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