Conference 7.286::digital

    
    
    COM is Caribbean Operations Manufacturing
    
    
    

    It's probably because it's getting just as expensive manufacturing in
    PR as on the mainland. The work will probably end up in Taiwan or Hong
    Kong.
    
    Ken

       I work at GSO and was under the impression that Puerto Rico was
    getting a good bit of work.  We're kinda like their counterpart.  We
    both manufacture PWB's, but we (GSO) are tooled to handle the higher
    technologies.  Are they operating?  
    
                                                                Scott

    	RE: .0-
    
    	Where did you hear of this?
    
    	I've seen a number of defective spare (no names please) _possibly_ 
    from the Puerto Rico repair cycle. 
    
    	Is/was there a morale problem involved? I dunno, but if the rumor
    of a shutdown in is true....
    
    Phil

	... it seems that you know more than we do!!


	I have heared all the possible combinations and
	permutations of shut-down, right-sizing, lay-off,
	and new product introduction rumors. Nothing have 
	been confimed, yet.

	If COM ever shutdowns it wouldn't because quality
	or operational cost problems but because unexpected
	low manufacturing volumen.

	Carlos   ...in wait mode.

Well, its official.  

Yes, Digital will close its Puerto Rico operations by
31-Mar-1993, one year from now.

All employees will be phased out with at least 60 days notice.  
No benefits are available for anyone who resigns or is
terminated before s/he receives the notification.

The phase out schedule is determined by two criteria.
First, the job classifications and headcount within them,
required to continue necessary operations will be determined.
Next, those with the least seniority will be notified upto the
number not needed within the class.

Compensation for termination ranges from 25 to 80 weeks of
salary.

Special early retirement benefits (5 years age + 5 years
seniority) are available to anyone over 50.  Guess I will focus
my attention more in the SERP conference now.  :-)

regards,

Dick

    Re .0 ..... it was one of those innumerable memos that float around on
    the net.  Didn't keep a copy.  Said that today the decision would be
    finalized.

    Forget it.....memo I just got formally announces closing of both PR
    plants.  1250 people out of work.  Add that to the 550 layed off in
    Germany and the 7,000 SERPers....and hey, the numbers start to add
    up!!
    
    Now the question is, how many managers are impacted?  How many will be
    able to slip back under the umbrella and relocate to a good job in
    the state.  You can bet your bippy that some will be rescued.
    
    Wonder if the timing of this doesn't have anything to do with an effort
    to push some SERPers off the fence?  It will certainly have that
    effect.

    
    Well;
    I guess and some economic (load) factors and even maybe politics finally 
    "killed it". I agree with Carlos, Quality was not the cause for closing 
    COM. Digital de Puerto Rico (Corporate name registered) produced
    several high quality products since they started operations back in
    1968. Just to mention a couple, the VAX-6000 series and the DECserver 
    terminal servers, known as best in their line were completely build
    in Puerto Rico. Even though I am not part of COM any more, I feel
    for all the people that put many years in Digital de P.R. just to see 
    it closing down like that (I started there back in 1981).
    
    The only thing that comes to my mind now is to wish good luck and
    success to all those excellent workers in COM, from the janitor to the COM
    President, anywhere they go, in or out of DEC.    
    
    BUENA SUERTE A TODOS . . .
    
    Ram�n.
    
    PS. "Where there is life, there is hope..." Let's see what happens
    	during the next 4 quarters... maybe...
    
    

    Does anybody know anything about the tax shelter status of the Puerto
    Rican plants?  Is it still extant or has it expired?  How long have
    they been open?  Twenty years?
    
    Larry

    I visited PR about the time the Air Traffic Controllers got "fired". At
    that time, my impression was that there were some significant social
    barriers to corporate profits but there were "special" incentives for
    corporations locating there where taxes kicked in in 10 years or so. 
    
    At the time, the island's first McDonalds was closing down in reaction
    to local labor laws. I often wondered how long DEC would last there.

Worldwide News                      LIVE WIRE

 Digital's Manufacturing facilities in Puerto Rico
 to phase out over the next year

    [Following is a message to employees from Bob Palmer, vice president, 
    Manufacturing and Logistics, concerning the announcement of the 
    closing of our Manufacturing facilities in Puerto Rico.]

  Today we told our employees in Puerto Rico that we intend to close the 
  Manufacturing facilities in Aguadilla and San German.  There will be a 
  gradual reduction of the workforce affecting 1250 employees over the next 
  year.  Our Sales and Services operation in San Juan and Mayaguez will 
  continue. 

  We are offering the employees a financial support package based on years of 
  service.  We are also providing continuation of medical, dental and life 
  insurance coverage for a specified period of time; the opportunity to take 
  advantage of a special early retirement program; and employment/outplacement
  assistance in the form of seminars and workshops conducted by a professional
  outplacement firm.

  Decisions such as this one are not easy to make nor easy for employees to 
  understand.  I hope the following information puts this one in context for 
  those of you who are not familiar with the course we've set in Manufacturing. 

  Those of you who are familiar with the challenge Manufacturing is facing 
  understand that the decision to close these plants is part of a multi-year 
  effort to make Digital cost competitive and achieve a leadership position. 
  In response to the challenge, last year we established three primary 
  objectives:  to get competitive, to stay competitive, and to preserve our 
  most important core values in doing so.
  
  The computer industry has been going through a period in which technology 
  has progressed very rapidly and increased the efficiency with which products
  can be manufactured.  This factor, coupled with the decreased demand caused 
  by the worldwide recession, has left Digital with excess manufacturing 
  capacity. 

  Over the last two years we have restructured Manufacturing, closing 
  facilities in the United States and Europe and reducing the manufacturing 
  employee population by 25% worldwide, to adjust to new capacity needs.  The 
  closing of the San German and Aguadilla manufacturing facilities reflects 
  this worldwide restructuring.  It is expected that there will be further 
  restructuring within the function.  

  We benchmarked ourselves against the best competitors in our industry and 
  determined that we must significantly reduce the costs associated with the 
  manufacture and delivery of our products and services.  Unfortunately, time 
  is not on our side.  We have to make difficult decisions to disinvest from 
  several manufacturing activities around the world.  When we make these 
  decisions, we clearly understand the impact they have on our employees and 
  the communities in which we conduct business, and we try to minimize this 
  impact by disinvesting in a responsive and generous way. 

    Digital has apparently made a business decision to get out of boards 
    manufacturing. My plant in Greenville, South Carolina is in the process of
    negotiations with a third party for the sale of the plant.  I can only hope
    that it is the right decision for the company for the long term.  The
    part that concerns me is that Digital seems to be reducing manufacturing 
    on such a scale that we will become overly dependent on outside suppliers 
    for our future.  Everything that I read in Business Week and other
    journals say that only the vertically integrated businesses will be
    able to sell at a price that the consumer will pay.  Can we compete in
    a world where we have to first buy from the outside and then add some
    sort of value-added ?
    
    
    

   Re:                     <<< Note 1825.13 by RAVEN1::STOGNER >>>

A couple of things are happening.

Vertical integration on a single site is the only proven way of
coordinating the various manufacturing operations so they all
get you their respective products at nearly the same time to
satisfy a customer's order.  A company that knew how to use
computers might be able to manage separate production lines
effectively, but that's a long shot.  Hasn't been proven.

We still (after fifteen years, to my memory) haven't been able
to streamline the order processing from the customer's office to
the manufacturing site.  60 days, one way.  Maybe another 30
back.

Administrative inefficiency is and has been the name of our
enemy.  He's not dead, he's not even wounded.

Dick

    
    Re: admininstrative inefficiency
    
    Ah yes, consider what other companies are doing.  Motorola,
    for example, in their pager business has it finely honed.
    Orders are electronically transmitted to the factory from the
    sales point.  From the time the factory receives the order 
    until the pager is packaged ready to ship: 28 minutes.
    
    Steve
    

    Whatdatheydo??? Use computers or sumpin??  Will wonders never cease.
    

The Computer Industry News from MISG for 31-MAR-1992
    courtesy of Micro Tech Research, Inc.


DIGITAL ANNOUNCED TWO FACTORIES IN PUERTO RICO WILL CLOSE BY MARCH 1993.

The closings are part of Digital's efforts to cut worldwide
payroll by 25%.  The resulting severance packages are expected to
cost $50M. (BG,3/31/92,p37)

Two facts might be derived here (or questions):

	25% WW payroll cut - have we seen this # before?
		25% of what starting #?

	$50M cost - spread over 1250 employees - can we estimate the separation
			packages?  I don't believe so because there are likely
			plat and property costs lumped in.

    Re: Note 1825.15 by SQM::MACDONALD

    Steve,
    
>   Ah yes, consider what other companies are doing.  Motorola,
>   for example, in their pager business has it finely honed.
>   Orders are electronically transmitted to the factory from the
>   sales point.  From the time the factory receives the order 
>   until the pager is packaged ready to ship: 28 minutes.
    
    But Steve, if we did this we did this we would put all those
    administrative folks out of a job. Think of all the vendors that could
    no longer ship to us reams of forms to fill out and . . . why, really, it 
    would effect the economy Steve. Think of all the washers and dryers that
    Sears would no longer be able to sell to those administrators. Imagine
    those thousands of administrators standing in line at 2:30 a.m. in front 
    of the unemployment office to fill 3 openings at Motorola.
    
    Goodness, Steve, we can't have them do that! All of us in manufacturing
    are much more accustomed to long interview lines. Let us take the
    brunt of this, we can handle making less than 20K a year, we've done it
    before. Listen, I . . . I've never owned a new car, rented all my life,
    these poor administrators - what have they done?
    
    ;)

>	25% WW payroll cut - have we seen this # before?
>		25% of what starting #?
>
>	$50M cost - spread over 1250 employees - can we estimate the separation
>			packages?  I don't believe so because there are likely
>			plat and property costs lumped in.

    When most companies announce a layoff the papers report the number of
    people and cost of that layoff. When Digital announces the layoff the
    papers seem to report the total number of people laid off since we
    started as if it were all the same layoff. And then they announce
    how many people they expect well have laid off from the time we
    started until they (the paper) thinks we'll be done. So everyone
    laid off gets counted several times and the paper can make it look
    more "exciting."

    			Alfred

.15>Re: admininstrative inefficiency
.15>
.15>Ah yes, consider what other companies are doing.  Motorola,
.15>for example, in their pager business has it finely honed.
.15>Orders are electronically transmitted to the factory from the
.15>sales point.  From the time the factory receives the order 
.15>until the pager is packaged ready to ship: 28 minutes.
.15>
.15>Steve

Digital's business is not like any other... our internal business
processes are unique.

Lee    

    Re Motorola, yup, and they arew not the only one. I rang in a fishing
    tackle order to Bass-pro a while back, finished the order, then sat
    down with a coffee to page through the catalog again. sure enough, I
    found something I had meant to order, rang them back, no more than 15
    minutes later, and yes the order had already been picked and packed and
    was on its way to the loading dock, but they did intercept it, and add
    the extra item.
    
    Equally, a friend was in Palo Alto, working on some Macintosh stuff,
    decide he needed a particular piece of software, The customer he was
    with said go to the local computer store, but my friend decided to call
    mac connection in Marlow NH (They'll tal orders till 3AM for deliver
    that day). He rings them, at 9 pm left coast time, and goes of to
    dinner, and his hotel room. As he is coming down for breakfast the next
    morning, the delivery man is delivering his software, before the local
    computer store had even opened for the day.
    
    If we are going to get into commodity computing, then we are going to
    have to match these sorts of levels of service.
    
    q
    

         I just heard that the Chicago Tribune ran a story about [company]
    buying GSO (our manfacturing facility here in Greenville, SC).  Anyone
    know if that's true or not?
    
                                                   Scott

    Well, I *heard* someone state yesterday that a similar story was on
    CNN.  Things are too quiet around here, something's up .... 8^)
    
    Jerry

	It's sort of sad when people in Greeville SC look to a conference
	in Burlington MA to tell them what's happening in their own plant.
	Why doesn't management answer these questions locally?

			Alfred

    Rumors grow well in an un_informed environment.  I personally feel that
    there is more information available other than what we're being told. 
    I also understand that while negotiations are going on that certain
    things can't be discussed until the final handshake, but there's GOT to
    be some news that can be shared.  GSO has been hearing "doom and gloom"
    stories for the 9 years I've been here, yet we've continued to build
    boards.  Nobody even flinches when "wolf" is cried now.  People would
    just like some tidbit of valid info to go on.  It's not easy
    attempting to stay productive when you don't know from one day to the
    next what your status is.  But, hopefully within the next few months,
    we'll know our fate, and all these YEARS of waiting will be over.  This
    is like slowly pulling a bad tooth.
    
    Jerry

    
    Hey guys,
    		We are BUILDING and trying to sell COMPUTERS!!!
    	Not pagers, fishing gear radios or small electronic gadgets.
    	We can not compare how long it takes from the time we receive
    	the order to "putting a stamp" on the package and drop it in
    	a mailbox. There are thousands of components and dozens of
    	suppliers that must be timely coordinated and scheduled to
    	deliver "just in time" (there is a big deal of a LUCK here)
    	so you can then deliver on schedule. We rely on a sales
    	order to start putting together one configuration out of 
    	hundreds available! We can not afford having "finished systems"
    	sitting in a stockroom! 
	
        	Now, talking about the manufacturing reduction, I
    	also think that is going to get worse for that specific area.
    	The bottom line is that what 7-8 years ago it took MANY people 
    	and MANY modules to make a computer. Nowadays you make a 30 times
    	more powerful systems with just one module. Take for example
    	a PDP11/70 CPU and compare it to the RIGEL CPU (unfair, is't it).
    	So now, what are you going to do with all the exess people
    	that use to build  those MANY modules!!!??? Think about it
    	and while you are thinking, technology will be still gaining
    	speed and by the time you reach and answer you might not even have
    	a job because technology eliminated it!!! This is what I call 
    	crude and painful reality.
    	
    		Is also painful to admit that if you got a life threatening
    	illness and it started in one hand, and in order to save the life
    	you have to amputate, you will amputate rather than dying.
    	In business, we are in business to make money, not to loose it
    	and when there is a drain in some area you take action to stop it.
    	The question is, Who decides if you should loose an arm
    	if a finger would do the job? THE DOCTOR, and you must rely on
    	his knowledgeable and wise decision. In business, you rely on
    	Management to make a knowledgeable and wise dicision on what
    	to do and when. I pray to God they have clear mind when making
    	those decisions because they not only will affect the business
    	but also hundreds of families.
    
    	R.O. 
        

    
      From LIVEWIRE.Where do they plan on doing this contract work?
    
    
    
    TM                                                   
    digital                   Worldwide News                      LIVE WIRE
                                                         
                      Digital offers contract manufacturing services
    
      Digital today announced the availability of a broad range of
    manufacturing services for manufacturers of computer systems, peripherals
    and electronic assemblies.  According to Jim Willis, vice president,
    Components Business Group, "We have expanded our products and services 
    portfolio to include a virtually complete menu of Digital's 
    state-of-the-art manufacturing capabilities.  Significant interest has 
    been generated and we viewthis effort as a major worldwide business 
    opportunity for Digital to continue this expansion as a contract 
    manufacturing services supplier."
    
      Basic manufacturing services include metal fabrication, media
    replication and distribution, printed circuit assembly using surface
    mount and through-hole technologies, unit or system assembly and extensive
    product testing services including semiconductor test and analysis.
    Digital is also offering a full service capability including material
    acquisition, logistics and distribution services.  The basic
    manufacturing services are complemented by a broad range
    of engineering services including printed circuit assembly design and
    layout,component selection, and re-engineering for cost effective
    manufacturing.

    The complexity of the configuration has little or nothing to do with
    the timeliness of it's delivery. It still takes DEC often weeks to ship
    equipment that it has sitting in the warehouse. 
    
    If we have too many configurations possible, such that we have to
    custom build, then it is time to simplify the configuration process.
    Take for example, selling software. I recall seeing statistics sometime
    back, that indicated of the 200+ DEC software products, the average DEC
    customer buys less than 5 with the initial system purchase, and very
    rarely goes back to DEC to buy software. WHY? Because, even seasoned
    DEC sales Reps get confused about what they need to order for the
    customer.  The Systems and Options Catalog, is now outstripping most
    phone books for size. This is not goodness folks. 
    
    JIT techniques, work for far more complex entities than Computers.
    Toyota use it for building cars, and they have as many and more
    significant engineering processes. May I suggest reading Kenichi
    Ohmae's "The Mind of the Strategist" - it is an excellent guide to
    strategic business decisions along the so-called japanese models...
    
    DEC can do it, they can do it without all of the trauma that is
    currently causing a significant drop in productivity. But it needs
    vision. And that we won't have till the buckets are off our heads...
    
    q
    

    Re .26
    
    Augusta, Maine is one of Digital's manufacturing sites doing outside 
    contract manufacturing work.
    

    but i think that Mr Otero_r raises a good point about automations
    talking aways jobs and what to do about it.
    
    look at At&T, did they not just announced layoff of hundereds of
    operators because they now can do the same job with voice recognition
    systems ?
    
    i think one way to handle this is that for each of us to keep learning 
    about about the advances in technology and science, keep training your
    self in new skills all the time, what you know today will be absolete 3 
    years from now, and your skills will not be too needed by your company.
    
    if company want to lay off peoples, i think they will not lay off
    those who have knowledge and skills that is needed. right?
    
    just my 2 dollars worth.
    byu,
    /nasser
    

   Re:          <<< Note 1825.30 by STAR::ABBASI "i^(-i) = SQRT(exp(PI))" >>>

>if company want to lay off peoples, i think they will not lay off
>those who have knowledge and skills that is needed. right?

   It seems logical to make that assumption, but what really
   happens often, is that management decides to close an entire
   business unit.  They can't afford the time to sort thru 1250
   resumes, find out who is interested in relocating, and layoff
   only those who don't have the necessary knowledge and skills.
   And, if they did, some body would feel s/he was misjudged and
   could cause real havoc with a labor-practice suit.
   
   So, being in the wrong place at the wrong time can also get
   you laid off.  That's the way cracker crumbs are made.
   
fwiw,

   Dick

    RE:-1
    
    
    ... bingo.
    
    That's what a lot of folks here are feeling too.  Phase out Puerto
    Rico, unload GSO, buy boards externally from everyone *including* the
    new and probably improved GSO (which will most likely *increase*
    production in the wake of Puerto Rico's demise).
    
    Jerry (quietly working for "Scenario's `R' Us" ...)  

   Re:   <<< Note 1825.25 by RAVEN1::JERRYWHITE "Hey you're pretty good - NOT !" >>>

>People would just like some tidbit of valid info to go on.

   Well, you might try the workers in the cafeteria company.  It
   seems that the company that manages the cafeteria here
   couldn't wait 'til we were told to pass the word.  So, one of
   our people got the following with her change, "Gee, I'm going
   to be sorry not to see you any more!" a full week before the
   official announcement.
   
fwiw,

   Dick

    re: .26
    
    I think the key word here is "Services".
    
    I heard a dog and pony presentation on this and other services which
    DEC is going to offer.  The service being offered was our "Expertise".
    

My god, what have we come to here? Its one thing when the Boston Globe
publishes news before we employees hear about it but, to have cafeteria
employees know first! Well thats an all time low for this company!
Management ought to really be ashamed of its self.

    I'll be right back, gotta go get a candy bar.  8^)
    
    Jerry

    Actually, I heard the same story from someone at DG.  Seems the mgmt
    types didn't want the cafeteria buying all that food if nobody was
    gonna be there to eat it.
    
    food for thought, eh?

    Let us face it boys and girls, we are in the business of automation.
    That is, we make machines and software which together do boring and
    repetitive tasks that used to be done by human beings. 

    In the process of automation we remove jobs. At first this was not
    really a problem that affected us, as the work that was done was fairly
    simple and our jobs were not really on the line. But as computers
    improved I began to notice that jobs closer to mine start to go. 

    For example when I first joined DEC in the 70s there were several
    typists and typewriters in our small Field Service office. Now there is
    one typewriter, used about once a month to type the odd label, and no
    typists. All the work that used to be done by them now comes out of two
    laser printers.

    Back in the 60s when I entered the business it took a team of 7 on-site
    engineers to look after one, then large, computer. Currently, due to a
    huge increase in reliability and a reduction in the number of field
    replaceable units, one engineer can look after many computers.

    So now the monster we created, which has been eating jobs throughout
    industry, has turned on its makers and is now after our jobs. 

    And we have the nerve to complain?

    Jamie.

   Re: <<< Note 1825.38 by HOO78C::ANDERSON "I hate quotation - R W Emerson 1849" >>>

Who's complaining?  I'm happy the shoe has fallen.  I've got a
zillion other things I'd like to do.  The hard part is now I've
got to make some positive choices instead of the negative ones
I'm used to. :-)

Dick

    good morning,
    
    if any one thing that computers and automations can do it all now, and
    let us humans beings just leave and hit the beach, i think they are wrong.
    
    what we need to do is let computers and automation do the boring 
    repetitive stuff we do all day, and go up higher and think and try to
    solve the mega-problems facing us and the world .
    
    i sure can come up with a big list of such problems that can keep us all
    very busy with the fastest computer working on them for the next 100 years.
    iam sure you can too.
    
    so the game is not over yet, still more work to do.
    
    ..boy , do i need coffee bad, got to go ..
    
    thank you,
    byu,
    /nasser

    Fair enough Nasser, we are reasonably intelligent people. What about
    those who are more suited for doing boring repetitive stuff. What will
    they do to earn a living?

    Jamie.

    Jamie,
    i dont think anyone is "suited" to do b.a.r.w. (boring and repetitive
    work).
    
    the main peoblem, is to find problems to keep people busy, good
    peoblems, that are usefull to solve, and difficult ones, and make money
    working at them, i say there are tonnes of these problems, if management 
    look for them, they find them, give them to peoples to work on, and train 
    the ex-b.a.r.w peoples to work on them. but b.a.r.w peoples need not sit 
    around waiting for managment to do that, they should keep training 
    themselfs too, many ways to do that.
    
    there is nothing i can do about those who just like to do b.a.r.w. and
    they want to do nothing else .
    
    also i think we are all reasonably intelligent peopels if we are really
    push ourselfs, offcourse you always will find few plonkers here and
    there, nothing we can about that.
    
    ..got to go for more coffee..
    buy,
    /nasser

    
    Due to closing of Puerto Rico plant, it's interesting to read following
    news extracted from U.S.A today dated Apr-1-1992.
    
    Because of the surge demand for their Laser-Jet printer, HP decide
    to hire 350 more manufacturing job in Boise, Idaho from their current
    3,800-4,000 workers in that plant.
    
    It's pretty discouraging when you looked at what competitor doing and
    what we are doing. Should we notify outplacement office in Puerto Rico
    about those job opportunity in Santa's wonderland up north.
    
    Food for thought, should we learn something from our competitors ?
    
    Michael.. (who see the roller coaster fun of Wang Lab)

re: .42

>    also i think we are all reasonably intelligent peopels if we are really
>    push ourselfs, offcourse you always will find few plonkers here and
                                                       ^^^^^^^^
Nasser;
I am impressed by your ability to integrate newly learned words into your
everyday converstions. (-;    

- George

    Nasser;
    
    I hate to carp but really Nasser, isn't that the English form of the
    word you want?  I believe it should be spelled with a u. try plounker.
    
    Ken

    I personally don't think the closing of the Puerto Rico plants has
    anything to do with the job skill sets of the employees involved (this
    note took a sharp left *somewhere* ... 8^).
    
    I think it's just a (hopefully) smart business move.  I guess we'll see
    what happens.  That doesn't mean I have to like it ... I'm in the
    boards business for DEC too.   8^)
    
    
    Jerry

    See by the morning paper that DG has announced another 1,000 lay-offs.
    That puts them at about 1/3 of their peak labor force.  Anyone out
    there that still doesn't believe that we'll be at 50/60K employees
    within five years??  BTW, they are finally making money again.
    
    I don't think we in Digital still fully understand what is going to be
    necessary in terms of lay-offs to get ready for this industry by the
    year 2000.  BTW, I'm SERP'in out, and feeling very, very lucky.

           I believe unless we can make lots of stuff people want or some
           stuff people want that are high $ items (VAX 9000's), then we
           will reduce this business to whatever it takes to make money
           again.  It was easy to automate, increase efficiency,
           reliability & quality and not reduce people IF you're growing
           in sales year after year.  But, when sales level off or go
           down, you're in TROUBLE and a different business.  
           
           Visiting Old Sturbridge Village this week (Corporate
           Appreciation Day) brought things back to simplicity for me.
           Like making a wooden barrel(s) for somebody...  You made 'em
           when someone wanted 'em.  Only how many they needed.  And you
           became good at it.  Yeah, it might me "dull & boring" for some
           people, but I think people felt good about their work &
           themselves when they went home at night, too :-)  
           
           Steve
           
           

    I agree .48.  Too bad that we are still (so it appears) asking
    manufacturing and sales and services to assume the overwhelming
    burden of the layoffs (I refuse to say "down-sizing").  The real
    problem lies in a lack of product strategy; awkward, Byzantine
    admin procedures which defy automation;  a massive, bloated,
    seemingly ever-growing bureaucracy in the greater Maynard area;
    and an engineering organization which seems to feel impervious to
    any serious budget cuts.
    
    The head-count of these drones could probably be reduced by 50% in
    one fell swoop (not to mention their large salaries), with a corres-
    ponding leap in efficiency.  Too bad we can't bite the bullet!

�                      <<< Note 1825.49 by PBST::LENNARD >>>
�                   -< Nibbling on Bullets Can Be Dangerous! >-

	Yes, it can.  Sometimes you shoot your mouth off.

�    and an engineering organization which seems to feel impervious to
�    any serious budget cuts.
 
	Engineering has had (and is having) its share of budget cuts _and_
	layoffs. 

	--Mike

It _was_ easy to automate and make the production line efficient.

But we never, to this day, have made our _overhead_ processes
efficient.  Can we ever get it through our heads that it costs
_more_ to buy parts, take inventory, make personnel surveys, make
production and delivery schedules, teach classes on export laws,
run quality education programs, send paperwork thousands of
miles, hold meetings about reorganizations, ... than to _build_
product?  

Time is money, they say.  Well, a rough calibration can be done
by the following facts.  We have a customer that is literally
ten minutes away from the Aguadilla plant.  It took 60 days for
an order (that we knew about through other channels) for a
product made here to reach the plant after the customer called
Sales.  It takes us under two hours to make it and in order to
deliver it, we must ship it to the states to come back here in
ten to fifteen days (if the customer is lucky).

The revenue stream for an engineering and manufacturing company
(which we were until we finally realized too late that we could
make software too) is tied very closely to

   Design Product ------>    to cost little and do lots
      Build Product ------->    to spec with no waste 
         Sell Product -------->     to lots of customers
            Deliver Product ----->     safely and quickly
               Collect Money ------->  as fast as you can
               
And there isn't any value added by anything outside that
sequence.  Every other expenditure has got to be justified as an
investment that generates future payoff or a cost reduction
device that increases our margins.

That kind of cold-blooded thinking has only been seen since we
made the tough decision to downsize.  The company has paid the
bill, not just for those who spent unauthorized $30M per year
but by those whose entire department budgets represented cost
without any value added.  My guess is that we lost more money in
the latter than in the former, but I have no facts to prove it.

In summary:

   Much as we would like to believe otherwise, the prime causes
   of our failure are still with us.  And the same obstacles to
   solving those problems are here too.  After we have
   eliminated the excess people that sustained our wasteful
   administration processes, then _maybe_ we will see some
   rational and creative thinking about the processes
   themselves.
   
fwiw,

   Dick

    Regarding technology: yes, we make better CPU's now. But we have not
    yet made a CPU that functions without a PWB.

    Agreed - unfortunately, DEC can't build a PWB for a competitive price.
    Never have, probably never will.
    
    Jerry (who's been listening to "PWB pep talks" for 9 years ...)

    please tell the ignorents between us what is a PWB means?
    a power wrapped blug? dont make sense though, got to have a plug,
    so what is it?
    my english dictionary dont show it. 
    are we like suppose to know what it is? 
    
    .. i just cant take when peoples use strange words and they dont define
    them to you, look at me, i always use easy little words, why dont you do 
    the same?
    
    thank you very much,
    thanks,
    /nasser

    Well Nasser when I first went to work it was with the Railways in their
    telecommunications and signaling department as an apprentice. I was
    moved every few months so I would be trained in every aspect of the
    job. Thus for six months I was attached to a squad who went round and
    dug holes, planted telephone poles in them and then strung up the wires.

    The men with whom I worked were not picked for their intellectual
    abilities and I seriously doubt that their mental efforts could be used
    to solve any problems.

    However as I look our of the window of a train today I notice that
    there are no telephone poles. The lines are all in cables and the
    cables lie in trunking beside the track, put there by a machine.

    Now I wonder what the men who would have been digging the holes are
    doing today since their jobs have been mechanized.
    
    Jamie.

    Printed ????? Board. Actually I don't know either. Did I come close?
    
    By the way, whats a "blug?"  :^)
    
    

        Just in case you weren't kidding, Nasser.  A PWB is a Printed
    Wiring Board or to some a Printed Circuit Board (PCB).
    
                                                  Scott

>        Just in case you weren't kidding, Nasser.  A PWB is a Printed
>    Wiring Board or to some a Printed Circuit Board (PCB).

    Thanks. I thought it meant Programmers Work Bench. But that didn't
    make sense because lots of our computers are usable without that
    sort of PWB.

    			Alfred

re .47:

>    See by the morning paper that DG has announced another 1,000 lay-offs.
>    ...                  BTW, they are finally making money again.

*Were* making money.  They're back in the red, hence the layoffs.

    	We have read this notesfile.   It seems that there is 'hear-say'
    information.   That is typical of the "DEC style".   Here are the
    insights:
    
    	The Puerto Rico Operations consisted of two sites (one at San
    German and the other one at Aguadilla).   The total operation produced
    about 1,000,000 hours of work per year at full capacity.   The
    operations consisted of the manufacturing of: PWB, Modules, VAX
    Systems, DECservers, Power Supplies, Option Modules, Field Service
    Repairs, Storage Modules, Tapes and Controller Modules.    The total
    square foot of the facilities totalled 500,000 square feet.   In the
    peak years both facilities employed an average of 3,000 employees.
    
    	We started right-sizing back in 1986 with our first Financial
    Incentive Offering to 550 employees.   This continued in 1989 with
    another Financial Incentive Offering to 350 employees and one more
    in 1991 to 600 employees.   
    
    	Before closing the operations we were involved with: Alpha
    Introduction and Process Developement, Fault Tolerant Systems,
    DECserver Introduction among others.
    
    	The products will be transferred to USA (mainland) volume sites
    that will be identified in the near future.    We in P.R. are very
    grateful that Digital Equipment Corporation has offered us the
    opportunity to be part of its history.   We are now moving to a new
    era.   To all of you that stay.......Don't critizise, if you are not
    going to do something that can contribute in a positive way to get
    us where we need to be -------> COMETITIVENESS.

      I would like to take this opportunity to express my thanks
 to all of the employees of the Aguadilla and San German plants.
 
      I installed many 6xxx systems in downtown Manhattan and they
 all came up trouble free. It truly is a tribute to the excellent
 work that was done and still is being done by the employees down 
 there. The quality of their product would not have been so high
 unless they had a really dedicated work force.

      THANK YOU and GOOD LUCK to you all.

 
 MICHAEL MENDEZ

    Re: Note 1825.55 by HOO78C::ANDERSON
    
    Jamie,
    
    Goodness, I need some help.

>   The men with whom I worked were not picked for their intellectual
>   abilities and I seriously doubt that their mental efforts could be used
>   to solve any problems.

    An analogy consists of three parts: a topic, an image and a point of
    similarity.
    
    Topic: Closing of P.R. facility & GSO's potential sale.
    Image: Brain deficient men.
    Point of similarity:  . . . well?
    
>   However as I look our of the window of a train today I notice that
>   there are no telephone poles. The lines are all in cables and the
>   cables lie in trunking beside the track, put there by a machine.

    Topic: Closing of P.R. facility & GSO's potential sale.
    Image: Telephone poles replaced by cables.
    Point of similarity: Hmmm, could you give me a hint on this one too?
    
>   Now I wonder what the men who would have been digging the holes are
>   doing today since their jobs have been mechanized.
    
    Topic: Closing of P.R. facility & GSO's potential sale.
    Image: Brain deficient post-hole operators laid off.
    Point of similarity: Boy, you've got me on this one too. Could I just have
    one or two more clues please?

    DEC moving out of the PWB business has *nothing* to do with job skills,
    trains, or anything else.  Economics, plain and simple.  GSO has been a
    financial black hole for as long as I've been here (going on 9 years).
    And, it's never been an issue of excessive operator error being the
    cause.  I think it's just been a case of people doing exactly as they
    were told, only the instructions were wrong - at different levels.  I'm
    not very familiar with the Puerto Rico operation, but I never heard of
    any quality/quantity problems from there.  So evidently that has
    nothing to do with their closing, just as I feel those measuremenst
    will have no effect on the possible GSO sale.  Bottom line - it's
    cheaper for DEC to buy boards externally.  As for GSO's fate, this site
    has been "under the gun" to turn a profit, or break even from day 1. 
    We've heard the same tired speech about, "we've got X months to turn it
    around, or else ...".  We're tired.  The "d*mned if you do, d*mned if
    you don't" feeling is taking it's toll here.  Let's get it over with,
    whatever *it* is ...
    
    Jerry

    Re .62

    Well it was mainly in reply to Nasser's suggestion that people forced
    out of work by automation and/or mechanization could be used to solve
    problems. I was commenting that they were not the right sort of people.

    We are living in a changing world, yes I know we always have been, but
    each year the rate of change gets faster. In doing so we first removed
    much of the manual labour. When I was a child and there were a group of
    men working they were nearly always using simple manual tools, like a
    pick and shovel. These days they tend to be much smaller groups of men
    and they are operating mechanical diggers.

    Now the intellectual requirements to operate a mechanical digger are
    greater than those required to operate a pick and shovel. Thus those at
    the bottom end of the intellectual stakes have been squeezed out of the
    job market.

    This process is gradually working its way up the intellectual scale and
    now our jobs are also in danger. The plant in PC is closing and
    doubtlessly its replacement, wherever that is, will be more highly
    automated, require fewer people to operate it, will produce more and
    cost less to run.

    We tended to protect our own jobs by a process of continual expansion.
    Although individual systems requires less human intervention there were
    more and more systems to soak up the excess work force. Now this
    expansion has come to an end, reality has kicked in, and we discover
    that we are in grave danger of automating ourselves out of jobs.

    Jamie.

    Re: last few... I am glad that someone else was "disturbed" by this
    line of reasoning. There seems to be an alarming amount of elitism that
    exists, particularly among  high-tech workers, which assumes manual
    labor is done by those who are unable to perform any level of mental
    tasks. Eventually, this intellectual "caste system" extends to anyone
    not perceived as having the correct skill set, regardless of their
    true abilities to be retrained. 
    
    ( you can tell I have some pretty strong blue collar roots  ;-))
    
    Lynn
    

    It bothers me too.  I came from the manufacturing environment and moved
    into the IS group, so I've seen the view from both sides of the fence. 
    Trust me, it's not the same.  When it gets down to it, the grounds crew
    is as much a part of the team as plant staff - if anyone falls down on
    the job, everyone suffers.  
    
    Yes GSO has seen a lot of management change, for one reason or another.
    Right now, I think any efforts to pull this plant in line will be in
    vain - people (at all ranks) are in a certain frame of mind, and it's
    going to take a whole NEW set of management values (beit DEC or someone
    else) to snap it in line.  Hey, it's LATE in the 4th quarter, we're
    down by a bunch - somebody needs to take a few 3 pointers.  New ideas
    and concepts don't fare too well here.  
    
    Jerry 
    
    

    Re: Note 1825.64 by HOO78C::ANDERSON

    Jamie,
    
>   Well it was mainly in reply to Nasser's suggestion that people forced
>   out of work by automation and/or mechanization could be used to solve
>   problems. I was commenting that they were not the right sort of people.

    I apologize, I guess I'm just slow (or something), but I am getting a
    very wrong impression here. Let's be specific. Are you saying that the
    circuit boards (PWB's) that carry the signals from the integrated
    hardware (such as an Alpha chip) are outdated or somehow
    technologically passe? Further, are you saying that the people who
    manufacture PWB's are not "the right sort of people?"
    
>   We are living in a changing world, yes I know we always have been, but
>   each year the rate of change gets faster. In doing so we first removed
>   much of the manual labour. When I was a child and there were a group of
>   men working they were nearly always using simple manual tools, like a
>   pick and shovel. These days they tend to be much smaller groups of men
>   and they are operating mechanical diggers.
    
    Well, unless I have been terribly misled in the years I have been
    manufacturing PWB's, I do not know of any process comparable to a "pick
    and shovel" that is necessary to build circuits. I understand what you
    are trying to say, Jamie, but I think you have missed the central
    issue.
     
    Jerry White is closer. It is not that the process is outmoded it is
    that it has been mismanaged. That is my perception. I think Digital is
    a good company on the whole, but my impression has been that the
    practical, day-to-day management of PWB manufacturing has been bungled.
     
    Evidence, to me, of this is that we have replaced the manufacturing
    manager within the last few months. Earl Dale is now doing, in my
    impression, a *far* better job managing the floor. In the past few
    months the "perpetual projects" have ceased (sometimes I wondered if
    somebody in management had stock in Daniel). When ships got behind
    Saturdays became mandatory instead of voluntary. Scrap is no longer
    handled in the sloppy manner it was previously. New equipment is not
    installed only to sit idle and then be sold at a loss.
     
    My understanding is that Digital did not "advertise" GSO. A third party
    just got wind of a potential sell-out, realized the plant had
    incredible potential but was mishandled and jumped at the opportunity
    to buy.
     
    There is a certain sense of security with Digital. But, until recently,
    the impression I have gotten of PWB *manufacturing* management has been
    less than satisfactory. There is no security when it is perceived that
    leadership has the wrong answers to the right questions from the floor.
    When manufacturing fielded questions from the floor at an
    all-employee's meeting last year you could see people's brows furrow at
    some of the replies. At least there is one third party who believes
    solidly that the ingredients of success are here and that they can make
    it work for them. I'm for that.
     
    I think Mr. Dale can make PWB's at GSO competitive but I do not think
    Digital is patient enough to let him. Last night a contract cleaning
    person told an operator that Digital has informed their agency that
    their contract would expire in June and not be renewed.
     
    John

   Re:                    <<< Note 1825.66 by RAVEN1::LEABEATER >>>

I know Earl Dale and your confidence in him is valid.  But
neither Earl nor anyone in any manufacturing plant anywhere can
be legitimately held accountable for the class of problems in
Digital manufacturing that leads to plant closings.

The top management of this company has never embraced the
standard methodology for running a manufacturing company (NIH
syndrome), and in consequence, has never known what capacity it
has nor how much it needs.  Its concept of planning (I was Long
Range Planning manager, for a time) is or has been very
superficial, partly because it was invented here (and I have to
own my personal failure to see that this emperor had no clothes).

The top management of this company has ignored a the maintenance
of the organization, trying to delegate day to day behaviorial
responsibilies of individual managers to a functional personnel
department.  Administrative excellence must be a key management
concern, but because it doesn't have the "sex appeal" of
designing, manufacturing, and selling products, it got little
attention from the best minds in Digital.  So we ended up with
more overhead than we can afford as exemplified by _THREE_ order
administration systems which can't talk to each other
effectively, and a Byzantine organization that nobody
understands and changes more rapidly than anyone can follow.

Nobody is in charge of the total of our many administrative
systems.  So they aren't very effective, they are obstacles and
not tools.  They require so much babysitting, that the burdened
cost of a product may be three times the actual production cost.
Now how are you going to make profit when you try to get
customers to pay for all that waste?

The natural consequence is that sales fall, our competitors who
do have their overhead under control eat our lunch and we
slowly, but surely, erode the company until it is a manageable
mouthfull for some other company.

Sorry for the tirade, but sorrier that things are the way they
are,

Dick

    RE: -1
    
    Ouch !  That's sounds dead on the money.  And what adds insult to
    injury is that we've done benchmarking with everybody under the sun,
    gathered reams of information, and applied very little of it.  Change
    is not only in order, it's vital.  
    
    One thing that was taught to me when I moved into IS from
    manufacturing, is that it's OK to learn from your mistakes.  Don't try
    to cover them up, but learn how to do it right, and then continue to do
    it right.  This simple lesson hasn't been learned at higher levels. 
    New ideas won't fit in the old models, so a *complete* change is in
    order - people are hesitant to change, even from a bad environment.
    
    
    Jerry

    
>    Well, unless I have been terribly misled in the years I have been
>    manufacturing PWB's, I do not know of any process comparable to a "pick
>    and shovel" that is necessary to build circuits. I understand what you
>    are trying to say, Jamie, but I think you have missed the central
>    issue.
 
	The demise of the man with the pick-and=-shovel is the same as the
	demise of the prototype wireman.

	Heather

    Re: Note 1825.70 by SUBURB::THOMASH

>	The demise of the man with the pick-and=-shovel is the same as the
>	demise of the prototype wireman.

    Heather,
    
    I don't want to fuss about non-issues but the hardware used to
    facilitate your reply probably consisted of circuit boards manufactured
    at this plant. We are currently the volume producers of the board on
    which the Alpha chips are mounted.
    
    In view of that how is it that you equate our boards with "prototype
    wireman"?                 

    Re.: .68
    
    Dick,
    
    I understand what you are saying. Assuming that your analysis is correct 
    is it too much to ask that Digital change its management structure for 
    those facilities that require it rather than lose its foothold on the kind
    of technology that supports "little" things like Open Advantage and 64 bit
    architecture?
    
    If we are a "class of problems" within Digital that are solely confined
    to managerial structuring it seems like all the "restructuring" that
    has been done recently in Digital would be condusive to the kinds of 
    changes the PWB industry seems to require.
    
    John

   Re:                    <<< Note 1825.72 by RAVEN1::LEABEATER >>>

It is not just the structure that needs changing.  We need to
change the knowledge and disposition of managers.  

The spin-off concept is a long range prescription.  In the short
run, it would generate more change and more uncertainty on the
part of all of us.  But this style of organization would help
Digital use the market forces to provide discipline for its
supplier organizations (like GSO or COM).  Either the supplier
competes effectively or it dies and the corporation finds
another supplier.  It would also protect a manager from the
impossible assignment of running a 2000 to 5000 operation.  So,
I believe that this kind of organization would be helpful in the
long run.

But today, we have many managers in many locations who either do
not know enough or are not willing to use what they know to be
effective.  

First let me address ignorance.  You know, there are more ways
of doing something wrong than there are of doing it right.  In
the past, we have promoted and hired people into management
positions based on a false assumption.  That assumption is that
"a manager is a manager is a manager" and it is not only false,
but it leads our management employees into the trap of managing
upwards (that is, giving the boss what you think s/he wants).
If a manager does not understand the technical content of the
operation s/he manages, the natural tendency is to look to one's
boss for enlightenment.  

Next, the disposition to use what one knows depends on how
securely the knowledge is held.  When we first learn something
from a book, there is always a little doubt - does this really
work?  But as the years go on, we either try that knowledge or
see someone else try it and see the results for ourselves.  That
is the "experience difference" that comes with maturity.  A
mature manager will take actions that look risky to a younger
manager.  But Digital grew so fast in the sixties and seventies
that we chose to promote young people into management positions
that needed maturity.  They were surrounded by more young
managers so they had no one to learn from.  They only learned
how to protect their turf, not how to be part of a multinational
company.

So, there is a lot of rework needed on Digital's management,
both in terms of organizational structure and in terms of the
knowlege and attitudes of the personnel.  I'm not very
optimistic that the knowledge or the disposition to approach
these faults exist today.  The focus has always been on our
markets and products, which are the other two foundations of a
viable business.  

Dick

           I can relate to much that is being said in this conference.
    My perception of much of the problem is that not only are there
    far too many managers but there're far too many hearing impaired
    managers. I'd be willing to bet there's 100's of GSO people that
    know exactly what has to be done to make that business sucessful.
    With the current structure of things whom can they go to that would
    listen and act on ideas. American companies DEC included should
    walk that extra mile and encourage employee input on all fronts.
           I currently work in ESD in Shrewsbury and things are no
    different here. You all know the type. I'm a "BIG CHEESE" so I
    won't return your cheerful greeting when I pass you in a hallway.
    We need people in these postions who are open honest and hungry
    to hear our ideas. 
    
    
             Bob
           
           

    Hey, you could blend in very well down here !  At least you're used to
    it already.   8^)
    
    When I came out of manufacturing I experienced culture shock in a big
    way.  My ideas are listened to, and if I choose to follow up on them,
    my management encourages that and I have been rewarded for it on
    occassion.  I'm not saying that this never happens in manufacturing, but
    it's the exception rather than the rule. 
    
    The people who actually put their hands on the boards (operators,
    engineering techs, QC techs, etc) *know* how to build a board.  I'm
    firmly convinced of that.  They know the equipment and the process.
    That's not the problem.  GSO can, and does, build boards that nobody
    else in the world builds.   One (of many) problems is having quality
    standards that are only used during certifications, not during daily
    tasks.  It's almost like giving rules to a child.  Here they are - here
    and the consequences of not following them.  Sure, we can "let some
    things slide", but the customer won't. So why do it in the first place ?
    Are we getting away with anything ?  No - the boards come right back,
    to be reworked or remanufactured - or reliability goes down - our
    backlog increases. All because *someone* wanted to see "100% ships" on
    our metrics board.
    
    But I feel that *so* many people have got wrapped up in their own
    agendas and empires that the overall plant has suffered.  Forget team
    work.  Again, it's the exception, not the rule.  Only now is there
    being an emphasis on running this plant like a business, meaning act
    like the power bill is coming out of *your* check.  It didn't take a
    rocket scientist to see business trends changing.  Some brave measures
    needed to be put in place to ACT upon those changes.  They weren't. 
    Load drops - costs go up - customer returns go up - business as usual ?
    
    GSO management, and much higher up I'm sure, buried their heads in the
    sand, hoping things would change on their own.  This left their butts in 
    the strike zone.  All of the little (and big) problems have now put us in 
    this position.  Draws an interesting mental picture, doesn't it ?   8^)
    
    But I'll make a wager.  *IF* this interested 3rd party *does* buy GSO,
    I'll bet that by Q1/94 GSO will be booming with business, making boards
    that no one on the planet can make, competitively.  It's been said that
    this plant's capacity is over $100M.  It can be done.  And I'll bet it
    *will* be done.  This other party evidently can see the gold buried in
    the granite.  Why couldn't DEC/GSO see it too in time to save it ?
    
    Jerry ... who feels like he's watching a good friend die a slow death.
                                                                      

    What Jerry said!
    
    Scott

>>	The demise of the man with the pick-and=-shovel is the same as the
>>	demise of the prototype wireman.

>    Heather,
    
>    I don't want to fuss about non-issues but the hardware used to
>    facilitate your reply probably consisted of circuit boards manufactured
>    at this plant. We are currently the volume producers of the board on
>    which the Alpha chips are mounted.
>    
>    In view of that how is it that you equate our boards with "prototype
>    wireman"?                 

	I said demise, they no longer exist, chips have made them obsolete.

	Heather - who has been in computing nearly 3 times as long as her 
	7-year-old VT240, and remembers wiring boards for 80/80 card sorters

    Heather...you've got a VT240???  Man, I'd love to upgrade to one of
    those!
    
       Signed, Dick_the_only_warm_body_in_CXN_without_a_workstation.....

But Dick, aren't you going to take SERP?

    Re: Note 1825.77 by SUBURB::THOMASH

>>>	The demise of the man with the pick-and=-shovel is the same as the
>>>	demise of the prototype wireman.

>	I said demise, they no longer exist, chips have made them obsolete.
>
>	Heather - who has been in computing nearly 3 times as long as her 
>	7-year-old VT240, and remembers wiring boards for 80/80 card sorters
    
    Hi Heather,
    
    Understood, but the anology still lacks a point of similarity with the
    sale of GSO. Just got a t-shirt today (those infamous t-shirts). We
    were the first process intensive manufacturing facility in Digital to
    pass the QMI audit for the International Standards Organization 9002
    specifications. We can build boards for the European community -
    wunderbar!
    
    Today quite a number of unspoken events signaled the closing gap
    between DEC/GSO and the third party. I suppose it is the better part of
    wisdom to just let specifics remain in our own mail accounts here in
    GSO. While HUMANE::DIGITAL is closed to none but DEC employees it seems 
    that if the deal fell through it would hazard the bargaining power of
    both DEC and other interested third parties if specifics were leaked.
    
    Since this manufacturing process puts food on my family's table the 
    loyalties of all of us here are muted until there is a final decision.
    
    John

    Muted is right, John.  That's how I feel. So how was the celebration? :-)
    
    Scott

    I was out sick yesterday - hope somebody saved a shirt for me.  I need
    some new fishing clothes.   8^)
    
    Jerry

I've never been to GSO but I do recall in my early days at DEC coming to
PKO for training... I would spend endless hours wandering through all of
the MLO buildings. Eventually, I wound up in the basement of building
#??- the board shop. I talked with the nice folkes there, asked lots of
questions and compared the mass production techniques to my own home
board production.

Very nice visit I had while I was there... (76-78 timeframe). On one of
my visits they told me they were getting ready to move to GSO. Are any of
the old timers from MLO working at GSO?

A tip of the hat from someone in the field to those that have been such
an important part of DEC.

Lee Roth

    Why thanks, Lee.  And I know all about the peanut butter conspiracy
    (I'll get the can of sardines)!!!! :-)
    
    Scott                             

        Is anyone from Puerto Rico still here?  If so, I have a question. 
    Someone told me there were some "legal issues" concerning the shutdown
    and severance package down there.  Is this true?  Feel free to contact
    me via E-mail if you want.  Thanks!
    
                                                      Scott

    We have to sign a legal document. The first 75 people recieved the
    letter indicating that they should leave DEC by MID-JULY.
    
    60 from SGO plant.
    15 from AGO plant.
    
    Most of the people were from Board shop (PCF).
    
    Luis

    What happens if you don't sign the legal document?

    They make you continue working for DEC ....
    
    
    ..... sign zee document ... 8^)
    
    
    Jerry

    This is the way DEC Caribbean are going to be working during the next
    months. We are going to be manufacturing and transfering during Q1 and Q2
    of FY-93. After the transfer to the different plants we should stop
    manufacturing when the proccesses are completed on those plants. Then
    we will be giving support to those plants on Q3. By the end of March
    both plants AGO/SGO (COM) should be tottaly closed.
    This information is not official is just what I have heard.
    
    Also I heard that the purpose of the doccument is that the employer
    understands that the company notify him 60 days before his termination
    date. If we don't sign the doccument there is no severrance package.
     
    Luis

    Which plants are you going to be transferring work to, and supporting ?
    
    Jerry

    Plants are Alburquerque, Augusta, Chihuahua, Kanata, Klonmel,
    Shingapore, and some Field Service facilities.
    
    Luis

    Re: .91
    
    I believe that Klonmel is now closed and its operations have
    moved to Galway.  

    Hmmm, so DEC isn't sending any business to GSO (Greenville, SC) ?
    
    Let's hope XXX/XXXX buys GSO then ... otherwise, it doesn't look too
    good for us here.   8^)
    
    
    Jerry

    Sorry, was Galway.
    
    I don't know about GSO. Maybe thats one of the plants also.
    
    Counting-down,
    Luis

    I just came back from a meeting where we were read the content of a
    press release that will be given out this afternoon.
    
    Essentially it announces the agreement for Digital to sell its San
    German fixed assets to Circle-Craft (a Quebec based company).  Several
    Digital executives have become shareholders of the new corporation
    named "DY4" which Circle-Craft will operate here.
    
    Dick

    sounds like one of those companies "To dy(ie) for".  
    
    sorry.
    
    Ogre.

    TM                                                   
    digital                   Worldwide News                      LIVE WIRE
                                                         
                    Digital and Circo Craft sign sales agreement for
                 physical assets of Digital's Puerto Rican PWB facility
    
      Digital and its wholly-owned subsidiary, Digital Equipment
    Corporation de Puerto Rico, announced the signing today of an agreement 
    with Circc Craft Co. Inc. of Quebec Canada to sell the physical assets of 
    Digital's Puerto Rican printed wiring board (PWB) facility in San German.  
    This facility is one of two sites involved in Digital's year-long phase-out 
    of manufacturing on the island.
    
      Miguel Nazario Franco, president and general manager of Digital de
    Puerto Rico, commented, "We are very pleased to enter into this agreement
    with Circo Craft.  Digital has been a long-term corporate citizen of 
    Puerto Rico and continues that relationship through our Sales and Services 
    facilities on the island.  This agreement will allow us to follow our 
    manufacturing strategy of divesting in areas that don't differentiate us, 
    and, at the same time, assist a company that wishes to begin its work in 
    Puerto Rico."
    
      By mutual agreement, the terms of the transaction will not be
    disclosed.  However, Circo Craft will use the assets, which include 
    machinery, equipment, and leasehold improvements, in the operation of a 
    newly-formed subsidiary called DY-4.
    
      It is also anticipated that four senior managers currently employed
    by Digital in Puerto Rico will join DY-4 and hold equity interest in the
    subsidiary.
    
      Alfredo Salazar, Jr., administrator of the Puerto Rico Economic
    Development Administration, in welcoming Circo Craft to Puerto Rico 
    expressed his satisfaction with the agreement that was signed today.  
    "It is particularly significant that Circo Craft chose Puerto Rico as 
    its manufacturing site to supply the North American common market that 
    will be created as a result of NAFTA.  It is a clear indication that 
    Puerto Rico will continue to be an attractive site to locate a 
    manufacturing plant that requires a highly-skilled workforce to produce 
    high-quality products at a competitive price."
    
      Salazar noted that the sale was a joint effort between Digital and
    his agency, and said that the two would continue their work on the 
    disposition of other Digital manufacturing assets.
    
    

    
    
    
    What will Circo Craft make in Puerto Rico and will they be providing
    jobs for more than just the 4 senior managers?  Just curious.
    
    Steve
    
    

    Circo Craft will be doing electronic board assembly, I guess, 'cause
    that's what the process is for.  I don't know what kinds of products,
    maybe they're just a contract house.  They expect to need about 120 to
    150 of the current 300+ employees (plus the 300+ that have already
    left).  No public commitments as who will get preferences, but you can
    assume that the managers will pick those that they value the most based
    on their experience.
    
    Dick

    Attention the next reply contains 300 lines regarding the sale of the
    plant in Puerto Rice.
    
    If you are reading this using the DECwindows version of notes it will
    take some time to complete.

Copyright � 1992 Dow Jones & Co. from Press Release News Wire
DIGITAL AND CIRCO CRAFT SIGN SALES AGREEMENT FOR PHYSICAL ASSETS OF DIGITAL'S 
PUERTO RICAN PWB FACILITY



  SAN JUAN, Puerto Rico, Oct. 16 /PRNewswire/ --  Digital Equipment 
Corporation  (NYSE: DEC) and its wholly-owned subsidiary, Digital Equipment 
Corporation de Puerto Rico, announced the signing today of an agreement with 
Circo Craft Co. Inc. of Quebec to sell the physical assets of Digital's Puerto 
Rican printed wiring board (PWB) facility in San German. This facility is one 
of two sites involved in Digital's year-long phase-out of manufacturing on the 
island.

         Miguel A. Nazario Franco, president and general manager of Digital de 
Puerto Rico, commented, "We are very pleased to enter into this agreement with 
Circo Craft. Digital has been a long-term corporate citizen of Puerto Rico and 
continues that relationship through our Sales and Services facilities on the 
island. This agreement will allow us to follow our manufacturing strategy of 
divesting in areas that don't differentiate us, and, at the same time, assist 
a company that wishes to begin its work in Puerto Rico."

         By mutual agreement, the terms of the transaction will not be 
disclosed. However, Circo Craft will use the assets, which include machinery, 
equipment, and leasehold improvements, in the operation of a newly-formed 
subsidiary called DY-4. It is also anticipated that four senior managers 
currently employed by Digital in Puerto Rico will join DY-4 and hold equity 
interest in the subsidiary.

         "DY-4 will complement our three Canadian plants and significantly 
strengthen Circo Craft's competitive posture in North America," said Hans-Karl 
Muhlegg, president and chief executive officer of Circo Craft. He added, "More 
importantly, it will provide the capacity, flexibility and economies of scale 
that international customers require in short order."

         Alfredo Salazar, Jr., administrator of the Puerto Rico Economic 
Development Administration, in welcoming Circo Craft to Puerto Rico expressed 
his satisfaction with the agreement that was signed today. "It is particularly 
significant that Circo Craft chose Puerto Rico as its manufacturing site to 
supply the North American common market that will be created as a result of 
NAFTA. It is a clear indication that Puerto Rico will continue to be an 
attractive site to locate a manufacturing plant that requires a highly-skilled 
workforce to produce high-quality products at a competitive price."

         Salazar noted that the sale was a joint effort between Digital and 
his agency, and said that the two would continue their work on the disposition 
of other Digital manufacturing assets.

         Digital Equipment Corporation, headquartered in Maynard, Mass. is the 
leading worldwide supplier of networked computer systems, software and 
services. Digital pioneered and leads the industry in interactive, distributed 
and multivendor computing.  Digital and its partners deliver the power to use 
the best integrated solutions -- from desktop to data center -- in open 
information environments.

  /CONTACT:  Nikki Richardson of Digital Equipment Corporation 508-493-6369; 
Blanca Cebollero of Puerto Rico Economic Development Authority, 809-753-1172/


10:02 EDT

Copyright � 1992 Dow Jones & Co. from Press Release News Wire
DIGITAL AND CIRCO CRAFT SIGN SALES AGREEMENT FOR PHYSICAL ASSETS OF DIGITAL'S 
PUERTO RICAN PWB FACILITY



  SAN JUAN, Puerto Rico, Oct. 16 /PRNewswire/ --  Digital Equipment 
Corporation  (NYSE: DEC) and its wholly-owned subsidiary, Digital Equipment 
Corporation de Puerto Rico, announced the signing today of an agreement with 
Circo Craft Co. Inc. of Quebec to sell the physical assets of Digital's Puerto 
Rican printed wiring board (PWB) facility in San German. This facility is one 
of two sites involved in Digital's year-long phase-out of manufacturing on the 
island.

         Miguel A. Nazario Franco, president and general manager of Digital de 
Puerto Rico, commented, "We are very pleased to enter into this agreement with 
Circo Craft. Digital has been a long-term corporate citizen of Puerto Rico and 
continues that relationship through our Sales and Services facilities on the 
island. This agreement will allow us to follow our manufacturing strategy of 
divesting in areas that don't differentiate us, and, at the same time, assist 
a company that wishes to begin its work in Puerto Rico."

         By mutual agreement, the terms of the transaction will not be 
disclosed. However, Circo Craft will use the assets, which include machinery, 
equipment, and leasehold improvements, in the operation of a newly-formed 
subsidiary called DY-4. It is also anticipated that four senior managers 
currently employed by Digital in Puerto Rico will join DY-4 and hold equity 
interest in the subsidiary.

         "DY-4 will complement our three Canadian plants and significantly 
strengthen Circo Craft's competitive posture in North America," said Hans-Karl 
Muhlegg, president and chief executive officer of Circo Craft. He added, "More 
importantly, it will provide the capacity, flexibility and economies of scale 
that international customers require in short order."

         Alfredo Salazar, Jr., administrator of the Puerto Rico Economic 
Development Administration, in welcoming Circo Craft to Puerto Rico expressed 
his satisfaction with the agreement that was signed today. "It is particularly 
significant that Circo Craft chose Puerto Rico as its manufacturing site to 
supply the North American common market that will be created as a result of 
NAFTA. It is a clear indication that Puerto Rico will continue to be an 
attractive site to locate a manufacturing plant that requires a highly-skilled 
workforce to produce high-quality products at a competitive price."

         Salazar noted that the sale was a joint effort between Digital and 
his agency, and said that the two would continue their work on the disposition 
of other Digital manufacturing assets.

         Digital Equipment Corporation, headquartered in Maynard, Mass. is the 
leading worldwide supplier of networked computer systems, software and 
services. Digital pioneered and leads the industry in interactive, distributed 
and multivendor computing.  Digital and its partners deliver the power to use 
the best integrated solutions -- from desktop to data center -- in open 
information environments.

  /CONTACT:  Nikki Richardson of Digital Equipment Corporation 508-493-6369; 
Blanca Cebollero of Puerto Rico Economic Development Authority, 809-753-1172/


10:02 EDT

Copyright � 1992 Dow Jones & Co. from CW  
CIRCO CRAFT EXPANDS PRODUCTION IN PUERTO RICO


  MONTREAL, 16 oct. /CNW/ - Circo Craft Co. Inc. announced today that it has 
signed an agreement with Digital Equipment Corporation of Maynard, 
Massachusetts and its wholly-owned subsidiary, Digital Equipment Corporation 
de Puerto Rico, for the purchase of the physical assets of Digital's printed 
circuit board operation in San German, Puerto Rico.

  Circo Craft's newly formed U.S. subsidiary, DY-4 Corporation, will manage 
the new Puerto Rican-based operations. In addition, four senior managers 
currently employed by Digital in Puerto Rico will join DY-4 and will hold an 
equity interest in the subsidiary.

  Hans-Karl Muhlegg, President and Chief Executive Officer of Circo Craft, 
said the addition of a U.S.-based manufacturing operation will give the 
Company new dimensions strategically and economically. ``DY-4 will complement 
our three Canadian plants in Kirkland, Pointe Claire and Granby, Quebec and 
significantly strengthen Circo Craft's competitive posture in North America,'' 
said Mr. Muhlegg. ``More importantly, it will provide the capacity, 
flexibility and economies of scale international customers require in short 
order.''

  Mr. Muhlegg added that this new U.S.-based operation will further enhance 
Circo Craft's position as a strategic supply partner to major U.S. OEMs. The 
Company anticipates that in the fourth quarter of 1992, about 70 percent of 
its sales will be made in the international market, compared with 47 percent 
in 1991 and 40 percent in 1990.

  He recalled that Circo Craft had been actively seeking an advantageous 
business expansion opportunity to source certain products in the proximity of 
its U.S. based customers.

  ``Puerto Rico, a commonwealth of the United States, offers attractive 
business and corporate tax incentives, combined with lower manufacturing 
costs,'' said Mr. Muhlegg. ``In addition, several international customers of 
Circo Craft operate large manufacturing facilities in the country.'' Although 
terms of the transaction were not disclosed, the Company confirms it has 
secured financing in Puerto Rico on favourable terms.

  The facility's advanced technological capabilities match favourably with 
Circo Craft's technology levels and will alleviate existing capacity 
constraints in Canada. The purchase of the assets in San German will also 
result in major capital expenditure savings which would otherwise be required 
for the next several years.

  New sales from this international operation are estimated to reach $25 
million U.S. in 1994. Circo Craft expects that sales from DY-4 Corporation and 
its lower manufacturing costs will result in a contribution to consolidated 
company earnings by the second half of 1993.

  The strategic business location gives Circo Craft a definite geographic, 
demographic and economic advantage. Since Puerto Rico is fully integrated with 
the U.S. economy, it will assist the Company in penetrating the rapidly 
expanding Mexican market, once the North American Free Trade Agreement takes 
effect.

  At a press conference held in Puerto Rico, Alfredo Salasar, Jr., a senior 
official of the Puerto Rico Economic Development Administration, said Puerto 
Rico is one of the world's most competitive manufacturing locations, partly as 
a result of its links to the U.S., Canadian and Mexican markets. He welcomed 
Circo Craft to Puerto Rico and said he was pleased that a Canadian company is 
joining the 2,000 manufacturing concerns now benefiting from the island's 
highly-skilled workforce and excellent infrastructure.

  Advanced multilayer products have been manufactured by Digital Equipment de 
Puerto Rico for over 15 years thereby providing DY-4 with a well-trained 
employee base as well as experienced technical resources. ``The Puerto Rican 
operation will have no bearing on employment levels in our Canadian operations 
which have been moving steadily into the manufacture of higher value-added 
products during the past three years,'' said Mr. Muhlegg. Since January, 
employment in the three Canadian plants has increased from 710 to 806, 
reflecting increased demand from Circo Craft's international customer base.'' 
The Company is currently turning away approximately $2 million in sales per 
month due to existing capacity constraints for more conventional product.

  Circo Craft is the leading independent Canadian manufacturer of printed 
circuit structures with 1991 sales of $80.1 million. The Company forecasts 
continued profitability improvements in its 3rd quarter results and a 
significant increase in sales and earnings in the 4th quarter of 1992. Circo 
Craft is a certified supplier to large multinational manufacturers of some of 
today's most sophisticated electronic systems in the telecommunications, 
computer, automotive and instrumentation industries. The Company's common 
shares are traded on the Montreal and Toronto stock exchanges.

  /For further information: Madeline Gareau, Director, Corporate 
Communications, (514) 694-8000/
11:54 ET

Copyright � 1992 Dow Jones & Co. from Dow Jones News Service
Circo Craft - Digital -2-: Sees Higher 3Q, 4Q Net > T.CCC


  MONTREAL -DJ- Circo Craft Co. (T.CCC) said it has signed an agreement with 
Digital Equipment Corp. (DEC) and its unit, Digital Equipment Corp. de Puerto 
Rico, for the purchase of the physical assets of Digital's printed circuit 
board operation in San German, Puerto Rico. 

  Terms weren't disclosed. 

  Circo Craft's newly formed U.S. subsidiary, DY-4 Corp., will manage the new 
Puerto Rican-based operations, Circo said.  In addition, four senior managers 
currently employed by Digital in Puerto Rico will join DY-4 and will hold an 
equity interest in the subsidiary, the company said. 

  Hans-Karl Muhlegg, president and chief executive of Circo Craft, said in a 
news release the addition of a U.S.-based manufacturing operation will give 
the company new dimensions strategically and economically. ''DY-4 will 
complement our three Canadian plants in Kirkland, Pointe Claire and Granby, 
Quebec and significantly strengthen Circo Craft's competitive posture in North 
America.'' 

  Muhlegg added that this new U.S.-based operation will further enhance Circo 
Craft's position as a strategic supply partner to major U.S. OEMs.  The 
company said it expects that in the fourth quarter of 1992, about 70% of its 
sales will be made in the international market, compared with 47% in 1991 and 
40% in 1990. 

  The purchase of the assets in San German will result in major capital 
expenditure savings which would otherwise be required for the next several 
years, the company said. 

  New sales from this international operation are estimated to reach $25 
million (U.S.) in 1994, it said.  Circo Craft said it expects that sales from 
DY-4 Corp. and its lower manufacturing costs will result in a contribution to 
consolidated company earnings by the second half of 1993. 

  Advanced multilayer products have been manufactured by Digital Equipment de 
Puerto Rico for over 15 years, Circo said. 

  ''The Puerto Rican operation will have no bearing on employment levels in 
our Canadian operations which have been moving steadily into the manufacture 
of higher value-added products during the past three years,'' Muhlegg said. 
Since January, employment in the three Canadian plants has increased to 806 
from 710, reflecting increased demand from Circo Craft's international 
customer base, the company said.  The company is currently turning away about 
C$2 million in sales per month due to existing capacity constraints for more 
conventional product, it said. 

  The company forecasts continued profitability improvements in its third 
quarter results and a significant increase in sales and earnings in the fourth 
quarter of 1992, it said. 

  As reported, Circo had a second-quarter profit of C$789,000 or 7 cents (Cdn) 
a share vs a loss of C$1,486,000 or 12 cents (Cdn) a share a year earlier. 

  12:17 PM

Copyright � 1992 Dow Jones & Co. from Wall Street Journal
Digital Equipment Sells Puerto Rico Plant To Quebec Co.


  SAN JUAN, Puerto Rico -DJ- Digital Equipment Corp. (DEC) said it and its 
Digital Equipment Corp. de Puerto Rico subsidiary have signed an agreement 
with Circo Craft Co. Inc. of Quebec to sell the physical assets of Digital's 
Puerto Rican printed wiring board facility in San German.

  The terms of the transaction are not being disclosed.

  In a press release, the company said this facility is one of two sites 
involved in its year-long phase-out of manufacturing on the island.

  Under the agreement, Circo Craft will use the assets, which include 
machinery, equipment, and leasehold improvements, in the operation of a 
newly-formed subsidiary called DY-4. It is anticipated that four senior 
managers employed by Digital in Puerto Rico will join DY-4 and hold equity 
interest in the subsidiary.

  Digital said it will work with Puerto Rico's economic development authority 
to dispose of its other assets on the island.

  10:03 AM
---

    Just to keep the record clear.
    
    All but the people charged with closing down the computer systems and
    physical facilities received their sixty day notice today, me included. 
    The 15th of January will be the last day for us.  It was a blast. 
    Everyone is in good spirits, at least publicly.  I know there are a few
    who are nervous inside but they are coping too.
    
    Dick