Implementing LEAN in the non-manufacturing areas of Daktronics will improve office

and manufacturing efficiency, empower staff and reduce their stress as well as foster team
work (Engel, P. 2012) (Tapping & Dunn, 2006). In complex manufacturing operations the
efficiency of the manufacturing process is dependent on the front office activities (IFS
WHITE PAPER). Implementing LEAN management in the non-manufacturing areas at
Daktronics will address the waste commonly found in office operations. Typical office waste
includes waiting, excessive motion, over production of paperwork and knowledge waste (ie.
underutilized staff)(Chaneski, 2005). A LEAN initiative will address waiting related to
customer specifications, approvals, and financial information and will result in increased
lead time for downstream office processes (Chaneski, 2005). Motion related to walking and
searching will be reduced and handoffs of approvals and other paper work will be
diminished. A focus on optimizing staffs roles will reduce muda related to knowledge
waste. The LEAN initiative will reduce stress because the employees will know where to find
the materials they need, information will be available when they need it and they will have
a better understanding of their roles and responsibilities so will not be as stressed in the
office.
Implementing LEAN in Daktronics non-manufacturing areas will be more challenging
than the improvements made in the manufacturing aspect of the company for the following
reasons: visualizing the work is more difficult, service and front office processes are
complex with few repeatable process steps and the company will lose the focus it currently
has on improving manufacturing (Morgan & Liker, 2006). When LEAN initiatives are focused
on production lines the process steps are physically apparent in comparison with office
processes where materials are not physical and processes are invisible therefore defects
are more difficult to see (Taninecz, G, n.d.). Office processes are more complex than

manufacturing, each process step has a wider degree of variability and typically has longer
cycle times (Bindekrans & Magnusson, 2012). Taken together these factors result in more
detailed analysis and planning for successful LEAN implementation. Additionally, Daktronics
will need to re-focus its resources on improving office processes which will reduce the time
and energy the leadership has to focus on improving manufacturing.
August
-October

Develop
a
project
charter

Analysis Define
October- the
Decembe problem
r

Develop Develop
a work
a
plan
communi
cation
plan

Affinity
with
staffuse
results

Define
the key
problems
Using
prioritizat

Develop
a change
manage
ment
plan

Set
SMART
goals

Have
plan
approve
d by
senior
leadersh
ip

Determi
ne
metrics
to track
improve

Identify a
trained in
house
Sensei

Create
buy-inShare
story of
manufact

Provide
an
introduct
ion to
LEAN
with
educatio
n
provided
in the
context
of
administ
rative
work
Value
stream
map the
key
processe

Tools:
Hoishin Kanri
Consider the
importance of
continuous
flow

Revise
the WP,
CP and
CMP as
required

Ensure
inclusion of
front line staff
at the
beginning of
the LEAN
office
initiative
Tools:
Affinity
SMART Goals

Optimiz
e the
physical
environm
ent
Decembe
rFebruary

Provide
5S
training
for
office
staff

to
determi
ne
priority
areas of
opportu
nity (ie.
Low
hanging
fruit)

ion
matrix to
determin
e priority
improve
ment
initiatives
(ie. Quick
Wins,
Gems,
Dont
Dos and
Major
Projects)

Develop
a
working
group
of 5S
champi
ons

Complete
spaghetti
diagram
of work
flow

ment

Reconfig
ure the
location
of staff

Consider
Cell
design
to bring
function
s closer
together
and
improve
commun
ication

uring
success

5S the
offices
and
workspac
es as
moves
are
occurring

Hold a
friendly
competit
ion
between
staff to
determin
e who
complet
ed the
most
effect 5s

Value Stream
Mapping

Develop a
plan to
sustain
the 5S
changes
*take
before
and after
pictures
and share
with staff
and
managem
ent

Tools:
5S
Spaghetti
diagram

Optimiz
e Hiring
Process

Map the
process

FebruaryApril

Perform
ance
Reviews
AprilJune

Map the
process

Define
roles of
clerical
staff
and
manage
rs in the
posting,
Intervie
w and
onboardin
g
process
es

Standardi
ze the
interview
booking
process
and
interview
questions
for each
position.

Benchm
ark
other
areas
and
busines
ses to
determi
ne best
practice

Brainstor
m
solutions
with staff
involved

Develop
orientati
on
checklist
by role

Analyze
the Takt
time and
compare
with
manager
s
schedule
to
ensure
reviews
can be
complete
d

Track
cycle
time for
the
activitie
s

Complet
e PDCA
cycle of
prioritize
d
improve
ment
ideas

Develop
orientatio
n video
for staff
to watch
before
they start
on their
first day

Collect
data on
the time
required
from
initiation
to
booking
of
performa
nce
review
(ie. Cycle
time

Load
level by
training
multiple
staff to
complet
e
aspects
of the
process
while
others
are away
(eg. Two
week
Vacation
Get staff
feedback
on the
improve
metns

Reduce
cycle
time from
positing
to onboarding
Eliminate
redundan
t activity

Tools:
Standardizatio
n
Cycle time
analysis
Plan-Do-Study
Check cycles
Heijunka

Modify
the
process
as
needed
indicated
by data

Tools:
Process
mapping
Brainstorming
PDCA

Educatio
n
booster
sessions
for staff

Cycle time
analysis
Huddles for
staff to ask

annually

new staff
Establish
clear
roles

Standard
ize the
scheduli
ng
procedur
e
Financin
g
JuneAugust

Develop
an
underst
anding
of
current
state
billing
procedu
res

Comple
te a
swim
lane
map of
the
invoicin
g
process
( define
steps
for
custom
er,
operati
ons,
finance,
manage
ment
etc.)

Include
cross
functiona
l
members
in the
improve
ment
team

The
team will
go the
Gemba
and
observe
the
processe
s
So
understa
nding is
develope
d from
multiple
perspecti
ves

Include
cross
function
al
member
s in the
improve
ment
team

Brainstor
m
solutions

PDCA

questions and
receive
updates on
progress

Develop a
Tools:
sustainm
ent plan Ensure
continuous
flow of work
Kaizen
Heijunka
Standardize
skill sets to
support the
financial
services

Custom
er
Service
AugustOctober

Develop
an
underst
anding
of
custom
er value
for each
custom
er
segmen
t

Identify
perform
ance
metrics
Eg.
Time
require
d to
respond
to
request
for
support
Eg. % of
resolve
d
request
s on
first
contact

Standard
Examine
tracking
the
of service
Value
requests
Chain to
Standardi
create
ze
understa
training
nding
of staff so between
load
manufac
leveling
turing
of work
and
can occur custome
and
r service
efficiency resulting
can
in shared
increase
understa
nding of
common
issues
with
products

Identify
the
bottlene
cks

Brainstor
m
solutions
Benchmar
k
competito
rs and
other
industries
for
solutions

Prioritize
solutions
Initiate a
test of
change
Use
PDCA
cycles

Sustain
the
changes
through
on-going
data
collection
and
continuou
s
improvem
ent

References
Bindekrans, G. & Magnusson, M. (2012). Creating a LEAN Value Flow in White Collar Organizations.
Retrieved from http://publications.lib.chalmers.se/records/fulltext/159084.pdf

Tools:
Visualization
Create a
dashboard to
display
metrics
Go to the
Gemba

Chaneski, W.S. (2005, September). Lean in the office- Identifying waste. Modern Machine Shop 78.4 44,46
Damrath, F. (2012) Increasing competitiveness of service companies: developing conceptual models for
implementing Lean Management in service companies. Retrieved from http://www.divaportal.org/smash/get/diva2:557034/fulltext01.pdf
Engle, P.C.(2012, August). Lean office?. Industrial Engineer. 44.8 22
George M.L. (2003). Lean Six Sigma for Service, McGraw-Hill.
Morgan, J. M., & Liker, J. K. (2006). The Toyota product development system. New York: Productivity Press.
Tapping D. & Dunn, A. (2006). Lean Office Demystified: Using the Power of the Toyota Production System in
Your Administrative Areas