A case study is presented describing an undergraduate MET capstone design project aimed at reducing the measurement variation of rotating imbalance during the testing of vehicular powertrain products. Primary focus involved the redesign of the rotor assembly interfacing the balance machine and the product. The project entailed the implementation of innovative statistical methods discovered during the ongoing applied research activities of the faculty advisor. These methods were conveyed to the students who were charged with their application during the project. Tasks assigned to the students included the evaluation of existing measurement variation, identification of sources of measurement variation, redesign of the test apparatus to reduce the sources of variation, and quantification of the impact of redesign on measurement variation. The redesign of the rotor assembly and the marked reduction in measurement variation resulting from the design changes are described within the paper. The case study provides an example of the successful integration of technology development derived during the advising faculty's innovative applied research with technology application by students during a successful undergraduate capstone student design experience.