From "Searching Time" to "Making Time."
A shop floor that keeps pace with rising orders — and keeps all 21 lines running.
A shop floor that keeps pace with rising orders — and keeps all 21 lines running.
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One year in, zero trouble. What KATATA ELECTRIC (THAILAND) is aiming for next.

KATATA ELECTRIC (THAILAND) cut parts preparation time by 42% and reduced picking staff from 10 to 4 across two shifts.
This case study looks at how KATATA ELECTRIC (THAILAND) built a "live inventory" and achieved zero mis-picks and mis-mounts, plus zero pre-setup delays across its 21 lines.
Customer Profile
Overview
| Customer | KATATA ELECTRIC (THAILAND) CO., LTD. |
|---|---|
| Business | Electronics manufacturing (SMT assembly / EMS) |
| Products | Smart Reel Rack®, system implementation support |
| Scale | 21 units of 6-tier double-sided type 10 units of 4-tier double-sided type 31 units in total |
Parts management for high-mix, low-volume production: no searching, no guessing, no stopping
In an EMS factory running high-mix, low-volume production, productivity depends on how quickly and accurately changeovers are done.
Improving the SMT process alone is not enough. If searching for, checking, preparing and returning parts still takes a long time, the lines cannot run at full capacity.
KATATA ELECTRIC (THAILAND) CO., LTD. ("KET") runs SMT assembly in Thailand.
The company used Smart Reel Rack® to turn its parts management into a "live inventory."
As a result, KET cut parts preparation time by 42% and parts storage space by 66%.
It also reduced picking staff from 10 across two shifts to 4. Mis-picks and mis-mounts dropped to zero.
So did pre-setup delays on its 21 lines caused by preparing parts for the next production run.
KET's approach goes beyond efficiency. It also covers quality, stable operation and future improvement investment, and it offers a proven model for high-mix, low-volume EMS.


※KATATA ELECTRIC (THAILAND) CO., LTD. Left: Mr. Yosuke Otowa, Manager / Right: Mr. Hideki Umehara, President
We spoke with Mr. Otowa, who oversees everything from materials management to overall manufacturing,
about the results and how the system took hold on the shop floor.
Background and Challenges
After the SMT process, the next opportunity: parts preparation and management
KET had long been improving its SMT assembly process.
As those improvements matured, however, it became clear that further productivity gains would also require a review of indirect work.
KET focused on how electronic component reels were prepared and managed in the SMT area.
The floor handles an average of about 37,000 reels a month.
Each time parts arrived, staff searched for a shelf location on a PC and checked the storage location in the production management system.
Returning used reels also meant judging old versus new under FIFO (first-in, first-out) rules and rearranging them on the shelves.
Tasks that require part matching and FIFO judgment take time.
They also carry the risk of human error, such as picking the wrong part or the wrong date code. Parts storage also took up a lot of room: 114 m² in Area A1 and 92.16 m² in Area A2, about 206 m² in total.
Both the space and its cost had become a problem.
In EMS, fast changeovers are the key to productivity.
If late parts preparation delays the start of the next run, lines may have to stop.
KET set out to build a system that would never interrupt parts supply, with real-time visibility of each item's storage location, remaining quantity and picking order.
Why KET Chose Smart Reel Rack®
A proven track record within the group, and the ability to reuse existing development
KET's priorities were to reduce labor and space costs and to improve inventory accuracy and changeover capability.
One deciding factor was that KATATA's head office factory in Japan had already introduced Smart Reel Rack® and had operating experience with it.
A semi-custom system had also already been developed on the Japanese side, so the Thai factory could reuse the same system and development assets as they were.
KET could adopt a system suited to its own operations with minimal new development, which was also a major cost advantage.
For capital investment at an overseas site, it is reassuring to be able to improve step by step while weighing the functions the shop floor needs against the return on investment.
Our Proposal
Digitalizing parts management with 31 Smart Reel Rack® units
To handle about 37,000 reels a month and to prepare for future production growth, KET installed 31 Smart Reel Rack® units: 21 of the 6-tier double-sided type and 10 of the 4-tier double-sided type.
Smart Reel Rack® digitalizes electronic component storage racks and gives each component reel a location.
LEDs show where the target reel is, so operators simply take the reel from the lit position.
This makes the work fast and accurate.
The system also tracks reel data to support FIFO, and it allows free-location storage.
This improves storage efficiency and saves space.
Rather than simply replacing shelves, KET gained a single view of each part's location, inventory and picking order, and rethought its entire parts supply process.
Results
Fewer people and less space, with better quality and stable operation
Results
| Parts preparation | 42% shorter per reel (6.03 min → 3.49 min) |
|---|---|
| Returning reels to shelves | 70% shorter (81.8 sec → 24.6 sec) |
| Picking staff | Reduced from 10 across two shifts to 4 (2 on day shift, 2 on night shift) |
| Storage space | 66% smaller (approx. 206 m² → approx. 71 m²) |
| Quality | Zero mis-picks and mis-mounts |
| Production stability | Zero pre-setup delays across 21 lines caused by parts preparation for the next run |
| Return on investment | Estimated labor savings of over THB 2.4 million per year; payback period of 4 years or less |
Parts preparation time fell from 6.03 to 3.49 minutes per reel, a 42% reduction.
Returning reels to the shelves fell from 81.8 to 24.6 seconds, a 70% reduction. Searching for shelf locations on a PC and checking storage locations in the production management system are, as a rule, no longer needed.
Picking staff went from 10 across two shifts to 4 in total: 2 on the day shift and 2 on the night shift. Parts storage space shrank from about 206 m² to about 71 m², a 66% reduction.
The capacity freed up by needing fewer people can now go to higher-value work.
On quality, mis-picks and mis-mounts are now at zero. Pre-setup delays caused by preparing parts for the next run are also at zero.
All required parts can now be gathered quickly before production starts, so changeovers happen promptly. This removes the risk of line stoppages and raises productivity.
On return on investment, a simulation estimates labor savings of over THB 2.4 million per year, with an expected payback period of 4 years or less.
Adoption on the Shop Floor
One barcode scan, no guesswork. Skill-free operation in one week, with about a year of trouble-free running
Before the system, staff worked from an inventory list exported to Excel.
When several reels of the same part were in stock, they had to compare dates and pick the oldest first.
When the required quantity didn't match a full reel, they worked out the remainder by hand and then pulled an additional new reel manually.
Deciding which reels to take, and how many, was left to each operator. This took time, and results depended heavily on experience and familiarity.
With Smart Reel Rack®, operators scan a single barcode.
The system decides which reels to pick based on FIFO and the required quantity, and LEDs show where they are. Operators simply take the reels from the lit positions.
Searching, comparing and calculating are no longer part of the job, so even non-veteran staff can store and pick reels accurately without hesitation.
This skill-free way of working became established on the shop floor in about one week.
Storage and picking started without any major problems.
For about a year since then, the racks, the system and daily operations have all run stably without trouble. Operations have gone so smoothly that engineers from JFE Shoji Electronics Thailand Ltd. have not needed to visit for on-site support.
Smart Reel Rack® has also been highly rated as a parts management system during customer audits and factory tours for new customers.
Being able to show clearly where parts are and how they are managed does more than make daily work more efficient. It also builds even greater trust in KET's quality control.
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Before: parts storage required about 206 m²


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After: consolidated into about 71 m², a 66% space reduction
Looking Ahead
Turning one success into the next improvement investment
After seeing concrete results in its existing warehouse, KET has found it easier to plan its next improvement steps.
Next, KET is looking to optimize the whole parts supply flow further.
Options include temporary storage shelves on the shop floor, parts carts, picking in tape feeder order, and links with batch exchange carts.
As a next step, KET is also considering related products:Smart Box Rack, mainly for tray-supplied components, and a moisture-proof Smart Reel Rack® suited to long-term parts storage.
Turning one improvement into solid results has made the next investment decision easier.
With Smart Reel Rack® as the starting point, KET will keep evolving the parts supply system that supports its high-mix, low-volume production, step by step.
Summary
Smart Reel Rack® is more than a storage fixture.
It shows each part's location, inventory and picking order in real time and reduces the judgment operators have to make.
In this way it supports more efficient parts preparation, better quality and stable operation.
If your company faces challenges with inventory management, parts preparation or SMT changeovers, please feel free to contact us.
What is Smart Reel Rack®?

Smart Reel Rack® is a next-generation reel storage system that digitizes electronic component shelving — embedding location data directly into the rack to dramatically improve the efficiency of traditional reel management.
- Intuitive put-away and picking via LED guidance — anyone, without hesitation, fast
- Free-location storage for maximum density and zero wasted space
- Real-time inventory management and FIFO operation through ERP/core system integration
- Maintenance-free design — no moving parts, no ongoing ESD grounding upkeep
- Scalable across multiple sites and warehouses — one-time software development, minimal cost to roll out further
➤Learn more about Smart Reel Rack®
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