Pursuit of production innovation and cost reduction from the development stage

「To this end, ABEJA has focused on an approach to prevent these problems before they occur and has begun verifying an automated drawing-checking system in which AI autonomously compares and verifies design drawings against design standards documents, while improving productivity across the design and manufacturing process by passing on and applying skilled workers’ tacit knowledge through the system.」

「Using fluid-analysis technology, we developed the “WA Coil,” which improves heat-exchange efficiency per fin by optimising the aluminium-fin shape of heat exchangers, including slit shape and fin spacing, while reducing the number of fins used by at least 10% compared with the previous design.」

「To further strengthen our ability to respond to individual worksites, one of our strengths, it is urgently necessary to establish an operating structure that is not dependent on individual proficiency. This requires innovation in business processes through the digitalisation of customer requirements, the related design and manufacturing instructions, and the various types of know-how needed for customisation. We will steadily advance SSA and move away from labour-intensive factories by improving the accuracy of demand forecasts, reviewing design processes, reforming manufacturing methods and developing AI to improve production-process efficiency.」

「We are advancing the next-generation transformation of design, estimating, procurement, manufacturing and logistics based on the conversion of design to 3D CAD and a BOM.」

「Against this backdrop, the Company advanced the SIMA (SINKO Innovative Manufacturing of AHU) project to digitize operations and sales initiatives for products and services targeting 5 priority markets, including industrial and data center applications.」

「Through innovation in business processes centred on building a digital design and production system based on a product database (BOM), improving the accuracy of demand forecasts and establishing impact-based sales, we will balance responsiveness to made-to-order requirements with production efficiency.」

「Advancing operational digitization through the SIMA (SINKO Innovative Manufacturing of AHU) project」

「Through innovation in business processes centred on building a digital design and production system based on a product database (BOM), improving the accuracy of demand forecasts and establishing impact-based sales, we will balance responsiveness to made-to-order requirements with production efficiency. This will address intensifying price competition between companies and rising costs resulting from higher raw-material prices and labour costs, thereby improving the business’s growth potential and profitability over the medium to long term.」

「In addition to advancing the “SIMA (SINKO Innovative Manufacturing of AHU)” project to rebuild our operational platform through digitalisation, we worked to improve the business’s growth potential and profitability over the medium to long term, including by expanding our product lineup of heat-pump air-conditioning equipment.」

「Against this backdrop, under the medium-term management plan “move.2025,” which began this fiscal year, we advanced the SIMA (SINKO Innovative Manufacturing of AHU) project, including the implementation of artificial intelligence (AI) technology in the business and the development of a product database (BOM), and worked to strengthen our business platform over the medium to long term.」

「We advanced the SIMA (SINKO Innovative Manufacturing of AHU) project to convert design and production know-how into digital technology and rebuild the operational platform.」

「Against this backdrop, the Company worked to accelerate the organizational integration of sales and manufacturing following the merger with its consolidated subsidiaries, while advancing the SIMA (SINKO Innovative Manufacturing of AHU) project to convert design and production know-how into digital technology and rebuild the operational platform. This included developing a 3D CAD system that can automatically update linked equipment dimensions and other specifications and output the processing data required for production, as well as using artificial intelligence (AI) to predict production hours that had traditionally been planned by experienced employees.」

「We will steadily advance the SIMA project and move away from labour-intensive factories by reviewing design processes, reforming manufacturing methods and developing AI to improve production management, thereby achieving manufacturing that emphasises diversity.」

「To accelerate sales and manufacturing productivity improvements through reviews of business processes and various system investments that had been ongoing」

「Against this backdrop, while focusing on additional strategic orders, the Group worked to improve sales and manufacturing productivity through reviews of business processes and system investments to improve build-to-order production services and related areas.」

「The company continued to pursue productivity improvements through integrated sales and manufacturing operations, including reviews of work processes and system investment to improve make-to-order production services.」

「We are working to improve productivity by streamlining information across manufacturing and sales as one integrated operation and investing in systems, while optimising the use of manufacturing and shipment capacity」

「Against this backdrop, the group focused on strategic orders for air-conditioning equipment and maintenance and construction services. To meet rising demand, it worked to expand and optimize manufacturing and shipping capacity through productivity improvements based on coordination between sales and manufacturing, system investment to improve make-to-order production services and related areas, and the development of its logistics system.」

「We worked to expand manufacturing capacity, including through productivity improvements from sales and manufacturing coordination and system investments to improve build-to-order production services.」

「Against this backdrop, the Group worked to expand production volumes and further strengthen its earnings base through strategic orders, while also making system investments to improve build-to-order production services and working to improve productivity through sales and manufacturing coordination.」

「We worked to improve productivity through coordination between manufacturing and sales and deepen collaboration with business partners.」

「We worked on upfront investment, including efforts to improve productivity through coordination between manufacturing and sales.」

「Initiatives to improve productivity through closer coordination between production and sales」

「Initiatives to improve productivity through closer coordination between production and sales」

「Production innovation through manufacturing and sales coordination」

「Further production innovation based on closer coordination between production and sales」

「We will further advance strategic order-taking, closer manufacturing and sales coordination, and production innovation.」

「Although sales declined 3.1% year on year to ¥1,520 million, mainly due to the slowdown in China’s economic growth, segment profit (operating profit) was ¥112 million, compared with a segment loss of ¥63 million in the same quarter of the previous year, owing in part to cost reductions resulting from the strengthening of the production system.」

「We worked to pursue production innovation and reduce costs from the development stage, while expanding and reorganising the businesses of our overseas subsidiaries.」