Daktronics (D): Keen

on Lean Manufacturing
at Daktronics, Inc.
Abidzar Basaib (1706087994
Hutomo Kusmanardi Broto (1706088662)
Irfan Ardiansyah (1706088725)
Kevin Yoditama Putra (1706088750)
Manggala Kusumo Wijayanto (1706997565)
Sarah Shahnaz Ilma (1706089160)
DAKTRONICS
LEAN JOURNEY

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WORLDWIDE LED VIDEO
DISPLAY
MARKET SHARE

Source: HIS iSuppli Corporation – Signage

and Professional Displays 2012
3
BACKGROUND
• Inefficiencies in
manufacturing process
• Using fixed price
contracts for nearly all
of its product sales
• Customer’s order
placement and
receiving cash payment

4
PROBLEMS IDENTIFICATION

• How did Daktronics implement lean system

in their production/manufacturing system?

• Can this lean system be implemented in

their office management? like lean
accounting and lean everything?

5
“
PROBLEM
#1

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 STRATEGIES

• The first lean projects – converting production of the LED

modules from batch and queue to flow (One piece flow in
manufacturing cell production process)

• Training and Development, such as “Making Material Flow”,

“A3 Thinking and Coaching”, 5S, Lean Operations Training

• LED Assembly process, Proof of Concept exercise

• Value Stream Mapping

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 IDEAL PROCESS

No Lowering lead
No longer
longer have
have Products
Products and
and
stockpiles times has
stockpiles of of projects
projects move
move
finished goods
goods through enabled them to
finished through
and grow by
and WIP
WIP (Work
(Work manufacturing
manufacturing at at
In increasing
In Process
Process ), ), a
a much
much faster
faster
which translate pace, revenues and
which translate pace, which has
which has
into serving
into increased
increased enabled
enabled
cash customers in a
cash flow.
flow. Daktronics
Daktronics toto
lower more predictable
lower lead
lead times
times
without fashion, such as
without adding
adding
capacity. On time delivery.
capacity.

8
How to create lean manufacturing culture ?

INCREASE
VALUE
THE PEOPLE
STREAM
SEVEN SKILL
MAPPING
WASTE THROUGH
(VSM)
TRAINING

Goal
Goal :: Value
Value optimization
optimization (cost
(cost saving)
saving)
 Value Stream Mapping (VSM)

VSM
OBJECTIVE
❶ Analyze whole business process to capture problem
occurred
❷ Establish ideal situation when there is less / no waste
❸ Develop countermeasure based on problem occurred

STEP- STEP-
- 1 target (how far
Setting ideal - 2 steps
Define
you want to go) - Indicate information flow
VSM STEP

STEP- STEP-
- 4 timeline to
Add data and - Gather3the critical
the VSM maps data (Example : Lead
time)

STEP- STEP-
- 5
Identify seven - Create6ideal value
wastes of lean stream maps in business
manufacturing process
 Value Stream Mapping (VSM)
→ Visualize the steps needed to take from product creation to delivering it to the end-customer
 Lean Organization Lean Operation Training

GOAL
Employees ready to implement
Lean Operation Culture and
increase effective & efficiency
 VSM APPLICATION AT
DAKTRONICS

Increase
Increase Effective
Effective &
&
Efficiency
Efficiency
Target
Value
Value Optimization
Optimization (cost
(cost
saving)
saving)

-- Consulting
Consulting Firm
Firm
(Pragmatek)
(Pragmatek)
-- Training
Training Firm
Firm
Steps -- Lean
Lean Team
Team
-- Examination
Examination inin details
details
-- Preparations
Preparations
-- Apply
Apply Lean
Lean

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 VSM APPLICATION AT
DAKTRONICS
Gather Data and Current
State Map

Value
Value Added
Added (VA)
(VA) or
or Non
Non Value
Value
Added
Added (NVA)
(NVA)

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 VSM APPLICATION AT
DAKTRONICS
Waste Identification

FMEA
FMEA 
RPN
RPN

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 VSM APPLICATION AT
DAKTRONICS
Future State Map

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 VSM APPLICATION AT
DAKTRONICS
VSM Result

Work
Work
Instruction
Instruction 5S
5S Application
Application
(WI)
(WI)

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VSM APPLICATION AT
DAKTRONICS
VSM
Accomplishments

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“
PROBLEM
#2

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LEAN MANUFACTURING
VS LEAN OFFICE

LEAN MANUFATURING LEAN OFFICE

Easily quantifiable
PRODUCT WASTE Difficult to spot
Quite visible
MONITORING Easy Hard
CULTURE Informal Formal

CHANGES MOVEMENT Maximal Minimal

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THE PRINCIPLES OF A LEAN
OFFICE
1. Lean begins with a committed leadership team
2. A Lean office requires metrics and goals
3. A Lean office has standardized processes that are followed by
everyone
4. A Lean office uses 5S
5. A Lean office has minimal WIP
6. A Lean o
7. Demand is well understood in a Lean officeffice strives for flow

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EIGHT SERVICE INDUSTRY
WASTES
Doing an
Waiting for the
Errors in Transport of unrequested,
next process
documents documents unnecessary
step
work

People not
Process of Unnecessary Backlog in work
working to their
getting approvals motions queues
full potential

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 EXAMPLES OF OFFICE
PROCESS WASTE
Purchase
Too many Obsolete
Unclear job Orders not
signature databases/files
descriptions matching
levels /folders
quotation

Errors – typo’s, Waiting – for

Poor office Unnecessary
misspelling, information, at
layout E-mails
wrong data meetings, etc.

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 5S
TO AVOID
People grab the wrong size wrench or the wrong
People are borrowing tools or office part to put on a product.
supplies from each other.
People search for parts that are not in the right
location. There’s an old joke, ‘You always find
something in the last place you look for it.” The
problem is that the last place sometimes takes
People spend time looking for materials in quite a while to get to.
an office supply cabinet.
An investor looks at the clutter around a
workstation and shakes her head.
People walk to a shared workspace like a
print station, and then have to go back to
their desk to get a hole punch. A customer sees a disorganized office and takes
his business elsewhere.
Shared workspaces or break areas are in
chaos—old coffee cups, spills, missing
items, empty material bins, equipment in A person on the phone searches for a pencil while
the wrong location. Debris accumulates an irate customer continues to escalate.
around a copier or shipping station.

Benefit
 Reduces the waste of motion 24
and time spent searching for
 • Develop a work structure that will support
the new practices and make it part of the
• Perform regular audits.
daily routine.
• Training and discipline.
• Ensure everyone knows their
• Training is goal-oriented process. Its
responsibilities of performing the sorting,
resulting feedback is necessary monthly.
organizing and cleaning.
• Self-discipline
• Use photos and visual controls to help
• Follow the process, but also be open to
keep everything as it should be.
improvement St • Ensure standardizing color codes for
n an
ai
usable items.
t da
s rd
Su
5
ize

• Clean your workplace on daily basis • Make work easier by eliminating obstacles.
completely or set cleaning frequency time • Reduce chances of being disturbed with

Shi
S

t
to time

Sor
unnecessary items.
• Use cleaning as inspection. • Evaluate necessary items with regard to
• Prevent machinery and equipment ne cost or other factors.
deterioration. • Remove all parts or tools that are not in
• Keep workplace safe and easy to work. use.
• Keep workplace clean and pleasing to Straighten • Segregate unwanted material from the
work in. workplace.

• Arrange all necessary items so that they can be

easily selected for use.
• Prevent loss and waste of time by arranging work
station in such a way that all tooling / equipment is
in close proximity.
• Make it easy to find and pick up necessary items.
• Make workflow smooth and easy.
• Place components according to their uses, with the
frequently used components being nearest to the
work place.
Lean Office Suggestions

Doing It
BENEFITS
• Value will continue to move
Delegate It forward
• Significant reduction in the
4Ds amount of time spent
Designate Time
To Address It working a backlog
• Significant reduction in the
Dumping It amount of time spent
processing emails
 CONCLUSION AND
RECOMMENDATIONS

Lean production Integrated activities designed to achieve

high-volume, high-quality production using minimal
inventories of raw materials, work-in-process, and finished
goods

Lean Operations system has proven its value and can be

applied or implemented not only in manufacturing process,
but also in office management and other industries.

Key Process of Lean Manufacturing:

• Training & Development
• Eliminating Waste
• Reduce Cost /Cost Efficiency
• Streamline Process (Shorten Lead Time) / Time
Efficiency
• Effective & Efficient Organization Chart/Flow
• Value Driven 27
REFERENCES

Levenburg, Nancy M. (2009). Daktronics (D): Keen on

Lean Manufacturing at Daktronics, Inc. North
American Case Association, Inc.
Jacobs, Robert F dan Richard B. Chase. 2018.
Operations and Supply Chain Management. 15th
Edition. New York: McGraw-Hill Education.

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Q&A

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