cutting, milling, drilling, and edging, the company will increase productivity and reduce energy consumption. This investment in new machinery will also result in more efficient utilization of raw materials and a significant reduction in waste generation. Additionally, the company will adopt a comprehensive software system to digitalize the entire production process, from initial design to furniture manufacturing.
Furthermore, this project is expected to create two new employment opportunities, underscoring Perfekt Mebel Ltd.''s commitment to both innovation and job growth.
Summary of project results
Perfekt Mebel Ltd. was facing several significant challenges that limit its ability to grow and compete effectively in a market with high demand for custom-made home furniture. These challenges can be categorized into three areas: outdated equipment, limited digitalization, and constrained production capacity. Each of these issues impacted the company’s operational efficiency, customer experience, and overall competitiveness.
1. Outdated Equipment
- Efficiency Limitations: The company’s outdated machinery likely operated at a slower pace than modern equipment, limiting the speed and volume of production. This restricted Perfekt Mebel’s ability to handle multiple or large-scale orders simultaneously, slowing down the manufacturing process and leading to longer lead times for clients.
- Increased Maintenance Costs: Older equipment often requires more frequent maintenance, resulting in higher operational costs and more frequent downtime. The unpredictability of breakdowns further disrupts the workflow, leading to delays in order completion and ultimately decreasing customer satisfaction.
- Limited Production Capabilities: Outdated machinery may not support the production of complex or diverse furniture designs, which could be a disadvantage when trying to meet evolving customer preferences. It might also limit the company’s ability to use newer, more durable, or more eco-friendly materials that require advanced processing techniques.
2. Partial Digitalization
- Inefficient Processes: Without full digitalization, many processes are likely still manual, including certain stages of design, production planning, inventory management, and quality control. This can lead to errors, delays, and miscommunication between departments. Manual processes are not only slower but also less adaptable to changes in customer orders or production schedules.
- Lower Productivity: Digitalization, especially in areas such as design and production planning, enables automation of routine tasks and better utilization of resources. The lack of digital solutions means that Perfekt Mebel Ltd. likely relies heavily on manual labor, which can lead to bottlenecks in production as employees handle repetitive tasks that could otherwise be automated.
- Data Gaps and Limited Customer Insights: Digital systems enable companies to track valuable data, from customer preferences to operational performance. Without digital tools, Perfekt Mebel Ltd. may be missing out on insights that could help optimize their offerings and processes. For example, they may struggle to accurately forecast demand, analyze popular design trends, or identify inefficiencies in the production line.
3. Limited Production Capacity
- Unable to Meet Market Demand: Given the high demand for custom-made furniture, Perfekt Mebel Ltd. is currently unable to capitalize on the full market potential due to its limited production capacity. The outdated equipment and lack of digital processes restrict the volume of furniture they can produce within a given timeframe, capping their revenue potential.
- Scalability Constraints: The production capacity ceiling limits the company’s ability to expand.
The project aimed to address the limitations faced by Perfekt Mebel Ltd. by modernizing its production facilities through the acquisition of innovative, green production equipment and the implementation of digital solutions, as follows:
Enhanced Precision and Reduced Waste with CNC Cutting Machine
The Computerized Numerical Control (CNC) cutting machine significantly increased the precision of cuts, allowing for highly accurate sizing and shaping of furniture components. This precision is essential for custom-made furniture, where exact dimensions are crucial to meet clients’ specifications.
The CNC cutting machine also reduced technological waste by optimizing material use and minimizing offcuts and errors, which was a challenge with the old equipment. Less waste means lower costs for materials and a more sustainable production approach.
In addition, the machine decreased energy consumption, aligning with the project’s green objectives. The automation and efficiency of the CNC cutting process save power compared to the manual and less precise older equipment.
Increased Speed and Efficiency with CNC Drilling Machine
Automated Measurement and Versatility: The CNC drilling machine can automatically measure component dimensions, making it adaptable for both small and large furniture parts. This flexibility allows Perfekt Mebel Ltd. to process a variety of custom furniture elements without time-consuming manual adjustments.
Efficiency in Drilling: By automating the drilling process, the machine performs complex drill patterns quickly and precisely, which speeds up production. This efficiency translates to faster order completion times, allowing the company to fulfill more orders and improve customer satisfaction.
Productivity Boost with CNC Milling Machine
The CNC milling machine enables Perfekt Mebel Ltd. to mill grooves, folds, engravings, and intricate shapes in furniture components, including doors. This versatility is crucial for creating custom designs that align with individual customer preferences, helping Perfekt Mebel Ltd. stand out in the custom furniture market.
This machine replaced slow, labor-intensive manual milling processes with automated, high-speed milling, drastically reducing production time and labor costs. By eliminating these manual operations, employees can focus on more skilled tasks, improving productivity across the board.
Improved Quality and Durability with Edging Machine:
The new edging machine enhances the adhesion strength of the furniture’s edges, making the finished products more durable and water-resistant. This improvement boosts the quality and lifespan of the furniture, adding value for customers and reducing the likelihood of future repairs.
The machine also removes excess glue and cleans parts as they’re processed, eliminating the need for subsequent manual cleaning. This automation not only saves time but ensures a higher-quality finish that is consistent across all products. The edging machine’s efficiency contributes to an estimated 15% increase in finished product output.
Overall Increased Production Capacity and Improved Product Quality:
By integrating these machines, Perfekt Mebel Ltd. has streamlined its entire production process, allowing the company to produce a larger volume of high-quality furniture more efficiently. The improved accuracy, strength, and design capabilities of the furniture are direct results of this technology upgrade.
The results that were achieved following the implementation of the project are mainly related to:
Increased Production Capacity and Profitability: By reducing manual processes and upgrading equipment, the company anticipated a 15% increase in the amount of finished products. This modernization was expected to boost annual turnover by 20% and net operational profit by 50% by 2024, allowing Perfekt Mebel to meet market demand more effectively.
Job Creation and Economic Development: The project aimed to create two new jobs, with potential for future employment growth due to increased production capacity. This investment also contributed to local economic development, particularly in a small rural area, by sustaining existing jobs and creating additional ones.
Strengthening Competitive Position: With advanced technology and improved efficiency, Perfekt Mebel could better compete with larger, better-equipped firms. The improvements were expected to increase the company’s appeal to both private clients and institutional buyers, expanding its reach and securing its position in the custom furniture market.
Sustainability Initiatives: The project emphasized reducing the environmental footprint. The new equipment would decrease energy consumption by approximately 18% and lower CO2 emissions by a similar percentage. Additionally, it was expected to reduce waste by about 2 tons annually through better raw material utilization and waste minimization.