GenRad

The expression �It�s a small world� has many different

meanings. For some, it is a chance meeting; an

unexpected reunion of friends or colleagues. For others,

it is the limits of our planet which drive us to find

innovative solutions to problems of overcrowding and

diminishing natural resources.

For GenRad it is the knowledge that the world is

becoming a single marketplace in which business no

longer recognizes the boundaries of language or

distance and must adapt to the diverse communications

and cultural needs of every nation. It�s a small world

because technology allows us to communicate quickly

and efficiently between continents.

Our customers have been quick to demand greater

access to information, and support services which are

available �just-in-time�. Our response is to fulfil these

needs through greater use of the internet, investment

in highly skilled engineers and a structured programme

of training and continuous improvement in quality.

GenRad is a global company but we have not forgotten

that our customers need the flexibility and reassurance

of local people to offer advice and support. Our

commitment to the Asia Pacific region includes

considerable investment and effort in building a strong,

experienced and cohesive team. They are the �human

faces� of GenRad and I am very proud of their efforts.

In this case study book we wish to offer you a greater

insight into the work of our customers in Asia and hear

direct from them how we fulfil our mission to improve

manufacturing businesses. I would like to thank the

customers and agents who took part in creating this

report which truly demonstrates that GenRad belongs

to Asia.

�

�

Robert M DutkowskyPresident, CEO & Chairman of the Board

�By the year 2020, in terms ofpurchasing power parity, the Thai economy willbe Number 8 in the world.�

1995 World Bank Report

�Acer is in a unique position in whichit has the full range of capabilities needed,including cost-effective manufacturing ofcomponents, modules and communicationssystems, to play an integral part in shaping anInternet-Enabled digital world.�

Stan Shih, Chairman, The Acer Group

�We are very thankful that GenRadprovided excellent migration software and on-site training to match our previous supplier�stester in the Fujitsu Kumagaya factory.�

Ricki Goto, Fujitsu

�We had weekly meetings with GenRadto discuss technical issues and found TRACSeasy to integrate with our functional testers.GenRad were very helpful.�

Ng Huey Ching, Adaptec

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6

8

10

�GenRad is an important contributorto our growing business, by giving us theexpertise in test technology and the support thatenables us to build fully integratedmanufacturing services.�

Lee Lok Fui, General Manager, Jurong Hi-Tech

�Dealers now insist that our productsare certified as ICT tested on GenRadequipment - it has become the basis of ourmarketing campaign.�

Y G Lim, Test Manager, Young Chang

�Solidarity, Vitality and CustomerSatisfaction.�

Shanghai Bell corporate motto

14

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�A unit which fails in the field couldclearly mean the difference between life anddeath, so production and test are geared entirelytowards one goal - zero defects.�

JS ParkOverseas Sales Team Leader

Few companies can claim expertise in thewide range of computing productsmanufactured by Taiwan's Acer Group.

From its humble origins in Taiwan, the companyhas grown to become a top global player in thefiercely competitive PC marketplace, andprovides jobs for 28,000 people worldwide. Thecompany was ranked number 1 in an Asiansuperbrands awareness survey conducted byReaders Digest in 1999 and operates 21manufacturing sites around the globe.

In addition to its core PC and laptop range, thecompany is leading the field in 'i-enabled'internet appliances, moving steadily towards aworld of common communication and sharedinformation. Among the many technologieseither under development or in production areinternet phones, �I-walkman�, cyber TV and�smart� mobile telephones. Stan Shih, thecompany's charismatic Chairman and CEOdescribes this digital revolution as �100times more important than theIndustrial Revolution, it will bea �social revolution� as it will bechanging the way we live.�

GenRad has been working withAcer in Asia for more than tenyears. The company originally

bought a GR2276 production test machine forthe testing of its original desktop PCmotherboards. Since then systems have beeninstalled in Taiwan (4 lines), the Philippines (8lines) and China (8 lines) to test notebookcomputers, mobile and video phones and a rangeof peripheral products. The motherboardproduction lines at Hsinchu run 24 hours a dayproducing 70,000 boards a month, 40% of whichare used in Acer's own products, but the rest areproduced on behalf of IBM and third partymanufacturers.

Support for Acer�s test programme comes fromGenRad�s local agent, Giantec. �Originally theyhelped with full program development andfixturing, but now we only require assistancewith specialist program libraries and fixturing.Training is absolutely essential for us, especiallyin terms of setting up new facilities in China.For example, we currently have just 60 days toset up a new line in China, so finding andtraining employees will be difficult. GenRad willbe able to support us locally,� says MK Chang,Associate Director at the Computer SystemsPlant at Hsinchu, Taiwan.

�GenRad�s software library gives much greaterflexibility than other test vendors, particularly inareas such as boundary scan,� he says.

A typical product lifecycle inthe computer world

is no morethan

A Bold V is ion for the PC

4

Taiwan

�Acer is in the unique position inwhich it has all the capabilities, superiordesign and cost-effective manufacturing,to play an integral part in shaping aninternet-enabled digital world.�

Stan ShihChairman & CEO

9 months, 3 months to develop and prepare a newdesign and six months of production. Most ofthe design work is completed at the company'sworld headquarters in Taipei, but Hsinchu isresponsible for test program development anddeployment, so ease of use, reliability and localsupport are crucial.

�We have always developed our own productionsoftware and functional test equipment for PCsand memory products. However, the functionaltesting is the main production bottleneck. Wecan have up to 10 stations running functionaltest for each line with test times up to 13 minutesper board. Reducing this time is one area wherewe are cooperating with GenRad. Video andaudio tests are the most difficult and most criticalto PC production. In some instances we use lowcost dedicated testers for this but a more uniformtest platform will be the next step. We generallyachieve a 95% first pass yield.�

And as PCBs are becoming increasingly morecomplex with greater density of components,Acer will need to move to a more distributed teststrategy and greater focus on faster, morereliable functional testing. MK Chang is alsolooking at AOI and X-ray techniques as possiblefuture substitutes for traditional in-circuittesting.

�Technology changes so quickly,� says ProductEngineer Bryant Lai, �We cannot afford to stopworking with new techniques and developingbetter manufacturing solutions. Internetappliances and wireless products will be a bigchallenge for us and will need to be adapted tothe mass production model we are used to.�

5

1976 Company founded under the name �Sertek�

focussing on product design

1978 Established a microprocessor training centre

to train 3000 engineers

1979 Designed Taiwan�s first mass-production

computer for export

1981 Established operations at Hsinchu, now one

of the largest PC product manufacturing

sites in the world

1984 Establishes peripherals and publishing

ventures in Taiwan

1985 Retail operations established in Germany and

Japan

1986 Acer beats IBM in the race to produce the

first mass production 32 bit PC

1987 Company renamed as ACER and acquires

Counterpoint Computers

1989 Original joint venture with Texas

Instruments to develop DRAM modules

1990 Acer acquires Altos

1993 Acer develops first 64 bit architecture to link

RISC technology with Windows

1994 Acer introduces the world�s first dual

Pentium PC

1997 Acer acquires notebook subsidiary of Texas

Instruments to become the world�s largest

notebook manufacturer.

1998 Acer acquires remaining interest in Texas

Instruments and becomes the Official

Computer Sponsor of the 13th Asian Games

in Bangkok

1999 Acer ranked Number 1 in Readers Digest

Superbrands survey.

Acer Milestones

6

Visitors to Adaptec�s Singapore manufacturingfacility at the Chai Chee Industrial Park cannotfail to be impressed. Opened in 1999 andoccupying over 2000 square metres the factoryand test development centre is modern, clean andorganised with typical Singaporean efficiencyand since the plant employs over 700 staff andhouses six state-of-the-art production lines, itneeds to be. Maintaining high quality outputand low field returns is a primary target and thisis achieved by continuous investment in newtechnology and improved quality managementsystems. Not surprising then that the companyregularly receives industry accolades, includingthe recent Singapore Quality Class award, foroutstanding performance in the Asia Pacificregion.

�In-circuit test and inspection are reallyimportant to us at Adaptec,� says Test

Development Manager WeeChee Hong. The company hasinvested heavily in its testtechnology with six GenRadGR228X testers, configuredwith GR Accelerate and Philipsin-line board handlers. Adedicated technical centre andtest development team

operates from the samebuilding, developing

customised functionaltest and inspectionprocesses for the

company�s Singapore andUS operations. Well placed

lineside repair stations and a wellequipped rework workshop handle defects

with quiet efficiency but until recently the wholeprocess had suffered from one problem. CheeHong explains. �We used to collect test data fromthe lines manually, which could take one to twohours to analyse. We needed to react faster whena problem on the line was identified.�

Tracking the Changes

Singapore

�We had weekly meetings withGenRad to discuss technical issues andfound TRACS easy to integrate with ourfunctional testers. GenRad were veryhelpful.�

Ng Huey Ching, Adaptec

No one can deny that computers andnetworking technology are now anintegral part of modern life. They are

at the heart of almost every process inbusinesses and homes throughout the world.And where there are computers, there is the vitalneed for fast and efficient communications. The ability to transfer information betweendifferent computers, operating systems andnetwork topologies seems togrow ever more complexevery day, with devices likeprinters, scanners, CD-ROMand DVD requiring fasterand more reliableconnections.

This is the need that Adaptechas filled since 1981 withproducts that move databetween computers small andlarge. The company is a world leaderfor its local area network cards, modemsand other peripherals, or as Adaptec describesit �bandwidth management technologies�. Itsproducts are incorporated into the systems ofsome of the world�s best known computer brandnames. One of its key technologies, SCSI I/Ocontrol cards, are produced in a country thatboasts one of the world�s most sophisticatedinformation infrastructures; Singapore.

Adaptec turned to GenRad for a solution. Aftercareful evaluation of the requirements of asingle line, GenRad recommended TRACS (test,repair and control software). TRACS wouldenable the company to set up a central databaseof test data, collected automatically from the linein real time. By collecting data from both in-circuit and final functional test stations, it wouldbe possible to identify line faults within minutesrather than hours. It had the added advantage ofstoring full manufacturing test data forindividual boards, available at the press of abutton, or swipe of a bar code. A two yearprocess of evaluation and testing began in closeco-operation with GenRad�s engineers.

Associate Engineer in the test design team, NgHuey Ching, commented on the project; �We hadweekly meetings with GenRad to discusstechnical issues and found TRACS easy tointegrate with our functional testers. GenRadwere very helpful.� The relationship goes backto 1993 when the first GenRad testers wereinstalled and depends on close technical co-operation and trust. This is essential where amanufacturer needs to integrate a complexgeneric product like TRACS with its ownproprietary software.

The evaluation project has been a completesuccess. The most visible benefit is that faultdetection has been reduced to an average thirtyminutes (a quarter of the original responsetime), since TRACS reports recurring defectsalmost immediately on screen. However, fasterresponse to line problems is by no means theonly benefit. The software also provides realtime warnings, keeping managers up to date onyield and highlighting boards with consecutive

fails, so that no product passes through reworkmore than twice. Customised reports canprovide information to managers, engineers anddesigners, both on-site and potentially toexecutives world-wide via the Internet.

The company has also found it useful to be ableto look up specific results on individual boards,especially where field returns are reported, andhave access to the original manufacturing data.�It has taken some time for workers to get usedto using the database,� said Chee Hong,�Especially using the mouse; they were used towriting things by hand before. But our longterm goal is to run TRACS across all our lines.�

In recognition of the close working relationship,Mr K Y Lim, President of Manufacturing andExecutive Officer of Adaptec Inc. awardedGenRad �Best in Class� at the 2000 AdaptecSuppliers� Day.

It would seem that two years of hard work isnow paying off, giving Adaptec the ability tooffer an even better service in a fiercelycompetitive marketplace. Even a world leaderlike Adaptec cannot rest on its laurels. Theyhave the vision to strive for constant qualityimprovements. The breakthrough in thecomputerised test yield tracking system is onlyone of the team�s achievements. To date theAdaptec Test Engineering team has beenaccredited as the first PCBA operation withbuilt-in on-line in-circuit and functional testingcapabilities. The company�s quality policy,proudly displayed as you enter the modern, air-conditioned building, could not put that visionmore succinctly - �We shall do it right first time.�

7

Thailand has been one of the few SouthEast Asia nations to survive and prosperunder the recent economic depression

throughout the region. A stable and forwardthinking government has stimulated continuedinvestment in industry, providing tax incentivesand reduced tariffs for private sector business aswell as creating investment opportunities. Thepolicy of liberalization, privatization anddecentralization has allowed electronics,automotives and telecommunications industriesto flourish.

The demands of today�s competitive businessclimate are many: rapid product introduction,condensed product life cycles, tighter costcontrol and shorter lead times. To succeed in thisvolatile environment, today�s most successfultechnology companies rely on partnerships thatcan respond to these challenges in an effective,timely manner. One of the most successfulmanufacturers in the country to follow thisparadigm is Celestica.

Celestica is the third largest electronicsmanufacturing services company in the world.Its customers include the leading originalequipment manufacturers (OEMs) in theindustry, primarily in the computer andcommunications sectors and the company offers

services to support a wide variety of customerrequirements from low-volume, high complexitycustom products to high-volume commodityproducts.

Celestica is a global leader in the electronicsmanufacturing services industry. With over20,000 employees worldwide, the companyoperates 31 manufacturing and design facilitiesin the United States, Canada, Mexico, the UnitedKingdom, Ireland, the Czech Republic, Thailand,Hong Kong and China. Celestica provides abroad range of services including design,prototyping, assembly, testing, productassurance, supply chain management, worldwidedistribution and after-sales services.

The company�s Thailand operation is inChonburi, one of the country's largestmanufacturing zones, and was formed in January1999 by a merger with InternationalManufacturing Services (IMS), an establishedlocal contract manufacturer. With 2500employees, the company is the second largest inthe country. It was Celestica�s 8th acquisitionsince it became independent from IBM in 1996.

�Today, you have to be global to compete.Celestica wanted a stable base in Asia and ratherthan build facilities on a �green field� site, itmade sense to merge with IMS,� says PichaiDuangtaweesub, Director of Thailand

The Global Prov ider

8

Thailand

�By the year 2020, in terms ofpurchasing power parity, the Thaieconomy will be Number 8 in theworld.�

1995 World Bank Report

Operations and former Director of IMS for 5years before the merger.

�Celestica has provided the business with aglobal infrastructure, improved reputation andwider range of services that we can use tosupport our customers here in Asia. We are ableto provide a foothold for the whole Asia Pacificregion, and provide Celestica with a low costmanufacturing facility for some of its worldwidecustomers. We do this in cooperation with oursuppliers and partners, including GenRad.�

�Even prior to the merger, the company wascommitted to a comprehensive test policy, within-circuit test equipment supplied and supportedby GenRad. GenRad supplies the local supportand training we need. It is a long term and verysuccessful partnership. For example, GenRadwere recently able to provide Boundary Scantraining for an engineer inSingapore, followed by localtraining. They also assistedwith urgent debugging andengineering change orders onrequest at anytime.�

GenRad�s Thailand OperationManager, Chukiat Boonkorkoerexplains how the partnershipoperates, �GenRad sales andsupport in Thailand is throughour agent, Niche Tech. Theyare able to give all thenecessary technical support,which we combine with in-depth training in Singapore.The arrangement increases theamount of resources availableto the customer. We try toprovide the very best even forcustomers which have only onesystem. Niche Tech plays a bigrole in getting closer to customers, identifyingrequirements and providingsolutions.�

An investment in software runs

alongside the company�s commitment to testhardware. Celestica has been runningproprietary monitoring software on one of itslines for some time, gathering quality data for itsSAP based MRP system to improvemanufacturing processes and throughput.�Customers are demanding more and moreinformation about quality and yield. We have tofind ways of providing this information.� saysPichai.

Pichai claims the future for Celestica in Asia isvery bright. �The company invests in the verybest engineering skills and our employees arecommitted to the corporate goal of continuousimprovement, with set training programs. Anew plant is being built in Malaysia to provideadditional capacity. I am happy to say thatGenRad will continue to be one of our partnershere in Asia.�

9

Fujitsu is a leading provider of Internet-based information technology solutionsfor the global marketplace.

Comprising over 500 group companies andaffiliates worldwide, including ICL, Amdahl andDMR Consulting, it had consolidated revenuesof 5.26 trillion yen ($49.6 billion) in the fiscalyear ended March 31, 2000.

Fujitsu's pace-setting technologies, world-classcomputing and telecommunications platforms,and global corps of over 60,000 systems andservice experts make it uniquely positioned toharness the power of the internet to help itscustomers succeed.

Altogether, the Fujitsu Group has 188,000employees and operations in over 100 countries.

From mobile computers to high-speedcommunications to interactive multimedia,Fujitsu companies are working to realize theInfinite Possibilities of information technology.

We spoke with Mr Riki Goto, Manager of PCBATesting at the Kumagaya plant, Japan, about thecompany's business philosophy, manufacturingstrategies and plans for the future.

Mr Goto, The 1999 Annual Report for Fujitsu says�Customer Focus� is the key to the future. What doesthat mean for your operations in Kumagaya?

Goto: �At Fujitsu Kumagaya we believe that�Customer Focus� means providing highly-reliable products and good services to customers.That can translate down to the production floor.For example, we have achieved ISO9001certification, we evaluate all parts of thefactory's quality maintenance system and all 860employees here are involved in improvement andinitiative activities relating to all aspects of ourproducts and business through a �HighReliability Program� based on group activities.�

�Customer focus is really about solutions that areconceived from the customer�s point of view. Italso means a committed programme ofEnvironmental Protection Activities and SocialContribution.�

Fujitsu is a big group of companies with very diverseoperations. Does this help you in sharing ofknowledge, resources or people from one division toanother?

Goto: �We hold periodic technical meetings atFujitsu's head factory at Kawasaki to exchange

Banking on Future Technology

10

Japan

�Customer focus is really aboutsolutions that are conceived from thecustomer's point of view. It also means a committed programme ofEnvironmental Protection Activities andSocial Contribution.�

Riki Goto, Manager of PCBA Testing

technical information in each factory. Moreoverby offering timely technical information throughthe internet, Fujitsu can determine world trendsand quickly re-examine the product line.�

How do you tackle the pressures of quality, cost-reduction and complexity in modern PCB production?

Goto: �The Kumagaya plant produces PCBs forbanking terminals in financial institutions,ATMs, point-of-sale terminals and PC cards.Therefore our PCB's are high in density and alsovery complex. Quality requirements are verydemanding because the products are for financialinstitutions and so we must maintain allprocesses to the ISO9001 standard.�

�There are always pressures to reduce costs andall around the plant, day and night, improvementactivities are encouraged. Six workers from theplant constitute a team and they go around toeach of the shop floors looking for signs ofwaste and promptly design improvements on thespot to thoroughly eliminate any waste they find.We also run a DFM (Design for Manufacturing)program to carry feedback requests fromproduction to design. This is a continuousprocess.�

Do you have high levels of automation or CIMfacilities?

Goto: �The production line used to be fullyautomatic, but is now more flexible to shortenlead-times from R&D to manufacturing. Therestill remains an automatic area to reduceoperator's burden.�

What was the main reason for replacing all previoustest systems with your current suite of GenRadsolutions?

Goto: �Primarily because of the obsolescence ofour former tester. There were no compatible

systems on the market and we selected aplatform that provided the greatest flexibility infuture development.�

�GenRad provided excellent migration softwarefrom the previous system. There were noproblems in converting fixtures to the newsystem and GenRad�s agent in Japan assisted usgreatly in the conversion to the new systems.We are very thankful for the migration softwareand on-site training supplied.�

Apart from ICT, what other tests do the productsundergo during production?

Goto: �We perform a variety of analog tests(electric current, voltage and waveform) alongwith �hot-bed� functional testing usinginstruments developed in-house.�

Products are becoming smaller, more complex andmore integrated. How will this affect your productionand test strategy in the future?

Goto: �It is becoming more and more difficult tofind space for test-pads on current PCB layouts.Test program libraries sometimes take time tocatch up with new integrated circuits such asLSIs.�

�Our cost and throughput targets are such thatwe would like to continue using ICT as our maintest strategy and we look for suppliers such asGenRad to find innovative solutions in this area.�

11

The Forbidden City Beijing, China

Temple of BuddhaSamui Island, Thailand

Financial DistrictSingapore Offices in Asia

CKS MemorialTaipei, Taiwan

The National Flagof South Korea

Tokyo at NightTokyo, Japan

Jurong Hi-Tech is part of the JurongTechnologies Industrial Corporation, aS$90 million contract manufacturing

operation with low and high volume printedcircuit board assembly (PCBA) and box buildservices.

The company�s origins lie in the development ofautomation for the shipping industry whichbegan in 1986 and the company stillmanufactures these products from its originalbase at the Jurong shipping yard, Singapore. Theincreasing demand for PCB assembly led thecompany to establish independent operations in1988 and shortly thereafter won a contract withWestern Digital to manufacture hard disk drivePCB's. Since then Jurong Hi-Tech has gone fromstrength to strength, building a core of highquality clients such as Maxtor for hard disks, andCreative Technologies, Mitsumi and Kenwoodfor audio and video products. 80% of thecompany's production is hard disk units althoughgrowth in video and audio products is increasing.New, high speed facilities for SMT and BGAassembly were introduced recently and thecompany is fully accredited to the ISO9002standard.

The company�s Singapore plant occupies 18,000square feet and runs seven lines, six of which are

SMT facilities. A further twelve lines areinstalled in 32,000 square feet at Cemerlang,Johor in Malaysia. Altogether the companyemploys 800 people with a production capacity of50,000 boards per day. With this kind ofthroughput per day, quality control is vital tomaintaining high yields and the backbone of thecompany's test strategy is eight GenRad 228xATE systems. The 228X series is GenRad's highperformance family of production test solutions.Ideal for complex, high productivity applicationswith mixed signal, digital, analogue andfunctional test requirements, the high pin countand fault coverage make it the very best on themarket. Test program generation is also flexibledue to the adoption of Windows NT as theoperating system and GenRad's unique range ofdesign to production programme developmentand debugging tools.

The man in charge of engineering is Lok KumFook. �Our customers typically introduce a newproduct every quarter with a lifespan of no morethan six months, so it is crucial that we are ableto get new products into production quickly. Weaim to bring new products into full productionwithin two weeks and this can only be achievedby having a strong, well equipped testdevelopment team in-house.�

The team has established facilities for design offull ICT test programming, including vectorlesstests for ASIC�s, and fixture development andthis is one of the areas where GenRad providesvaluable support. Often, customers' functionaltest requirements are also developed in-houseusing IEEE instrumentation.

�With the very long term relationships we havewith our customers, our manufacturing facilitybecomes an extension of their operation.Customers want to know more about the process,cost structure, yields and so on. We particularly

Prepar ing for Expans ion

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Singapore

�GenRad is an importantcontributor to our growing business, bygiving us the expertise in test technologyand the support that enables us to build fullyintegrated manufacturing services.�

Lee Lok Fui, President, Jurong Hi-Tech

work together in the design cycle, assisting themwith component selection and reviewing artworkand layouts to gain maximum benefits from ourassembly and test facilities. Obviously we havean intimate knowledge of our customers�products, so we can adapt very quickly to newdesigns,� says Lok Kum Fook.

The company operates a policy of continuousprocess improvement - committing theworkforce to one new development project permonth. This might be a factory automationsystem, improvement in workflow ormanagement practice or review of productionstrategy. Always, the focus is on adding value tothe customer service offering.

Growth has been so rapid (averaging 50% perannum for the last three years) that the company

is now preparing itself for an Initial PublicOffering (IPO) on the Singapore StockExchange. Company President, Lee Lok Fuiexplains the rationale behind the move to gopublic.

�We cannot stand still at this time and in order tofulfil demands from new and existing customerswe have chosen to adopt an aggressive expansionprogramme. The IPO will allow us to expandfacilities in Asia to offer more integratedservices, as well as forming alliances in Europe.�

GenRad�s contribution to the business is fargreater than just the supply of ATE equipmentand fixturing services. Training and after salesservices are important to fully maintain and gainthe best from the 228X series systems. GenRadalso assists with continuous improvementprojects - advising on test and repair issues,failure analysis and program development.

�GenRad�s process knowledge has beeninvaluable in helping us develop newopportunities in the wireless and cellularcommunications industry,� comments Lee LokFui, �GenRad is an important contributor to ourgrowing business, by giving us the expertise intest technology and the support that enables usto build fully integrated manufacturing services.In our business, communication between plantsis becoming more and more important. GenRadare one of the few suppliers who are able toprovide consistent, high quality training andsupport across the Asia Pacific region. As wedevelop our Eastern European alliances, thatrelationship will become even more apparent.�

15

1988 Initial plant set up in Jurong, Singapore

1991 Rapid Expansion following manufacturing

contract with Western Digital

1992 Established 6000 sq ft factory in Jahor Jaya

1994 Moved to 23,000 sq ft factory in Cemerlang and

awarded ISO9002 certification for Singapore

1995 Established a further plant in Selangor

1996 ISO9002 accreditation for Johor plant, Malaysia

1998 Introduced new high speed technologies and

awarded Outstanding Supplier by Maxtor

1999 BGA volume production commenced and awarded

Strategic Contract Manufacturer status by

Creative Technologies

2000 Listed on Singapore Stock Exchange in April

2000

Business Milestones

Awards received from Maxtor (Outstanding Supplier Award 1998),Western Digital (Excellent Supplier Award 1994) and CreativeTechnologies (Strategic Contract Manufacturer Status 1999)

Fifty-six years ago, Kia started buildingbicycles in Korea. A nation of tiredbicyclists soon demanded motorized

vehicles. So that�s what Kia built. Firstmotorcycles. Then trucks. And, of course, cars.At last count, more than 2,000,000 Kias haverolled off the factory floor and on to the roads inmore than 170 countries around the world.Founded in 1944 as a manufacturer of steeltubing and bicycle parts, Kia quickly evolved.The company became the first Korean companyto build internal combustion engines and thefirst to build passenger cars. Its Hwasungmanufacturing plant now covers more than 3.3million square meters and has the capacity toproduce more than 1,000,000 vehicles annually.

Behind the glamour of the motorcar industryhowever, lies a highly technical and experiencedgroup of research, design and manufacturingoperations.

Bontec Co. Ltd. is Kia�s electronicsmanufacturing subsidiary, established in 1993from the merger of two smaller companies incollaboration with Alpine, the Japanesemanufacturer of audio, video and navigationsystems. Its facilities are based at JinChun-Gun,to the South of Seoul. The factory employs 380staff in the production of in-car audio visualentertainment units, remote locking systems andelectronic control units (ECUs) for a variety ofautomotive functions used in all Kia automobiles.The JinChun Factory is 164,000 square feet insize and has almost all the facilities along withR&D laboratories to run the entire businessoperations. Almost all the products producedthere except a few items for export are suppliedto Kia Motors, and that includes 600,000 audiosystems, 300,000 airbags and 300,000 wiringharnesses.

The development plan for new products isclearly defined, and Kia's long term goal is tointegrate many of today�s digital technologiesinto its vehicles of the future. For example,

Korean L i fe Savers

16

Korea

�A unit which fails in the fieldcould clearly mean the difference betweenlife and death, so production and test aregeared entirely towards one goal - zerodefects.�

JS ParkOverseas Sales Team Leader

current audio technologies such as DVD, MP3and Mini-disc will converge towards a commonin-car digital video standard. The personaldigital assistant you carry in your pocket todaywill one day plug into your car, to facilitate in-carnavigation, planning and communications.Safety features are also expected to improveusing futuristic techniques such as head-updisplays used by fighter pilots and voice control.

A major line at the factory is the ECU whichcontrols vehicle airbags, first introduced inNovember 1995. JS Park, the company'sOverseas Sales Team Leader explains theproject:

�We began developing our own airbags partlydue to the partnership with TRW in the UnitedStates. The Airbag Integrated ElectronicModule (AIEM) consists of an accelerometerwhich senses any changes in speed and triggersairbag deployment when impact shock exceeds apredefined threshold. The unit contains a built-inpower supply which enables all functions to bemaintained even in the case of loss of mainbattery power. Reliability, performance andadvanced features are thanks, in part, to the useof ASICs which perform all critical functionswithin the circuit.�

The manufacturing line currently produces40,000 units per month, with the capacity todouble this if required. A unit which fails in thefield could clearly mean the difference betweenlife and death, so production and test strategy isgeared entirely towards one goal - zero defects.

�We are the onlymanufacturer of airbagECU's to test to theNHTSA InternationalStandard, and we arerequired to undertakeproduct liability tests forall products exported byKia,� explains JS Park.

�In manufacturing termswe achieve only 0.3%failure at ICT stage andzero failures after final functional testing.

Achieving this requires reliable and accurate testsystems. GenRad�s 228x system is the mainplatform used,� says H O Yoon, AssistantManager in the ECU Technical Team. The 228xsystems in use have a very wide range offunctions and measurement techniques, makingit ideal for complex or mixed signal applications.Additional capabilities include ASIC, PAL andFPGA test program generation.

�GenRad has provided training for our engineersin Singapore, much more convenient thantravelling to the United States,� remarked H OYoon.

Kia has won numerous accolades for its superiorachievements in quality control. It was the firstautomotive manufacturer to receive Korea�sTotal Quality Control (TQC) Grand Prize at the17th annual National Quality Control andStandardization Contest in 1996, the Koreanequivalent to Japan�s famous Deming Prize andAmerica�s Malcolm Baldridge Award. Bontecwas also the first manufacturer to receive theGrand Prize from the President for QualityControl management in Korea�s 100 PPMQuality Management Competition in 1998.

Continuous research and development is thebackbone of the company�s philosophy and thecompany�s history has involved severalpartnerships, most notably the relationship withAlpine, and technical partnerships with Yazaki(Japan) and TRW (USA). Given the company�srapid growth and considerable achievement, itwould seem to be the philosophy for success.

17

Over the past twenty years China hasreformed and developed into one of thefastest growing economies in the world.

The transformation is clearly visible in thetelecommunications industry. The rapiddevelopment and investment in digitalnetworking, ISDN, frame relay and GSMtechnology has narrowed the gap with the rest ofthe world and China's telecoms infrastructure isfast becoming one of the most sophisticated onthe planet.

One of the pioneers of this process is ShanghaiBell Company Ltd, founded in 1984 as a Sino-Belgian joint venture. The company employsmore than 2600 people. Voted regularly in thetop ten of the country�s �National Joint

Ventures�, the key to Shanghai Bell's success hasbeen shrewd and careful development oftechnical partnerships and joint venture projects.These include businesses in the Philippines,Vietnam, Iran, Russia, Norway, Australia,Germany and Hong Kong. The company seesexports as a vital part of its operations,manufacturing individual products for overseasmarkets as well as bidding on turnkey projects.As a result of consistent high standards,Shanghai Bell was awarded ISO9001 qualitycertificate in 1995 and predicts that 20% of itssales revenue will come from export markets bythe end of this year.

The backbone of Shanghai Bell�s product rangeis the S12 series switching systems, which canlink to analogue and ISDN customers for localand long distance exchanges. S12 has beeninstalled in over 3000 exchanges and 40 millionlines throughout China, and exported to manyother countries, representing some 35% of thedomestic market. In addition to manufacturingdigital switching systems, the company is alsoinvolved in the fields of wireless and datacommunication, working closely with Beijing

Leading the Te lecom Revolut ion

18

China

�Solidarity, Vitality andCustomer Satisfaction.�

Shanghai Bell corporate motto

Post and Telecommunication University todevelop China's first generation ATM, amongother successes. In accordance with thecompany�s policy of significant reinvestment inresearch and development (currently 6-9% ofsales revenue), extensive work is being done inthe areas of GSM, ADSL and the company isengaged in the development of a new generationof CDMA wireless switching systems, primarilyaimed at the mobile phone market.

Shanghai Bell has made great efforts in thelocalisation of its products. With annual outputof 6 million lines of the S12 J family, its largestmanufacturing centre, located in the JinqiaoExport Processing Zone in Pudong, was put intooperation in 1995. The production base isextensive, including an assembly and testingworkshop equipped with SMT lines, wavesoldering and test facilities. The centre alsoincludes a Piece Parts workshop, concerned withthe manufacture of PCBs and large quantities ofmetal and plastic parts for the S12 system anduses CNC laser cutters, welding robots and itsown water and waste processing systems.Through the localisation work, Shanghai Bellhas introduced and merged advancedtechnologies from abroad as well as introducingnew management models and informationsystems, all controlled under the ISO9001quality system.

A typical example of this success is the unitproducing the S1240 Programming ControlSwitching System. They have seven SMT lines,including DEK printers and FUJI assemblymachines. With production volume currently at6 million lines (around 45% of the China marketfor such systems), accurate and timely testing iscrucial. The unit uses four GenRad in-circuit test

stations (the GR2286, GR2283 and GR2284)with plans to integrate further units in the nearfuture. Shanghai Bell chose the ICTs to gainmaximum fault coverage, high throughput,reliability and accuracy over previous MDA-based testing. In the words of Zhu Jian �As youknow, we are always improving things and thiscan create frequent variations duringmanufacturing. GenRad�s system gives us a lot ofmanufacturing information which helps us. Inthe first phase of development we cooperatedclosely with GenRad.� The unit manufacturesover 100 board variations. Fast development ofsoftware and fixtures, as well as fast response areimportant benefits in the use of a well-integrated system such as the GR228X series.

Having recently celebrated its 15th anniversary,Shanghai Bell is looking forward to the futurewith confidence and says it will stick to its mottoof �Solidarity, Vitality and CustomerSatisfaction�. Gunther Strobel, GeneralManager, recently said �The industry is one ofthe key factors in our country's rapid economicgrowth. And is also one of the country's keyinfrastructure activities, like roads, railways andair routes. We have to go to different areas we'vealready been active in, such as switching andaccess products, to gain new market share withnew products.�

In an effort to provide even higher levels ofservice, the company has not only set up servicecentres overseas, but also vendored technicaltraining services to foreign customers. Withmodern information technology and thesatisfying service of the new age, Shanghai willenter the new information millennium hand inhand with customers and partners worldwide.

19

Afine piano is an investment that willenrich the quality of life. The designand craftsmanship of the piano is an art

steeped in old world tradition dating back overthree centuries.

Young Chang is a relative newcomer in anindustry where many of the leadingmanufacturers are well over 100 years old. Afteronly 40 years or so, the South Korean companyhas grown to become one of the largest pianomanufacturers in the world, with the capacity toproduce more than 135,000 pianos in a year.

Young Chang�s heritage represents theinnovation and skill of three individuals whoseobsession was to create excellence. It was in 1956that the Kim brothers, Jai-Young, Jai-Chang andJai-Sup, combined their financial, musical andengineering talents to create South Korea's firstmusical instrument manufacturing company.

Just 15 years after assembling its first piano,Young Chang began exporting world-classpianos and became the first non-Japanese musicalinstrument manufacturer, and one of only a fewpiano manufacturers to be awarded theprestigious Japanese Industrial Standards markfor consumer product quality assurance. Asecond factory was opened in Inchon, Korea, in1976. The 680,000 square-foot factory was

completed in late 1979. The early 1980�s sawexports exceed US $10 million, recognized by anexport award from the Korean government.Young Chang founded European, US andCanadian operations in 1984, and in the sameyear became the first public corporation in theKorean music industry.

Young Chang entered the digital keyboardmarket by acquiring selected assets of KurzweilMusic Systems in 1990 and now develops,manufactures and markets both professional andhome digital keyboards under the Kurzweilbrand name.

Kurzweil Music Systems Inc. was founded byinventor Raymond Kurzweil, who had developeda revolutionary reading machine for the blind.Musician Stevie Wonder, a customer for thereading machine, challenged Ray Kurzweil tocreate an electronic instrument that blended therichness of acoustic sound with the control andsound modification of electronics. The Kurzweilengineers then developed the first ROM-basedsampling keyboard to successfully reproduce thefull complexity of acoustic instrument sounds -the K250. The music industry was astounded byits ability to emulate a piano, strings, choirs,drums and other acoustic instruments withextraordinary accuracy. Since then, electronicmusical instruments havehad a new benchmark ofquality for which tostrive.

The acquisitionof Kurzweilbrought with ita range ofmanufacturingand logisticalproblems, as

Making Music in Korea

20

Korea

�Dealers now insist that ourproducts are certified as ICT tested onGenRad equipment - it has become the basisof our marketing campaign.�

Y G Lim, Test Manager, Young Chang

explained by Hal Chamberlain, Senior SystemsEngineer based in South Korea and the mancharged with managing the manufacturingprocess.

�In the early 90�s Kurzweil struggled withquality problems. PCB's were assembled withoutquality standards or adequate test procedures.We had a few oscilloscopes for componenttesting and repair, but ultimately the productwas tested on assembly. If it made musical notes,it was passed. However, production people werenot musicians and many keyboards were makingtheir way to the dealer showrooms and even intothe customer�s hands with serious defectsaffecting the performance and sound of theproduct. Piano players were far more critical ofminor defects affecting the sound quality of theinstrument - defects which the manufacturingengineers were unable to identify. We embarkedon a project to persuade the Korean managementto implement In-Circuit Testing (ICT), arguingthat the cost of replacing and repairing faultykeyboards was already affecting the company'sperformance and reputation.�

The result was a $20 million investment whichincluded GenRad test equipment and the start ofa three year project to radically restructure testfacilities as explained by Y G Lim, Test Managerat Young Chang.

�GenRad was selected for several key reasons.The Windows NT operating environment wascrucial since test programs are generated at theresearch and development office in Waltham,

USA, but debugging takes place at themanufacturing centre here in Korea. Engineersrequired a consistent platform working underaccepted industry standards. Since the companyproduces in excess of 12,000 boards per year,each with an average component cost of $2500,fast throughput is important, with high faultcoverage. Over 40% of the cost of eachinstrument is electronics. GenRad�s testmachines provide MDA, ICT and functional testoptions which suit the complexity of theKurzweil products. The GenRad testers are alsonow used to program ASICs, PALs and flashmemory chips during production; devices whichplay a key role in the keyboard. The programcode which creates even the most basic musicalsounds is over 4 Mbytes and we offer hundreds ofadd-in sound files or memory modules which canbe installed or downloaded from the company�swebsite.�

The first GR228X tester was installed in 1997and over the following three years, the companyhas reduced electronic failures in the field tovirtually zero. �Almost all of our repairproblems are now mechanical,� saysChamberlain, �And usually relate to wear andtear rather than manufacturing defects. Our ICTfacilities have become the first stage in a rigoroustest process which includes manufacturing defectanalysis, verification of component values andplacement, electronic test and precise audio testswhich measure frequency response anddistortion in the sound of the keyboard. We willoften replace components which fall within themanufacturer's tolerances in order to create a

21

Kurzweil�s K2600 synthesizer offers 400+ programs, state of theart interactive sounds, effects, 8 sliders, 2 wheels, 5 pedals andbreath controller.

more accurate sound. Final functional testing isperformed after box build to verify the soundquality as well as the action (ie: the feel of thekeyboard when played.)�

By the year 2000, Young Chang had regained theconfidence of the professional piano playingmarket and dealers were showing such interestin the manufacturing side of the product that thecompany used its test strategy as the basis of anew marketing campaign, offering products as�certified ICT tested�.

Raymond Kurzweil has long since left thecompany, but Kurzweil�s reputation continues togrow as new technologies are developed andKurzweil engineers sample new sounds fromaround the world, using state of the art digitaltechnology to add to the sound library. Todaythe Kurzweil product line features a wide array ofelectronic instruments for both the home andprofessional musician.

Kurzweil Music Systems� Professional Productscontinue to be the choice of leading musicians,recording studios and institutions because ofKurzweil's critically acclaimed sound library,extraordinary functionality, and industry-leading technology. In addition, Kurzweil DigitalHome Products offer consumers the same world-renowned Kurzweil sound quality as theprofessional products, plus handcrafted cabinetsand top-quality built-in audio systems. It istempting to claim that GenRad was instrumentalin creating this world class musical success!

22

Korea

1991 Music Magazine in the USA (KEYBOARD)

�The World�s Best Digital Piano�

1992 Music Magazine in Japan (KEYBOARD)

�The Best Keyboard of This Year�

1993 Music Magazine in the USA (MIX)

�Technical Excellence and Creativity of This

Year� Award

1995 Music Magazine in France (Le Monde de la

Musique) �The World�s Best Digital Piano�

1995 Music Magazine in the USA (MIX)

�Technical Excellence and Creativity of This

Year� Award

1996 Music Magazine in the USA (MMR) �The

Best Digital Piano in 1995�

1996 Music Magazine in the USA (EMM) �The

Best Synthesizer� Award

1997 Music Magazine in the USA (MIX)

�Technical Excellence and Creativity of This

Year� Award

1999 Music Magazine in the USA (MIX)

�Technical Excellence and Creativity of This

Year� Award

Awards

GenRad Inc.7 Technology Park Drive

WestfordMA 01866-0033

United States of AmericaTel: 001-978-589-7000Fax: 001-978-589-7007

www.genrad.com

All trademarks recognised. GenRad, GR, GR logos, GR228X, SFDM, SFLM, CIMBridge, CIMTrack, PQM,TRACS III are trademarks of GenRad Inc. All rights reserved. Copyright 2000.