Daktronics Harvard Case Solution & Analysis

Issues Identification

Daktronics is among the world’s leading suppliers of electronic scoreboards, messaging sultans, software, services for sport venues, etc. The company had a tradition of following a batch system in manufacturing which was replaced by lean manufacturing in the early 2006. This strategy helped a great deal during the economic crisis and the rough economic condition of the country. The stiffness in the economy is posing a major opportunity to implement a lean system in other areas as well within the company.

However, the question arises which indicates to measure the success that the company has attained with lean manufacturing and whether the process and transition from batch to lean manufacturing has been a success or not. The issues are not really issues, but the paper will examine the success of transition from batch to lean manufacturing by the company, and what are the future prospects that Daktronics can obtain form lean manufacturing.


This section will incorporate different models and methods to analyze the current situation and the causes of the issues that have played a vital role in shaping the current situation. The first part of this section will be the root cause analysis, which will be done to identify the reasons or the major causes of the issues that is apparent in the case.

Next in line is the environmental analysis of the environment in which the company is competing. Furthermore, the qualitative analysis section will use models to analyze the global signage industry and the performance of the company with respect to lean manufacturing.

Lastly the performance of the company will be analyzed using quantitative figures in the quantitative analysis.  This section is of major importance as it will help in analyzing the current situation and will help in deciding on the alternative options that can be implemented by the company with regard to its next steps.

Root Cause Analysis

This section will incorporate fish bone diagram to identify the root causes of the issue. The diagram is explained below and will be illustrated in the appendix section in order to deliver clear presentation.

Fish Bone Diagram

Problem Statement

The company is aiming to become a billion dollar company and is pursuing lean manufacturing as a significant cost reduction tool. However, the recession has played a vital role in creating a challenge for the company and has increased the importance of lean manufacturing and the concept of lean in other activities as well.

Daktronics Case Solution


The equipment that is used to manufacture different product lines of the company is vast and very different from each other. The company has around 5 product lines and is being manufactured and assembling products, both locally in the US and has a facility in China as well. Production or use of equipment in the UShas increased the cost due to the recession and is a major component of the issue.


The economic environment of the country is not feasible in its current shape to pursue any business and the signage industry has been affected majorly. The company drop in sales and share value is majorly due to the economic recession that the country is facing which is why the price consideration has become a major factor.


The people of the organization are aware of lean manufacturing ad are considerably familiar with the concept since the company has implemented this process three years back and has given fruitful results. However, the complete awareness and knowledge about the concept in the entire organization is not there which may disrupt implementation of the process in the entire organization. It is part of the organizational change and will have to face strong resistance from employees as this process will be focusing on minimizing cost and may pursue layoff.


The company has attained success with a high mix flow line, but there are certain methods that have not been corrected which cause distortion in the implementation. The company has a strong employee base, but this base may not be contributing efficiently in reducing cost. Secondly, the company has an issue that is leading to decline in profit margin, which is known as warranty issue. Further ahead, the employee base is continuously increasing in almost every department and with recession on the go this can be a major hinder in reducing the cost and achieving the desired objectives.

Environmental Analysis

This section will incorporate the political, social, economic, and technological aspects of the environment in which the company is competing. It is important to cater all these factors as they will play a major role in decision making as the impact of the environment is huge....................

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