,..... ' M
~op le ~He ...le U·P ..c ",,""
Cut JOur BET by 50 percent
When R&D , ma nufacturing and m a rke ting wo rk toge ther from the
onset of a project. profits improve fast er. The process is a good BET.
Cover illus tra tion bv Steve Osborn .
The BP 50th anniversary book of lists
A feast for the triv ia buff. Measure relives moments in HP h is to ry.
What really happened to Flight 412?
HP eq uipment h elps find the reason for a irline d isasters.
Can JOD keep a secret?
Wha t can you do to help protect HP trad e sec rets"
Best little warehoQlle in BP
What m oved 2'12 million pieces last year ? Mee t PCDO.
EnraOrclinary People
Your Torn
Letter from John YODD'
page 12
Art direClor.
C irculation:
Jay Cole ma n
Karen Flansaas
Associ at e edi to r s:
GraphiC deSigner :
Thomas J. Brown
Vernon Andrews
Sa m Lightman
Tom Ul r ir h
Rh ea F("ldma n
Belt v Gerard
fv/eosure 1$ publl$l'1ed Silt tunes a yeo' 'Of emplovee~ end m!oOClCJ1es 01 H~lett ·POCkold Company P,oduced by
COIP0f01e Pub'l(: !relations Empo,-ee CornmuI"lIcaflcn DeportlT\el"l BrodWI'l.rwonh, Moneger Address
correwonoenceloMeosure HewleM-PockQ.oComoonv 20M POBc:w.10301 Palo AIle COi11Ofnlo94J03-Q890
USA (415) 657 4144 Report changes of 00d!es!. 10 yOUllocC' oersonnel deportment
c Copyflgni
,Oe9 by Hewlett Packard Campon.. .
MOfeoOI may De reOrtnted W ITh oerm,SSlOn Member IntemotlOnc Ass.ocloho~ ol8uf./ness COITlmunlCo'ors
Hewlen Packard
on Internafx>nal manufacturer of memurement ond compUlohon prcx:lucis and
for elceilen<::e In quality anc support The comoany'S products ond seMces are used In
IndUStry. bu~lness englneefll'!g. science mediCine and educ01lon In more than 93 countries Founded In 1939.
HP celebrCrles Its 50th annlversorylhls year HP employs mo'e than 87.000 people worldwide
~'ems rec~nlze-d
Step right up, ladies
and gentlemen. Place
your BETs.To win the
game, see how low you
can make them. That's
the mission for the '90s
as HP President John
Young challenges the
company to
Cut your
Whafs BET? Irs break-even time-the time it takes
HP to recover the money the company spends to develop
your group's product and bring it to market. Irs part of
a larger concept called the return picture.
'frying to reduce break-even time is affected by a whole
raft of influences: the cost of developing the product, the
time it takes to get the product to market, how profitable
it is and how well it sells.
Put another way, the faster you start making a profit
on a product, the more your profits increase. That
increases shareholder value, customer respect, your
ability to spend more on innovation, heightened sales
and higher employee profit-sharing.
Reduce BET and everybody wins .
The basic idea is that the clock starts when an investi­
gation team is formed. That's when you begin tracking
the investment you're making. Then it moves into the
product-investigation and product-development stages.
May-June 1989
BET Eventually. the product is reieast'd to
manufacturIng;. At that point. invest­
mentlevels arrand. if all goes (0 plan.
the produc.' r begins to make a pront.
The lime it lakes for the revenue
coming in to equal the investment
laid out is lht' break-even time.
With BET as th{' measure oj success
1t's no lo nger enough for R&D to COInt'
up with the \vorld's greatest gizmo. If
manufacturin~ can 't build the .gizmo
economitally. or markeling can"t sdl
it profitably. the prOdU('1 is a failufe
despite its technlCal merits
And there in lies BETs appeat
Chuc k House, gcneralmanae;er of
th e Software Engineering Systems
DiVision. who co-authored a papt'T on
the return-piclure concept. says. ' One
reason fo r th e effect iveness of the BET
m easure is that il invol\'es allthftT
major functional areas in the den'lop­
ment and mtroduction of nt'\\" prod­
ucts, It provides indicators of the
efrectlveut'ss of R&D \'ia in\'t'stmeJl{
BET implies that you
have to watch develop­
ment costs and make
the right set oftradeoffs.
data, marketin,ll: pt'rformance \'Ia
o rders. and manufacturin,g erfkiel1c'Y
vi a st)ipments .. The sense or l\r~ency
IS ca ptured in lhe objective ofkeepin.{!,
break-even time as low as pOSSlblf' ..
"Commonly. people talk about time­
to-market, .. sa\'s Mar\' Pat terson. dlrt'c­
torofCorporatt' Engineering "rfrau
push tlm e· [Q-market as the sin.~k
metric to look at. and make it lhe anh'
visibl e and important thing. you
foster all kinds of bad beha\'ior.
" M a na~ e rs under severe lime pres­
sure may dec ide to forsake produl,t
quality or features or customer solu ­
tions to gt·t th e product alit Or they 11
sacrifice their e-ngineering work forct' .
work thos e p eople all day Salu.-da.\·
and Sunday for two years-whaten".­
illak('s to ~et the product out
"On the other hand." Mar\' contin­
ues, "ifvou track break-('\'C"n time, that
means the product not only has to get
Designers Chartle Elman and Bill Cormlchoel (from leN) have worked with Marv Patterson,
dlrectOf of COrporate Engineertng, tor the post year to deYelop a In metric_
out on I mw. it has to make a prolil
when il dOl'S. BET also Implies that you
h;)\'(' to watch dC'\·t"!opment {'osts. And
you han' to make lhe right set of trade­
orfs between time-lO -market profitabil ­
ity and in\,(,Slrtlt'llt So iryou focus on
BET. it pushes you toward the right
beha\'lor in all thrl't' areas.'
Lew PIa! (, C'xecu [i\'t' \'ice prt'sicien I of
th(' Compuler Products Sl'ctor. a,~rt't"s.
"Time-to'l1Iarket (by (Isdn b no good."
ht' says, "II l11eaSlll"t'S olli\' Ihl' amOlln (
of Unlt' It took .\-Oll to ,l!.t'( ttl(' produ('[
out It eould also be il lerriblf' product .
poorl.\' dO<'llrnenled 0'- ('osll.\' among
Olhl-r thinc;s. But (0 minimize the
break-(>n"ll time and generau,' a good
pralil. the produ c t has to have .good
J1lanufa t' tl1rin .~ costs and good market ­
ing eosts . And it can be optimized only
whl'n l'\'('~'body pulls to~ethf'T .
In otl1e rwords , with BET as the arbi­
ter or pe rformance. the' bunker" men­
tality no lon,g er is appropriate. Time
was wt,en R&D could invent a product.
throw it "O\'er th e \"all '10 manufactur­
ing, wh!l'h would produce it and thl'J1
throw it o\(:'.-the wall to ma.-ketin.g.
Those davs a rf' fadin~ rapidl\' Atlt'll­
tioll to BET breaks down lh~ walls.
'On(' of I ht' m os t po\\.'crfulthin,e;s
The dramatic success of the HP DeskJet printer illustrates the benefits of using development teams to help reduce bre<lk-even time. The
Voncouwr (Washington) Division team developed HP DeskJet In 22 months-less than half of the usual four-year development cycle.
we can do to improve break-even time
aggreSSively," says Mar\', "is to encour­
age a very intense ea rly~ on effort to
define the right product. This takes
not only the R&D folks and marketing
folks working as a team, but also the
manufacturing folks on that team ...
Product-development managers say
that t he main reason products don't
come out on time Is because the prod­
uct definition keeps changing during
the development stage.
"On th e other h a nd," Marv adds, 'Tve
seen products that came out on time,
under budget and with more features
than anyone ex pected. but the prod­
ucts failed in the marketplace because
no onc in the field knew how to sell or
support the products. Thars why irs
vital to define th e right product before
you s tart. "
Ideally. th e product triad- R&D .
comes out of th e tnves ti ga tion stage to
the day irS released to the market. and
even for some lime beyond that .
The HP DeskJet printer development
at the Vancouver (Washington) Division
is a p erfeC-l example of the kind of activ­
ity HP hopes to "aBET."
o Marketi ng iden tified a brief Window
of opportunity for a printer with high
print qu ality. case of use, dependability
and low cos t.
D R&D went to work 10 apply HP's ther­
mal Ink-jet teC'hnology to the new prod­
ucL Thev crea ted a clean, customcr­
installable. snap-In pen lwhich makes
54 electrical con nec tions upon inser­
tion): an automated "service station"
that wipes. caps and primes the pen;
and an output paper-handling tray
that prevents ink from s mearing
between pages.
o To aid communications, manufac­
turing dedicated a tea m of engineers to
the product team early in the develop­
ment stage. Manufacluring also pub­
lished design-for-manu[aclurability
gUidelines and held regular reviews to
make sure th e gUidelines were followed.
Marketing too k a breadboard unit to
focus groups a nd followed that with
repeated customer testing of subse­
quent produ c t versions. Working
within its overall schedule a nd cost
objectives, R&D responded to market­
in~fs feedback.
the tcam tested manufac tunngand
supplier processes at the same time it
conducted product testing. Protolype
manufacturing a nd marketmg-works
as a tea m from the time the product
May·June 1989
BET prod u ct io n reve aled (he payoff of mall ­
ufaC lurin,l(s early invo!vt"men t In [he
product 's d eveJo pme-m .
In pa ra ll el with till' prototype huild­
tes t-Il" cycle, Ill a rketin~ fiIlalized it~
stra teg,v Bas ed o n what Illearnrd from
fO(' \1 s g ro ups a nd market surveys. the
n ew p rodu c t \\-'as p O~ itiOllt'd as provid­
in g "!as('[·qu a lity o utput for under
81. 000 ..
Thu s did HP Ot"s kJet bllr~lllp o ll
th e sce n e- in 22 months inslt';-ui of t ht' u su al four yea r s for Cl Ilt'W prilltt'f
produ(' t. il is n ow. oft'o urse . sellinl!.
like h o tcakes.
Al though n o on e- wa s
(ra l' kinJ~
BET at
th(' I i lne o f th e Des kJel developnwl1 L
th a I sty'le ofprod ur t developrrH'nt is
wh a t BET e n ro ura~ e s.
Th e first BET p a ('ka~rs. consisting
o r a Lot us-type s preadshet't on OJ !loppy
"BET coaxes you
to make the right
d iS k an d a n Instru c tion manual lsee
s to ry on p a g t' 7 ). \1,!iIl be <J \'ailablc s oon
from Corpora te E ngineer i n ~, Oncr
u se rs ge l ('om(o rtablf' with il . BET will
be a pp'lJed in a va riely of ways
For e xa mple , projeCl managtT:; work,
ing o n a new d evel o pment mip;hl wa nt
to put some id ea s together wit h tht'ir
m a rk e ting co u ntt'rpans to determinr
th e prod uc t 's vi ab ility, If the managers
d evo te th est' r eso urces and includE'
th ese kind s of features, \,,'hat might the
BET look lik e? The team doesn't want
to spend a lot of lime on this, it just
w a nts to ~e l a sense of where this proj­
e c t might fa ll in relation to twoor three
othe rs' the team is lhmkin~ about.
S o right a t Iht' st a rt of the projet·t. the
R&D, ma nufac turing and marketing
ma n a ge rs will get together and dt,ter­
min e [heir b es t est ima tt's of invest­
m e nt. tirne -(Q-market. sales volume
and ma nufac turing ('osts. whit'll will
Using !he lET melTlc wllll1elp Imp"'''' business declslonslhroughoullhe producl·
deYelopmeot process, say Norm Johnson, manager ot engl~n9 melTtcs (Jeft).
and John fenoglio, manager of produettvtty management ,
produu,tht break-e\'en time As the
projt't't /.!oes ahead, actual performance
then will be plot ted on the same picture
as the project proJ:~ress('s, and tht' accu ­
racy of the forecasts then will be \~ isible
for all 10 S(,C'
Teams can play "what -if' games. For
example, what if the forecasts varit"d by
20 pcTt't'nt - O\'er or under? Vr'hat are
the impli<..'al ions of reachln~ mature
sales sL\ months eariit"r (or later)'?
Our! n¢, development, projt'(:l man­
agerswill trark investment eost and
product schedule \'ersus the esl imales.
Then, as mana~ers make dedsions
throu~h tht, pr~ject, Ihf'Y will ass{'ss
the impact on thr- financial profilr.
They will be concerned. not jus I about
time'to-markel. but also about Ihe
impact on 11l\'t'stment and profit.
The st'le('[ ion of a difkrent compo­
nent or subassembly might have a
sir.able Impact on pralit So might a
Change in the features of the product.
A.nd If they're willing to wait for that
new manUfa('lUrlng process to {'ome
on-stream, the loss in time-to-market
might be more than made lip in profit­
ability and. conse-qucntly. better BET.
"BET coaxt'S you to make the ri,e:ht
deciSIons. 'savs Mar\',
Throughou~t lhe procfss-at key life­
ryt']r check poims-the tinancial-sup­
pon person for the lab makes detailed
calculal ions of what DEl' will be
And, of <'ourst', the most obViOUS
function oflhe BET measure is to indi­
cate success or failure when Ihe break-
Project break-even Ume (Discount rate = 15%, tax rate = 34%, R&D tax rate = 34%) 1'1..111
:sri ".0
". 111
'l. tI
EsHmDled Investmenl
even point is achieved. How did we do?
Old we meet or exceed our forecasts?
Did we fall behind? Bv how much?
Where was the slippage? How can we
How can we improve?
There's the most important ques­
tion. As the BET data becomes available
and compiled, a baseline will begin to
form against which to compare the
next project's performance.
And if John Young has his way. the
next project will move in the direction
of half the previous BET.
So step right up. ladies and gentle­
men. Place vour BETs.
Let the game begin.-Sam Lightman
(Free-lancerSam Lightman makes
frequent contributions to HP publica­
ttonsJrom his aerie on Sa/tspring
Island, British Columbia. He last
wroteJorMeasure in November­
December 1985 on what's in the cards
Jor personal computers. He says his
BETs are a source q[continuing
..., ....
0 Eslimated profit • Actual In_enl • Actual pro'"
The making
ofa metric
Fortune magazine featured HP President John Young In its February 13, 1989, cover story on speed, one factor in BET. /
"My departmen t has been warki ng
hard for the last year to nail down
the definitions. identify the appro­
priate approximations and establish
the tracking systems needed to pull
together all the numbers," says Marv
Patterson, director ofCorporate
It isn't easy, developing a new met­
ric to look at something as compre­
hensive as break-even time (BET).
For example, at the moment there is
no direct way to track marketing
costs. Estimates or ratios of typical
marketing costs will have to suffice.
"BET Is a metric that has to do
with investment and profit, but
that's only a small part of It." says
Norm Johnson, manager ofthe engi·
neerlng metrics department in Cor­
porate Engineering. Norm and John
FenogliO, manager of the productiv­
Ity management section of the cus­
tomer engineeri ng organization,
have been working with Marv for a
year to convert the concept of a BET
metriC to a usable reality.
"The difficult part Is getting a
tool for the project-management
community to use," Norm explains.
"We've tried to work with Corporate
Finance to come up with the proper
way to define and account for all the
expense categories. In other words.
how do you collect the cost of mar­
keting, manufacturing. engineering
support. tooling, capital and so on?
And then on the profit side. what do
you do with all the discounts, prod­
uct costs and those kinds of things?
So irs really ajob of taking a simple
concept and fitting it into HP's
incredibly diverse business."
Norm sees two customers for the
product-a disk-based spreadsheet
application accompanied by an
instruction manual: There's the
project manager who just wants an
engineering estimate afhis or her
latest inspiration. And the support
person who might want to do a
detailed calculation of what BET
really is going to be.
So part of the package Includes
the ability to perform simulations
and sensitivity analyses, risk simu­
lation and other sophisticated
operattons which have been included
by designers Charlie Elman and Bill
Carmichael. The new BET package
will, in other words, satisfy both
"The manual, too, has to support
both cases," says Norm. "And now,
having produced the tool. how do
you get it into the hands of the target
customers and get them to use it so
that, in fact. their business deci·
sions are better?"
Dean Morton may have removed
any question ofBET's importance by
making It one of his primaryobjec­
ttves for FY89.
Developing a break-even time met·
ric Is a challenge Marv and his orga­
nization have vowed to accomplish.
It's an extremely difficult goal, bu t
the smart money says don't BET
against them.
-Sam Ugh/man
May-June 1989
HP's 50th anniversary
book of lists
10 famous people who visited HP
1. RolUlld Reagan (The former U. S . President visi ted HP
in 1966 while governor of California ; a c tor Chuck CODDOrs of
"Rifleman " TV fame came with Reagan . I
2. Prince PbiUppe of Belgium ( 1985)
3. QueeD EUzabetb and Prince Philip of England (1983)
4. Charles De Gaulle (former French president: 1960)
5. Graad Duke and Gl'and Duchess of Luzembourg (1984)
6. King Carl VI Gustaf of Sweden (1984)
7. Bel'bertBoovel' (former U.S. President ; 1959)
8. Lee de FOl'est (inventor of vacuum tube; 1956)
9. Sri N.T. Kama Rao of India (chiefminisler of the state of
Andhra Pradesh. India. and former movie slar; 1984)
10. Jolm McEDI'Oe ( .. . almost. He was a little too tired the morn­
ing he was to show at HP for a tennis promotion . But. HP President
John Young finally met him later that evening at San Francisco's
Transamerica Tennis Tournament in 1984).
Chuck Connon (second from leH) _ _ _ Reagan.
DcMt ghIM - . . Elizabeth the grand tour.
10 noteworthy HP grants
1. San Francisco (California) Opera­
Computers for staging and rehearsals
2. Cornell (New York) University-Worksta­
tions for the application of compu ter graphics to
3. Soviet Armenia- Medical equipment to
diagnose and treat 1988 earthquake victims
4. Argentina-Medical eqUipment for ambu­
lances for emergency services for the poor (ambu­
lances donated by Northrop Corporation)
5. Lawrence Hall of Science. Berkeley, Califor­
nia- Personal computers for the Chemical Edu­
cation for Public Understanding program
6. Free University of Berlin-Workstations for
artifiCial intelligence geology work
7. Harvard University Medical School- Com­
puters for major experiments with informat ion
technology for medical education
8. Gallaudet University for the Deaf (Wash­
ington, D,C , )-Computers for education
9. California Museum of Science and Indus­
try. Los Angeles-Equipment and software for a
hands-on graphics and design "Bicycle Factory"
10. San Francisco State University. the Uni­
versity of Massachusetts and the University of
Hawaii-Workstations for experimental project
to improve science education for high school
students using computers
The calculator watch was a timely experiment that just didn't add up.
HP earned an "A" 'or a grant to the Harvord Medical School.
10 experiments or products that
never quite made it
1. Bowling alley foui indicator (don '[ step on
the foul line!)
2. Lettuce-crop thinner (pruned rows oflet­
tuce with an electric eye to improve production)
3. Electro-shock weight-reduction
machine (enough said )
4. Welding machine timer (used in shipyards
during World War II)
5. Harmonica tuner (A company wanted to
make harmonicas and asked Blll Hewlett and
Dave Packard to make a tuner, Their conclusion?
They dropped the idea when Blll realized it would
be tough to replicate the human ear. "The ear is
pretty sensitive to tonal changes in music," Bill
said, "and we couldn't devise a system that would
do it.")
6. Telescope clock drive (for Lick Observatory
on Mt. Hamilton, San Jose, California)
7. Diathermy machine (heated body with
radio-frequency energy for medical treatments)
8. Automatic Oushingtoilet (for Stanford
9. Anesthesia-inducing oscilloscope (used
as an anesthesia for animals by sending electric
signals through needles)
10. Calcuiatorwatch (a calculated risk which
may have been ahead oflts time)
May-June 1989
Book of lists 10 newspaper headlines the week
of January 1, 1939 (when Bill and
Dave became partners)
1. Govenunent De8cit Less Than Forecast
(Federal expenditures exceeded income by S2. 1
blll1on. )
2. Rolte Toanaey Celebrates 50th Birthday
(More than a million people jammed the streets of
Pasadena. California. for the 50th annual Tour­
nament of Roses Parade. The grand marshal was
"golden-haired screen starlet'· Shirley Temple. )
3. Dictators Won In 1938; 1939 Is Another
4. Japanese Matmen To Face Spartans
(San Jose State University wrestlers prepare to
face their first international competition-wres­
tlers from the universities ofWaseda and Keio.)
5. French to Work Longer
(42-hour work week for shops. 48-hour week for
pharmacies and 45- to 50-hour w~eks for cafes.
hotels and restaurants)
8. 1.828.103 Britiah Jobless
(328.900 higher than a year earlier)
7. Palo Alto Points With Modest Pride at
Bdding Record for Last Year
(The city issued 619 building permits in 1938
with a total outlay ofS 1.377.225.)
8. Celebrate the New Year with a Complete
TUrkey DiDner-$1.50
(advertisement for the Brass Rail restaurant)
9. 2-Way Radios Aathorized For PoUce Cars
(Palo Alto receives permission to use five watts of
power and "an ultra high frequency of 31. 780
kilocycles. ")
10. Stamps Still 3 Cents
You can HncI HP ~_.Inc:ludlng casablanca (abovel.
10 out-of-the-way HP locations
1. Reykjavik.lceland
2. ViiBtra·FriI_da. Sweden
3. Baghdad.lraq
4. West Bertin. Germany
6. Moscow. Soviet Union
8. St. Micbael. Barbadoa (an island in U.S.
West Indies and former pirates' lair)
7. AI ManlilDah.BabnUD (a tiny Island in the
Persian Gulf)
8. Negara Bran!. Danulaaiam (on the North­
west coast of Malaysia where the proclaimed
"richest man in the world " lives in a famous gold­
plated castle)
9. Trivandnun.lndia (the city on the southern
coast where India has its space center)
10. Casablanca. Morocco (actor Humphrey
Bogart's old hangout in the movie Casablanca:
" ... play it again, Sam")
Bill and Dave try out the HP 9i00A scientific desktop calculator.
10 of the top HP technical
1. HP interface bus (1975) Industry adopted
the HP-IB as an interface to connect instruments.
2. HP 524A electronic counter (1951) It
reduced the time needed to measure high fre­
quencies from minutes to seconds.
3. HP 5080A Oying clock ( 1964) HP engineers
flew the atomic clocks they developed to 18 coun­
tries to synchronize international time
4. HP 9100A scientific desktop calculator
(1968) It was the world's first programmable
sCientific desktop calculator.
5. HP·3S scientific calculator (1972) The
world's first scientific handheld calculator-and
Bill Hewlett's favorite HP product-made the
engineer's slide rule obsolete.
8. HP 32·bit microprocessor ( 1982) HP's
NMOS-Ill technology produced a silicon chip with
600,000 tranSistors - more than any other on
market for many years.
7. BP 3000 computer ( 1972) The HP 3000
business computer was the industry's first com­
mercIal distributed data-processing system.
S. BP Precision Architecture computers
(1986) Hewlett-Packard was the first major com­
puter maker to commit to a broad line of products
based on reduced-instruction-set computing, or
9. BP·2SS calculator (1988) It was the first cal­
culator to p erfo rm symbolic algebra and calculus.
10. HP LaserJet printer (1984) HP LaserJ et
is the world's most popular personal desktop
laser printer.
The HP 524A e~ctronlc counter made news.
10 HP employees born nearest
January 1, 1939
1. Yoshiaki Mikuni (1/1/39) Yokogawa Hewlett­
Packard sales (Yokohama. Japan)
2. Delores Arkowski (112/39) Colorado Telecom
Division (Colorado Springs, Colorado)
3. Marlene Disney (1 /2/39 ) Fort Collins
Site (Fort Collins, Colorado)
4. A1thedaHagle (1/3/39) Network Measure­
ment Division (Santa Rosa , California)
5. Margaret Foltz (113/39) Northwest Inte­
grated Circuits Division (Corvallis, Oregon)
8. Helen Sanchez (1 /4 /39) Colorado Computer
Manufacturing Operation (Fort Collins,
7. Robert Gomez (114/39) HP Laboratories
(Palo Alto, California)
S. Lucille Romero (1/4/39) Neely Sales Region
Headquarters (North Hollywood, California)
9. JoanAUey (115 /39) Direct Marke ting
Division (Sunnyvale, California)
10. Terry L. Smith (1/5/39) Colorado Integrated
Circuits Division (Fort Collins, Colorado)
-Lists compUed by Vernon Andrews
(Ver1l0n Andrews. HP historian and
visitor relations coo rdinator, is one qI
the top 10 experts It...' hen it comes toHP
trivia. H e last wrote {or Measure about
new members of the HP board of direc­
tors tn th e May:Jun e 1987 issue.)
Ma)'-Jun(' 1989
At 9:58 a.m. EDT. rlight412 rolled
back fr om the ca rgo terminal at Dorval
InternatIonal Airport near Montreal,
Canada. The tu rbo prop taxied to the
runup area. s ignaled the (Ower, raced
down the runway and soared into a
"c1ear·as-James-Bay" sky.
The ai rc ra ft. a British Aerospace
Hawke r Siddlev 748. cl imbed smoothly
to a crui sing aCUlude of 4.000 feet and
headed west towa rd O tt a wa . The cargo
plane followed ils prescribed half-hour
flight pla n . and within 16 minutes.
trans ferred from Dor\'al to Ollawa air­
traffic cont rol. Inside the a ircraft . cap­
tain Mike McClintock and co-pilot Sean
O'Donoghue prepared for their final
approach to Ottawa International
At 10: 17 a.m . EDT, flight 412 van­
ished from OUmva's radar screens.
Moments later. a fires torm roared
across the grave l pit nea r Cheney.
Invest iga tors learned much about
the September 15.1 988. crash walking
the pit In the long hour~ that followed.
Yet the fundamental question-hml,.'
the aCC ident happe ned, a nd why­
remained a mysteI)' for a team of
computer SCien tists and engineers
to solve .
Before the last piece ofg ravel at
Cheney s h ed Its unearthly g low. Mike
Poole visited th e failing aircraft from a
compute r laboratory at Ottawa Inter­
nati onal Airport. A Hewlett-Packard
high -speed g raphics worksta tlOll
relived the s l~ht s and sounds of the
accident on comma nd .
Mike is the supen ntendent of
compu te r systems en g meering for
the Canadian Aviation Safety Board
(CASE]. The CASB inves tigates inci­
den ts occurring tn Can a dian airspace
and aCCidents ove r international waters
when a m ajo rity of Canadia n citizens
a re involved. Last yea r, th e CAS e
reviewed more than 500 aviation mis­
haps, including the Air India crash off
the coast of Irela nd , the Arrow Air dis­
aster a t Ga nd er. Newfoundland. and
the Alitalta crash n ear MHan.
The CASH Investigates Incidents occurring in Canadian air space, Including the Air Canada
DC-9 (above) which tumbled oil the end ot the Toronto, Canda, runway In 1978,
Th e CASB has galnt.'d a worldwide
rcpu tal ion ror developing s pace-ap,e
tool s (0 determ int' the('uu5es of airline
crashes Most recemly. theworkof
Mike Poole and his lea rn of co mputer
sc ient isIS. Ie-chnolo~jsts a nd en.f.Vne-ers
a ns"",, ered ques ti on s that puzzled. inves­
tigators of t he crash. In a sense , their
work provided I he most detaile d eyewit­
ness account of the arc ident
Three computers- an HP 1000
Series A900 . a n HI' 9000 Model 236
and a n HP 9000 Mode1320 which runs
a full-color. three-dimensional. com­
puter-aided anima ti o n pm'kage-are
th e h eart oreASB's newest IIlvcstiga­
live too ls .
Mark Armitage. a customer engineer
fro m t he HP O ttawa sales office ,
installed the Model 320 In August
1988. Toge ther, th e computers and
several Hew le lt-Pac ka rd ins truments
received their flight tes t when the
Hawker S iddley 748 fell to ea rth last
September_IArmltage replaced lhe
Model 320 with a Series 835 Tli rbo­
SRX-Hr's newest 3-D ~ rap hi cs work­
station- Ihis February. I
In the rubble at C hen ey. inves tigators
round th e a ir('ra ft 's two Ili g ht recorders
-lhe t'oc kplt vo ice recorder (CVRI and
the flig ht data recorder (FDR). CVRs
pick up eXC h a nges between the ground
and flight crews, and mOSl sounds
heard by the caplain and co-pilot.
FDRs. on Ih e othe r h and, Irack the
all Hude, pitCh, roll and en g ine perfor­
mance of the aircraft. Both voice and
flight dal a a re recorded on quarter­
inch magnetic tape,
For Mike Poole. th e labo ra tory analy­
sis or the Ch eney crash began when
invest igators brought the Day-Glo
orange Ui g h t reco rders back to the
com pu t e r-sys te ms -engineen ng
laborato ry.
The flig ht data recorder takes pe ri­
odic readings from flig ht and cockpit
An engine fire on a 1984 tlight leaving
Calgary, Canada, sent flames and smoke in
III. air and the CASB to determine the cause.
May-June 1989
What really happened? instruments and records them on mag­
netic tape as a continuous stream of
ones and zeros. 'The HP 3968 instru­
ment tape deck pulls those magnetic
signals from Ihe fDR and CVR for pro­
cessing by the HP instruments and
computers." Mike says.
While other aviation safety labs
reqUire separate playback hardware
to decode various types of night data
recorders. the CASB uses only an HP
3852A data-acquisition box and some
high-powered software to make the
analog-la-dtgttal conversion.
Software written by the CASB. HP
and Prior Data Systems ofOllawa
allows Mike's team of analysts to pull
digital waveforms -expressed as ones
and zeroes -directly Inlo the HP 1000
Series A900 computer. By processing
waveforms using software. the CASB
can analyze date Interactively from any
HP terminal at up to 100.000 samples
per second.
"Other safety boards analyze digital
waveforms using an oscllloscope or a
strip chart." Mike explains.
This means CASB computer scien­
tists, engineers and technologists can
edit data which comes from night
recorders on-line. "A sudden maneuver
or hard landing can distort a signal.~
says Mike. ··lYPically. those few
seconds of data can be crucial to the
Investigation ..,
Careful analysis allows the CASB to
restore the integrity of damaged flight
data accurately and quickly. The CASB
can recover poor-quality data in soft­
ware where other Investigators are
forced to painstakingly analyze the
data on oscilloscopes and strip-chart
recorders. Mike says.
"Getting data off the FDR Is a data­
processing problem." he says. "Inter­
preting It is an analysis problem."
Once engineers and technologists
culled the information from the Hawker
Siddlev fDR. they stored it in the A900
until they needed to Interpret the data.
Mike _
In charge of consu..- systems _I_ng tOf the CASII, shows the
Infamous " block box" to HP ottawa soles reps MIke Harwy (lell) and John MMcheli.
Software. which runs statistical rou­
Unes. also plots the altitude. pitch. roll.
engine performance and airspeed_ for
example. over time.
The software hastens the process of
analyzing data by replacing the calcula­
tors. drafting curves and graph paper
tractttlonally found at other aviation
safety labs with an HP 1000 A900
"At this pomt in the investigation'-­
Mike says. "we transferred the data to
[he HP 9000. To get a first-hand look
at the crash. we watched a computer
slmula[lon of the nigh!.
"Once we ~athered and refined all the
data." says Mike. "we flew the aircraft
over a computer model of the terrain
and synchronized the sounds from
the vOice recorder and matched the
picture. frame for frame ..
The HP 9000 Turbo SRX Model 835
and an HP 98748A high-resolution
monitor displayed an instrument panel
showing the altitude. heading. ailerons
(hinged sections which control the roll­
jng movements of the plane). engine
RPMs. en~lne torque. trim. gyroscope
and a view of the Canadian
Analysis from most other areas of the
CASB's engineering branch have yet to
show anything unusual for the crash.
Component testing. metallurgy.
microscopy. physical analysis and
electrical-mechanical have already
filed reports.
The outcome of the tnvesli~ation now
relies in large measure on the recovery
offlight-data-recorder and cockpit­
voice recorder data. and what the simu­
la[lOn offllght 412 showed.
"You can sit in the ('ockpit or follow
the aircraft in a chase plane." says
MIke. explaining the Simulation. "If
""OU have wi tnesses who said they were
standing on the ground at a specific
location -the moment the aircraft flew
over, vou could direct the Model 835 to
put them at that exact location and
have the flight pass overhead just as it
did for the eyewitnesses."
Had captain McClintock lived to [ell
the slory. he would have described the
SCe"lle Ihal Mike and CASB iuvesl iga­
tors have :sr;>en nver and over again: [he
Hawke r Siddley rolls sligh!l:Ol 10 Ihe
rIght. th e n rolls violently to the left 1 )/ 1
limes - hitlin,U: tilt' ground II sl'collds
"The ailemJl1'5 . which are on the trail·
inp; edgt' of 1lie \\' i ngs, an' llsr-d to can­
t roltht.' roll and at tit lick 0 1 the <-.lireral t."
1\..1ike t'xplains_" At an airspeed o(jUS[
200 knots, lIw ,ulL'rons \"('111
full travd . sc"' nd ill,c, the pl<lll(, Ollt 01
( ' 0111 rol."
Th e ain: rah was Il('a rly d~~1 row'c! b y
IhelTas h at ( ' !-Il' lll'Y. Thl' Iligh l dal<-l
rtTOI' (\tT and t ill'
('ockpH vo ice T('cord(' 1
"It's llOl oneil ttHlt.1 !liglll fl'l'ord('J
mea~lllTS tile posit iOll 01 both fighl
and kll ailer{}lls, ··I\'1i l.'-l,~ S;\ys .'"Ve \ven·
fort ullat f': !l01 olli~' did II r-epon Oil
Using an HP 9000 1\nboSRX Series 835 computer and an HP 98748A high-resolution monitor,
CASB scientists c an si mulate the September 1988 flight at the Hawker-Slddley 748.
1he ailct"OllS. hilt severa l olher Illl;h I
parameters as \wll ..
\Vitl1 t Jlt' JillaJ I"l'pllr! ~till pending.
the Canadian /\Vlilll()il Sa fel v Board
issLlcd a wal ning ]"01 airlilJ(.',~ aroulld
thE' \I..-orld I() chl?ck I hlWkt't" S iddk,Y 74th
lor Ilnproperl,v rig,L(('d ailerons. There
un' 30 Hawktr Siddley 748::i registered
ill Call;u la ;lJHI ahou t ~\45 \\'o rldwH_k ,
""Tlw ('O Il( 'tTn we h <wf' I S th i-Il it is Hot
a ollt"(Jlallt' probl t' lll. hut a lll<ln y ·plalH'
problelll : ' says CASB i In'est i galor·lIl­
l'harg(' J)avi(i M('N~1ir
"Tht alit- ron for Flight 4 12 had bt:t'tl
Il'moved fOI" I'(.'paint ing and was ft'in·
.<;I"illcdwilhout takillgilolll fora IiI,l!.h 1
Icst .... explains Bill 'J\lt'kl'f. CASH di n'('­
lor of'sa[pty prog:rams. "'The.'-' shollid do
a l1ight I(' s l aftt.,t' that. ­
"'YOll ('all ~pt.' ncl hours ;\llalyzil1,l!;
graphs oj lil e flight clata atlci slililack
an appnTl<.Hioll oj \'\;hat h'IPPf'Ilt'd ."
says DOll Lan.l1:clon . CASH chid S.'-'st(>Ill~
cnginl't.T. "' Uy motkllill,U: tlw aircral [
and shn\\'ill~ it<; ,l!,yraliolls ()Jl a ('om·
putt'\" Sl"l"\'l'l I. ,VOlt gt·t a dear and <'0111­
mOil lIJlCkr:-,land illg
t he <!n ' idt'll till
III illt II ('s 1\.1 lOW i 11g' alld agr(,eillg 011
whal h<JpP('o(·(1. Ilw (('a m (h(,11 can
work on Ii Jl cti Ilg ou t w il Y it h<lppell('li."
- Tom Ulrid,
(Tom Ulric/t is (1 t;('nior lvriler nllile
Ad Vel J lceci IV! (I!! q{ac/ u ri llg Systems
Opernliort ill SllIU1!}F(l/('. Cu!!f(mliu.
Ill' last IL'fOlej()rl\1C'<.lslIfr on [-Jp·s role
a/ Gell(!m{ MOlors lfl UwJuIU·AugIlS/
19HG issue , )
An HP computer si mulation shows the near-miss 01 a Boeing 747 and a lockheed l·1011 ollihe
coast of the Canad ian island Newfoundland over the A1Iantic in June 1987.
to Sonnyland
" [t'~
more like <l small amtlS(,Tll(.'llt p<.lrk
th a n 1[ is a larl:!e hotlse ," laughs Dana
I\h.lrgolis, Sonny'~ wifr n f 25 year~
" It 's lHH a \'l'n' ~c rioLl-; house. " adds
Harr\' \V, "SOllI{V" Mart,!olls
Ttl(:, hOLl~(,-<i.1l :25,000 square f~'('( 01
it-sirs 011 5 ! J wooded ;u.:n·~jus( Ilorth
of Dallas, Texas , lIl a ('oll1ll1unuy thaI
smHlds likl' Ihr llaJ1l(:' of a T\' pri\'i.ltt'
Tt'XB ~ E\'t-'n in a sta te
Jej:!enoary fo r it s lovt' 01 S I Zt', Sonny­
land - I he name friend::. ha\'c ,l !I\'('n
the house - Is Imprl'ss l\'l' Among its
fC<l{uresarf" :
df"It'(' ll\T : Fris(:o
Five bedro()I11S:
- Eh~\'('n bJthroomsl"l wish we had
Included a 121h so I ct haw onl' (']os{'r to
my hobby room," Dalla say's_J:
Forty telephones, complf'le with a
syslt'l11 throLl~hou! the house
and gmu nds ,
A si;'\ -car ,~ara,l!C (altholl,c;h it was
bu ililarp;e enoLl,gh for !lint' ('<I rs so
cloors don'! uump Whl'll opened):
:- Outdoor barbeC'ut' lar~t' nlOugh to
srnokl' 50 briskl'ts at a tll11e:
pa .~ing
::" A 100-foOl sWimmin,g pool wllh a
st'para!(' sli(k pOD) (where you land
after slidin¢ down (he :W-fout -high,
J65 -fo()( -long, c ustom-built slidf'l:
= Separa te i nonor ,e:olf pa\'ilion wi th
dri\'j Tl .~ rance. pll t [in~u:~reen and sand
trap, plus computer ized golf swing
anal)-.ler and mini \'ideo studio:
:.: 1\\'0 ,game rooms With pool and
pong tables. stand-up shufOrboard. '
video arcade and six slot machines:
o Media center with eight plush chairs
and ottomans; four video-cassette
recorders: a laser videodisc and a
lOO-inch screen on which to project
shows from the three satellite receivers;
and a 10-speaker digital "surround­
sound" system. An HPVecira personal
computer handles simultaneous taping
and viewing in virtually any imaginable
o A huge kitchen with twin double
electric ovens, microwave ovens. elec­
tric range (for Dana) and gas range (for
Sonny), plus three dishwashers:
o A 1,600-bottle wine cellar stocked
wi th several bottles of rare Lafitte and
Mouton Rothschild wines;
o And rooms for every purpose. in­
cluding dining room, exercise room,
cabana with complete kitchen appli­
ances, Dana's office and the library
where Sonny spends 10 to 12 hours
daily working at a computer.
Those features alone make it an
incredible house. But there's more.
The house is controlled by sophisti­
cated electronic systems and moni­
tored by Hewlett-Packard eqUipment to
make it as energy-efficient as possible.
What kind of person builds a 25,000­
square-foot house? Sonny Margolis is
everything you might imagine: uncon­
ventional: a self-described gadget nut;
a night owl who usually works on the
computeruntiI4a.m. and rises
promptly at noon the next day; and a
visionary whose hobby of computer
programming led toa$12 mlllion
annual business.
Sonny Margolis is one-of-a-kind.
"There was a time years ago when
Sonny would pay employees out of his
pocket to make this business work,"
says Irwin Arnstein. technical stan­
dards manager for CompuTrac,
Inc., the software company Sonny
founded in 1977, and one ofHP's top
10 national-account value-added
resellers. "Sonny was not to be denied;
he was committed to make Compu­
'frac successful."
Sonny's business instinct dates back
to the early 1960s when he was a politi­
cal-science student at UCLA. One time
he won the bid to handle all laundry at
the college dorms- even though he
The Indoor golf pavilion features a driving range, puHing green and sand trap, plus a
computerized golt·swing analyzer and a mini video studio.
didn't own one washing machine.
Instead, he subcontracted the job to the
second-place bidder and pocketed the
With college degree in hand, Sonny
entered law school at Southern Meth­
odist University in Dallas in 1964.
Sonny wasn't a very serious student, so
it was quite a shock to many Texans in
1967 when he placed first among the
hundreds of people who took the Texas
bar exam.
He set up a law firm and practiced law
for 10 years in Dallas-occasionally
representing members of the Dallas
Cowboys professional football team­
while constantly dabbling in com­
puters to develop effective software
systems for law offices.
When his software-programming
activities took more time than his law
practice, his partners suggested he
leave the firm.
That's when CompuTrac was born in
1977. Today. according to Business
Week magaZine, it·s one of the top 100
small businesses in the United States.
Compu'frac's DARWIN (data retrieval
with intelligence) software, packaged
with HP 3000 business computers, has
made the company a leader in prOVid­
ing computer systems for law offices of
50 or more people.
"We've grown a lot bigger and faster
than my goals," says Sonny. "At this
rate, we could be a 850 million com­
pany in the next six or seven years."
Working at CompuTrac is a speCial
experience. employees say. Computer
programmers get the best offices and
often are hired because oftheir musical
ability, a trait Sonny believes signals a
good programmer.
Compu'frac also is known for its
perks. There's the lO-cent Coke
machine in the lunch room, the VCRs
which a1180 employees can use at home
for as long as they work for Compu1rac
and the infamous "Let's Make A Deal"
Christmas party last December.
"The party was at an exclusive coun­
try club near Sonny's home," says HP
sales rep Linda Reymond, "and people
were dressed in tuxedos, cocktail
dresses and tennis shoes. And they all
carried large garbage bags filled with
every imaginable item into the dinner.
"After dinner. Sonny started giving
away money. He'd say, 'I've got $500 for
the first person to bring me a golf tee,'
May-June 1989
ORDINARY PEOPLE and people would start running to the
stage. Thiswent on until 2:30 a.m.
when the money Sonny brought was all
given oul."
But ifanything measures up to
Sonnis bigger· than-life persona. it's
Sonnyland-thejust-for-fun house
with the futuristic energy-manage­
ment system.
"Dana and I had been living in the
same 4 .OOO-square-foot house for 20
years." Sonny says. "and we always
wanted to build our dream house. We
thought we could bUild it on 2 1J2 acres.
but by the time we included everything
we wanted. it took 5 Vl acres."
Those acres. Sonny says. cost about
S5.0OO each 15 years ago when it was
developed. Today. it"saboutS70.000
per acre.
Construction on the home began in
November 1986 and ended two years
later. Sonny and Dana celebrated by
throwing a party for 550 friends. While
the marble en tryway, elevator and
theater-si zed media room drew rave
reviews. Sonny is most proud of Sonny­
land·s efficiency.
When the house was designed. the
local utility company estimated that
Sonnyland·s yearly power bills would be
about 830.000. Based on the fir-st six
months' bills. Sonny figures the yearly
tab closer to SI2.oo0.
"It's almost a game losee how low
1 can get the power bill." Sonny says.
"1 want to see how wrong I can prove
the power company."
The secret to the low energy use is
a combination of a computer system
wh1ch controls all utilities and an
HP 3852 data acquisition and control
system. which monitors the systems
and lets Sonny know when to make
For example. the Margolises can pro­
gram the HomeTronics computer sys­
tem room by room and hour by hour
throughout the house. The tempera­
ture In the master bedroom. for
instance. can beset to62 degrees when
they·re asleep and changed automati­
cally to 70 degrees when they wake up.
Adjoining rooms can be on completely
different schedules.
A corner of Sonny's library looks
like a mini HP showroom. The display
includes the HP 3852 to monitor the
Sonny spendl10 to 12 houn a day his orttc.llbrary, surrounded by HP equipment I Including
an HP 3152 daIa-ocqutslllon and control system and two HP _ a personat computers.
HomeTrontcs system. an HP 9142 tape
subsystem. an HP 6622 system power
supply. an HP 2934 business printer.
an HP 7550 graphics plotter and two
HPVectra personal computers.
"lfHP makes it and I can use it. J"ve
got it." Sonny sa~'s.
Togelher. the system in Sonny's
library stores and updates energy-use
data evel")' three seconds. Every 15 min­
utes the system calculates ener.'tv use
durjn~ the past 48 hours.
"One of the first things I round out is
thal various items weren 'll1sin~ the
energy I thought they would." Sonny
explams. "The electriC dryer. for exam­
ple. was using about (wire the energy I
thought il would so I replaced it with
a gas dryer.
.. Lalso programmed the system so
that all the li/(hls in the house are shut
off twice a day Toomanylightswere
being turned on when nobody really
needed lhem . Uyou nee-d the light. you
just fltp the switch back on. Irs no big
deal to have a computer turn lights off.
except that it saves about 3.000 walts
a day."
The system also monitors water use
provided by the Margolis' private well .
In January. the system showed that a
lar~e amounl o(water was being used
for no apparent reason Sonn}' and
Dana co mbed the house looking for
leaky fau cets. running: tOIlets or other
explanations. UsJng the monitoring
system. Sonny isolated the leak in the
golf pavtlion. A water pipe had frozen
and burs1: as temperatures warmed.
the pipe thawed and water flowed.
"Without the computer system. I
wouldn't have known about the leak or
where it occurred." Sonny says
Sonny realized just how effiCient the
system wa s wh en he recently compared
utility bills \...· ith neighbors who live in
··smaller· 10.000 to 15.000-square-fool
homes. Although Sonnytand is twice as
large as most homes in the afnuent
Friscoarea . hiS bill was the smallest . In
fact. Sonny notes. utilitv costs are run­
nin~less Ihan those from his prior
4.000-square-foot house.
"My February bill was 80 percent
higher than the March bill because we
had a cold spell and I hadn'( learned as
much about the system." Sonny says.
Sonnv's la test investment is a
"Sonnyland"II more like a small amusement
park than a large house, Dana says,
weat her s tation . He figures he can cor­
rela te the tempera ture and humidity
with energy cons umption to determine
how much energy the house s hould use.
He'll a lso have the computer check
how much ra infall the area has had,
then feed that data into the system
which controls the sp rinklers.
Abou t the only thIngs Sonny ruled
out wh en he des1gned the house were a
bowling alley a nd a IIlght sImulator.
They waste too mu ch energy. he says.
Just when does w1 se energy manage­
ment become more of an obseSSion
than a challenge?
'The day th at Sonny tells me I was in
the shower fo r 15 minutes instead of
th e u sual 12. that's when I pU l my foot
down ," Dana laughs.
- Jay Coleman
An aerial view Is the best way to see the enormity of the Margolis' Just-for-fun house on 51j~
acres In Frisco, Texas, Jus. outside Dallas, Features Include a golf pavilion and water slide,
Flights of fancy
Then there was the Ume Sonny
started his own airline.
When Texas International went on
strIke in the early 1970s, Sonny and
former Dallas Cowboys Wide receiver
Bob Hayes established Apollo Air­
lines-a three-plane fleet serving
small Texas towns, Including
AbUene and San Angelo.
To say It was a shoestring opera­
tion is to defame shoestrIng.:
o Apollo's "offices"were three pay
telephones in the Dallas-Fort Worth
airport terminal.
o 1b maintaJn proper balance on
the cramped, lO-passenger planes,
Dana Margolis loaned her bathroom
scales. Baggage and passengers
were weighed separately.
The fly-by-nIght (and day) opera­
tion was tn bUSiness for four
months. But It almost didn't get off
the ground.
The planes, Sonny admits, were
notorious for leaking oil. After a few
weeks In operation. aIrport offiCials
complained to Sonny about the oU
the planes dripped on the runways
and at gate areas.
Just when the airport threatened
to shut down the fledgling airline.
Sonny came up with an Idea.
"I've got the problem solved." he
told airport offiCials. 'We've ordered
two mlilion oU-eattng red ants from
CalifornIa, Theyll take care ofthe oU
in a matter ofhours, ..
"What happens to the ants thenT
an airport official asked.
"Dh, they'll Just disperse allover
the city," Sonny replied.
"Do they sting?" the official asked.
"Yes." Sonny said, ·'that"s the
down side, "They sting like crazy."
The stunned offiCial was speech­
less, "I1I get back to you, Sonny."
Three hours later the official called.
"Cancel the damn ants; we can llve
with the oU."
M ay-Jun e 1989
Employees con help protect HP trade secrets by being careful nollo InodYer1enlly share sensitive company informa1ion,
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:-.t' tT {' t ~ .­
ra ck
:;.avs B ()~<lr l . -Hu t r ill a r\~ lI d \'o ur d ~l \ ~
of '111 fO flll a I i< III ("")' 1111 (' ;J f t' ()\ 't :r
In forma ti o n (T ime 111, n ~()lI n d lik e
~(l n H'1 h i Il ,~ ()\ I t uf .I f l old (k l t'(' l n ('
m O\'i(', but I t · a n'al issut' Inr r0 1J\ p,J ­
Il le~ toda,v. TII(' prohlt'm: eO Inl xm i('s '
rn n li ett' II I j til ill (n r m,l( I() 11 W IIld i 1l~ tl P
111(' \\· rOIlL!. ha mb
E xpt'f t:-. sa," II H' \ ckllt S <In' on 111f' rise,
r t':,; ull i ll l[ 1111 () :-; ~(' s ,-!.s dramalic as a
Boe,a r t film . B!js lr! t'ss H'eek magaziTle
es t !m ; !l f'~ 1h ell It'ak s o f {' onficirlll ial
illrorm .ltioll lrom US co mpanlcs cost
lirJll s hi lI] (l l lS 0 1' dolla rs <lI1ll u a lly In
Ill i "' seci s ak~ and \\ <b ((' d H&D effo r1 s.
T il;1\ 's \\' h," m a ny companit"s , im·lu d in ,t!
H I', are p ~1\ 1IH.! m ore a W,.' rHion to p m ­
itT I i ll C. the' i r (: 0 111 pt' l H i \'t' i lif o rm a 1i OIl
1 hei r 1 rafk :-.{'( ' n ' l s ,
t\ l allY l '(H Is i d t' T Illfo rmat Ion 10 b e HP's
n'HlS I \'a luahk a Ss f> l IO(';ls fo r new p m rl ­
rnark{' t lilt.! p la n s, ( ' U S iO lIl er Ii s l s,
W '\ s,
ma n Ura('t tl TiJ lt! prUCl' S~(,5, o llr pay sys­
t(' ln : t ht':-'l' :1 H' J lIS l ')0 111(' {'x amp it's o r
tracie S f {Tt'1 s- i II forma t io n HI> c o nsid­
r rs ("o n lictenlia l. W h y llw 1l eed for
Telephone Tips
If you receive a request on the
phone for trade-secret information
or names of employees below
functional-manager level:
D Confirm the caller is an HP person
before you gIve out the information.
(A good way is to ask for a Telnet
number and call the person back.)
D If the caller is not from HP. ask
him or her to make the request in
writing. If you have any question
about how to respond. pollteIyoffer
to call back so you can discuss the
request with your manager.
o If the request seems unusual or
out arline. report it tOYOUT manager.
personnel department or enttty
infonnatton speCialist.
sec r ecy? HP has spent co nsJderable
lime and moneydevcloping thiS infor­
mation. If competi tors had access to it.
I hey cou ld bent"fi L r rom H P's
invest ment.
Virtually everyone who work~ for HP
comes in contact with sensitive infor­
mation. lfyou're wond ering what trade
secrets you \'lark with . just ask yourself
what mformation you use on the job
that you \'..' ouldn't want to share with
HP's cOmpetition, Some- trade sec rets
may be known widely in your depart­
ment but still should be kept secret
ours ide the company, according to HP
confident iality experts .
"Employees have a crHlcal role to play
In protecting HP confidential tnforma­
tion ," says Charlie Marshall. one of the
coordina tors ofHP's trade-secrets pro­
tect ion program "The key is simply [0
treat thiS information with ca re ,
"One of the the most frequent ways
we lose our trade secrets is through
employees who inadvertently s hare
Information With someone they
shOUldn't," continues Charlie, He adds
that thlS can happen in a casual ('00­
v{~ rsalion outSide HP or, as it often
does. on tht' phone,
''I've received a number of suspic ious
calls from people trying to gd informa­
tion " says Laurit' Jedynak. a secretary
from HP's Cupertino, California, site,
"One person said she represented a
local university: anoth er claimed to be
an old friend ormy boss. 1\Ie even had a
fev,,' people \'v'ho said they were HP
employees and turned out not to be_
When I asked all these people a fc:w pol­
ite questions about what they were
looking for, their answers made it clear
they weren't who they said they were,
So of course I told th em I was sorry, but
1 cOlildn't give them the Information
they wanted."
Corporale- Security estimates il
rece ivt,>s reports of such (.'aJls on an
average of one a day_ By t rac king these
Incidents, the company is able ( 0 aJert
HP entitles about persistent (:alkrs
The information thes e callers usually
[t'quest Is names and titl es of employ­
ees, Why? According to HP Secu rity.
often these people arc headhuntt:"rs
looking for employees to rec ruit awaj'
from HP_ But. trade-secrelex perts say',
there's anol her reaso n . Employees are
(he ga teway to more info rmatlon With
more names of cmplo},t't's to contal't.
callers have a better chance of finding
someone v,lho unwittm gly will share ­
th e Informalion they want
"That's why," says Cha rli e "it's
important to treat the names or
employees below fun c(jona l - Illana~er
level as sensitive information ..
The Uniled Statt's ('ourts will h elp HP
prolect its trade secrets only if the com­
pany makes an effort to protect them,
too. So later In 1989. as part ofHP's
conlinu in~ protective effo rts, the com­
pany will provide more Information
about trade secrets to US, employees
as a follow-on to the company's 1987
U,S, program, "Be Aware Before You
S h are HP Informa(ion " To confir m
emptoyee awareness of this issue. U.S
employees may be asked to sign a form
reaffirming (hey understand the ir
respon!::libility to protect HP trade
So \vhat can you do to help? Here's
\\1hat HP's trade-secret protection pro­
gram recommends: Bc s ure you know
what information you work with could
be conSidered a [Tade secreL (fyou' re
not su re. talk to your boss a bout it.
Trade secre ts should not be given oui or
Dealing with
If you work with sensitive docu­
ments. make sure you label and
handle them appropriately.
These are the two HPclasslflca­
tlons most commonly Used:
D FarlatenaalU.eO...,
Documents that have broad distri­
button with in the company but
should not be shared ou tSide HP. For
example, HP telephone directories
and department organization
charts. Dispose of these by recycling
them or putting them In a shredder
or shredder bin.
D Camp...,. Coafldeatial
Documents that if disclosed would
significantly damage HP's Interests.
For example. customer Itsts. lab
notebooks, proposals and bids.
These shouldn't be left out in your
work area when you 're away from
your desk, or copied indiscrimi­
nately. Dispose of them In a shred­
der or shredder bin.
These two classifications are used
by specialized groups in HP:
o BP Proprietary Usually for documents that are transferred to outside suppliers via purchase orders, The order should state that the document Is not to be duplicated or disclosed except as authorized by HP. D Campaa,. Private The most sensItive documents, solely for the use of senior manage­ ment. Examples Include non-pUbliC consolidated financial Information and R&D proposals. freelv discussed outsidf' of HP or with
non-HP employees on the phone, Also,
!f vou work with sensitive documents,
ma ke sure you handle and label them
correct I'),
You don't have to have Humphrey
Bogarl's nerve to prolect HP's trade
secrets - just a liltle awareness,
- Rhea Fe ldman
May-June] 989
More than 2"1, million pieces moved through the Personal Compu1er Distribution Operation In San Jose, California, las1 year.
The best
To iii I up 10 1.500 orders. daily for some
ot HlYs how.'st prOdw.:ls. you rea ll ~·
must ha\'"t' ~·ollr ,WI logl'lher
At 1 he Pt>rsonal Comjllllt'r OISI nbu­
lion Oprralion (peDOI. I his means
worklnf! with HP's manu facI u r i n.t!
d l \,islons 1O h~\\'(> the ri~lH amount of
mH't1l0ry Oil hand to Ship pt'rsonal
compllter~, PC periphr-rals and related
software to U,S, and lntrrcon!IIwlllal
cUSlOmers when they waTli it .
That's a noble ~oal. and o ll e that
peDO rreqlH'll tly 11lf"t'ts these day~,
Actual shipnlt'l1t ma~ be lrom PCDcrs
automated !JUlin facility In Sa n Jost" .
California: a second fal'llit\·three miks
d\\'a.\· wh ich ~lores lan.?,l' bJ~{'ks of prod­
UCIS fOr('xtra ·qllll·k (urn-around: or
peDO's East CO<lst depolill Hodi.a\,,:ay
r\('\\- Jers("\'
Having the ri~hlltt"m~ Oil hand at tlw
right 11111(' is IHH'a.Sy malin This par­
t Lt'ular pk('(' of tiP's bll'ilnl'S~ has beell
a bux-unit{'liit lht' pasllin' )rar~ In
19BH, on(,-fount, ofallltw {'ompany's
U.S silipl1l('lllS wenl lllr()\l.~h PCDO­
ill\'O!\'1 fl,L!: 321 (P ~uppl1('rs. 1.700 dcl in'
products and more !ban J5.000 l'1I~­
lomer orci('rs }H'r IlHHl\ h
A whoppi ng 2 500.000 pit-nos moved
through reDO last year with an indus­
IT) ·kadin,g ('u s lomer-sen'jn° ·'order fill
rale '- the P<'f('("ntage of orders that fill
from ~1O('k right a way.
TodCiy's mu(' h -appJaud('d operation is
a lonl.! wa...· from the earl~' days in 1983
whell HP first bega n selling HP 1505
lhrou,l1;I, dealer chann(']s . HP soon
found Iht'sf' rt'tail outlets wanted
urf!l'1l1 dc:lin'ry or ordns.
PaL Guerra.
lIl<.ma.l!f'r. rt'Illt'r11be rs the early t'fforts
10 bend the company s classic order­
rakin.(! and ph . .·sic<ll·dislribution
methods to suil Ihest' imp;Hil'nlnew
l'lJSlOt1lrrs .
" Ollr producti o n-planning sySlf'tllS
ha<.: k t ht' Jl \\'(-re gearf'd 10 huildinp; lO
(·UslOlIl(' rorc1f'r. rather than loslOC'k ,'·
Pat sa~' s , "We had s.ome unhapp.\ ('us­
tolllt' r~ Iwfof{' w(' .Cot lip 10 spt"t"d .­
PC f)O Spt 'lit il good dei:.\( o f tin1l'
li s tt' llill.L! to thf HP salt's for('(' and to
('ll s tolllt'rs 10 learn t Iwir expt'(·\ at ions.
PCDO I'epr('<;(·nt;.llin's also\'"isited
nt tin ('0111 pall it·s Iloted for world-class
l'tlS{()f11f'f serv ic{'. d ist ribu [ion f'x(,f'J­
le{we ancil ec hniques. and gatherf'd
Singapore's rapidly growing Far East
Distribution Center is expected to double
in emplovees and orders in 1989.
marke t resea rch peDO mode rni zed
iL ~ processes and formed a n in-hous e
marke Ung-admin is. lra n o n team 10 lake
orders dIrectly fro m dealers. and to
pro('ess Jield -entered o rdns from the
Corporate order-pro('ess ing system
"Our people ARE Hewle tt -Packard to
the customers who ('alllhem," Pat says ~
"They're th e ones on stage and the rest
or us - accou nting. Information sys­
tems . wa rehouse a nd ot hers-are the
support tng cas t."
T h at sanie sp lrll is eVident a[ HP
distributi on ce nters arou nd the world
To get s tarted in a h urry last ye-ar. the
Far East Distnbu tio n Ce nl er(FEDC) in
Smgaport' mod eled Its 45.000-square­
foot fac ility o n rCDO. adop t ing (he Cali­
fo rnia operatton's info nnatio n system s
a nd processes.
"We wanl e-d to u se thl' mosl efficif'llt
a nd hi gh,quality ways of distribulion
that have stood the lest of j ime,"
explains Bruce Greena n . FEOC opera­
tions manager.
"We h ave a close relationship \....ith
PCDO.'· he a dds . "Our peoplfo go over
there and th eir people co me here to see
our operatlon and work on process
Jaime Lopez drives a forklift full of HP hardware Into PCDO's receiving area. One-fourth of all
HP shipments went through PCDO in 1988, Involving 32 suppliers, 1.700 active products and
more than 35,000 customer orders per month.
Jim Correa, a material handler In bulk shipping, discusses a potential problem with a
bar-code reader with Lisa Bowen, PCDO process engineer at the distribution center.
May" JuTll' 1989
The best ... Marl<e"ng manager Marl< Naismith and
associate Donna Beekman are pari 0I1ile
PCDO marl<eHng admlnlrlrallon team.
FEDC Is expected to double during
1989 in employees and volume of
orders, Currently. half of the ship·
ments go to Australia, the other half to
Far East countries.
Nudging FEDC out of contention as
the company's newest distribution cen­
ter. however. is European Distribution
Center-Amsterdam, which opened in
The Netherlands th1s February as a
remote arm of the European Distribu­
tton Center's peripherals activity. For
now, Irs concentrating on shipping HP
LaserJets into the U.K. market.
Whether moving products. parts or
Forklift drMr CUlflllOrby can motor up and down the narrowwarehouae allies with ease as
llellelpo "lillie day', onIen. PCOO reps ............mped .... Irsystems 10 speed dellvefles. consumables. HP's distribution centers
are all stars these days.
-BeUy Gerard
Ken Dillard, a dlstrtbullon specialist at PCOO', secand 'acillty, Ulel a
laMrbar_ _ to verify an
YOUR TURN Measure readers share their
views on matters of
importance to employees,
was founded by everyday people like my
co-workers and me.
Valley Forge, Pennsylvania
Hooray for "ONE DAY... "
congratulations to you and your staff
on a TERRIFIC publication . Measure
gets better and better every issue.
"ONE DAY" was a super ldea and was
executed beautifully. Bouquets to all
of yo u,
Palo Al to. California
In your a rticle 'The test of lime,".
an insensitive and frivolous, at best.
rem ark was made about (the) Ukraine ...
The other matter I would )Ike to bring
to your aUenUon is th e usage of THE in
front of Ukraine. Ukraine is-a country,
not a region. and "the" Ukraine is as
wrong as "the" France or "the"
I hope you will see merit In mv com­
ments and will publish an apology to
HP employees of Ukraini a n descent
who may have interpreted your intro­
du ction as an ethnic slur.
Palo Alto. California
I Just received the latest M eas ure . ..
and I'd like to make a big compliment
for a n outstandingjob to you and the
whole team involved in producing
this issue.
This issue probablvw1l1 have collect­
Ing value. Thanks ve;-Y much for a
great Job,
B6blingen. West Germany
congratulations on your fa n tasHe Jan­
Measure meant no disrespect in its reJ~
u ary-Fe bruary '89 issue. The "ONE DAY
OUf son, Todd Anderson. took the pho­
. .... theme and National Geographic­
tographs in Italy for your (Ja nuary­
quality photography m ade it the best
erence to the Ukrarne. Wril erGo rdon jssue you've ever done.
Loveland, Colorado
"ONE DAY", "was a celebration of life!
Thanks for the great Issue.
(an employee's wife)
Sacra m en to . California
February) magazine issu e. We were so
h a ppy that he was able to have this
once-In-a-lifetime opportunity. and
w is h to thank Hewlett-Packard for him.
Fl. Wayne. Indiana
I especially enjoyed "ONE DAY, .... How­
ever, 1was extremely disappointed by
Brown merely hoped to s h ow HP's growth to locatlons neuer before imaginable. Webster's New World Dictionary. the World Alm anac and the Associated Press Stylebook a II reJer to "the Ukraine," a republiCqfthe U.S.S.R.-Ed Please send mail
Do you have comments about some·
thing you'ye read in Measure? Send
Th a nk you for the 50th anniversarv
us your thoughts. We want to share
issu e (January-February), It was ~
them with more than 87.000 other
well worth the effort of makmg it as
explained at the end.
If your letter Is selected for pub­
Would it not be appropriate. however,
you']] receive a special
WUh 87.000 employees and products
for the staff ... to acquire a somewhat
MeasureT-shlrt with the 50th­
in more than 90 countries, H's impossi­
better geographical knowledge, , ,
anniversary symbol, Be sure to send
ble to capture the expanse qfHP in a
and not mention Scotland a nd Great
us a return mailtng address. and
Britain as two countries?
Indicate your T-shtrt size-unisex
JAAPVEGTER hopes "ONE DAY ... "symbo lically
medium. large or X-large ,
The Netherlands
Address letters via company mall
or HP Desk to Editor. Measure. Pub­
Jaap, qfcourse, is rtghl. We mistak­
lic Relations Department. Building
enly sald Great Brilain when we
20BR. Palo Alto. Via regular postal
should have said England. Sorry
service. the address is Measure.
Jor the e rror. or chap.-Ed
Hewlett-Packard Company 20BR.
IJust wanted to express my thanks and
P.O.Box 1030 I. Palo Alto. CA 94303­
a ppreciation for the March-April issue.
The January-February Issue was
0890 USA. Try to Itmltyour letter to
The HP history lesson was a welcome
150 words. We reserve the right to
great!!! Too bad you o~erlooked
change from lhe usual technically ori­
edltletters. Please sign your name
ented a rticles. I enjoyed the historical
and give your location.
facts and knowing th at t his company
the lac k of representa tion of the
McMinnville facility.
"Test of time" draws
praise, criticism
Mississauga, Ontario
May-June 1989
LETTER FROM JOHN YOUNG President John Young discusses
HP's profitability
at our January Ge-neral Managers'
meeting. By "balanced" I mean all parts
of the company showing both a healthy
growth rate and good profitability.
This balance exists in some cases but
not all. There are parts of HP that. while
satisfactorily profitable. are growing
slowly or nol at aIL Others are growing
by leaps and bounds but aren't as prof­
Itable as we'd like. These groups need
lo strike a better balance between prof­ its and growth. We can't reach the full potentia) of our company without every part contributing. The bf?st way to understand HP's
profitability Is to look at our operating­
profil mar~in. Expressed as a percent­
age of sales. this figure shows earnings
,mprouing our operating­
profit margin is the top
priorityfor HP.
generated by the products and services
we sell-that is. our profits before we
add or subtract financial items such
as interest income and e>.."pense. and
before we set money aside for our taxes.
H' Chairman 01 flirt board and ccHOUnder DaYo Packard choll willi Pr. .ldent and CfO JolIn
Younv_rfllrtr_sIIareholrler$lMeItngalfllrtCUpertlno, catHornIa,sIIe,
e\te' recently announced our
profit-sharing percentage for
the first halfofFY89 This
announcement always prompts plenty
of discussion about HP's profitability.
and so it should. One of the positive
aspects of profit·sharing is that it
remtnds all of us that we have a real
day-to-day stake in the profilabilityof
the company, So that's what rd like lo
address in this letter. first with some
background and then the actions
we're taking.
One oflhe key challenges HP faces in
FY89 15 to achieve balanced, profitable
growth . ThiS was an Important subject
Operating-profit marRin is a figure that
senior management and the financial
community watch very closely. Irs also
the primary base for profit-sharing.
The two pie charts here lell an mter­
esUng slory. HP's revenue growth has
been healthy: our 1988 revenue. repre­
sented by the larger pie. is more than
three times greater than it was in 19S0.
Bullf you look althe yellow segment of
the pies. you'Usee our operating-profit
margin has eroded. That. in a nutshell,
is the problem.
What's driving this trend? You can
understand by looking at the blue and
red portions of the charts.
The blue plcce represents cost of
sales-that is. the cost of the materials.
labor and overhead directly involved in
manufacturing products. Asa percent
of revenue. cost ofsales has increased.
There are two principal reasons this
First. our cus tomers may not per­
C'eive the value we add to be much
~re ater than our COS tS, This can hap­
pen wh e n a product is hard to produce
or Is missi ng distinctive features The
result is th a t we may not be able to price
a prod u ct appropriately to generate
strong ope rating profit
A second and quite dirferenl reason
is that we are in creasing our use of
indirect sales <:h an nl'is. suc h as deal­
e rs, Produc ts sold through dealers art'
di scou nl ed rrom list price, s ince we a re.
in effect. tra nsferring lhe sales funl'­
ti on to the m , That makes HP 's rev{'ntlcs
decrease, which causes t'ost orsal{'s
expressed as a percent or reven ue to
In crease. Noll' th at in this case, a risin~
cos t of sales doesn '1 necessar ily mean
the p roducts are n't compl~ t itive.
We must continue to work hard to
keep our CO!:'i t of sales in check by apply­
ing all we've lea rn ed abou t desi~ning
for manufac turab ilily as well as betler
procuremen t and m a nuractunng effec­
tiveness. But we still expect this slice
\vill b e an m creaslng portion of our pie ,
since th e proportion of sales through
indirect channels is on th e rise.
lne reasing COS f of sales w 111 cause
ouropcraling-profit m ar~ in to s uffe r
unless we offset the g row th by reduci ng
our operating- expense percentage, rep­
resented In red on th e ch a rt. Included
Growth is important.
butgrowth without
profits has no value
to our company and
simply consumes
resources that should
be put to better use.
h ere IS spe nd ing fo r R&D, marketing
and selhng. and a dministration, As you
can see. operatin14 expense as a percent
of revenue has grown even more than
cost of sales since 1980_Thal's why
ma n agers are paying s (n ct attention
to controlling ex penses and h iring,
~ Cost at sales
• Operating expenses
o Operatlng-protH margin
While HP's net revenue has more than tripled since 1980, the company's operating-profit
margin has declined,
Improving o ur operaIing-profit mar­
gin is the top priority fo r th e compa ny.
and we 'redoing a 10tLD m a ke it happen .
We're inc reasi ng grow th ra tes in uur
tradit ion a lly profitable a reas and
deploying investmen ts to nl' W high­
growth market se~ ment s, We 're cor­
recting business fundame n lals in
product a real:; wher!..' we can't price to
earn attrac tive profi t. Recoglllzing the
impact of diffe re nt sales Channels',
we're workin g to ensure manufac­
turing costs and opera ling expenses
track to m ee t ou r targets.
However, we mus t accelerate our
erforts if we a r e to see Im p rovement in
1989. As llook a t the spendi n g and hir­
ing plans in many a reas, I see they're
no t co nsist ent with thi s objective.
The company can't increase its oper­
ating-prolll ma rgin w ithout the help
of a IL e mployees, Iexpec t eve ryone in
HP to be focused on 'hiS resull.
Addressi ng this issue requi res so me
touj::!;h c hoices. but we need to make
them now We must focus ou r resources
on business segme n ts a nd products
where we can be mos t successful and
m a ke real co ntribullons tocu Slo mers.
Grmvth is impo nanl. but g l"Owlh with­
o ut profits h as no va lue to ou r company
and s imply con su m es resources that
should b e put to better u se.
Perhaps Dave Packa rd said it best:
OUf profllabilily is o ne of th t" best ways
we can evalua te OU f work. Profi t shows
us that customers a re willing to pay
more for our products than it costs us
to m a ke th em, It tells us th at people
value what we do ,
i ­
IlAVr 11) GEf A
~£R FLAG fUr!/
50th anniversary
events area
E vt'l"}' lhm;1( s coming lip
ros('s-or pans It'S III one
case-CIs HP siles worldwide
c('!cbralt" ht' company's
MartJke SChrooh hos Juslthe ficket to< the May_I.
50th anfliHTsary in 19tm.
il1tt'resL in the 50th is
!1:rowing- hterally-at Ihe
California. silt'
wlH'rt' groundskt'eprr!-i
planlt'd 1.500 pansies in
two ('i.l1,hl-fool circles - one
in [he shape of the leiters
"liP" and the other. the
number .. 50....
ali\'(" way to
lookine; for a
n-'(,o .~flIz(,
<ll1nhTrsary and bri.l !h«·n
Iht' Jallds('ap('. ~ says Tom
Apoda('<t . ofSunny"aksll('
fa('llilies . who desl ,c .ned Iht'
t' i rdes
"The plants wert' all gn'('n
when w{' put them in in Feb·
rumy. so you couldn't lel1
Tom Apodaca gCMt the Sunnyvale, Calttornla, Itt. Q flowery touch.
\\'h a t it was ,11,0in,e; to look
lIk e. S Ince the-v started
s prouting II1latc March.
a lo t o f prople ha\'e told us
h ow mu ch I hey like the
ar ra n gements
Mt'a nwilile . HPenLi li r s
around the wo rld c h ose
the ir ··ambassado rs ·· fo r
tti t' Mav d cdll"ation or" the
.t.!a ri:)gt"~'-B il l Hewl e lt and
U <.1\,/:, Packard 's firs t work­
!'i h op - as a California stale
h lsLO rl l' la ndm ark.
Ma rljke Schroats. travel
!'ipec ia lis t a t HP'~ office in
T h r Ne tht' r1ands. f(,{,f:'i\'Cd
an u\'lTsizt' d replica of a
p la lw ticket when she was
to ld s h t' wo uld be the Dutch
r cp r es{' n l a tin"..
M or e than 100 ambassa­
dors t rom 103 s ites in 3 2
('Ou J1 lr i ~s willl ra\,e! to Pal o
Alt n for th e May 18-2 0
('d e- b ril li o n
Robert Dea's fast action helped save the lives of two California
teenagers who were trapped In a burning car in February.
HPer credited
as lifesaver
How would you react in a
life-threatening situation ?
HP engineer Robert Dea's
(pronounced DEE I Instinc­
tive efforts helped save the
lives of two Calirornia teen ­
agers in February after the
car they were riding in
flipped over and caught fire,
Robert and his wife were
returning to Fremont, Cali­
fornia, after a weekend in
Las Angeles when theyspot­
ted the burning car a few
miles from home. He arrived
first at the scene and soon
was joined by other passing
"It was dark." Haberl says.
"but I sa\l.' lwo young people
trapped tn the car, We
released the seat belt of
the guy and pulled him 10
safely, then went back and
gotthe girl out,
"The flames began to
spread right after I pulled
the girl out, and I was afraid
the car was going to explode
at any minute." says Rober( ,
who works in the Software
Engineering Systems Divi­
sion in Palo Alto.
Robert ran back to his
truck and broadcast an
emergency message on a
citizen's-band radio. WJthin
15 minutes the police. fire
department and ambulance
Fremont police said th e
two youths "no doubt" owe
their 1i\!CS to their rescuers,
Robert and three other
motorists will be nominated
for commendations,
'Tve never had anything
like that happen before and
(just acted on instinct."
Robert says. "There wasn't
time to think about the con­
sequences. Ijust knew (had
to act fast."
Hewlett-Packard Company
reported a 21 percent
Increase in net revenue
and an 8 percent growth
in net earmngs in the first
quarter orits 1989 fiscal
year ended January 31.
Net revenue totaled
$2,657 billion, compared
wi I h $2. 192 billion for the
same quarter in FY88,
with international up 31
percent (to $1.432 billionl
and U.S. up 12 percent (to
S 1,225 billion) compared
with the year-ago quarter.
Net earnin~s totaled
$193 million. equal to 83
cents per share on approx­
Imately 233 million shares
of common slockoul­
standing. compared with
8179 million or 71 cents
per share on some 251
million shares in the first
quarter of FY88.
Incoming orders for
the quarter were $3.0 13
billion. compared with
$2.440 billion in an espe­
c(aHy strong first quarter
South African government
to make Significant prog­
ress toward ending
HP will set up a trust
fund to continue to fund
many ofHPSA's social
justice programs.
The Medical Products
Group has restructured to
five business units. Jeff
Langan becomes general
m a nager or a ne\\' Clinical
Systems Business Unit.
which includes activities
of former cardiology and
critically ill patient-moni­
tori ng BUs, Dave Perozek
h eads an expanded Imag­
Ing/OB Care BU, while Ed
McDonald will manage
a new Group Marketing
and Field Operations BU
(which includes the Medi­
cal Supplies Cenierl , Two
geographical BUs remain
BasiC organizational
unil ofMPG In the future
will be smaller "applica­
tion business units."
to SUtek Ltd" a socially
responsible South African
com pu ter company.
AJI 245 employees of
Hewlett-Packard South
Africa (Ply) Ltd, will be
offered full-time employ­
ment by Siltek. which wil]
take on all HP producl
HP President John
Young said the company's
difficult decision was
based on business condi­
tions and failure of the
three years to establish
science centers at three
universities to tap into
long-range scientific
research. First one is at
Stanford, wilhEurope
and the PaCific Rim each
to have one later.
AJI Corporate real eslate
responsibilitieS have
moved rrom Corporate
Manufacturing to Chief
Financial Officer Bob
wayman. Dennis Raney
will become the first
director of real estate.
HP announced March 21
that it plans to sell its sales
subsidiary in South Africa
HP Labs will spend some
$15 million I n the next
May-June 1989
_ _ _ ... HP_1coJara CompuIerOperallon
.1 c ..... a ceottftccrte tor compIetktg"" m....... degree.
A 2,OOO-mlle
An HP engIneer In Guadala­
Jara. Mexico. was one of the
HP'"'lnlng_.-yln-......,_.........' 111100001... _ European .I~p eMs"• ....,...' . '"••• chI.... bysalel....
beaming over
HP training In Europe
entered a new era In Febru­
ary when It btamed a sup­
port-engineering '"te1ec1ass"
bysateUlte to IOHPloca­
lions throughout Europe_
HP has transmttted tratn­
Ingcourses to U.S. regtonal
sales Slles since 1983. but
the February broadcast
[rom the Bonaparte studio
In Paris was a first.
Ron LldeU. worldwide
manager o[product support
tratnlng. opened the three­
hour broadcast with an
Introduction on the evolu­
tion of customer-englnttr
training. Product and
marketing presentations
The broadcast on Hp·s
private television network
was a combined effort
Involving HP's European
support-training organiza­
first six students outside
the U.S. to earn a masters
degree In engineering using
lectures from the Stanford
Instructional Television
Network (SITN). sponsored
by Stanford University.
Adolfo Gascon from the
HP Guadalajara Computer
Operation completed the
three-year program which
was conducted. In partner·
ship with the Autonomous
University of Guadalajara
While UAG aclually Issues
the degree. each student
receIved a cerllficale
affirming their successful
completion of the courses
originating from Stanford
University. HP Guadalajara
helped set up Ihe arrange­
ment with SITN along
with other Guadalajara
Stanford provided video­
tapes of Its engineering
classes. Afler watching the
tapes. a UAG tutor led dis­
cussions and answered
Professor James Gibbons.
dean ofthe Stanford school
of engineering. presented
the certificates during Jan­
uary graduation ceremo­
nies In Guadalajara. HP
engineers In Silicon Valley
have taken the courses by
television since 1968 and
elsewhere In the U.S. since
tion In Grenoble. France.
the Grenoble Network Divi­
sion. HP-lV and vrcOM. a
Paris consulting company.
1be best of the
Japan's Nikkei business
newspapers recenUy named
an HP 82000 Integrated­
circuit tester one of 16
producJs to receive a Nikkei
Award as ··most exceUent­
products for 1988.
The IC tester. made In
BObllngen. West Germany.
was chosen from among
20.000 new produCls and
services reported In four
Nikkei newspapers In '88.
The Japan EconomIc
Journal. the English-lan­
guage version ofJapan·s
leading daily economic
newspaper. Nlhon Keizal
Shlmbun. presented the
Neither rain, nor
When the Hoechst Celanese
chemical corporation suf­
fered an explosion at its
Pampa. Texas. plant. build­
ings near the center of the
blast were flattened­
including the main labora­
tory. which housed two HP
1000 computers. The roof
collapsed. and lhe equip­
ment inside wasn't
recovered until weeks later.
In a letter to HP President
and CEO John Young. 20
Hoechst Celanese employ­
ees explain what happened.
"One of the HP IODOs was
at a 45-degree angle. sup­
ported by a fume hood. The
side of the cabinet was par­
tially collapsed where it had
been struck by the Iron­
stone lop of a laboratory
"The other HP 1000 was
on its side under a partially
collapsed brick-and-con­
crete block wall. Both com­
pulers had been exposed to
rain, snow and weather
since the explosion.
"We dug both systems out
of the rubble and took them
to an off-site location where
we disassembled and
cleaned the dust and debris
from the CPU (central pro­
cessing unit) and exposed
surfaces to the disc drive,
(Then we) knocked the
dents out of the sides of
the cabinets.
"As our backup tapes
were burned in the same
incident. we had no choice
but to attempt to boot the
systems up to recover our
data. Both systems came
up perfectly..
"Horchst Celanese Is a
quality performer in the
chemical industry, and we
appreciate quality perfor­
mance by our vendors.
These HP 1000s are qualtty
products. Please relay our
sincere appreciation for
quality performance by all
those involved.
"Those or us 'on the firing
line' here in Pampa appreci­
ate our friends on the line at
Hewlett-Packard. "
Jorgen Hedevsen to GM.
HP Denmark ... Jean­
Claude Vandenbosch to
GM. HP Belgium.
Mike Hetrick to opera­
tions manager of the Data
Management Products
Operation. part of the
Data and Language
Division. Sam Prather
replaces him as operations
manager of the MPE Sys­
tem Operation. part of the
Commercial Systems
electronic-warfare. radar
and communications
HP has enlered the high
resolution PC graphics
market with an intelligent
graphics controller (the
HP 82328A) that can dis­
play 16 colors simulta­
neously from a palette of
4.096 chOices. Also new:
two sizes of color displays.
From the Graphics
Technology Division ...
Boards of directors for HP
and Apollo Computer Inc.
jointly announced on
April 12 that they unani­
mously have approved a
definItive agreement for HP
to acquire Apollo. It would
be HP's largest acquisition
ever. Founded in 1980.
ApoUo manufactures net­
work-based workstations
and open computing prod­
ucts. The transaction is
subject to regulatory
HP and 3Com. a Santa
Clara. Californ1a. com­
company. have formed a
strategic alliance that
includes joint product
development and market­
ing. HP wlll make an ini­
tial equity investment of
up t05 percentof3Com's
outstanding stock.
Stanford Park Division's
new HP 8791 frequency­
agUe signal simulator
(FASS) provides complex
signa] testing for modern
HP .2321A with color displays.
Personal computers have
high-performance net­
work access to UNIX­
system-based X Window
graphic applications
through HP AXDS/PC
software, It accelerates
performance to 2 million
instructions per second.
From the Panacom Auto­
matton Division.
HP CLP PLUS is new
software from the Scienti­
fic Instruments Division
that Simplifies and speeds
the process of analyzing
and reporting data for
total organiCS reqUired by
the U.S. Environmental
Protection Agency for con­
tract labs.
The new HP 3070
SMT-series combination
board test is believed to be
the first to create a fully
integrated surface-mount
technology tesl system.
From the Manufacturing
Test DIvIsIon.
May-June 1989
PARTING SHOT A Measureable
honor for Terry
Las t yea r. Te- Trv Nimori
read a n EXlraMeaSl1re
st o ry abou t h O\ll fellow HP
e m ployee Ma uri ce Lia n g's
color pho lop;ra ph was
c h ose n fo r d is play
t he
Jou rn ey Into Imag ination
Pavilion at Wa lt Dis n ey
WorldlEpco r Ce nter in
Florid a.
··Phot ogra phy had bee n a
growing in teres t ofm int':'
Terry says. "and that S lOry
was my ins pira ti on to lake
m Ore p ic tures a nd enler a
local con t es t ...
In Nove mber 1988. the
Sa nt a Cla r a (California I
Division R&D engineer won
fi rs t pr ize in th e color divI­
sion in a Sa n J ose Mercury
News con lest- the first
Terry ever ente red .
The winning e ntry.
··Splral ta p es try..· a dvanced
to th e 1988 Kod a k In terna­
t la nai News pa per Sna pshot
Awards compe titio n . And.
yes. Terry 's photo now
h a n g s In the Disney Pav il­
ton with Mau ri ce's
He was wal kin g around
San Fra n cisco's Embarca­
de ro Cent er one weekend
when he s p o tted the eye­
catching scen e.
"1 was"fa s cinated by the
complex Ci rc ular patterns
and h ow the s ta ircase
appea red to conve rge
towa rd (he bed o f chrysan­
the m um s." Terry says. "The
brill ian t yellow con trasted
wonderfullv with (he sub­
dued grays: and Ihe Image
reminded me of a nautilus."
"It was the first limt.~ I had
tned shooting slide film and
I had only one frame l\'e
gone back to that staircase
a few times to try and lake
the shot again. but (he light
has never been the same
I was fortunate to get the
shot when I did."
Now the image.l·hosen
from among more than
500.000 ('ntries. han~s in
Ih e Walt DisnevWorld!Epcot
Center permanent display,
whi ch h a s attracted about
50 m illIo n proplr since the
pa \'!IJ on opened in 1982.
M ea sure Magazine
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