r e ce rv tn o a great deal ot respectful cttenucn rrorn 'J S Industry these days IS the ne cessi ty lor tote: .n ­ T vclverr.e nt - tram th e top down ­ Comments on the changing w:l;; stousnco: methods You must lo o k cl when yo u re HP scene- dOlf:g .n terms 0 1whether It Sin sta ­ and the people behind it, nst.cc) control - even 11 you re no t :-,appy WIth It says Demmg lt ts i rn­ portent 10 dlsll:Jg'.llSh betwee:: two types o: taults thaI onect quality and thereiore productrvitv tc utts In the baSIC way lr.!:,.gs ere dor.e - which resu it m about 85 percenl a t qucutv de.ects and must be corrected by management - and specie: causes wrnch car. be trcced to some mdi ­ viducl breakdown such c.:s human error or c.: laulty rnoctune lt s net true tr.ct there would be no problems I:J producnon or service II only workers would do their jeb s COf­ rectly Deming declares A 10101 supervisory techniques have been air targel he says de­ pendino too much on mspecnon at the end 01 the manu:acturing pro­ ces s rather than cnucctlv excrmnmq the system .tsell ( He points to a new cnclysis which suggests that in some cases parts should be Ilowed threugh a process WIthout Inspection - or else insp e cte d 100 percent Answering a queslion about correla­ rather than merely scrnp.ed ) tion lobles trom John Monroe ot Dolo Applvinq stot isnccl methods 10 Terminals Division . suppues 'rom vendors ISalso essen­ or HPiBo~ i . _ I" e tw o- ncl c ccordinq to Derr.i",g ( For an day s_ - ,5 'IC:J: HP example 01 ccruevinq zero de­ FquaIl1y.. • - Dr W iecrs t;-;rough close cooperation wl1h Edwcrds De rn.nc recently gave in a vendor. see p 18 ) Cupertino lor severe: r. \.:'.oreo::o::.­ Some vcricuon IS mevitcble ac­ pany managers had c mornent or cordmq to Demmg but 11 15 vita! to unexpected personc! mec;;l:lg know what's happening exactly. to De rrunq is the 80'Veer-old Amen­ estcbhsn control hrrnts and to keep can stcusncrcn who r.c s become altenng tr,e system to r.crrow those sornetrnno 0: a ;1v;ng :egend tor his ccntrol lirmts role in helpng trcnsror rn Japanese Der.:l:-:g believes so nrrnlv that all mdustr v ir.to a s;ngu::::I; success story nne managers should be .nvolved in lhrouqh stonsticcl q uc.itv co ntrol the management ot qucutv that he He recer.t ty stcrred :n an NBC doc­ specu ie d to Corporale Product As· urneritcry Ilt~,e Jc p c nese Can surcr.ce...... hlcf': arranged hIS ap­ Why Can 1 We? and is a sou q rit-rrtte r pearance Ihal he would come 10 HP speaker tr.ese days only II top management were well In the course at his H? serr.mcr represented De rru r.q used an c riecd ote about ~eetl~,g Dr Demmg had spacict Bob s tether W ; Youden a well­ sicruuconce tor another seminar at­ known stcusnc.cn ( You den s tendee Ke nzo Scsooko. president oi Squares} at the Net.oriel Bureau Yok ogawa-Hewlelt-Packard. whose 0:Standards employees ta k e pert i n 95 qualJty 'Wh e n : wanted te tecrn about circles cirned ct irn p rovin q work lactonal axpenrr.e nts : went to Dr methods YHP IS in cctive cornpeu­ Youden He tol d me Don t worry lion lor a Demmg Prize awarded ir, about the tec h n iq u es -- gel t:--.e Japa.. each year for oulstandmg problem well denned remem­ cpphccnon o f quc.itv c ontrol prm­ bered Derruriq ciples Thot prize was es1abllshed in Bob. atlendlf,g the seminar as a 1950 with a lec tur e r s tee wruch Dr reucbuuv engmeer lor the Com­ Deming retused 10 accept lor h15 puter Support DIV1SI 0r, wer.t up at now-rustoric e Ight-day semmar on interrrussicn to rem:r.:sce w;l~ stousucct quality control methods Demmg cbout his lam:ly which turned Japanese industrv in De rrunq s baSIC message which IS a new d irection M

MEASURE Hewlett­ r ecover y d iode m ade p ossible a sc rn plino oscilloscope Packard w it h g i g a he rtz b a n dwidths ' shook up th e The se tiny m icroeJe ctromc devtces are ali descen­ se m ic ond u ct or c ents o f the vacuu m tub e but they ve g row n up In dn­ i nd ustry in mid­ fe rent families HP's Mi crowave Serr.icon ductor Dtvision Feb ru a r y w h en a ( M SD) , for e xa m ple, is a m a ;or vender 0 1serru condu ctor te am 01 en g in eers re­ co m p on ents to other com p anies a nd ven ous E? d ivi­ vealed detc ils of a new SIO:1S Re lat ed to these solid stale d ev ices a re th e more pow ertul computer c hip Th e q uart er-i n ch sq u o re hold s comp le x i nteg rate d circuits th at ha ve m a d e Silicon Va l­ 450 ,000 transisto rs on Its gilttermg surface - more th a n ley fa m ous tour li m es as many d evices a s a ny semiconductor firm " In ICs. lhe d eg ree o f inte gration IS the ke y," says Bob has ever p a cked on a chip Iha l's been p ub li cly Grimm . he a d ot th e Technology Resea:ch Center o f HP a nnounced La b s. " We' ve m ove d throu g h the era ot small -scale i nre ­ With th e unveili ng ot the 32-blt int e g ra te d circuit (stil l g ra tion ( SS!) W lt:'i l essthan a th ousand d evi ces on a ch ip; i n devel opment stages at For t Collins, Co lo rado). HP took throuqh medi um -scc ;e integration ( M SI). WIt!:, one to 10 an i m p ortant step i n th e ra ce to pack a s m uch comp ut­ thousand devices p er c hi p. a nd i nto :arge-scale in te g ra ­ in g p ower a s p ossib le on as sma ll a chip ot silicon as tion ( LS[) w ilh up to 100,000 d evices on a ch ip The Iron­ p ossible While HP doesn't sell a ny of its cus tom i nte­ tier to d ay:s VLSI (very large-scale inte g ration) w ith grate d CJrCUltS (ICs) to the outsi d e world. th e com pany m or e th a n 100.000 devices on each chip " has des iqn ed and manuta ctured th e m tor i nt erna l use The i ncreasing densily 01 trie chip IS the d rivmg lorce since 1965. b eh ind th e se rm conductor in dustry because, as der.sity The IC ind u stry traces its rools to th e la te '505 w hen sci ­ increases, the cost p er trcnsistor drops A ch ip WIlt, 10,000 entists beg an cr eating trcnststors. diodes, resistors and devices m ay cos t SID to day -lhe sa me pri ce a s a ch ip ca pacitors on a slab of thin silicon. a long w ith the cir­ w it h onl y a le w hundred elements nve years ego c uitry need ed to hook it all together HP started man­ The d e ci sion to full y develop in -h ouse [C capabilllles u tc ctu ri n q its ow n soli d -stat e d evices more th an 20 years ca me In 1965 ':'h e major re ason b y cond uctm g re­ ago " w hen w e rou n d we could m a ke better re cllfyi:'.g search and d eve lopment i n re s. the co mpa ny w ould b e d i odes lor our ow n vacuum tube volt mete rs tha n w e a b le to make siq ru nccrit contrib ut ions 10 products w ith­ could buy on the m arke t." sa ys Ba rn ey O liver, vice ou t waitir.g lor si m ilar lCs to b ecom e available on tne president 0 1 Rese arch and Development "Soon it b e ­ co mmercial m ark et. '" I! you look insid e H?s b est sellin g ca m e a p p arent that sp ecial·purpose com ponents co ul d p ro ducts. you 'll nne HP cus tom ChlPS in a lmost ev ery one le a d to b rand n ew instru m ents For ex a m ple, the ste p of th e m " sa ys Bob Gnmm [ j HP w er e to sell th e chi p s

Marc h -A p n l l 98 1 Galhum arsenide circuits otter some special advan­ tages over su.con circuits and those advantages have helped I" a number 0: HP products "Speed is the key advor.tage this tec::'nology otters explmns Charles Lracbn section manager In HP Labs Solid Slate Labora­ tory In Pale Alto :-hese circuits have ultra-last swuctuno ccpubrhty three times taster than the rcstest silicon IC Our hlghesl -speed CIrCUit ot MSI complexity operates at data rates up to nve gigabIt per second ' HP nrst starred uSlOg gallium arsenide to rncnurccture d isplays lor the Hp·35 hand-held calculator in 1972 The onsn oo: elthal p ioneering work IS the current Oploelec­ tror.ics Division ( OED; .n Palo Alto Back In 1974 the Technology Center 01 what was the M icrowave Division ( riow Stanford Park and Santa Rosa divisrons i stcrred usmg gallium arser.ide fETs In butter o rnpluie rs In sweep osc.lloscopes Then MSD was able to exploit the unique .owrioise properties or galllum arse­ ::!de tronsistors lor rmcrowcve receive rs Today sophisti­ cated Jelllghters use MSD Sgaillum crserude crnphnars In their microwave circuitry A iccrutv used to desiqn and manutacture gallium cresernde Silicon end other serrnconducior devices IS The HP "Super Chip," as If was described by newlpaperl, expensive to build and run As a result, a plan was radIo and teleyillon, II small.r than the tip 01 an ordinary adopted 10 1975 that sought to get the most mileage out lead pencil. The 32·blt prOC.llor chip holdl 450,000 tranili. of every IC dollar Last year a task terce detmed speciuc tori on Its lurlace and II "'alter and more powerful than programs that WI\! give drvisioris shared access to a some 01 today" main-frame computerl" according '0 an number ot Ie centers while preserving tIght ties to each account publlihed In The Wan Str.et Journal. d ivisions developmer.t plans in iCs Since so much 01 any new instrument or computer nowadays IS Inside ICs. a designer 1S very hrruted in his cbihty to contribute new produced In its IC tccilmes on the open market. they Ideas It he cannot delermme whal new things are to go would bnng in annual sales 01 more than S140 rrulhon IOta at least some ollhe ICs IC lacililles are expensive to But. since the only place you'll ever nne an HP chip IS in­ build and operate but divisions will share Ihe llxed costs side an HP product, thai "sales volume IS meamngtul 01 rr.ese centers and WIll be able to make extensive use only in ranking " co p tive IC suppliers Captive suppliers 01 'w orkhorse processes Ihat WIll be put In place produce ICs solely [or their own consumption Ot these The major changes since the 1975 strategy was Hewlett-Packard IS the world's fourth largest behind spelled out have been the grcnd scale a1 which we're IBM, Western Electric and Delco operatmg. and the Involvement 01 more groups Chips from other semiconductor companies can be thro.lghout the company. says Marco Negrete, one of found in HP products, too Part or HP s integrated circuit the ieaders 01 the 1980 task torce from the Technical strategy is to buy chips cvoilcble on the ccmrnercicl Computer Group' We re movinq from an era when the market and manuJacture only those that give HP prod­ Ie laclilly was a llghtly krut group workmg In concert ucts technical perlormance advantages As a result With Its division to a time where we must share that there are about two commercial rcs lor every HP custom tecr.noloov WIth more people throughout the company" chip inside company products The model center proposed by the IC lask terce would Doug Chance, general manager olthe Technical cover 20,000 to 40.000 square feet and produce 520 rnil­ Computer Group, ieets there wllI always be general lion to SeO rrulhon worth 01 ICs each year When the cen­ purpose chips purchased Irom the outside but In-house ter IS tully developed it would use hall of the rocuuy lor IC capabilities allow HP to durerenncte products Irom production one-tourth tor research and development competitors and add special features that customers and the remainmg fourth as back-up want And he adds, "I! you WOlI until the other people In­ In c ddrnon to the ongomg R&D enorts at the Ie centers. troduce the chips. then you re gOIng 10 have a two- or HP Labs would tocus on the Jeaslblllty ot new IC pro­ three-year lag behind the person who can develop the cesses CirCUI: concepts new devices and the like There chip himsell" would also be research and recommendallons on new HP's president. John Young, believes In-house aqutprnenl processes and iC desiqns capabililles gIve the company an edge to mtroducmo The company's present :C lacillties employ 3000 products that make sigm!lcant contnbutions Product people 10 a vanely 01 Jobs from Circuit design to wafer contributions have been a foundallon and strenglh lor processmo Dinerent centers specialize In certain Ie the 40-plus years we ve been In business Product corun­ processes to produce chips WIth specicl characteristics buttons depend to a great measure, on component con­ for exampie CMOS ( co m ple rr.e nta ry metal OXIde tributions Now a component contnbution can be as serruconductor j crups although presenlly slower, use great as the deslgn or a whole computer once was erie filth the power 01 NMOS ( J',; -cha nn el metal oxide [ntegrated circuits lor the company's colculctors. In ­ se rn.conductor; chips That s why you nnd CMOS chips In struments and computers come pnmanly from seven IC m ost ot HP s handheld products and NMOS ChlPS In facilities that design and produce custom chips Other products where power IS not a problem and more facilities (descnbed on page seven) speciolize In re­ speed IS desire d lated solid-state technology. Santa Rosa. lor example Through the maze 01 processes like CMOS, NMOS. 50S designs and manufactures gallium arsemde !leld etrect and bipolar HP currently manuJactures hundreds of dit­ transistors and ICs, resonators, diodes and hybrid Circuits terent Ie desrqns lor use in products But that t1gure for microwave products doesn't include the designs In the expensive stages 01 re­

MEASURE search a nd development " It can co st a couple million Today the old process at drawing shapes on layers at bucks to try out a new IC design." says John Moll . seni or clear plastic Iilm a nd then enterin g the loca tions of the scientist in charge 0 1IC stru cture s r esearch a t HP La bs. intersections and devices in a co mputer (" dig itiZing") is "Th d t's why the biggest challenges fa cing the industr y being replaced with artwork techniques p erform e d on are quick design and turnaround With those in place, co mputer scr eens and powerful new programs that help we'll be able to try out new ideas lor about one- ten th the designers p la ce devices on a chip current cost " The entire pro cessot VLSI chip composition is becom­ Quick design and turnaroun d are being hetped along ing so automated w ith CAD that "peo p le will b e able to by a process of computer-a ided des ign (CAD) Betore co mplete microprocessor designs as la st a s the y can de­ the co m puter became involved in the design p hase, line the p roperties 01 the microprocessor:" explains complex circuits took shape a s a series of larg e-scale Carver Mead at th e Institute of Technology drawings on an engineer'sdratling ta b le, Wh at lo oks to HP has ha d its ow n CAD p r ogram since 1975 and has the untrained eye li ke a crazy mass of intersecting not waited tor commercial systems to sc tisry designers' roadways is actually a blueprint lor the three­ needs, 'We tound w e couldn't b uy what we needed, so dimensional routes to b e taken by electrical impulses as we set out to buil d our own," explains Merrill Brooksby, they zip thr ough the chip's layers near the speed of li ght. HP's m a nager of co rp orate design aids . Just a s impor­ As more a nd m ore devi ces get pa ck ed on every chip, tant a s many ot the ava il a ble compu ter-based design th e job of deciding where e ach transistor. resistor. ca ­ tools is a design strate gy or method olo gy. "You can pacitor, diod e and all their interco nnectin g pathways place th e same tools in the hands 0 1peop le w ho under­ should go gets m ore comp le x. O ne industry expert ex­ stand the strategy and a group who don't, and th e group plains, "Betore CAD , a 100,000 transisto r MOS chip w ou ld that understands the des ign strategy will be much more have taken 60 man-years to layout and another 60 productive:' says Merrill. "Th e new 450 ,000 transistor man-years to debug." 'Sup er Chip' produced in Fort Collins wouldn't have Achip is born I

repeated, with variations. tor each step in the pro­ ce ss Alter masking, et ch ing a nd diflusi on is com­ plete d. the wafer is te sted. scribe d and b rok en into indi vidual chips no larg er than your smallest tingernail These tin y electr onic squares then m ake a trip to HP's in tegrated circuit packaging op eration in Sin­ g a pore There the ch ips are centered in plastic frames a nd hairline leads are wired trom the ch ip to the le g s 01 the IC p ackage. HP's packaging op­ era tion. li ke those of m ost semiconductor com­ panies, is loca ted in Southe ast Asi a . w he re many costs are lower. How small are th e thinn est li nes on in tegrated circuits? As more and more devices a re pa cke d on a chip, it follows that the tinestline sbe­ co m e even fin er. Today those lines are ab out three microns ( a millionth at a meter) w ide and headed ...... 1.1 .... lor tw o By co m p arison, a human h air is 50 microns .... across Hair and airborne dus t pa rticles ca n wreak ~ "' .. .4 ...... ~ ,...--A havoc durmg the rncnu tccturinq process when ~""­ they settle on the intnca te circuit patterns. To cut Cheryl Lohman unloads a planetary of wafe,. from a d own on the number of such porti clas. workers wear sp ecial caps, m a sks, gowns and b o oties. and spufterlng system that appllol a 'hln coat of work in gl ass-enclosed clean rooms, aluminum to each wafer. Clean rooms tilter the air to "Cla ss 100" stan­ A typical HP integ ra ted circuit starts llie as a $7, dards, meaning there are fewer than 100 hall­ sliced-and-polished silicon crystal about four m icron or larger particles in each cubic toot A n inches in diameter. HP buys all these silicon wafers av erage air-conditioned room has a bout 300,000 trorn ou tside sup pliers Perfectly pure silico n is al­ suc h particles in every cubic fool. most an insulat or. but by adding doping ch emicals Nee dless to say, such cl ea n room ta cilities are in amounts from 10to 100 parts per million. the sili­ expensive \0 build and mainta in. It takes a n initial con conducts electricity, more or less investm en t of trorn SI S to 520 million to create an Next light is Io cused on photosensitized wafer IC center. a nd there's a continuing investm ent 01 20 surfaces through a series ot complex masks pro ­ to 25 percent ot the initial cost each year just to jected on the silicon Ea ch layer is formed by de­ keep the center up-to-dole, "In a li ve-year period, veloping the surface much as you would a phol o­ the m ost ex pensive pieces of equip m ent in a ta­ graph, leaving a pattern 01 exposed subs trate , cility will b ecome obsolete:' says John MoiL senior After etching, the appropriate semic onductor m a ­ scientist in ch arge of IC structures research at HP terial is diffused into the sil icon. This se qu ence is Labs "It'sce rtainly a capital-intensive business"

March-Aprlll981 The HP41C calculator Is a laney package lor HP custom In­ tegrated circuits, The nine HP IC., Identlfled by the tiny HP logo on &CIch, are all manufactured atltle Corvalll, Division,

berner (a micron IS a rrullionth 01 a meter) we 11 be forced to look at new tcbriccnon methods, says John Moil Or.e kmd 01 Improved processmg will be the re­ placement of wet etching usmg cere solutions with a dry process such as plasma or reactive Ion etching ' Improvemer.ts to HP's IC processmg have been "revo­ tunono r v In the past. with a great deal or time and technotoqicct distcncs between NMOS 1.NMOS" and the new NMOS III process (the Fort Colhns Super Chip process) for example It's been a molter of you bet your division' when It came to new processes, says John Young " With our new :C strategy we il place an increased ernphcsis on evolu­ non ot processes so there are improvements all along HP Labs WIll now locus research etJorts on finding those evolunonorv irnprovements and transferring them to the venous :C centers Anytime you re dealmg with a rncr.urcctunno process with 40. 50 or 60 ditlerent cpercr­ nons there are ways to Improve individual Units 01 the process WIthout inventing new processes, ' says Fred Is there a nrute lirrut to Ihe number of devices that can nt on a Single chip'? It looks like Ihe limit may be 10rnu­ lion devices on a chip a point we'll reach around the year 2000 , says John Moil " Thc t would also be the point at which the erectricot energy we put Into a chip won't be retnevable The technology advances that will lead the Ie industry to the I O-mnnon device chip trace their roots back to the late '50s when ICs were just getting started Those cdvcnces have been increasing the per­ rorrr.ance 01 computers at 30 percent a year ever since, or.e of the most remarkable changes In the history 01 the mdustncl world says John Young 'We 're now look­ Ing at en era when rnorrurcrne compuhng capability will be cvcilnble to everyone virtuolly on a tree bests What s so interesting o boul the next decade In elec­ trorucs IS that we aren I able 10 see what the impact 01 tree computmg is going to be on the way we hve our lives and the ways we orqcruze and conduct business We are lortunale 10 be In a posnion to make many 01 those unloreseeable events take shape and turn Ihem mto reality And 1I s eli made possible by HPs semiconductor technology and the 3,000 employees who are involved in an incredible shnnking act M

MEAS URE ~I i d state in th l~ee states

Seve n 01 HP'ssern icondu cto r c en ters specialize in LOVELAND INSTRUMENT DIVISION Integrated circuits for the company s c a lcula tor s, l.ovel o nd Col orado instrumenls a nd c o m p ute rs The remainder spe­ ci alize 10 rela ted soli d -sta te neIds The 12 cente rs in clude: Designs a nd mcnutoctures high-speed LSI chi p s, precision a nalog signal processing chips, th in-tilm ~S : resister network ch ip s pro d uced on sapphire HP LABS' TECHNOLOGY RESEARCH CENTER w or ers and multi-chip hyb rids lor Ih e division's Pa lo Alia, Cohlor nio el ectronic tes1a nd measuremen1tnstru rne nts a nd syste ms The Tech nology Re search Center sp e ci a lt zes i n long -ra nge rese arch In to solid-state scienc e a nd technology. The th r e e l a b s include th e Solid State MICROWAVE SEMICONDUCTOR DIVISION La b oratory, the ;nt egrated CIrcu its Laboratory a nd Sal: Jose, Calflornia th e In te grated Circuits Processir.g Laboratory, Designs and mcnu tcclures sem icon ducto r d evi ces and c om ponen ts suc h as Schot1ky. PIN and PN COLORADO SPRINGS DIVISION ju n c tion sihcon d iod es: silicon bipolar transistors, Co lorado Sprin gs, Colorado g alllu m arsenid e lield e nect transisto rs ( FETs) and ampliliers for sal e to out side customers and various ::Jesi gns and manufactures hl gh-fre q uency analog EP d ivisions mte r - c rc ' 115 h!g - mp _. y i I n l I ot r

I"~ th ex III ond hy r mierocircu 1] lor II J :vi sian's electronic lest a nd m e asuring instru m e nts OPTOELECTRONICS DIVISION Pa lo AHo. Ccrli.orn icr

CORVALLIS DIVISION Desi gns a nd manufac tu res op to ele ctron ic Corvallis, Oreg on sem iconducto r devices a nd syste ms inci ud in q l ~ g h 1 - e m it 1i n g d iode ( LED) lamps and displays. op ­ Designs and manufactures larg e -sc a l e i::1egrated, ucclly c oupled isolators, tiber o p tic tra nsm itter and comp lementa r y m e lal o xide semic onductor receiver links end emitt e r-d et e ctor systems for sale ( CM OS) and N-ch a n ne l ( N MOS) CIrcu its lor th e di­ to outside custo mers and venous HP d ivisions visi on's handheld and d esktop c a lcula tors

SANTA CLARA DIVISION Sontc Clara , Cchtorruc CUPERTINO INTEGRATED CIRCUIT OPERATIONS Cu p ertino, Colitorruc Desi qns and manula ct u r es hiqh- trequeri cy d e ­ vices a nd mlegrated circuits inclu d i n g linear bipo­ Designs a nd m c nu roctures complemenlary metal lar devices a nd LSICircu its lor th e d ivis ion's o xide sami c ond uctor silicon-on-sapphire ( CM OS­ measuring instru m e nts a nd systems 50S) a nd N M O S circuits for various HP comp uters and instr u m e nts MiCROWAVE TECH CENTER San1a Rosa, California DESKTOP COMPUTER DIVISION Fort CollinS, Colorad o Desiqns a nd manuta ct ures gallium arsenide FETs cr.d lCS, silicon microw a ve bipolar transistors, yt ­ Designs and m a nula cl ures NMOS p roc essors, ROM trium iron garnet r esistors. rrucrowcve d io des and and LSI rando m log i c ch ip s and thi ri-tilm products hybri d circuits lor 1he d ivision's own instru ments fo r th e d ivisions comput ers and peripherals a nd a ll other HP microwave instru m ent d ivisio ns. endmg HP people to teach tor a year at predommantiy L rnmonty colleges IS not a NEW new Idea lor the company since 1975 a number 01 HP e!lgtneers have spent one or more occdermc years as lo a ne d protessors at black co l­ PA1RS leg es throughout the Urnte d States The news this year IS the com­ panys nrst loa ned proiessor at an in­ strtuuon In the Southwest - which ACROS has a large Hispcruc and Nonve American populctron -- and the nrst Instructor exchange program be­ tween an HP division and a col lege CXMPUS A SPECIAL CULTURE LIke all of HP's looried professors RIch Kochis rrorn the Desktop Com­ puter Divisron IS addIng an mdustnal perspective to the courses he s leachmg at New MeXICO State Uni ­ versity In Las Cruces In the dIgItal system desicn course that he gave last fall students had a chance to learn lhe theory 01deslgn­ mg LSi ctups-i-c subject about which Gene KhaJa Rich has specie: expertise as an iC project manager In the Systems The bIggest hit at a science Technology Operotion and one or academy lor JUnior hIgh school stu­ the co-developers 01 the new "Super dents one Saturday was a ba1tery­ Crup He also has beer< teachmg a controlled R2-D2l0Y robot hooked computer architecture course at up to a computer which gave com­ NMSU mands In vanous sequences It was a The uruversitv IS In an area com­ learmng expenence lor Rich to work pnsed 01 New Mexico southern Col­ with thot age group. he admits. but orado western Texas and eastern he s already beer. asked to repeat Anzona wruch IS uruquely tncultural the day lor another juruor hlgh 'An glos" ( w hues) are almos1 a Other HP engineers servinq as rrunontv. just under hall the popula­ loaned professors this academic tion is 01Hrspcruc ongm and nearly year are Abdul Aziz from the Eastern 10percent IS Nat:ve Amencan Sales Region at Howard Umversity Rich. who grew up In Colorado and james Stewart Irom Colorado with many Hispcruc mends. Jumped Spnngs DIVISion at North Carolina atlhe chance to pioneer a loaned A &T professor role In the Southwest While 20 percent of the 2.200 engineering CAMPUS·INDUSTRY SWlTCH students at NMSU IS Hispcruc that Merritt College. Ioccted in the hills number IS stIll below .he ethnic rep­ behmd Oakland. Ccnrorruc. IS a resentallon in the area commumty college which stresses One reason. cccordinc to RIch. IS bonds-on expener.ce and practlcal that" Hispcrucs here don t view en­ preparallan at students lor jobs gmeenng as the way to go Dunng the last three years HP has To do somethmg about It he s hIred a number 01 graduates 01ItS been glv1ng talks cbout science cr.d twoyear program In computer engmeenng ct nearby secondary technology When the college asked schools in oddmon te his coilege the companys help In irnprovinq the teachmg At Gadsen High School. CUrriculum the ncturcl solunon which IS 90 percent Hrspcruc he seemed to be an exchange 01 per­ helped present a one-week corn­ sonnel !or a year puler cppucotions and lechnology course "One kid was gomg 10be a truck-drrver; Rich says 'We got him to program a computer and now he s considerinq thot as a possible career"

MEASU RE I

Ed Butts Rich Kochis

Gene Khrr jo . an instru ctor at Mer­ an d Ihen have a la ir am ount of r';' I~':"' I , __ L '_:I :k 1;-;. '" .; I· ),:1 II' rittlor lour years. joi ned the Corn­ fr ee dom in how you arrive a t them" purer System s Divis ion in Cupertlno " I get id eas from seeing what '/"1' '1"::1 '1 ,(=, ~ ,-;, 'I '\NP'~ ' .1"1 ") in Seplember to update his knowl­ people are doing in the labs:' Gene f-:"l')r,':'el ' tl "::-' 'II t I'dl' : ~rc- :I' edge in the op eratln g systems area. says "A lot 01 things ar e a m ind-set. a e \( 1,1,'1' I: 1(.:" 1>1 :' ". Ilin I His experience will be directly useful way of thi nking It help s to li sten to in teaching a new course in that sub ­ people who've been w orking on ject back on campus next year, lh ese problems lor live to 10years," That m onth HP supervisor Ed Butts Coo p erating on projects in the from the same division became a com puter field reminds Gene 01 an member of the Merritt Coll e ge sta ff arch in his native Pakistan: " Ma ny He 'staught a m icroprocessor course people he lped bulld it but th ere's no ( using five HP 5036A microprocessor li ne where one left off - it 's the resull lab s a nd HP textbooks donated by of a lot 01 teamwor k " th e company) and developed much Ed. who had taught computer o j the material in a CPU peripheraLs courses to HP teens. finds it dilterent class based on the HP 3000 in the Merritt clas sroom, The Jar hardware a nd support peripherals. w ider variety among his students He and Gene tou ch base frequently makes it a challenge to reach on other curriculum development everyone with th e sa m e malerial ­ for the program. Like Rich Kochis in some need a special boost while New Mexico. Ed has reached on others are already capable 0 1mov­ campus to teach a 16-w eek course ing int o jobs in industry. He 's given on vocational electronics at Oak­ some stu d ents microprocessor kits 10 la n d's Castlemont High School on take home to build thei r ow n pro­ Fridays. gramming interface cassettes, Taking part in the instructor ex­ Aside from technical tr ainin g, he's change program has been an eye ­ trying to give his students insight into opener lor both Gene and Ed , " the key things that the system really This is Ge ne 's first exposure La judges them on," such as establish­ working in ind ustry. although he had ing good w orking relationships. helped develop computers 01 bolh showing initi ative, and being de­ Manchester University and the Uni­ pendable. The i dea of lending an versity of California at Santa Bar­ HP employee to release a college bara instructor to spend a re fresher year He was happily surprised not to in industry has w orked so well that lind the structured environment he plans have already been made tor had pictured: "You sit down with another Merritt instructor to come to your boss and set out some goals, HP nexl September and Corporate Employment is encouraging other divisions to try their own exchanges, M

March -April 1981 9

In ihii cnort, ·be;: perG"";rG',;;e 0 1 'ove'r­ able re~pon~9s by HP 6mployeos forO categories 01 questions Is shown In whl1a and compared wltn flgwes trom hope thaI each at you has shared 01 least some 01 the involvement or the national sample of 200 lop U.S. interest that started more than a year and a hall ago wilh Ihe Open companies. Line cttitude survey As you may recall. the survey produced no big surprises among Ihe data In teet. the returns were very favorable to HP Less than 2 percent 01 US companies studied in the past two decades are In a class with HP Nevertheless. all ollhe organizations Involved m Open Line were asked to torrn leams 10analyze those results and 10suggesl appropriate areas lor improvement From these teams came a wide range at problem statements and recommendahons that were reviewed by lo ca l task forces for local cc­ 1I0n or relerred to ftIlo Alto lor corporate considerafton By tor the greatest number 01 problem statements were resolved 01 the local level 01 those sent along lor corporate review, in most cases our exist­ ing policies and practices were adequate but need more ernphosis. traming and comrnumcction The overall process 01review is now complete. and most resulting actions have been undertaken It 's time. therefore. to summarize the Open Line ex­ penence Although this report presents the major questions and responses that emerged. I believe the most important result was the experience ilsell. ----.,.. That IS. in usinq Open Line to lake a crilicallook 01 our policies and practices as well as Ihe various aspects 01 our management philosophy. we reinlorced the processes 01 openness and listening Ihat are fundamental to the HP way We WIll all be working Wlth the decisions and changes arising Irom Open Line for some time to come More importcmt. we will need 10 keep the spint of Ihat process working in our daily activilies on the job In short. we must continue to create opportunities lor communication by listening carelully to one another's Ideas. and by responding openly and constructively to one another's concerns

he overall HP employee Open Line response regarding pay was quite positive In rcct. it was significantly higher than the national norm as measured against 200 olher progressive companies 1n its summary report on HP's Open Line results. International Survey Research at ChIcago made Ihe following comparison: "The two Tlactors of pay and benetlts at HP are unusually stable and positive when compared to distinctly unstable and negalive national norms tor Ihese categories The dominant feeling at HP toward pay and benefits is that Ihe systems are intelhqently constructed and tair. There is an interesting and rare notion round In the dolo that. whatever economic tumult may arise in the Iulure. HP management will quickly cope W11h the sttucrtion " This report certainly indicotes that leelmgs at HP about pay are generally very positive. But some ISsuesstill need additional attention. as was evident in the many cnclvsis sessions These concerns centered around Ihree major areas: • Concern relating to salary curves and ranges • Concerns about pay odrmrustrction on these curves or ranges • Local concerns within a division or reglon ln order to address the nrst two, a high-Ievellask terce was established by the Executive Committee and charged with developing a company posi­ non This task lorce nrst studied the concerns and then developed a state­ ment or compensction ( p a y ) phIlosophy lor HP (see accompanying state­ ment) This method letlhe task terce evaluate the concerns In light 01 the staled HP philosophy The task terce recommendations lell into three categories those that could be addressed irnrnedictelv. those that should be addressed by educe­ non and training: and longer-range items requiring further study: 44.4% 90%

386% 8.0%

172% 31 .3%

8.7% 17 .5%

87% listings. confidential survey informotion or other people's pay. The important thing about pay of HPis thai il should be fOlr With respect to competition outside the company and fair ly administered wlttlln the company according to sustomed relative contribution

hIle Open Line and comments by analysis groups were being analyzed. Corporate Personnel was conducting ex­ tensive surveys to connrrn that HP's bene!il program is lully competitive The survey results showed that HP spends about 30 percent more money on benetits than the average spent Wby a group at 922 of the largest US corporcnons ( see occompany:ing graph) Moreover. when matched agmnsl a much smaller sample 01truly leadmg U 5 cornpcrues. HPs mvestrnent in benetits compares tovorably That rruorrncuon. together WIth the generally positive results expressed by employees led to the conclusion that the company is s1Jll in a strong position ot leudersrup and should develop a plan to mamtain that pOSItIOnin the benellts area A group 01 managers reviewed the competitive data and then looked extensivelv at comments made on the survey and by cnctvsis groups All survey suggestIOns about benents were reviewed lor employees' per­ ceived value. ease ot imptementotion. cornpctcbiluy with HP'sbenefits phi­ losophy and cost Many 01these comments will leod to benefit changes which may be Implemented over the nex1 several years The rcttowmq changes have already occurred The cost ot HP's benefits as a percent­ • The annual maximum allowable dental expense tor mdividuals has been age of payroll Is compared 10 strnllo) increased trorn 51000 to 51500 data trom a group 01 922 ot the largest • Utellme orthodontia benelit has Increased Irom a maximum 015500 to U.S. companies . Traditionally, HP 51000 per indrvidunl spends about 30 percent more, ac­ cording to sfatlsllcs taken from U.S. • The maximum outpatienl psychiatric benent per visit has doubled trorn 516 Chamber of Commerce surveys to 532 Also. mpatient psycruotnc care costs now apply toward the 5250,000 !lletime maximum medical benelit. but do not apply toward the 550.000 utettrne maximum psychiatnc benent Some comments requested changes In the way programs are o drnirus­ tered HP has made some changes. and others are being contemplated For example. some people wanted dental coverage tor dependents without purchasing medical coverage This change was accomplished during last year's open enrollment period Also. several requests were made lor ad­ ditional hospital benehls guarantee cards per family Additional cards were printed and distributed last year From the survey feedback. it was also determined that training programs need to be developed or strengthened so that people have a better under­ stcndinq at their benefils For example. some comments stated that lhe re ­ tirement plans do nol provide adequate benelils However. most people retiring trorn HP at age 65 al1er 30 years' service will realize enough retire­ ment income irom HP and government sources (social security) that living standards W1.ll not need to be changed Obviously more tntorrncnon about retirement. as well as other programs, is needed To promote an increased awareness and understanding 01the HP benetits program. special emphasis has been placed on inlormational materials Specifically: • New brochures outlinmg HP'sWe insurance and disability plans joined the V • _rl loyees. Employees have al­ r!ronl1n ~I A l ll4 rr ,e d protit sharing and sup­ ntal plans. and all general

• HP'sthird annual benefits statement was mailed to employees in March as part 01 a continuing program 10highlight benefits The sta1emenl. which has been well received. shows how individual employees stand in the HP bene­ nts program • A project IS underway to develop a benefits workshop lor personnel repre­ sentatives Portions ot this program will be condensed and included in em­ ployee and supervisory development courses • t

Finally. some Open Line requests appear unteasible because 01extraor­ dinary cost. incom patibility wtth HP philosophy or because only a small group 01people will benef1l. One such issue is child care. As explained in the January-February issue 01 Measure, HP'spos ition was spelled out by a task torce of HP employees: the company will encourage private or community ettorts to solve child-care problems. The company supports local eirorts by volunteering employees' time to serve on committees and boards HP has been involved with several other companies looking into the tormation 01 an independent childcare center. A task lorce 01emptoyees from each company co ncluded that con­ tro l of the center should b e a committee Job and not left to a nyone company. E

ewlett-Pccko rd's b enefit package is designed to protect p eople tram serious losses, to give them opportunities to share in the success at the company. to provide tor supplemental income at retir em ent. to enjoy adequate relaxation through paid time ott. and to p articipate in a hospitable work environment that eri­ Hcourages personal growth. loyally and efticiency. The package is designed The basic I~P principle 01 individual re­ to meet the needs of a diverse employee population The goal is to provide sponllibillty for work is enhanced by an a balanced and competitive package, even though some of its individual ea~i1y tlccesslb'e managom9nl team. programs may not have Ihe magnitude of some competing programs. Frances Salazar, a producllon super­ visor in Slonlord Park Oi\li~ion'5 mic­ speciuc criteria are used In the design 01the HP benetil package: rocircuits area, listens to work sug­ • The fu ll package 01benefits competes favorably with those of leading corn­ gestions trorn IIdlko Vldemsky. panies and in d ustri es. Studies and surveys 01such competing p ro grams are conducted regularly to insure Ihe overall competitiveness of our package. • Benefit plans should be designed to minimize the eftect of a catastrophic accident or illness on employees and their families. • The company believes that employees should share to some extent in \he cost of certain programs as a means ot promoting sensible decisions and nonexcessive use. By not assuming the total cost of such programs, the com­ pany Is able to other useful benefits. • Eligible employees should share in HP'ssuccess through significant p ro fit sharing. • Each benefH should provide adequate coverage. protection or income Social and tax Implications are taken into consideration. • Paid time oft from work is an important part Of the HP benefit package. and should be comparable to that received by people in similar local or­ ganizations. • In arriving at a benefit package lor an y given country. there will be neces­ sary tradeofts between the traditional HP benetits that exis t in the US and local national benefits. Benefits legislated by governments must also be con ­ sidered in the HP benefits package: HP will always comply with legal re ­ qUirements. HP groups or countries should identify these requirements and consider them when contemplating benetit changes • Benefit programs must meet the needs of many dilterent people. Em­ ployees have individual preferences in how a balance is eslablished be­ tween time on. insura nce plans. retirement. etc Whenever possible, changes to benefit programs sh ould retleclthe wishes 01 most employees.

F

ith a score of 67 percent lavorable response, employees who were surveyed rated HP management well above the national norm 01 46 percent. The rating covered such ques­ tions as the lairness at management decisions and the con­ cern 01managers for the well-being of the people they Wmanage. To questions relating to job security, employees gave HP a rating at 56 percent 4 percent below the national norm Concerns in this area didn't involve worry about losing one'sjob, but rather related to rapid changes in organizaUon and technology as well as relocation 01divisions Among the 22 top issues generated by survey analysis sessions, four showed concern about management and the application of management philosophy: the quality of some managers was questioned by a number of analysis groups: others stated that management-by-objecllve (MBO) as well as management-by-wandermg-around (MBWA) were nol used widely enough; and some said that use at the Open Door policy was sometimes frustrated by leel10gs ot threa! Fundamental responses to these concerns are seen chletly as a metter ot local responsibility and action. although corporate support in the iorrn or traimng. cornrnuruccuon and managemenl evaluahon IS Important In teet, most divisions and regions have redoubled euorts to strengthen both lhe apphcahon and understandmg of HP's management philosophies Some organizations. tor example. have restated a crystal-clear HP policy that says any attempts by managers to block the use 01Open Door will not be tolerated The startup or more than 300 quallly leams at many locahons ISservmg 10 Improve both productivity and the praclice 01 MBO The Open Door policy as well as MBWA were topics ot messages by President John Young In recent Issues ot Measure Both are closely related. their cnticot common elements bemg the cccessibuuy ot managers to their people and the need to estob­ lish a work chrncte ot openness and trust This Issue. along WIth others in the management category. Will be emphasized 10 continuing communications. In 0 11111& more !l'1on 11'10 Y()aI~. 17 JOD and be taken Into considerotron in the evcluction Of managers e mptovee s hove learned abo' i HP ph ­ The cnorvsis sessions produced only a lew problem statements about Job ~o~()ph't', wcr'-:in.:;; er,v;rci r t".;.nl ·3ncJ 04­ stabllLty These statements came rnomlv trorn divisions tccino relocction or 9anlzat:~)n thlough '\Nor ''1') al '"I' reorqcrmzrmon. their chiet concerns being uncertainly and l a ck 01mrorrnc­ (j non A review 01 division responses \0 Open Line Indicates thaI most are yeicpment fnanogor, to):':t ~. .:1 ..... :J!- /""1 '" aware at their responsibtnties to inrorrn and prepare people lor changes in c or p o ro ta staff arnp ovoe s ~~(\r'f) o r~"' se c r e ts 0' nlanGg!n~ wer', t!"l' v orqoruzouon They have generally Improved their abIlities to offset concerns 'I.', ~ ) r v, lhrough better planning ot the people aspects 01 changes, and by Improved cornrnuruccnon

(you ar.swered " D to all ot these questions. you are correct and perhaps a bit surpmed. 11 Open Line survey results were any indica­ non Although Open Line respondents generally were favorable about trcuunq and development oporlunities. a lew key concerns were re­ vealed not enough rorrnct trcimnc. nol enough inlormation about training. and not enough trcimno lor employees who are new to their jobs or [or lhose considennq advancement Beyond these. Open Line revealed broad needs lor added emphasis on trammg In a number of specllic areas For example. a hIgh percentage 01 the problems that were stated in the Open Line process arose (rom peoples' rmspercaptrons of venous programs and policies Many otthese rruspercep­ nons could be traced to Inadequate exposure 10 correct inlormation Train­ ing 15 certoinly one olthe Important means available to insure thaI em­ ployees are presented with and have access to adequate Intormotron What follows IS an atlemptlo clarity these issues and to review the actions being taken Over the pasllew years. divisrons and sales regIons have been equipped with a broad new menu 01 development opporturuuas. bringIng the total 10 more than 50 They have three mam goals

Courses have been introduced to help all employees understand basic HP prulosophy policies and gUldeILnes. and management style In addition to New Employee onentcnon. the Working at HP course (desIgned to reflect the same concepts that are taught In management courses) has now been presented to more than 17.000 employees In [ust over two years Newcomers to HP's sales and service organization become familiar WIth the company V1a centralized neophyte sales sernmcrs held throughout the year

Based on leedback (rom Open Line. Corporale Training is taking major steps to help divisions and sales rejnons WIth the orgamzational direction and resources they need '0 provide jobslull training lor employees Cur­ rently bemg developed or Implemented are assembly skills lor improved workmanship standards electronic data processmg skills. clerical skills and Job instruction IrOlnIng lor supervisors to assist lhem in ccrnmumccunc job skills 10 employees An extensive array of courses on videotapes has also de­ veloped Employees can learn abou1 subjects such as dIgital troubleshoot­ 109 either on lhelr own time or as part 01 a classroom learning situation

At the same lime. Corporate TrOlning has moved quickly to help divisions and sales regions effectively Involve employees in quality teams The de­ partment has trained about 500 prospective quality team leaders and rc­ cilitators to date. (Quality teams are HP'sversion of the Japanese quality cir­ cle concept: employees from the same work area volunteer to meet regu­ larly wilh their managers to identify, analyze, and solve work-related problems) Division Management Simulation represents a new approach to promot­ ing teamwork between managers, Using HP computer equipment. it helps functional managers gain a better understanding ot one another's roles The goal is to increase overall eHectiveness as a unit

m on g other im p ortant areas, Open Line examined employees' feelings about HP'sM!irmative Aclion program. Overall responses to the 115 Open Line questions were com­ pared to the responses given by subgroups such as women and various age and ethnic groups Each at these comparisons was quiteA lavorable Apparently. most HP people enjoy working at HP. and this holds true regardless of sex , age or ethnic background, When an additional comparison is made belween HP employees and those 01 the top 200 com­ panies in the U,S" minorities and women at HP averaged eight and 10points respectively higher than the national norms The only category on which the national norm exceeded the average lor women and minorities at HP was the Job Security scale. but this was also true lor HP as a whole, Employees over age 40 were generally more positive about HP than younger age groups Employees 55 years and older consistently ranked above company norms on all scales except Job Security, but even in this category they were only 1hree percentage points lower than the HP norm of 49 percent In the 17 major categories investigated in the Open Line survey, the dit­ lerences between men's and women's responses were small. The two largest diflerences were seen in the areas of Management and Job Satisfaction, and here the diHerences were only live and three points respectively. When the scores were lotaled for all 17categories, women scored nine percentage points higher than men It's also interesting that women viewed Pay and Benefits more lavorably than men Although mmority employees ranked comparably to national norms in all 17 categories. individual minority groups averaged about tour points less than the company as a whole When these groups - Blacks, Hispanics, Asians and Native Americans - are examined individually. some similarities and diHerences appear. All lour groups showed concern about the issues of Policies and Practices, Job Security. Organization Change, Management and Pay, yet on other is­ sues there was a greater divergence 01 opinion. Asian and Native American employees express more concern about Work Associates, Work Organization and Job Satisfaction than do Black and Hispanic workers In examining all the Open Line scores for the various sex, age and ethnic subgroups within HP. it is clear that a single, simple solution will not serve as a panacea lor all groups. Just as ethnic priorities dillered between groups, it appears ditlerent solutions must be developed to !it the requirements or all the subgroups within HP. Finally, the issues of Understanding Company Policies and Management. as well as Access to Jobs, emerged as themes linking the survey responses together. They suggest that how one comes to understand the organization and how one gets ahead in the organization strongly in!Iuences the percep­ tions of minority groups and women What is the next step in AA7 HP is piloting a workshop on Managing a Mul­ ticultural Workforce, The workshops will tocus on many at the areas 01 con­ cern discussed earlier. Also, seminars specifically lor Black protessionuls and managers were successfully piloted last year by General Systems Division HP is now piloting a similar program tor women and will soon start work on programs lor other minorities. These programs will go a long way toward improving perceptions about Access 10Jobs, Concern about Change, and Understanding Company Policies and Management These programs for minorities and women go well beyond present HP training programs such as Managing at HP. and will present tools that will be useful to women and minorilies in matching their expectations to the realities ot the organization They should also help overcome personal and organizational barriers to career achievement. Finally. the AJlirmative Action Workshop has been totally revamped and should be cvcnlcrble In May 1981 More and more, atllrmahve c cnon at HP will be based on meetmg our ob jectives 01 citizensmp, the comrnu mty and people - rather than g overnment compllance

. ---- .' -">, f\ ': " '''---- ,,_)! ... I

veraU cornrnuruccnon ...... as one of the seve nteen ca tegOrIes of responses analyzed In the ongmal Open Line survey As In most categones the percentage ol tc vor o b le respon ses ...... as well above the nc non c l norm The survey sho...... ed tha I ern­ ployees teelthe com p a ny keeps them well mtorrnad a nd tha t omanagers are receptiv e to employee opiruon This suggests that we are domg a good Job in general. but responses 10 several other categones tn di­ cote there IS room lor lm p ro vem enl In our co m mumcc tion s Commenls trom the Open Line cric tvsrs groups Illustrate that employees do have some rrusperceptions about our management policres a nd philosophies despite major enorts in our trcimnc courses and publlshed 10 ­ formation As a result. John Doyle. vice president ot Personnel. chartered a The open office environment Is a boon task lorce to examme how we could i m p rove the communication 0 1person­ to lncte

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n the last seven pages you 've learned many of the results ot our Open line employee survey. including people'sal1itudes toward. and under­ • • :. " f standing 01 our company, its prccncss and philosophy We have learned a 101. and there have been changes as a result of the survey. But in this linal report about Open Line. it's important to put this pro­ cess in its proper perspective Hewlett-Packard has a reputation 01 being on ' ~ -: ~ . - ":;" ,\ .» . employee-oriented company a reputation thaI's solidly based in actions throughout our 40-plus year hislory. The survey was yet another atlemp1to ensure that our repulation is still deserved At Ihe outset, no one, includmg me. imagined how involved the Open Lme process would become But we knew that it we elevated employee awareness or the company's attitude and concern tor its employees, we'd accomplish a great deal We were not survey specichsts. and we made a tew mistakes along the way, In spite of our scrambling. the final results are tremendously helpiul. thanks to lhe ettorts 01 a lot ot people Sometimes the process 01 exploration is as important as Ihe outcome Changes came about slower then we expected Perhaps some people came into the analysis groups with Ihe idea of overnight results We now know that any changes lake careful planning, review. consideration and implernentcuon This is particularly true when those decisions ctrect the en ­ lire company For instance, the decision to add on extra hohdcry or vacation dcry to the schedule is a 53 5 rrullion decision Benefits in the years ahead will see an increased emphasis on what we call soil benelils As companies. in an enort 10 be compelJlJve. develop similar benetil programs. lhe key dn­ terence will be round in HP programs tike protit sharing. Management by Objective (MBO). !Iexilime. open otuces. casual dress, employment stabIlity. mtorrnot access to management. etc These programs have helped make HP lhe success u is todcy. and will continue to do so in the years ahead Although trus is a linal report, it IS by no means the end at the Open Lme process There are still a tew issues to be addressed at the corporate level As we look 01 benellts in the future al HP comments trom the survey most cer­ tainly will gUide our choices And. in not 100 many years, we wtll probably conduct another Open Lme survey to once again make certoin our ern­ ployees teel we're still on the nghttrock KUDOS WRITE ON!

You are doing a won der ful job with I've been re a ding the letters you've Y01JR TURN Measure magazine! p rinted in Your Turn a n d wonder it Invites you to question or I am pl ea sed to ha ve a quality you ev er choose to le a ve letters ou t comment on matters corporale news m a g a zine which I o t Mea sure tor one re a son or not on ly look forward to receiving another? of importance and r eading . but I even show it all to KAREN NAKANO to the readers my d esig ner triends a s a n example Cor porate Personnel of Measure. 01 excellent d esign In a news publi­ Palo Alto. Ca lilornia cation. I look torward to many mor e excit­ ing issues in the fut ure In the 10 months since ',bur Turn began. KATHYGARD we 've printed almo st ever y letter re­ Business Computer Group ceived, To date, the only ones we 've Cuperti no. Calitornia left out have been either specific prob­ lems betwe en on employee and supervisor or those wh ich duplicated anotheron the some SUbject. ULTRASOUND - A LIFESAVER There have been insta nces where a letter was received so close to dead­ In a re cent Issue ot Measure you line tha t we couldn't squeeze it in the had an Item about the HP7702A Ul­ c urren t issue, and hod to postp one it tr a sound Imaging System. It's difficult for on additional two months, to convey the heartlelt thanks I fe el For the record, most ofthe letters we lor the development o f such a sys­ receive are signed, and most HP tem January 9th I stood lor an hour people ollow us to pr int their names or m ore as the stall at the Stanlord along with the ir comments However, University Me di ca l Center used a we will Withhold printing the writer s loaned instrum ent to analyze my name. if requested, m oth er's heart condition alter she Letters tend to focus on SUbjects had congestive heart tailure during which hove appeared recently in a visit to her son-in-law in the hospita l Measure, although we do n't want to Mom has h ad a lo ng history 01 lim it content to j ust those we're par­ hypertension yel some 01 her tiCUlarly interested in hearing from symptoms w ere th a t or a dlsrunc­ people who ha ve something ofinter­ tional aortic heart valve Textbooks est and importance to shore with say tha t th e tw o conditio ns do no t 58,000 other employees - views and exist in the same p er son Alter sev­ co ncerns about almost anything that eral tests and con llicting results. the affectsour wor king lives, It's ',bur Turn, declsion was made to use the new so let s hear from you HP equip m en t to ge t a "b e1ter p ic­ ture" a t th e problem Its reading that she ha d a valve problem compli­ cate d by hyp er tension wa s later Address letl ersvia company co ntir med by a ca th test mail 10 Ed it or. Measure, I' m happ y to report Mom was put Public Re lations Depar t­ first on the list tor open heart surgery. ment. Building 28A. Pa lo She came through the o pertion like Al to Via regUlar p o stal ser­ a ch a mp and is now recovering at vice. the address IS Editor. my sister 's hom e Measure, Hewlett-Packard Thanks. HP. You've a d d ed my Company. l 50 l Page M ill m oth er'sIile to the ma ny you 've Road, Palo Alto, CA 9430 4 save d , Try to keep your leIter und er JUDYJACKSON 200 w o rds , Please sig n your Corporate Mark etin g Services letler and giveyour location Palo Al lo, Calilornia Names will be withheld on request Where a re sponse IS Th e eq uipment used for Judy's indicated, the best avail­ mother had been loaned to Stanford able company sou rce will by the Andover Division for field besought evaluation.

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March-April 1981 THE ONE AND ONLY

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14 M EA ~ U R S IIHE JUST HAS A TREMENDOUS ABILITY TO INVENT A WAY OUT OF ANY PROBLEM."

Bill Hewlett and Barney Oliver looked on as Lee de Forest tried out a new HP At a rec:ent meefing, and waveguide device during a tour of HP In 1956. De f;ore,t's Invention of ftle tttree­ Barney Oliver continued ftlelr lifelong element vacuum tube - ttte "a udlon" - ushered In the age of radiO. In turn, many collaboration. young engineers Including Barney Oliver and DavE' Packard were Introduced to electronics by their experiences as "ham" radio operators.

low voltages. Barney sa t down and th e n ex t year he, alo ng with HP's Len Ba rney had th e hig hest results In th e d eveloped a Ira cllon a l-turn trans­ Cu tler a n d Da ve Co chran, devel­ cl a ss and 0 1course stayed on" tor m er l or w hich he subsequently op ed a nd demonstrated a ve ry The crossing ot p aths at Hewlet t. r eceive d a pate n\. It was a typicc l satisfa ctor y solution - simple . yet Packard a nd Oliver w as intermittent instance : Wh en you got Ba rney in­ ele g a nt and i n exp en sive ln princi­ i n Ihe ye ars imm ed iatel y foll ow i n g vo lv ed in a p roblem. by g o lly that p le. 1t sta ted th a t it a tra in ente red a Stanlord: AJter a year i n Germany p roble m got sol ve d !" " block" and h a d not emerged a t the Ba rney m oved on 10 Ph D studies at M ore re cently: tha t a bility was other end it m ust be i n the block Cal Tech and 1hen to Bell Telephone broug h1to bear in he lp ing to solve Very l ew trains disappear In to th in La b ora tori es in 1940. "I used to see th e Mystery at th e M issing Tra in s. a ir. Th e concept w as made oven­ Ba rney iro rn lime to time dunng a n d BART. the Bay Area Ra pid Tra nsit sys­ able to BAR T a t no cost. although HP alter th e war," Bill said "Later in the te m serv ing th e Sa n Francisco-Ea st still h olds the patent rights, '40s Dove and I tried to get Barney to Bay counties, had ex p erienced a Hewlett recalled that th e O liver join the co m p any Al tha i li me he loss a! contael with some train s as problem-solving style was evident was engaged in a ve ry inter esting th ey moved rrorn one signal section very early in th eir c ssoctc ti on "I te levision projecl pro ject-s-tr ytnq to to another, knew Barney at Sta nford. a lthough compr ess the signals, Obviou sly Bell In 1971Ba rney was appointed by he sta rted a lew years behind Dave Laboratories d id n't want to lose him , the sta te sen a te to a panel at sci en­ and m e At one p oint i n his under­ so they gave him a great deal o f tists whose task was to assess Ihe graduate years Barney ta lke d his free dom. A n d he was working sc retv 0 1the system In th e course 01 way into taking a graduate course along sid e some ve ry stimulating i n ra d io en g i neerin g ta u g ht by Fred colleag ues Te rm a n, even th oug h he ha d not " On the oth er hand.Ccrl ttor ruc was had th e usual background studies his home. his moth er still li ve d near Professor Term a n was reluctant. b ut Sa nta Cruz, a nd he ha d some int e r­ sa id 'O K - how ever we'll r eview the est In the thi ng s w e w er e doi ng We situation a t m idte rm : At m idterm

March-Apnl 1981 EVEN BEFORE HE JOINED THE YOUNG COMPANY BARNEY BEGAN SOLVING SOME OFHP'S TECHNICAL PROBLEMS ,

.rnpor trrr.t penod .n my lite he would ","rile later it was iollcwed by rur tr.er des:g:-: GLe: :ecslbl:lty studies cor.ducted '::;y :--;}..SA C::ld k r.c w n cis ::£T: .r.e Secr::h .cr Ex trcterrestno t ::-.leL:g e r.ce :c~rne:-.tIng or. tr.ese e xpert­ er.ces, He ...... lett sta ted ,r-,al Eerney could i

16 M EASURE II BARNEY COULD KEEP A THOUSAND PEOPLE BUSY WITH HIS IDEAS AND INTERESTS."

Silhouetted against a projector screen, Barney recentty gave paeked houses 01 HP people a guided tour 01 the VOY".GER journeys to parts of the solar system. At right is the Image 01 Saturn.

They mIght. wrote HP's Barney a tishlike li g ure appears, Finally, a Oli ver In a now famous proposaL computation based on digits a t prepare a mathematical code lower ri ght and the wavelength of based on pulses and p auses. repre · the transmission tells us that these sentmg on e and zero respectively: hypothetical adult inh ab ita nts ot Ep­ Any sharp m ath ty p e in the universe silon Eri dani are b etween si x and sh ould b e able to d ecode it First seven le et tal l. clue is the 1,271 " bits,"Since this li g­ HELLO FROM ure is th e product of the prime num­ EPSILON ERIDANI bers 41and 31 . lay out the mes sage accordingty Leaving out the zeroes. ... o • . Radio astronomers have r ecently ttus woutd yie ld th e pictogram ...... had a Held da y gathering In strange shown her e The mes sage. says HP's res earch vice president. describes a ...... ra dio pulses from inte rstella r sourc es, .$ •• • ••- •••• •:::•••:.- •••• •••­ However, the scien tists have con ­ ra ce of sexuall y r epro du cing .§. ••• •• •••••••• o 00 elu ded that intellig en t b eing s are bipeds , Its star and plan ets are ...... p robab ly not ori ginalin g these sig ­ shown along the lett : th e man is fi • • • ••••..... :.: :.:.: :. nals, The question rema ins: How p oi nting to the four th plane t. his ...... home Tr.e symbols Jar hydrogen, · ...... w ould a tech n icall y a dva nced ex­ · .. . ·.·...... :...... traterrestr ial p eople sen d co m ­ carbon end oxygen show enth e ····. ·· ...... m unica tio ns a crossspace in ri ght 01th e sun The idea of water on · .. ..· .. ... the hop e of contacting nelg hb ors a the th ird planet is con ve ye d b y the I· hundre d billion mil es a way? wavy li nes originating here, Below it.

March-Apnl l 98l 17 Loveland auemble rs no longe r ho ve 10 ...... orry whether the reed re lay po rt s used in tt1e 3060 board tes1 sys tem "",nl be detective.

l8 Then, as Gordos worked hard to " For example," notes Bill, " they " It's a WIn-win situation: Gordos provide relays which met all HP's were considering chang in g to plas­ has a higher quality manufacturing quality expectations, the production tic bobbins on the relay: They didn't process th at produces less rejects, engineers, in turn, sent weekly qual­ realize the proble ms this could have and HP gets parts that don't lail in ity reports back to the ve ndor. created tor us Most likely this would our manufacturing process, It used Alter about two months something have increased the bobbin's m ois­ to cost us between $5 and 525 to tind special began to happen: relay ture absorption and ca used our sys­ a nd replace each defective r elay so qualitysteadily improved. The odd te m to operate poorly in humid Gordos is saving us time a nd money:" coupling 01 the two companies was environments." As it all this harmony weren't working. Vendor and buyer were But the close encounters between enough, HP and Gordos are continu­ coopercxting, To their surprise, each HP and Gordos prevented such ing their ettorts 10 improve lhe part. found they really had not under­ problems betore they occurred, One Now that both sides understand how stood the other's problems. engineer. in teet. was assigned on a the relay is manulactured a nd used, " We had never really explained tulltime basis to work with Gordos further redesign efforts are planned. how we were going to use these re­ The result was nothing short 01 sen­ Predicts Loveland Production En­ lays, Even more important. we never sational gineering Manager Bruce Huib­ explained what sort 01 manufactur­ A tew weeks atter this concentra­ regtse, " We expect to see an ad­ ing process the part had to survive." tion 01 effort to improve quality. Gor­ ditional 30 percent reduction in the says Bill, The relays, in fact. had to dos shipped HP 56.000 parts-and cost 01 the part because it will soon hold up through a wave soldering not one 01 them was bad! cost much less to manulacture." process which caused some 01 the "Thisturnaround certainly sur­ The whole experience has been failures, prised us because it was much faster so uplitting that Bill says he's hoping To maintain the improved quality, than we dreamed possible: ' says to find ways 10 work with suppliers of HP asked Gordos not to make any Bill, "1sent Gordos a letter commend­ other key parts "to help motivate changes either in their manufactur­ ing them lor making such a con­ them to work toward zero defects ing process or in the parts used cerled eUorl to improve," "Our enorts with Gordos proved it to make the re lays without prior The experience conlirmed Bill 's can be done, This has truly become approval belief Ihat "w h en a buyer and sup­ a partnership that really works ," M plier have a relationship like we have now with Gordos. super things are bound 10 happen. "We also learned some lessons, For one. we caused a 101 01 our own problems by not communicating beller from Ihe start They really didn't know whal was causing the ir part 10 fail because we hadn't provided a detailed description of how we were using it " Gordos has recenlly changed its focus. Bill reports, "They are now building sli ghtly less in total output. but of much higher quality: That's HP'sphilosophy. too

March-April 1981 19 CLOSE UP Zooms In on the ever-changing world of HPpeople, products and places.

n the 15th ce ntury. the world was thought to be !lot n HP .:t!n I a s a pan cake But a tew • 9 orr. . people challenged the status a rs . I quo and discovered c lot 01 surprismq things HP's oscilloscope sales terce IS challengmg customers \0 loo k at some ol the revolut ion­ ary changes in hlgh-perIOT­ mance oscilloscopes As a novel sales glmmlck. prospec­ tive buyers receive a square­ world mug with a color map of the world. circa 1500. alter they've witnessed a product demonstrotion rbt eke . I ~ ve:~ 't' uet

20 MEASURE h ere 's a 10-100t robot at Co rvollis Division p erforming a Job mas: peop le would nnd bonng T3 . the company snrst mcustn c t robo t, w ork s a t the e nd ot th e lnjec tio n rnochine li ne perfor m ­ inG the ~ e p e til l ous . m o no tonous job o t hand ilng th e p laslic lhat rrickes calculator .cces The ro bot p ic ks up matenal Irorn a stack a nd p la c es it 0:1 a m achi ne that p i erces Ioccnin q ho les Then th e robot moves the rncte ri c l 10 a mach ine lor cutting out ind i vidual tac e p lo te s ed ica l p roducts are nymg To m Wir.slo w. the d ivisroris cutorr.otion te chnoloov engmeer. sa ys high a bcard the fi rst sellcon­ T3 w a s p ic ke d over o th er robots b ecause it is the mest mlelh gent ma­ lain ed c .rborne emergency chin e on Ih e market today. T3 ca n reach 13 leet of! the g round a nd M ti ps th e sca le 0 1a hefty hos p it a l. mcnuicctured by the Lock , 5.100 pounds t:e ed A ircro rt Ser vice Compa ny In Cali fornia Th e C- 130 Hercule s cnr­ cratt is d esig n e d 10 tly i nto remote areas with co mpl et e med ical Iocilr­ tie s w henever a d lsc ste r strike s O n board are ex ammatio n surg e :-y. In tensiv e care and recover y rooms HP sup pl ies patient monitors. recorders. ce nt ra l sta tions , d eli b ril­ la tors and EKG carts for the llymg hospital

rrowheods. kn ive s a nd. scrapers trem EP's Andover Division e re now pert 0 1 a A colle ction 01 preh istoric a bongin a l ar­ tiiccts The small pie ce s a t slone aren t p art ol lhe d ivision's li ne 0 1 medica l products lnsreod . the artilacts come from Ihe north east corn er o f HP's \ '~------.~ ( < , prope rt y -- th e site of a rchaeologic a l e xcavo­ , . . ' , " - "6;- ", li ons thai have unea rt he d to ols Ihal app ear 10 date irorn 6000 B C 10 1000 A D Duri ng th ose tlrnes. en a borig inal cu lture hved necrr ra p ids in the nearby M errimack River end en joyed a bundant lishing. Th e Massa chusett s Histor ical Commission ha s picked part 01 HP's property and o d joimnq Dlgltal Eq ui p ment a nd conse rvo tion p ro p er ty for m ore ex covotion s to lea rn a bout north easte rn Mcssoch use tts prehis­ tone culture

March-Aprill9Bl 21 NEVIS C L I~ S Recaps the newsworthy events, changes and achievements within HP.

During a break al the 1981 shareholders meeting In Cupertino, Caillornia, on Feb­ ruary 24 : HP director Ernest C . Arbuckle, Harold J. Haynes (who was elected to the board that day), and Franeill. Moseley, who has retired Irom the board after 15 Y8Qrs 01 a director. Haynes is chairman of the board and chief executive 0111· cer 01 Standard 011 Company 01 California.

FIRST QUARTER FY81 NAMES TO KNOW CONFERENCE NEWS Hewlett-Packard reported a : 7 per­ Ken Pattor. has been r.crned the HP scie r.nsts trorn the Desktop Com­ cent In crease In both sales and ne t new general mc~ager of the p uter Division's Syste m s Technolo gy earnings lor the li rst quarter 01the McMlr.:-:v:ile DIV:SlOr. replacing Bill O p eration made news allh e Inter­ company's 1981IIscal year Sales to­ Craven nc..... direct or 01 Corporate ncuonol Soli d Stat e Cir c urt s Corner­ laled $775 m illion. compared With Personnel Patton was R&D r::anager ence in Ne w York City on Feb ru a r y 5664 rrulh on lor the lirsl quarter 0 1 lor both l~_e Wallham Divi sion cr.d 19 with two lechnlcal papers about FY80 Net ecrruncs amounted to 563 Me dicnl Gr oup Bob ?uelle has a new 32-blt processor chip with million. In conlrast to 554 rrul li on dur­ moved irorr, general mer.coer at the 450.000 transistors which is now in in g the lirs t quarter o t 1asl year .n­ Compuler '::up~ort Dtv.s ion 10 the th e developmenta l stage In Fort coming urst -qunrter orders 01 5931 seme ro.e at the General Systems Colhns ( see p 3 ) Dub b e d "Sup er rrull ion set a record unrnctchoo In DIViS:O:-: MIke Leavell formerly Chrp by the rnedio :t ca u g hl the ct­ any previous quar1er and repre­ Neely s reglOr.ai sales manager for termon o f ncnonct press. ro dio a nd sented a 16 percent increase over compu ler products r e p.aces Puette TV Pr ese ntm g th e papers on behalt orders 01 5800 rruluon in the tirst Robert Avdobmon wi ll head a of lhe research teorns were project quarter 01 FY80 newly erected Grenoble Techrucol leaders Josep h Beyers and Ja m es Systems Operaton responsible lor Mikkelsor; c uthorship Included DELCONMOVE Dala Systems and and Rosevllle di­ Louis Dohse. Jose ph Fucetola. The tormer Deleon DIVlSlQn has visions cct.vities at I~ja! .occucn ~ l chard Koc rus Chlrord :"'ab Gary changed its name to Colorado Tele­ Ta ylor. Eugene Zell er Lawrence comrnunicotions DIVlSIQO ( CTD) as HONORS Ha ll Aru n Malhotra Dana Sec ­ part or a phased move trorn M ou n ­ Firs: members or the Instrument com b s and M crtm WIlson At the la m View, Calilornia to Colorado Groups Founders Club which honors same c onference Ror y Van Tuv l, Spnngs. Co lorado (It will be known top sales represe ntotives tor recog­ p ro ject manager for galli um arse­ inlormallyas Colorado Tele co m nized excellence over a penod ot nide ICs to the Santa Rosa Technol­ Division ) The starlup group now In several years Ne elv Sa les RegIon s og y Ce nter re ce ived Ihe best paper Colorado Sp rin g s m ove d March 30 Gordon Angus BII; Calton Larry award into a te m p ora ry lea se d tccrltty ad­ Fisher j i m Macne Jrrr; Marhn ja cent to the Co lorado Spnngs DIVl­ Saleem Ode:-l Don Swanson Roger sion. with Ihe enure move to be Trrrcy Chuck 'v','mberg Midwest s completed by early 1982 HP h as ex­ ':Im All Bill "lance Glen Wikr e, East­ cercised an option to purchase a ems To m Duiry Joe Fa sulo Lawson 206-acre site In Co lorado Spnngs 10 SlOger. Vince Yeras Southern s Mark house both the future permanenl Birrmnor.orn Chuck Carpenter. rccunv ot Co lorado Tele com a nd George Drury ;

22 MEASURE A MESSAGE -ROM JOHN YOUNG

HPPresident John Youngchats with an employee during the annuallhareholders' meeting In Cupertino.

statement summarizing the A number ot key points are made catastrophic failure in the health ot company's philosophy on in the opening paragraph 01 the an employee. A benefits was dratted recently statement One deals with our com­ In the nearly 40 years that have and is presently being distributed petitive position on benelits We in­ passed since those tirst HP health widely as part of the Open Line linal tend to provide benetils that put HP programs. much progress has been report. Our experience trom Open in a leadership positton compared made in the concept 01 employee Line tells us that as we become to other corporations. This parallels benefits, We've seen programs grow larger and more dispersed we must the salary philosophy I discussed in in sophistication. becoming much take greater care to define exactly the last issue ot Measure. Another, more comprehensive as well as what we mean in major policy which I would like to expand on costly; Many of the changes are out­ areas here. notes that a fundamental goal growths ot social and economic The benefit policy sets out the of many ot our programs is "to pro­ torces. The range of programs in the broad goals of our benefit pro­ tect HP people from serious losses" U S, organization now includes med­ grams: a "p a ck ag e" approach The company's first health insur­ ical and dental plans. income pro­ that's designed to meet the needs at ance program lor employees got its tection. Workers Compensation. many people. and the basis on start in August 1942 At the I1me there group lite insurance. retirement which HP expects to maintain a posi­ were just 51 people on the payroll, plans and social security. tion "among the leaders:' The state­ all ot them located in one rather These kinds at personal protection ment also outlines the specific small building in Palo Alto. That first have gained almost universal ac­ criteria that are used in evaluat­ program consisted ot an insurance ceptance. and are now incorpo­ ing the overall package and its policy which paid $5 per day tor rated in one Iorrn or another in most components. hospital room and board for a 01 our international programs. We believe this statement provides maximum 0170 days, plus up to S100 Clearly; all of us want to leel assured a very sound. yet flexible. standard in miscellaneous expenses. The total that we are adequately protected by which to measure our benetit cost ot that insurance to the com­ against that unknown calamity or programs. The definitions should be pany was $25 a monlh. Today; the illness. By sharing some 01 the risk very useful to all at us whenever we health coverage for HP's 42.000 em­ and the cost ot that protection we've want to improve our understanding ployees in the U.S. costs the company come a long way toward that goal ot a particular benefit. to measure more than $2.858 ,800 a month. the worth ot a proposed new benefit That was a beginning. a nd while It or to compare our programs with was not a "first" in industry it defi­ those of other companies nitely placed HP in the vanguard in benelits. Not long after. the company extended its health coverage when an employee experienced a crttlccl illness. Looking at the longterm con­ sequences 01 such an illness and the serious impact on employee and tamily, we developed a program that would provide contlnuing fl­ nancial protection in the event ot

March-AprillQ81 23