Entrepreneur Comes Full Circle to Manufacture Visionary Scientific Instruments
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1 MMEC Forward Focus Entrepreneur Comes Full Circle to Manufacture Visionary Scientific Instruments Key Points A focus on the customer is critical during the design phase and the marketing phase: Learn from the user, be a little bit visionary and build equipment that is really nice to use and solves key problems. Always create value. Transitioning from research and development to steady production requires tools to plan and manage activities in order to deliver products on time as sales increase. Blend your expertise with that of others to speed evolution of your business. A professional journey of more than a decade has taken Luke Mauritsen, Founder and President of Montana Instruments Corporation, full circle within Bozeman s growing photonics cluster. Mauritsen graduated from the Montana State University (MSU) College of Engineering with a mechanical engineering degree in Today, his company manufactures state-of-the-art optical and cryogenic research equipment that has been sold to research institutions worldwide, including the U.S., Japan, China, Europe and Canada. An apex in his trek is the recent purchase of his company s high performance Cryostation by a pre-eminent MSU photonics research laboratory that considers the product the best in the world. The MSU alum s journey has come full circle in other ways, intertwining with the university. From MSU student seeking opportunity, Mauritsen is now providing high tech instruments for students and researchers to use at Spectrum Lab, a research center associated with Physics (Letters & Science) and Engineering at MSU. From employee in an MSU spin-off research firm, he is now an employer of MSU graduates. From visionary in research and development, he is now leading a high tech manufacturing firm that has built synergistic relationships with high-tech companies worldwide. Mauritsen said that MSU produces top-notch technical people and he is grateful for the optics and physics resources available. Luke (l.) and Brian (r.) examine the specialized, precision-machined parts that go into a research-sample chamber. In less than two years from the company s start, it has evolved from an R&D (research and development) project to one implementing plans for steady production and sales growth, gaining traction from growth services it has received from the Montana Manufacturing Extension Center (MMEC), an MSU College of Engineering outreach center, and from the Montana Department of Commerce (MT DOC) through their B2B Marketing Program, a collaborative partnership between MT DOC and MMEC. Inspired Innovation After graduating from MSU, Mauritsen, who also studied physics at Pacific Lutheran University, was employed by S2 Corporation, a spin off from MSU Spectrum Lab. It was from his engineering development work in cryogenic optical systems for defense and advanced computing applications at S2 that he became aware of the growing need for greater instrument performance than was commercially available. The technology was needed to move forward, and the field was ripe for innovation. The state of existing optical cryogenic instruments made low temperature materials research very hard and time-consuming for the research scientist, he said.
2 On a quest to learn more, he spent several months interviewing researchers around the world about how they use their equipment. I used what if questions to determine what they wanted and what they needed, he said. I essentially tried to stand in their shoes and gain some knowledge about how they use cryogenic systems and what could make one better. Recipe for Innovation His recipe for innovation, Learn from the user, be a little bit visionary and build equipment that is really nice to use and solves key problems. Always create value. Traditional open-cycle systems use liquid helium stored in a shoulder-high container with large metal hoses and tubing to add liquid cryogens to an experiment. Those evaporate quickly, are expensive and time-consuming and require experience and mechanical aptitude just to get an experiment set up. Newer closed-cycle systems available did not require liquid cryogens, but generated an unstable sample environment. Mauritsen found that researchers were having to deal with vibration, temperature instability and complicated setup configurations all of which restrict or limit study of materials at low temperatures. Mauritsen, a visionary, is able to see and understand the complex needs of a researcher from each one s perspective as well as anticipating future opportunities. Recognizing a researcher s time is most valuable, Mauritsen knew he wanted to develop an easy to use apparatus based on how researchers interact with and use their equipment. Next, the right team of cryogenic, firmware, and software experts was assembled. They worked for a year and a half developing the Cryostation from concept to hands-on reality. Montana Instruments Corporation was then formed to commercialize this innovation. The Cryostation breaks new performance barriers that allow new research and also makes low temperature research simpler and less time-consuming. The system operates at temperatures approaching absolute zero where all nano-scale motion stops. The ultra-cold platform s low vibration in the sample space eliminates noise that makes nano-particles move too fast to clearly observe unique properties. It is a closed-cycle system comprised of three parts, the main Cryostation unit, typically mounted to a floating or fixed optical table, and two additional units, the Cryostation Control Unit and the Variable Flow Helium Compressor which sit on the floor separately under a table and out of the way. A small laptop is also provided for user control with a user interface designed specifically for the Cryostation. A web connection to the unit can enable off-site technical support for the system. A short video demonstrates how a sample chamber of the Cryostation works. The closed-cycle system offers advantages such as contained fluid that can be re-pressurized over and over A user is no longer required to arduously replenish liquid cryogens like helium for every experiment, using many liters per day at a cost of $9-10 per liter which can easily add up to $500 per week. Vibrations and thermal fluctuations are low enough to no longer be a concern. The Cryostation design also allows for more optical ports (5) for accessing a sample from multiple directions. Its capabilities and features make it attractive to a wider audience, expanding the market of cold-research. Growth Spurs Message to Students It is stories like Mauritsen s within Bozeman s growing photonics industry that spur Zeb Barber, Director of Spectrum Lab, to impart this message to young people: Graduating in science and engineering fields gives you a decent chance to stay in Montana and be involved in exciting research. Small companies in Bozeman are doing innovative things and providing high-paying jobs. The lab supports research to commercialization in spectral-spatial technology (S2) for the processing of RF (radio frequency) and microwave signals. These are applications primarily for radar and defense. It provides hands-on research experience to students from physics, electrical, mechanical and even chemical engineering and works with several local photonics companies. We like working with students; and really, we need more of them, Barber said. Spectrum lab has a staff equivalent to seven FTE (full-time equivalent) and brings in $1.4 million in grants and contracts to MSU each
3 year. Close-up of a customizable sample chamber The lab s new Cryostation promises to give future students more robust experiences in exciting research frontiers, frontiers that may lead to new applications for the military and in forensic medicine and quantum computing. It will be used for the study and manipulation of materials on the molecular and atomic level (nanotechnology) at very cold temperatures, in the range of 3K Kelvin on a nanoscale [about 270 F. degrees below zero] to explore special properties of its S2 technology using all spectral-spatial dimensions for holographics. That is an area we have not been able to do much with, Barber said, But the good optical access in this system will enable more of that research. It will also enable the lab to investigate new types of medical imaging. We definitely will use the Cryostation for our main applications and for specialized research in areas like quantum computing. The system was purchased through a specific grant from the NAVY, its Defense University Research Instrumentation Program (DURIP) to support university research infrastructure essential to high quality Navy relevant, cutting edge research. Why the Cryostation Was Selected A key reason the lab purchased the Cyrostation was the advanced thinking that went into the unit, Barber said. Its compact size on the bench and the large, multiple port optical access were also plusses as was its low vibration, a very important thing for the type of research done at Spectrum Lab. The Cryostation s minimal vibration enables researchers to more accurately measure results, and better information means more precise conclusions. The cryo boasts less than 5 nanometers of vibration in the sample space; extremely low when you compare that to the width of a human hair measuring 70,000 nanometers. Nobody could meet the specifications and performance that the Montana Instruments cryo s could, said Barber in a recent interview about the product purchase. After researching other options, theirs really is the best in the world that we could find. The Cryostation reduces the need for liquid helium, reducing the costs for the lab which currently uses about 8-10 liters per day. The traditional open-cycle system continues to have a use in the lab as it can reach cold temps down to 1.5 K, Barber said. Does Cutting Edge Research Matter Cryo research is about controlling the sample environment and observing properties that materials, reduced to the nanoscale, may exhibit under very stable cold temperature. As an example, given a little energy, an insulator might become a conductor. This may lead to nano-size semiconductors of totally new materials created in a lab with entirely new applications. Quantum computing is an area of great promise. Mauritsen predicts that the computer of tomorrow will not just be incrementally faster and more powerful, but rather based on new materials, a paradigm shift which may be 1000 times more powerful. While the instrument is designed for pure research, that research can lead to commercialized products; the kind of research that has created MRI s and other products we take for granted today, said Brian Smithgall, Business Development Director at Montana Instruments. Spectroscopy is one application for the cryo system (sixteen are listed on the company website). A researcher may explore spectroscopic material samples with light to measure reflection, absorption, or scattering. Knowing more about those characteristics can lead to new applications in forensics and medicine. B2B Services to Market a Technology From selling its first beta system that provided user feedback and learning about manufacturability, Montana Instruments has progressed to actively marketing its product and preparing for a steady production rate to keep up with demand. Production manager Steve Titus recommended MMEC based on his familiarity with their engineering expertise, efficiency and affordability, observed in a long career in manufacturing, Mauritsen said.
4 Leesa Nopper, B2B As a result, the MMEC and Montana Department of Commerce B2B Marketing program is providing marketing expertise to Montana Instruments to develop a marketing strategy. For a technology product, a focus on the customer is critical during the design phase and the marketing phase, according to Leesa Nopper who leads the collaborative B2B Marketing Program. She is working with Montana Instruments to bring customer perspectives to marketing in a technology company. One of the difficulties this type of company runs into is a love of their technology, she said. I help clients see their products value through customers eyes, by identifying why the products are valuable to customers. For instance, when compared to alternatives the Cryostation provides more research time, because it frees the researcher from time-consuming set up activities to focus on the high value activity, research. After defining the product value for customers, Nopper collaborated with Brian Smithgall in writing a selling script for cold calling, segmenting (defining and categorizing) potential customers by specialty, identifying a target market and characterizing the best customer. The Montana Instruments tag line Cold Science Made Simple, is an outcome of B2B marketing meetings. Leesa has been wonderful to work with, said Smithgall, a former technology company owner. My background is in engineering and business leadership, owning and operating a company in Bozeman for 15 years. My role is purely sales here. He said he enjoys the change and challenge of learning the many aspects of sales. Nopper taught Smithgall about trade show setup, promotional ideas, how to engage new customers and to keep the message simple and clear, he said. Leesa demonstrated approaches to trade shows that really work for a small company on a limited budget; she understands the subtleties, he said. She helped simplify the message, communicate value and make it concise. We were able to create several dramatic posters. Creative ideas for trade show exhibitions from the B2B Marketing assistance have helped attract techies to the Montana Instruments booth. You have to get their attention and make a connection, Nopper said. A little dry ice fog, a mass of metal tubing and a funky dinosaur at one side of the booth with Brian and Luke in lab coats demonstrating their equipment with its organized, superior qualities attracts techies. It visually demonstrates the differences between the Cryostation and competitor products. ' Lean Building Blocks Shorten Lead Time; Improve Quality When a company transitions from research and development to steady production, the concepts from Lean Manufacturing are very beneficial building blocks, according to Mark Shyne, MMEC Field Engineer in Bozeman, whose recent manufacturing project with Montana Instruments has made that transition smoother. The project goals were to get the company more organized to deliver production units on a regular schedule, to improve consistency and repeatability when producing standard products, and ultimately to improve profitability through improvements in the business operations. Value stream mapping (VSM), kanbans, and quality at the source were Lean techniques used for the project which was delivered in a very short timeframe. An initial VSM of the product family process flow illustrated areas where quality, efficiency, planning or inventory improvements could or should be made, Shyne said. It looked at inventory levels at each step in the process and finished goods levels; measured process times and/or machine capacities at each step; examined historical yields and scrap rates and changeover times on machinery. The VSM also measured staffing levels and process reliability. The subsequent value stream analysis and discussions about company goals were then used to create a desired future state map. It illustrated what the company's operation would look like four-six months into the future, incorporating "best practices" and lean manufacturing techniques. Shyne said.
5 Attention to Detail at Every Step Mark introduced us to the Plug and Play Concept so a finished instrument can be plugged into the system and operate correctly the first time, Smithgall said. He developed a checklist for self-testing at every stage; every step was mapped and quantified from fabrication time to lead times before a future state developed. That the same attention to detail went into building subassemblies, receiving of raw materials and on to building a tree of working components that form finished products. Plug and play was achieved using Quality at the Source, a Lean term. Theirs is a very multi-stage assembly process, so I had them add tests to the lower level subassemblies as they are being built before they move onto the next stage, Shyne said. Luke incentivized the staff to reach this goal, offering a steak dinner when the first instrument tested correctly the first time at the finish station, Smithgall said with a grin. The crew achieved it in a matter of weeks. We have made a crucial leap forward -- most of our systems are fully operational on first time up. Previously, 30 percent of assembly labor involved tinkering with the finished product to be sure it operated correctly on the bench. Brian demonstrates kanban system valued by staff Kanbans were set up to get a handle on materials management and quality at the source. Titus is managing the supply chain front end now, using Parts and Vendors software for materials management. I also recommended centralizing the purchasing function as it is quite typical for a company s engineers to order the parts they need without considering other needs across the company, Shyne said. In that scenario there is no system to quality check incoming materials which can compound quality issues. Better tools to plan and manage activities were needed to deliver products on time. Improvements Paying Off The kanban system has been one of the most useful organizing tools. We can look and see what subassemblies need to be build or what parts need to be ordered, Mauritsen said. MMEC led the way in getting a system of documentation set up, too, so management can determine if materials or processes are behind any failures. We have over 85 percent of our processes documented; before it was about 40 percent, Smithgall said after the project concluded. The company now has a more visual workplace, organized so that materials and tools are easy to locate. There is a greater sense of teamwork among workers, and better documentation means it will be easier to train new people using "standard work processes. Being more organized also means fewer management hours needed to analyze, locate job problems, and expedite orders. Lead times were cut from 175 days to less than 75 days from order to delivery; 98 days for custom systems. Several months after the project closed, Titus reported that production time is now three weeks with a stretch goal of a week. Cost of goods sold has dropped by $5,000 per unit. With a marketing strategy in place and improved production and management tools, Montana Instruments is poised for growth. We have some exciting opportunities coming up, Smithgall said. The clear message for readers is that you can manufacture state of the art equipment in Montana and serve a worldwide audience from here. MMEC and B2B are great resources for companies here. MMEC Forward Focus has been prepared solely for the purpose of providing helpful information to users of this service. The information has been compiled
6 by Tech Resources, a contractor to Montana Manufacturing Extension Center; however, no representation is made by either Tech Resources or Montana Manufacturing Extension Center as to the completeness or accuracy of the information contained therein. In particular, some information may be incomplete, may contain errors or may be out of date. In addition, neither Tech Resources nor Montana Manufacturing Extension Center endorses any product or service mentioned therein.
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