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The management of hand tools in technical workshops currently relies on manual methods, which frequently lead to equipment loss and monitoring difficulties. The SMART RACK project was developed with the primary objective of enhancing safety and equipment inventory management efficiency through an automated system. The development of this project indirectly supports Sustainable Development Goal (SDG) elements by utilizing smart technology to ensure the sustainability of institutional asset management. The development methodology involves the use of an ESP32 microcontroller integrated with a barcode scanner for identity verification and a solenoid lock for rack access control. Additionally, infrared (IR) sensors are installed on each hook to detect the presence of equipment in real-time. Through the testing and data analysis phases, the system has proven capable of recording borrower information and equipment status onto an SD card in a systematic CSV file format. The impact of this project includes drastically reducing the risk of tool loss and fostering higher discipline and responsibility among students. This project represents an effective investment for improving workshop infrastructure quality. In conclusion, SMART RACK successfully demonstrates that the integration of Industrial Revolution 4.0 technology can transform workshop management to be more transparent, secure, and efficient