Supreme Machine

Supreme Machine is a full service machine shop with a fabrication department. The business is privately owned by Scott Allen and is located in Ruston, Louisiana. Founded in 2000, the business employs five people and has a regional customer base.

The business started with one owner and a single customer. An $11,000 loan, secured by the owner's personal assets, was obtained to help pay for three machines and rental space. As expected, production was top notch and the business soon had 17 significant accounts and numerous customers throughout the region, including out of state sales. Within eight months, the business was showing a profit. The first year ended with a profit and the owner met his first year sales goal.

Orders continued to come in, and Allen knew he needed assistance to bring his company up to the next level in production. The business moved to a 7,500 square foot facility, purchased more equipment, and resumed operations within the week. This transition produced dramatic results for the business. Sales increased by 52 percent, employment grew, net income doubled, and net worth became positive.

SOLUTION:

At this point, Allen became even more determined to improve efficiency while sustaining quality. He was referred to MEPOL through Louisiana Tech University, and was encouraged to apply for the Small and Emerging Business Development program. MEPOL Project Director Mike Hayden conducted a Lean Metrics Baseline Tools training seminar for four employees, which students learned how to identify and calculate the company's key Lean metrics and how to effectively monitor those metrics. This seminar was followed up by a Lean 101 class for all of the shop's employees.

RESULTS:

The business now operates 22 machines valued at approximately $325,000 and employs six full-time workers. Annual sales growth has been strong: in the past year, emphasis switched to productivity and profitability, allowing a 4 percent annual growth in sales. This focused effort produced a net profit of more than double the previous year's total.

TESTIMONIAL:

"Everyone is working within a global market today. We have to break the ‘but I have always done it this way' kind of thinking. The principles and training from MEPOL have helped us take it to the next level in sales, administration, production and continuous improvement. Those who choose not to implement improvement will not be tomorrow's competition."-Scott Allen, owner

Total Impact 2007
Increased and Retained Sales $54,527,194
Jobs Created or Retained 460
Cost Savings $12,806,215
Capital Investments $12,064,762