MicroMetl Cellularizes Manufacturing, Reduces Costs and Preserves Jobs with Nevada Industry Excellence Guidance

“We have seen that culture change.It used to be maybe an idea would get tossed out and people would say “we have done it this way for 15 or 20 years, why should we change?” Now our workers have set up lean manufacturing cellularized lines and let the employees design the lines and take ownership of it because it is theirs. When they can see what they put in place actually work and make us more money, they see it in bonus checks that they never saw before. They see the results and get rewarded. In a classroom it is all pretty textbook–oriented. You don’t get to see the outcomes immediately. Being on-site and training in that environment is the way to go. We need the grassroots and down and dirty training that you can’t get at the university level or community college level. With what Nevada Industry Excellence provides, it would be hard for us to exist without them.”
– Bill Martin, Quality Assurance Manager, MicroMetl

The Company:

MicroMetl is a Sparks, Nevada-based Manufacturer of Heating and Air Conditioning equipment and accessories. The company also has offices in Indiana and Texas and distributes across the nation. MicroMetl operates in a very price-competitive industry and is always seeking ways to increase efficiency and keep high levels of product quality and consistency.

The Problem:

After a careful analysis of the workflow of the plant, officials calculated that a single heating and air conditioning part would travel 1.5 miles during assembly. MicroMetl also had many employees who needed training in both English language proficiency and manufacturing.

The Solution:

Nevada Industry Excellence helped MicroMetl cellularize the manufacturing process into a lean manufacturing model. The heating and air conditioning part that used to travel 1.5 miles during assembly was soon assembled within an area of 100 feet. The improved efficiency and communication allowed MicroMetl to reduce indirect labor costs by 21 percent, reduce prices and increase market share. Nevada Industry Excellence also helped MicroMetl secure state grant funding to pay for training and consultation programs to implement lean manufacturing processes.

The Results:

As a result of working with Nevada Industry Excellence, MicroMetl noticed $85,000 in increased sales and $225,000 in retained sales. The company saved 10,000 in direct costs and decreased indirect labor costs by 21%. MicroMetl was able to retain 25 positions because of the improved lean manufacturing processes and production efficiency improved by 7%.