Daktronics Inc Case Study

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DAKTRONICS (D): KEEN ON LEAN MANUFACTURING AT DAKTRONICS, INC.
Daktronics is an American company based in Brookings, South Dakota that designs, manufactures, sells, and services video displays, scoreboards, digital billboards, dynamic message signs, sound systems, and related products. The company was founded in 1968 by two professors of electrical engineering at South Dakota State University in Brookings, SD. It began with a purpose of providing career opportunities to South Dakota college graduates. In 2006, around 18% of the labour force in Brookings were students. Millions of people depend on Daktronics’ scoring and electronic display systems for information and entertainment. It was a leader in the digital signage industry and dominated
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It is based on automatic replenishment through signal cards that indicate when more goods are needed. This method can help the company get rid of physical inventory instead relying on signal cards. Within this system, workstations located along production lines produce or deliver desired components only when they receive a card and an empty container, which indicates that more parts are needed in production.
2) Bottleneck analysis: this can be used to find out which part of the manufacturing process limits the overall performance and throughput and how to improve that particular part of the process. By identifying the weakest link, throughput can be improved, delays and time can be reduced thus improving the overall efficiency of the process
3) Standardised work: Analyse the best practises that have been so far implemented, including the time taken to complete each and document them. This eliminates waste by consistently applying best practises. Also the documentation should be live in nature so that it can be regularly updated. Such a practise ensures continuous waste reduction and also sets baseline for future improvement
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The advantages and limitations of this can be as follows:
Advantages
The advantages of implementing lean techniques to non-manufacturing segment follows the same as those of manufacturing. There is improvement in employee morale and engagement, faster work cycle, waste reduction in terms of space and time, reduced inventory, higher efficiency which leads to higher profits. Reduction in wastage can be employed to add on new product lines, give competitive advantage to the company.
Limitations
Along with the benefits obtained there are certain difficulties. Lean processes do not happen overnight and requires the commitment from every single employee in the organisation which can sometimes lead to frustrations when employees start feeling overburdened. Too much standardisation in the processes can also lead to employees feeling their creativity being curtailed. The processes in a manufacturing segment can be measured accurately while with the non-manufacturing segment it becomes often difficult to analyse and sometimes the costs and efforts required to implement these measures might overweigh the benefits

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