Strategic Digital Transformation Fuels 74% Revenue Growth at Taiyuan Boiler Group

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Taiyuan Boiler Group Co., Ltd. is a dominant force in China's industrial boiler manufacturing industry. It is renowned for its advanced circulating fluidized bed boiler technology, which leads the market nationwide. 

As a state-certified Class A boiler manufacturer, Taiyuan Boiler Group spans 680,000 square meters and has assets totaling 670 million yuan (104 million USD). Employing 3,600 staff, including 965 technical professionals, Taiyuan Boiler Group is one of the largest boiler manufacturers in North China. The company specializes in power station boilers, large industrial boilers, and pressure vessel equipment.

Navigating the Complexities and Trends of the Boiler Industry

 

Unlike traditional manufacturing companies, the boiler industry, where Taiyuan Boiler Group is a key player, spans multiple technical fields, including equipment manufacturing, energy and power, and construction. This extensive range of required expertise introduces significant complexities. For an industry with such a complex and extensive production and management system, these challenges are commonly faced:

High Customization Demand

Each boiler project requires bespoke designs to meet varying client needs and site conditions. This high level of customization has led to boilers being regarded as large, non-standard equipment. Projects must be tailored to specific requirements, resulting in diverse array of designs and solutions.

Large Volume of Drawings

The complexity of boiler projects is reflected in the sheer volume of drawings required. From design through production to on-site construction, thousands of drawings are needed per project, with a low reuse rate between different projects. 

Intensive Statistical Work

Managing data statistics in the boiler industry is challenging due to numerous and diverse lists related to drawings. Meticulous data aggregation and handling are essential to maintain project timelines and ensure accurate execution of design elements.

Halting Order Intake Due to Inefficiencies: Advancing Toward a 3D-Driven Digital Transformation

In recent years, traditional product design and development methods have struggled to keep pace with Taiyuan Boiler Group's rapid growth. This point is particularly evident in design and production efficiency, where the company often has to halt order intake by June each year because design and production cannot keep up with the demand. As a result, the company is proactively seeking business upgrades in the following areas.

Modernizing Design Software

The R&D department still relies on CAD software from 2000 for 2D design, which results in compatibility issues with current industry standards and the need for more essential industry-specific modules. The software cannot be installed on new Windows systems, preventing necessary updates. Taiyuan Boiler Group aims to transition to modern, industry-compatible 2D and 3D design software to enhance functionality and compatibility and allow for hardware and software upgrades.

Transfer to Parametric 3D Design

 

Currently, the company predominantly uses 2D design, which fails to convey design intent and product geometry effectively and lacks the capability for automatic calculations of part quantities, materials, and weights. The goal is to shift to parametric 3D design to express design intent better, accurately represent product geometry, and enable automated calculations. This transition will facilitate quick and precise design modifications, significantly improving overall design efficiency.

Establish Standardized 3D Design

The lack of standardized design procedures leads to inconsistencies and slows effective collaboration among different departments. The goal is to facilitate better teamwork and communication by ensuring all team members follow the same guidelines. Standardization will promote the reuse of components and designs across projects, increasing efficiency and reducing the need for rework and redundant efforts.

Implementing a Comprehensive Data Management Platform

Data from design, simulation, process, and manufacturing are not integrated, with departments still using basic shared folders and USB drives for data transfer and sharing. Manual data aggregation and processing lead to inefficiencies and high error rates. Taiyuan Boiler Group seeks to implement a comprehensive data management platform to integrate data across departments, streamline processes, and reduce error rates.

Strengthening Ties: Two Years of Committed Project Implementation with ZWSOFT

Project Implementation Process

Project Implementation Process

 

In pursuit of a digital transformation, Taiyuan Boiler Group explored several solutions. After months of rigorous evaluation involving four domestic and international software companies, ZWSOFT emerged as the optimal choice.

The whole project implementation took two years. Taiyuan Boiler Group formed a dedicated digital transformation project team by selecting key members from various design departments to work closely with ZWSOFT's R&D, technical, and business staff. The project began with simpler assembly component designs and progressed through several critical phases, including core drum component design validation, parametric modeling and engineering drawing validation, and large-scale component design validation. Through their relentless efforts, the team successfully validated designs for assemblies with tens of thousands of components.

Notably, the core components reached over 7,000 parts, while the water-cooled and heat exchanger systems reached 15,000 and 35,000 parts respectively. Throughout the process, ZW3D iterated nine product versions, collected 120 improvement suggestions and functional requirements, and achieved an 80% resolution rate for core issues.

In the later stages of the project, the team also initiated the research, presetting, and implementation of the PLM system. Ultimately, the project culminated in the comprehensive adoption and utilization of ZWSOFT products. marking a significant milestone in Taiyuan Boiler Group's digital transformation journey.

Achieving 74% Revenue Growth: The Impact of Digital Transformation on Taiyuan Boiler 

 

Over the past two years, Taiyuan Boiler Group's performance has seen remarkable growth, with revenue increasing from 2.3 billion to 4 billion yuan (357 million USD to 620 million USD). This significant growth can be attributed to the company's comprehensive digital transformation efforts.

Taiyuan Boiler Group successfully overcame 2D drawing compatibility issues by adopting ZWCAD. By replacing the outdated KMG series drawings with DWG format drawings and implementing customized corporate standard templates, the company standardized drawing formats and ensured consistency and standardization in their design processes.

In 3D design, Taiyuan Boiler Group established a large-scale, multi-level parametric system using ZW3D. They created parametric assembly models with over three levels, reaching an assembly volume of 30,000 parts and enabling the deformation design of primary structures. To streamline and enhance their design process, they established standardized design practices with common components and documentation, as well as a robust reuse library, creating a comprehensive 3D modeling framework. Through ZW3D's API interface, 2D and 3D design data were seamlessly integrated into the PLM system, generating corresponding product structures and relationships. The data was automatically compiled and released through approval processes, resulting in standardized forms.

Conclusion

After nearly two years of collaboration, Taiyuan Boiler Group and ZWSOFT have achieved mutual benefits and significant progress. For Taiyuan Boiler Group, the digital transformation journey has advanced considerably, leading to the establishment of scientific design processes and standards. This partnership has not only enhanced operational efficiency but also positioned Taiyuan Boiler Group for sustained growth and innovation in the industry. The close cooperation between the two companies exemplifies how strategic partnerships can drive technological advancements and create lasting value.

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