Issue link: https://iconnect007.uberflip.com/i/1541670
18 SMT007 MAGAZINE I DECEMBER 2025 The warehouse and receiving as manufacturing gates is a new way of thinking for some EMS companies. Suddenly, you know where every- thing is, and inventory is moving at the right time to the right place. Are software tools like this an ideal way to implement just-in-time production philosophy within your factory? All these fancy pieces of equipment are deliv- ering something from A to B. Is that really any different than a baggage carousel in an airport or the conveyor belt when you check out at a grocery store? You pick something out of your shopping cart, put it on a conveyor belt, and someone else picks it up and scans it. Is all this truly automation, or is it just perceived automation? People forget about the software. You can physically do something, however, if a software system, such as an ERP system, has no record of you making the transac- tion, you still have to go into that system and manually create the transaction. David, can you explain more about perceived vs. actual automation? Sure, like in the example I just gave, where a robot arm picks up a reel and places it in a cart is automation, but it's "perceived automation." A human could do that without much error. But automating the data entry at a high volume for half a million parts in an error-free way is "real automation." There are certainly companies that are making significant efforts to achieve a lights-out facility. However, there are still people required to main- tain the equipment and splice materials, despite the level of automation. Who are you targeting with this solution? Is this a high-volume, low-changeover company? Does this work well in a high-mix, low-volume environ- ment? What are the trade-offs? We have an equal distribution of customers between high mix, low volume, as well as those with no mix and high volume. We work with small NPI shops that do 20 changeovers a day. We also have ultra-high-volume, Tier 1 automotive and aerospace companies that produce the same product for five consecutive years where there's no changeover, it's just keeping the line fed. You're asking, "Who's our equipment for?" The Tier 1 companies are looking to minimize stop- pages by investing in full automation. The NPI- type shops are managing inventory complexities. It may never be a good idea to automate the high-mix, low-volume shops. Maybe it's more efficient to track manually in those shops. Just because you can automate, doesn't mean it's the best thing to do. What about full automation? For a high-mix manufac- turing environment seeking to become more competitive, grow, and operate more effi- ciently, automating material handling certainly appears to be a low-hanging fruit. What parts of their process lend themselves to this sort of automation? I'm glad you picked up on "full automation;" that phrasing was indeed intentional. We have customers in the high-mix, low- volume world, including NPI facilities. To your point, they're not doing full auto- mation, but they are automating archaic manual processes, like receiving, the same way the high- volume guys are. But just because they're not using robot arms and AGVs doesn't mean they're not being competitive by automating at least a process. Once they automate the receiving process, they may automate their picking process. Not necessar- ily with an arm that physically pulls parts, but per- haps their new system automates planning within the MRP/MES system. They may automate the delivery of the work order or bill of materials to the warehouse, or automate the picking process by using pick-to-light technology. That's an easy, small step. What is pick-to-light technology? It's a smart rack, a pick-to-light system with sensors. In general, companies are operating under one of two different types of scenarios " " Just because you can automate, doesn't mean it's the best thing to do.