1. Smart Storage System for Small
Components
A Production Engineering Project
Report
2. Project Objectives
• - Analyze current manual storage practices for
small components
• - Identify inventory management inefficiencies
and picking errors
• - Design a smart sensor-integrated storage
system
• - Ensure low-cost implementation suitable for
MSMEs
• - Prototype a scalable system with real-time
monitoring and alerts
3. Current Storage Practice Analysis
• - Manual bin shelving with no digital tracking
• - Difficulty locating parts quickly
• - Stock-outs or overstocking due to lack of
alerts
• - Time-consuming manual stock entries
• - No visibility into component usage trends
4. Bottlenecks and Issues
• - Picking errors due to manual process
• - Inventory mismatches and lost components
• - Time wasted in searching for parts
• - Inefficient space utilization
• - No timely replenishment alerts
5. Smart Storage System Design
• - RFID/QR coded bins for identification
• - IR sensors or load cells to detect bin status
• - LED indicators for guided picking
• - Touchscreen or app-based UI for interaction
• - Auto alerts for stock replenishment
• - Centralized microcontroller (Arduino/RPi)
6. Cost-Effective Design for MSMEs
• - Open-source hardware and software
• - Affordable sensors and electronic
components
• - Locally sourced materials for bins
• - Modular design for easy scaling
• - Estimated cost: ₹8,000 – ₹15,000 (20-bin
prototype)
7. Prototype Development Steps
• - Construct modular cabinet with bins
• - Integrate sensors, RFID readers, and LEDs
• - Develop web/mobile dashboard interface
• - Program hardware control logic
• - Calibrate sensors and test system accuracy
8. Expected Improvements
• - Faster component retrieval (30–40% time
saved)
• - Significant reduction in picking errors
• - Real-time stock visibility
• - Enhanced 5S and lean implementation
• - Reduced downtime and improved
traceability
9. Future Scope
• - ERP system integration
• - Predictive analytics for demand trends
• - Mobile app-based stock monitoring
• - Integration with AGVs or robotic pickers
10. Conclusion
• The Smart Storage System enhances accuracy,
speed, and control in managing small parts.
• It is affordable and scalable for MSMEs and
aligns with Industry 4.0 objectives.
• Ready for prototype development and
deployment in lean production environments.
