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CAMT Newsletter What's New for Colorado Manufacturers
December 2007

in this issue
  • Upcoming Events
  • Filling Your Post-Lean Capacity
  • Mesa Labs Increases Net Revenue by 40%!
  • PCC's Mobile Learning Lab

  • Filling Your Post-Lean Capacity
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    Brunson Instruments faced an interesting problem. After focusing on implementing Lean in their manufacturing facility in Kansas City, Missouri, the company saw a significant decrease in lead times and improvement in on-time delivery. The company had cut costs and increased efficiency. These results were not the problem; the challenge was the greater capacity created by these efficiencies, and not enough increase in sales to fill it.

    While lean implementation helps in cost and cycle- time reductions, strategies to improve top line revenues should also be deployed in parallel or following lean initiative implementation. To address this opportunity and help companies develop and implement new growth options, Eureka! Winning Ways was created in the last year by NIST MEP in conjunction with nationally known growth consultant Doug Hall. This service provides companies with a disciplined process that helps companies create, filter, prioritize, and explore ideas for growth, based on data of real-world growth successes from thousands of companies.

    "The program takes companies through a streamlined and quick-paced process over the course of approximately seven weeks," said Aleta Sherman, CAMT Growth Coach and Account Manager. "At the end of that time, companies have the data to decide whether or not-and how-to proceed with developing and delivering their new ideas into the marketplace."

    For companies like Brunson and others, the process is efficient, disciplined, and works. Four months after they started this project with their local MEP affiliate, Missouri Enterprise, the company launched two new products. Decorative tile manufacturer Questech, of Rutland, Vermont, launched a test of their new idea in a nearby tile showroom just six weeks after they began the process. And Richards Industries, an industrial valve manufacturer in Cincinnati, elevated a product that had been buried in a larger product line into a stand-alone feature with its own branding in just four months. "That was light speed for us," said Richards President Bruce Broxterman.

    This program will move your company quickly from ideas to implementation. The project starts with a one- day workshop that leads participants through a process in which dozens of ideas are generated, and the agreed-upon top ideas are tested based on 50 success factors and data from a database of 4,000 ideas. The testing will show whether an idea is likely to succeed, possible to succeed, or unlikely to succeed. With this input, the company can decide which ideas to move next into the discovery phase. Companies will then embark on a 30-day action plan that outlines specific research, testing, and other steps to be taken to explore the viability of the idea. At the end of the 30 days the company not only knows whether or not to move the idea into development and delivery, they have a process for continuous growth that can be reloaded time and again.

    Find out more about the methodology behind the program from Doug Hall, founder of Eureka! Ranch. Doug is coming to the Colorado History Museum in Downtown Denver for a breakfast briefing on Eureka! Winning Ways on Thursday, January 31st. To learn more, please click here.


    Mesa Labs Increases Net Revenue by 40%!
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    Established in 1982, Mesa Labs manufactures, services, and sells test and measurement instruments used by health care providers, and food, drug and beverage processors worldwide. This Denver metro area company has enjoyed a history of lucrative growth, fueled by selected acquisitions and new product development. Peter Holtgreive, Director of Operations, joined Mesa Labs in December of 2005.

    Peter was familiar with the Lean Enterprise methodology to simultaneously decrease waste and increase quality from previous positions, and believed Mesa Labs could benefit from training. Through four acquisitions, Mesa Labs has acquired various equipment, paperwork and processes that were often unnecessary or in need of organization and streamlining, creating an impediment to maintaining high productivity levels. Peter contacted CAMT Account Manager Sumer Sorensen-Bain for quality Lean Enterprise training. In addition to providing multiple- day 5S Workplace Organization and Value Stream Mapping training for the entire manufacturing staff, Sumer also facilitated Mesa Labs application for grants from the State of Colorado to offset the costs.

    Mesa Labs began 5S Workplace Organization training in early 2007 and completed a Value Stream Mapping exercise June 2007. With 5S tools, Mesa Labs manufacturing associates changed their facility lay out, identified and purged unnecessary paperwork, clutter and obsolete parts, and determined easy-to- access placement of the most used resources. Each staff member made significant changes to their work stations making them the most functional for their responsibilities and work styles.

    Mesa Labs immediately experienced financial benefits stemming from the CAMT Lean Enterprise training. The overall Cost of Goods Sold (COGS) has declined as sales increase, greatly improving net revenue figures. In fact, Mesa Labs saw a revenue increase of 16% last quarter and an amazing net income increase of 40%-- evidence that cutting non- value activities from the manufacturing process can make a large impact on the bottom-line. Although financial impacts are important, Peter is most excited about a change seen in his employees. Manufacturing associates have become fully engaged in their work, motivated to excel, and are having fun on the job.

    "CAMT's Lean Enterprise training helped to increase Mesa Labs profits and improve workplace morale. I'd recommend CAMT training to any company." - Peter Holtgreive, Director of Operations

    Results:

    • Retained Sales of $2,000,000
    • Increased Sales of $1,000,000
    • 7 jobs retained or created
    • Cost Savings of $500,000


    PCC's Mobile Learning Lab
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    Pueblo Community College's Business and Industry Workforce Training Department recently introduced a "Mobile Learning Lab" that can deliver on-site technical training to industrial and manufacturing companies throughout Colorado. Built around a custom designed 40-foot-long trailer with climate control and fume mitigation systems, the lab is currently configured with six state-of-the-art welding stations, but was designed to be versatile enough to also offer training in electrical, hydraulic and mechanical systems with minimal conversion time.

    The mobile learning lab came to fruition as a result of several key partnerships with equipment suppliers and by a design that was created by the department's staff. The lab is operated by dedicated PCC training staff that can customize training to fit company needs.

    By working with CAMT and Colorado's Community Colleges throughout the state, the Mobile Learning Lab can be transported to most any location in Colorado and set up within a day. This on-site training can reduce employee downtime by bringing quality training to your facility, and scheduling around your needs. The Lab has been operating since the fall and is currently booked through January.

    The all inclusive training fees range between $35- $45/hr per person and a minimum group size of six trainees is required. For more information, please visit the Web site listed below or contact Pueblo Community College directly at (719) 549-3163.


    Upcoming Events

    Bronze Level SME/AME/Shingo Prize Lean Certification Two-day Exam Review
    January 9 & 10, 2008
    Cost, including four required books: $650 (SME & AME member discounts available)

    1625 Broadway,
    Ste. 820
    Denver, CO 80202

    Made in the USA -- Choices for Growth
    with Inventor Doug Hall

    Colorado History Museum
    January 31, 2008
    7:30 to 9:00am
    Cost: $35

    AME/CAMT Lean Product Development Workshop
    February 4 & 5, 2008
    Hyatt Place DIA
    AME Member Cost: $695
    Non- member Cost: $845

    Contact Merrily Hill Smith for details and to register for CAMT events.

    Quick Links

    About CAMT

    National Manufacturing Extension Partnership

    Client Services

    Association for Manufacturing Excellence (AME)



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    Colorado Association for Manufacturing and Technology | 1625 Broadway, Ste. 950 | Denver | CO | 80202