Based in Wayzata, Minn., Nortech Systems believes in solving the whole problem for its clients. With the economic downturn imminently threatening future operations, Nortech Systems was forced to solve the whole problem; this time, though, for its own livelihood.

Nortech Systems is a full-service electronics manufacturing services (EMS) provider of wire and cable assemblies, printed circuit board assemblies and diagnostic repair and integration services including higher-level assemblies and box builds for a wide range of industries, and recent addition of Medical / Life Science device manufacturing.

Nortech Systems services three primary customer bases: industrial, medical and defense.

Nortech Systems adopted a strategic plan to improve overall operations when the need to became apparent during the recession. Manufacturing as a whole took a big hit, and Nortech Systems was no exception.

Fortunately, the Company had embarked upon a lean journey four years ago and was already working diligently to strengthen and develop talent, while managing its supply chain more efficiently.

As a result, Nortech Systems has emerged intact and is charged up for the future.

Lean Journey

Encompassing multiple lean practices, Nortech Systems’ FOCUS Initiative is defined as “the relentless pursuit of eliminating waste from every business process and practice.” Unlike lean practices targeting just the manufacturing line, FOCUS includes every business process starting with the corporate offices.

“FOCUS conveys to our customers that we, as a company, are always focused on continuous improvement,” says Senior VP, Curt Steichen, Commercial Operations. “We work with our people, engaging them in a number of ways, beginning with training.”

Nortech Systems wraps the well-known tools of Lean, Kaizen, Six-Sigma, Rapid Action, ISO, Balanced Scorecard, 5S and Visual Management into a comprehensive package to add value to customers.

To date, FOCUS improves Nortech’s quality and reduces waste, reinvents how customers are served, empowers employees to help make drastic improvements in the company’s performance, strengthens the supply chain and drives new ways of thinking.

The FOCUS Initiative has been applied to all Nortech Systems’ facilities with noticeable results. Senior management has led the charge while outside consultants were brought in to augment implementation efforts, train the trainers and help foster employee participation.

“Our people engage in discovery to identify areas to improve and, finally, we give the employees the tools and training to fix the problems,” says Steichen. “It’s focused on people, processes and customer value.”

People Management

Nortech Systems’ employees are learning to internalize the principles of two key corporate initiatives: ‘Promise Equals Capabilities,’ and ‘Right the First Time.’ Employees are witnessing not only the financial results for the Company but also the improved work environment.

“The culture we are trying to create is one where everybody makes a difference, part of that is employee satisfaction and rewards,” says Steichen. “We as an organization feel strongly that our employees deserve to share in the organization’s success.”

Nortech Systems desires people who are able to identify and deliver process improvements. The Company seeks individuals who are natural problem-solvers but also augments talent with training. Nortech Systems actively recruits and grooms green- and black-belt leaders to perpetuate this continuous improvement mentality.

By doing so, Nortech Systems’ employees have a greater influence on the success of the Company and have had compensation incentives tied to performance. The people who play the most integral roles in the production now have much greater responsibility, as opposed to only project managers and leaders.

Supply Chain Management

A big part of Nortech Systems’ strength lies in its ability to effectively manage its supply chain. The Company is doing an even better job presently by virtue of the FOCUS Initiative. As favourably as Nortech Systems views growth – both organic and by acquisition -- the Company is keenly aware of the importance of how people and resources are allocated.

The greatest price determinant of Nortech Systems’ products is the materials and components. Working closely with customers to choose suppliers, determining the appropriate deployment of resources and managing the inventory reigns in costs.

Nortech Systems, based on its ability and track record, was chosen by a major medical customer to be the supplier of choice to manage product introductions.

In this role, Nortech Systems provides on-site engineering to determine standardization, short- and long-term cost analysis and both domestic and foreign new product introductions to offer local and low-cost manufacturing.

“Partnering with clients for supply chain management is one part of our expertise,” says Steichen.

“Additionally, we take the customer’s applications and provide the best solutions, which include supplier selection. This idea goes back to FOCUS. Our clients have lean initiatives, too, which we then incorporate into our supply chain. What’s best for us is best for our customers. It’s critical for us to be customer-focused and understand their needs.”

Nortech Systems is acutely FOCUSed on delivering value to its customers. Nortech Systems creates value in its products and services by eliminating waste wherever possible. Eliminating waste means developing partnerships based on communication and a mutual understanding of needs.

Nortech Systems is retooling its employees to identify where improvements must be made and how to execute the initiatives. When the employees reach a level where continuous improvement is an instinct, every level of Nortech Systems will add value.

Nortech Systems is quickly coming into FOCUS as an EMS industry leader.