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Mesa
Laboratories, Inc. - Denver, CO
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. The 5S philosophy focuses decreasing
non-value activities, simplifying the work environment, reducing waste,
and improving quality and safety through sorting, shining (cleaning),
and setting in order equipment and resources, in addition to standardizing
processes and sustaining the changes made. 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
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