Keen on Lean

Manufacturing at
Daktronics, Inc

Presentation by:
Group E
Maria Rini Setia 1506773021
Nyala Dwis M 1506773210
Tiodo Dwi Nugroho 1506700215
Wina Meliessa 1506700291
Presentation Framework

Case
Background Conclusio
Company and Problem n and
Profile Problem Analysis Recomme
Identificatio ndation
n
Company Profile
Business Unit
Focus
 DAKTRONICS VISION WHERE
STATEMENT DOES LEAN
FIT IN?

To be the World Leader at informing and

entertaining audiences through dynamic
audio-visual communication systems. DAKTRONICS MISSION
STATEMENT
DAKTRONICS Deliver industry leading value to our
Customers.
OBJECTIVES By engaging our Employees through
1. Be the industry leader in revenues in challenging and rewarding opportunities
all of our businesses Developing strategic partnerships with our
2. Be the industry leader in providing Suppliers
value to our customers. Leveraging our strengths in Product
3. Be the industry leader in customer Innovation, Manufacturing, and Service
satisfaction. Contributing to the betterment of our
4. Be the industry leader in operational Communities
excellence. Generating an attractive return for our
Investors
VIDEO
 Background Case
Increased its production
capacity
Rapid sales growth

Made a formal decision at February

2006 to pursue lean manufacturing

Dactronics products : sports

products, automated rigging
& hoist products....etc
 Problem Identification

Inefficiencies in manufacturing process :

So many parts and tools
Relatively little standardization

Problems with planning inventories and tools.

Daktronics used fixed price contracts for nearly

all of its product sales.

Product quality issueswere sometimes not

detected
until they were four days post productions
 Lean
production :
integrated Lean
activities manufacturing
designed to represented a
Waste :
achieve high way to generate Eliminate all
anything that
volume, high cost savings, by source of waste
does not add
quality reducing the & delivering
value from the
production using time between customers
customers'
minimal customers order product on time.
perspective
inventories of placement and
raw materials, receiving cash
work in process payment.
and finished
goods. PROBLEM ANALYSIS
Problem Analysis : Seven Sources of waste
Sources of
waste
Transportation Moving material does not enhance the value of
the product
Inventory Material taking up space, costing money and
potentially being damaged. Problems are not
visible
Motion Any motion that does not addin value to the
product is waste
Waiting Material waiting is not material flowing through
value added operations.
Over Producing more materials than is needed
Production (inventory)
Over Extra processing not essential to add value from
Processing the customer point of view is waste.
Defect Causes lost production time and the cost of
rework ar scrap.
 Problem Analysis:LED Lean Project

Two primary component formed the basic for many company products: the display and
controller other component such as: the power supplies and the LED

Prior 2006, Morgan saw inefficiencies in manufacturing processes (as describe slide
above) effect at planning inventory and tools
Lean manufacturing is a way to generate cost saving the goal to eliminate all sources
of waste while delivering product to consumer on time
Lean team report to Matt Kurtenbach Lean manager, 2 lean manufacturing
engineering, and 6 lean coordinator for business unit including one each for the Sioux
Falls and Redwood Falls facilities

Lean Implementation with LED Assembly:

Machine operators waste time by leave their post due to sparepart search, etc
Move from batch processing to module assembly duplicator machine rather 2 line
independent flow line downtime would be minimize lowering lead time =
lowering production cost = increasing revenue + on time delivery
Continuing evolution of lean manufacturing = improvement activities
Problem Analysis:LED Lean Project

Converting
production of
LED module from
batch & queue to
flow

Material
transferred
efficiently use
gravity conveyor

Single line
configurati
on

Electronics
work
instruction

In line
testing
 Problem Analysis:Lean Journey of
Daktronics

Strategy
Deployment
Lean
Management
Systems
A3 Thinking,
Lean Office
Resources In
Organizational Business Units
Structure
Trainings Lean
Leadership,
Internal Lean
Change
Lean Resources,
Management
Consultants 5S,
Flow
Problem Analysis:Lean Journey of
Daktronics

Future
Continue Plan,
2016 Do, Check, Act
Plan, Do, Check,
2015 Act
Plan, Do, Check,
2014 Act
People Side of
Lean,
2013 Developing Lean
Training Within Leaders
Industry
2012
Kaizen
Events
 Problem Solution

Measure Outcome
Production Space Recovery of 928 square feet of production space
Work In Process WIP volume was reduced, WIP value reduced by
> 50%
Work Instruction Electronic work instruction was developed, this
eliminated most of the paper-type work orders
Product Handling Product racking and un-racking iterations
between machine operations were reduced by
>70%.
As a result of the conveyor installations, product
handling was reduced, thereby reducing
opportunities for handling related qulity defect
Order Completion Average days to complete an in house work
Time order decrease from 20 days to 3 days max
Quality In line testing strategy reduce defect
Scrap The average monthly scrap cost was reduce over
70%
Conclution & Recomendation

Lean procedures strengthen Daktronics commitment to

manufacturing efficiency

Through lean efforts, factory efficiency increases to 60%

Lean manufacturing leads to higher quality products

Lean process means better process to achieve target and

goals

Daktronics need to stay committed with this lean manufacturing

to maintain their leadership in the market and to increase their
market share