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    Daktronics Case

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    Wina Meliessa
    Daktronics implemented lean manufacturing to address inefficiencies in their production process. This included excess inventory, wasted motion, and defects not found until late in production. They analyzed sources of waste like transportation, inventory, motion, waiting, overproduction, and defects. Daktronics' lean journey began with training and consultants and expanded to include 5S, flow, and a lean management system. Their LED assembly line conversion improved material flow, reduced work instructions, and cut order completion time and defects. Lean manufacturing helped Daktronics gain space, lower costs, and improve quality and delivery.

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    Daktronics Case

    Uploaded by

    Wina Meliessa
    520 views18 pages
    Daktronics implemented lean manufacturing to address inefficiencies in their production process. This included excess inventory, wasted motion, and defects not found until late in production. They analyzed sources of waste like transportation, inventory, motion, waiting, overproduction, and defects. Daktronics' lean journey began with training and consultants and expanded to include 5S, flow, and a lean management system. Their LED assembly line conversion improved material flow, reduced work instructions, and cut order completion time and defects. Lean manufacturing helped Daktronics gain space, lower costs, and improve quality and delivery.

    Original Description:

    Lean Management Implementation at Daktornics Inc.

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    Daktronics implemented lean manufacturing to address inefficiencies in their production process. This included excess inventory, wasted motion, and defects not found until late in production. They analyzed sources of waste like transportation, inventory, motion, waiting, overproduction, and defects. Daktronics' lean journey began with training and consultants and expanded to include 5S, flow, and a lean management system. Their LED assembly line conversion improved material flow, reduced work instructions, and cut order completion time and defects. Lean manufacturing helped Daktronics gain space, lower costs, and improve quality and delivery.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    520 views18 pages

    Daktronics Case

    Uploaded by

    Wina Meliessa
    Daktronics implemented lean manufacturing to address inefficiencies in their production process. This included excess inventory, wasted motion, and defects not found until late in production. They analyzed sources of waste like transportation, inventory, motion, waiting, overproduction, and defects. Daktronics' lean journey began with training and consultants and expanded to include 5S, flow, and a lean management system. Their LED assembly line conversion improved material flow, reduced work instructions, and cut order completion time and defects. Lean manufacturing helped Daktronics gain space, lower costs, and improve quality and delivery.

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    At a glance
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    The key takeaways are that Daktronics implemented lean manufacturing to increase efficiency and reduce waste in their production process. This led to benefits like reduced space, lower work-in-process inventory, shorter order completion times, higher quality, and lower scrap costs.

    Daktronics' vision is to be the world leader in informing and entertaining audiences through dynamic audio-visual communication systems. Their mission is to deliver industry-leading value to customers by engaging employees, developing supplier partnerships, leveraging strengths in innovation/manufacturing/service, contributing to communities, and generating returns for investors.

    Prior to lean, Daktronics faced inefficiencies like disorganized processes with many parts/tools, lack of standardization, and problems planning inventory. Quality issues were sometimes found 4 days after production. They also used fixed-price contracts.

    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

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