Juki Automation Systems is a global leader in high-speed SMT Assembly equipment. Since 1987, it has built its global image with a combination of top-quality and high-reliability machines with a reputation for world-class service and support that result in the lowest production costs for its customers. The pioneer of the modular assembly system in 1993, Juki offers flexible solutions designed for both high-volume and high mix environments. Additionally, Juki Americas offers selective solder and stamp soldering machines backed by the largest field service group in the industry, as well as complete line solutions that include screen printers, reflow ovens and wave solder systems. The new automated component storage systems offered by Juki are fueling dramatic growth. Our editorial team recently met with President Bob Black to find out how the company is keeping customers at the forefront of its success and what plans it has to continue growing globally.
We understand that Juki Automation Systems had a very successful first quarter. Do you anticipate the rest of 2015 following suit? What factors contributed to the Q1 success?
We did have a good first quarter of 2015, and the second quarter will be even better. I expect the balance of the year to be good as well. Barring any unexpected economic downturn in the U.S. economy, JAS Inc. will have a very good and exciting year throughout the Americas.
As to the global picture for Juki Corporation, I think everyone is aware that growth in China has moderated some this year. So business there is a bit slower, but Southeast Asia is still doing quite well, and Europe is showing signs of renewed growth, as seen at the recently well-attended SMT show in Nuremberg.
As to the factors in this year’s success, there are several. First is the fact that we make high-quality machines, and we back them with the best warranty and service in the industry. I was with a longtime customer last week, and he was happy to report to me that the line he purchased five years ago has never been down. It has run two shifts per day for five years without problem. But better than that is in the same building he has two KE750 and KE760 machines still running daily, which are 16 years old. This is what we mean when we talk about Juki Quality and the Lowest Cost of Ownership.
Our line business is also a major factor in our success. In the first quarter, more than 30 percent of our revenues were from non-placement equipment. And that percentage is growing quarterly. The fact we now offer four models of printers, multiple models of reflow ovens, conveyors, and software for line control and traceability allows us to meet a customer’s needs for a complete, integrated line with fast delivery and our well-known 3 year full parts warranty.
Our new Automated Component Storage Systems also are having a dramatic effect on our growth these days.
In today’s fast-paced, ever-evolving industry, what are some of the most common assembly challenges that Juki’s customers face? Would you say that these challenges are the result of new trends in the marketplace?
If we concentrate on challenges resulting from market trends, I think we should start with the ever-shrinking size of SMT components and the increased density of SMT Assemblies. For example the 01005 chip (0402 metric) is hard for the human eye to see unaided, much less for a human to handle even with tweezers. And the next generation of chip capacitors and resistors will be 33 percent smaller yet! So placement machines have to be much more accurate today than just a few years ago. Also the continuing miniaturization of components and the increasing density of circuits require more accurate printers, inspection machines (AOI/SPI) and selective soldering systems.
How does Juki solve these challenges?
We deliver high-accuracy systems that will retain their accuracy over many years. Juki placement machines have calibration systems built in, so there is no need to call a service engineer when a machine should be calibrated. The machine will run the routine itself, and report any deviations to the customer and then correct them. This saves Juki customers thousands of dollars each year and ensures that their equipment is accurate throughout its lifetime.
How long has Juki’s “3 Year Full Parts Warranty” policy been in effect? Why was this policy started and do you believe that it has helped Juki stand out from its competition?
We started the three year parts coverage almost 13 years ago. During a sales call, a prospective customer asked me “If your machines are as good as you say, why don’t you back them with a longer warranty?” After thinking about it for several days, I worked with our management team to analyze the costs of such a program. Our analysis showed that based on our historical warranty costs, adding the extra two years would not be very costly. So we began the program and it has worked well all these years. We plan to continue it for many years to come.
As for competition, it did make us stand out. In fact several competitors lengthened their own warranties in response so we at Juki were able to benefit even some users who were not our own customers.
We hear a lot about Juki’s “Lowest Cost of Ownership” philosophy. Can you briefly explain what this philosophy is and what benefits it provides not only to your customers but to the industry as a whole?
Lowest Cost of Ownership means that the customer’s total costs over the years to build their products will be lower than with any other choice of equipment supplier. There are many factors involved with this, but the key ones are:
Highest quality equipment built to run for many years without problems. This means low spare part costs, low service costs and most importantly, the highest uptime and availability to build product.
Easy to maintain machines with built-in calibration systems that stay accurate over the life of the machines without calling a service engineer to calibrate them.
A very high MTBF (mean time between failures) and a very low MTTR (mean time to repair) thanks to our complete spare parts warehouses and the largest service team in the Americas positioned close to the customer.
Machine uptime and accuracy allow the customer to build his product right the first time, on time.
That’s what we mean by Lowest Cost of Ownership. The benefit to the industry as a whole is we have raised the bar for our competitors and that has resulted in overall improvement.
We read in the news recently that Juki Automation Systems has shipped more than 28,000 machines worldwide. That is a very impressive number! What is the breakdown of Juki’s global customers?
Yes, we’re well on our way to 29,000 and will hit 30,000 by early 2016. While the number is impressive, the reason for it is that we make good equipment that people want to buy. I have some customers that have been buying machines from me for 30 years. At Juki we take great pride in the fact that so many customers have partnered with us for many years.
As to the global breakdown, EMS has become the largest segment over the years. Geographically, China is the largest single market now, and buys between 40 and 50 percent of all placement machines worldwide. Juki is a Japanese Corporation headquartered in Tokyo. But we are also an international company, with offices in 106 countries around the world. As Kiyohara San, our Juki Corporation President, said last year, “Over 80 percent of our sales are outside Japan, so Juki is an international company, not just a Japanese one.”
Can you please tell us a little about your three main product offering lines – high-speed, high-mix and LED/odd-form – and why they are successful?
Juki is one of the few suppliers who offer machines for companies of all sizes across the SMT field. In the high speed area we offer the RX series, compact high-speed machines that offer industry leading cph/sq. meter. With as few as seven modules we can offer a 350,000 cph line in the space of about 8 meters (26 feet)
For high mix, we offer the proven KE series, now in its seventh generation. Flexible machines with fast changeover and high reliability that are both modular and expandable.
While all our models can place LEDs, our JX-300 and JX-350 LED machines offer board lengths up to 1.5 meters for tough lighting applications.
In odd-form placement, our JM series leads the industry, with more than 300 installations already in operation.
They are all successful because they have good price/performance, Juki quality and reliability, and the best service team behind them.
We’ve heard a lot lately about your Storage Solutions automated component storage and management systems. Can you explain how these systems work and why this business is growing so fast?
The Storage Systems units allow storage of up to 2060 reels, or stacks of JEDEC Trays, per system. The components are stored dynamically, rather than having dedicated spaces reserved. A single unit of about 2.3 meters width, can replace 9 meters of six shelf shelving for a floor space savings of 70 percent.
A major difference between our systems and the small “reel towers” offered in the past, is that our systems pull kits, not just single reels. When the factory control system sends the request to pull a kit, the units work together, with each one pulling a stack of 26 components before signaling for pick up and transfer to the loading area. This pulling of a kit means an operator does not need to stand at the machine taking one reel at a time, as with other systems.
In addition, the units can have humidity control, maintaining the storage below 5 percent humidity. There are no need for additional dry boxes, as the MSD management software included with the units automatically tracks each component from its arrival into inventory until it is consumed. A complete record of time in storage, time outside storage, and exclusion periods until the component is eligible to be used again is all handled by the system with no clipboards, paperwork, or manual entry needed. A life MSD history of each part is stored and can be printed out or automatically uploaded to the traceability system.
The Storage Solutions systems most important function is its improvement of production line uptime.
At several users the placement machines automatically signal the storage systems when a reel runs low. The storage unit interrupts what it is doing, immediately pulls the component needed, and presents it at the quick access slot with the message “urgently needed at line 2, machine 2, feeder 23” (for example). The component is there to be spliced or loaded BEFORE the old reel is out of parts, so the is no waiting for a new reel to come from the warehouse. Several Juki customers have improved line output up to 20 percent with this system.
In addition, Storage Solutions units run standard Microsoft software, and easily can be configured to exchange data with ERP systems or other software.
What do you want the industry to most know/understand about Juki Automation Systems?
That we are an honest company who strives to not just meet but exceed our customers’ expectations. That we have a great team of employees whose goal is the happiness of our customers. We make quality machines, back them with great service and support, never charge for training for the life of the machines, and enjoy seeing our customers’ growth and success.
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