SPRPGUETHE MARK OF RELIABILITY

APRIL, 1985

SPRAGUE CONSOLIDATES HEADQUARTERSThe consolidation and relocation of most

corporate-wide functions to the GreaterBoston Area was announced March 18,1985, by Dr. John L. Sprague, President andChief Executive Officer of Sprague ElectricCompany. According to Dr. Sprague, thisconsolidation represents the culmination ofa program started in 1983 to decentralizethe Company's operations and positionSprague for further progress in the elec-tronics market.

The functions affected will be housed inthe Company's World Headquarters build-ing in Lexington, which was dedicated inDecember, 1984 and a new distributionwarehouse facility located in Mansfield,Massachusetts.

The combined staff for the two head-quarters locations will be in the range of 200employees. The sizeable reductions, thathave taken place and will continue to takeplace at the former headquarters in NorthAdams, Massachusetts are attributable totransfers made to other operations; attritionand staff reductions as the result of evalua-

tions made on a department-by-departmentbasis.

According to John W. Murphy, SeniorVice President, Special Assignments, thestaff adjustments to be made at NorthAdams over the next few months will affectapproximately 560 employees, both hourlyand salary, from such functions asMarketing and Sales, Traffic, Research and

Development, Finance, Management Infor-mation Services, and Quality Assurance andReliability.

Sprague Electric Company, a leader inthe manufacture of a broad line of electroniccomponents such as capacitors and semi-conductors for more than fifty years, current-ly employs approximately 12,000 peopleworldwide.

FIVE AWARDED AT NATIONAL MEETINGThe climax of Sprague's five-day National

Sales Meeting was an awards banquet onWednesday, January 23, 1985.

The meeting, which was attended bymore than 200 sales, marketing, operations,and commission sales representatives, washeld at Innisbrook, near Tarpon Springs,Florida, January 20-24.

Officiating at the banquet was TedFischer, Vice President - Sales, who openedthe awards ceremonies by discussing theexceptional contributions that individualscan make as part of a team effort. Announc-ing the selection of five persons for thespecial recognition, Mr. Fischer noted "thechoices were difficult, because of the manycriteria required to meet the high standardsof achievement."

Honored with a plaque and cash award fortheir individual contributions during 1984were: Richard W. Dock, Sales Engineer,Springfield, Ohio office — Best Salesperson;Nathan H. Chapman, Product Marketing

Engineer, Discrete Semiconductor Opera-tions, Concord, New Hampshire — BestMarketer; Peter M. Kavoian, DistrictManager, Costa Mesa office — Best DistrictManager; Nick DiNapoli, Northern RegionalManager, Park Ridge office — Best Re-gional Manager; and William J. Purdy, Presi-dent, William J. Purdy Company — BestCommission Sales Representative for 1984.

Mr. Fischer concluded the ceremoniesamidst a standing ovation from the peers ofthose receiving the awards. "With this firstawards ceremony," he said, "we areestablishing an important precedent forhonoring those who excel in their endeavorsfor every year to come."

Jack F. Darcy, Senior Vice President —Worldwide Marketing and Sales, told thegathering that a handwrought, silver, Italianvase will be on display at Sprague head-quarters in Lexington, Massachusetts. "Itwi l l , " he said, "commemorate theachievements of the honored individuals in

marketing and sales, and will stand as apublic gesture of recognition in succeedingyears."

Nate Chapman displaying the award hereceived as Best Marketer.

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SPRAGUE ELECTEDTO ACADEMY

COMPANY EXCELLENCE RECOGNIZED

On December 18, 1984, Magnetic Peripherals, Inc. (MPI) honored Sprague Electric Com-pany with three awards for excellence in quality and service. The occasion for the awardwas MPI's "Certification Award Luncheon" held at the Ramada Inn, Bloomington,Minnesota.

Robert C. Sprague was elected a memberof the National Academy of Engineering ofthe United States of America at specialceremonies held in Washington, DC onFebruary 22, 1985.

Election to the Academy is the highestprofessional distinction that can be con-ferred on an engineer and honors those whohave made important contributions toengineering theory and practice, includingsignificant contributions to the literature ofengineering, or who have demonstratedunusual accomplishments in new anddeveloping fields of technology. Mr.Sprague is one of 67 engineers so honoredthis year by the Academy, which also namedfive as foreign associates.

Robert C. Sprague, Honorary Chairmanand Director of the Sprague Electric Com-pany, founded the company in 1926 in Quin-cy, Massachusetts. He served as Presidentfrom 1926 until 1953, when he was electedChairman of the Board of Directors andChief Executive Officer, a post he held untilNovember 1971, when he became Chair-man of the company's Executive Commit-tee. Mr. Sprague held that position until1977, when he assumed his current title.

Mr. Sprague has distinguished himself asan inventor, entrepreneur, and for his con-tributions and services to a number ofassociations of the electronics industry.

Sprague Visalia and Sprague Taiwan delay lines products were honored by MPI for ex-cellence in quality level, 99.7%, and on-time delivery, 93%. Attending the award presen-tation for Sprague Visalia was Mr. Charles M. Schumacher, General Manager, SpecialProducts, and Mr. Dick Lee, Product Manager, Computer Delay Lines.

In addition, the Packaged Discrete Semiconductor Division of Sprague Concord wasawarded the status of "Certified Supplier." This certification was awarded as a result ofthe fine quality performance achieved by the packaged group in shipping defect free prod-uct to MPI. This achievement was a result of the team effort of the Worcester (Concord)Front End who supplied the wafers, the SPI plant in the Philippines who did the assembly,and the Concord plant which did the final assembly and testing of the product prior toshipping.

Sprague Electric LogIssue 1, 1985

David M. Felper, EditorContributing Editors:

Robert M. Arena, SanfordSally B. Ashley, LansingTheodore H. Buck, Barre

Robert J. Diodati, North AdamsDennis R. Driscoll, Sanford

Laura E. Gregory, Wichita FallsJoseph M. Hamby, Clinton

McDaniel N. Harless, HillsvilleStephen D. Holland, Concord

Michael R. Kowalske, San AntonioDeborah J. McKinstry, Concord

Fred A. Monroe, OrlandoBette D. Rose, Nashua

Donald L. Sowers, VisaliaStuart A. Sutherland, North Adams

Thomas D. Vangel, WorcesterClayton D. Weaver, Lansing

Elaine Webber, Annapolis JunctionWalter D. Wood, North Adams

Albert L. Zigler, Jr., Wichita Falls

Left to right: Mr. R. A. Berreth — Vice President Components Division of MPI, Jim Hawkins —Reliability Engineer Sprague Concord, Ralph Spencer — General Manager PackagedDiscrete Semiconductors and Nate Chapman — Sr. Product Engineer.

NEW ASSIGNMENTFOR MURPHY

A change in responsibilities for John W.Murphy from Senior Vice President,Technology and Support to Senior VicePresident, Special Assignment, effectiveMarch 1, was announced by Dr. John L.Sprague, President and Chief Executive Of-

ficer of the Sprague Electric Company. In hisnew assignment, Mr. Murphy is responsiblefor evolving a plan to complete the company-wide decentralization process of Sprague.This process results from the recommenda-tions and decisions made by division andsenior corporate management.

Mr. Murphy will also have the full respon-sibility for controlling and scheduling the im-plementation of the plan. According to Mr.Murphy's estimate, this phase of the assign-ment should take about 7 to 9 months tocomplete.

Mr. Murphy has been with Sprague Elec-tric since 1972 in various managerial postsand was Group Vice President in charge ofthe company's operations in the areas of oil,paper, film, wet-slug tantalum, and foil-tantalum capacitors in Barre, Vermont;North Adams, Massachusetts; and Long-wood, Florida.

Before joining Sprague Electric in 1972 asGeneral Manager of Film Capacitor Opera-tions, Mr. Murphy had been Director ofOperations, Becton Dickinson Company,Sharon, Massachusetts. He had previouslyheld operating management positions withGTE Sylvania, and the Davis & Geek Divi-

sion, American Cyanamid Company, Dan-bury, Connecticut.

Mr. Murphy holds the degree of Bachelorof Science in Industrial Engineering, Colum-bia University, New York City.

CONCORD HONOREDSprague Electric Company of Concord,

New Hampshire was presented an award forits outstanding achievements and concernin providing employment for the handi-capped by the New Hampshire Departmentof the American Legion.

The "Certificate of Appreciation" placedthem in nomination for the AmericanLegion's "Annual National Employ theHandicapped Award" for 1984. The nomina-tion is based upon the sincere efforts madeby the Company to employ handicappedpersons with a wide range of disabilities.The emphasis, we are told, is on "Ability, notDisability."

DISTRIBUTION LAUNCHESNEW PROGRAM

A new 3-pronged customer service pro-gram was announced March 20, 1985 byLyle E. Pirnie, Director of Distribution for theSprague Electric Company. The new pro-gram, which will be implemented throughSprague's in-house staff, its field salesforce, as well as its distributor organization,promises to add a new dimension tocustomer service by:

1. Responding to any customer questionsregarding inventory, pricing and deliverieswithin a 4-hour period.

2. Maintaining stocks of standard items ininventory so that they are available im-mediately 85% of the time, and by

3. Striving to be price competitive on allmajor product lines, including all types ofcapacitors, resistor networks, filters, ICs,and transistors.

According to Mr. Pirnie, an important fac-tor in the development of this program isSprague Electric Company's DORIS net-work (Distributor On-Line-Real-Time Infor-mation System). DORIS permits hundredsof distributors and sales representatives totalk directly with a master computer. Itsscope includes coast-to-coast coverage,even beyond the normal working day. Itallows a distributor to check into productavailability, and to place orders for any ofthousands of line items or to follow up ona previously placed order. Also, through thesystem, useful competitive cross-referenceinformation is obtainable.

Mr. Pirnie stressed that, with the initiationof this program, Sprague's leadership posi-tion now extends from the product line ofelectronic components to an enhanced serv-ice designed specifically to respond tocustomer needs. He went on to say that amulti-media campaign has been created tostress the new program. It will be launchedat the forthcoming Electronic DistributionShow to be held in Chicago, April 30 to May2, 1985. The campaign theme will be"Sprague's 4-Hour Power."

ORLANDO CELEBRATESOn Tuesday, December 18, 1984,

employees at the Orlando plant were treatedto a special luncheon in recognition of their"best week ever." During the last week ofthe year, more shipments were made thanin any other week in the history of the Or-lando plant. This exceptional week allowedOrlando to reach its sales goal for the year.Several signs were displayed acknowledg-ing this accomplishment, as well as a ban-ner that stretched across the width of thecafeteria which read, "You Made It Hap-pen!" What do you feed a plant full ofemployees who just produced the best weekever? What else — a submarine sandwichthat was 8 inches wide, 8 inches high, and42 feet long! Each employee also receiveda carnation as an expression of gratitudefor their extra effort.

MANCHESTER MAKESA DIFFERENCE

Dr. Kenneth E. Manchester was recentlyhonored as the 1984 recipient of the "YouMake a Difference Award." This award isgiven annually to an employee ofWorcester's Integrated Circuits Operationfor superior job performance and for mak-ing significant contributions during the year.

Dr. Manchester began his career withSprague Electric Company in 1962 in NorthAdams, Massachusetts. His many achieve-ments since that time have contributed tothe growth of Sprague's Integrated CircuitsOperation as well as the entire industry. He

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is recognized worldwide for his contributionsto the semiconductor industry.

In making the presentation to Dr. Man-chester, Richard Morrison, GeneralManager, said, "Ken's contributions direct-ing our QAR Department places our productquality at a level second to none in the world.His willingness to share his knowledge andhimself with others has been inspirational toall of us. Ken Manchester, clearly you makea difference."

Past recipients of this prestigious awardare Frank Moryl, Fred Reiersen, SteveMiles, Dr. John Macdougall, and RichardMorrison.

KOWALSKE NAMEDOn January 23, 1985, Fred Thompson,

Operations Manager for Sprague San An-tonio, announced that Mike Kowalske hadassumed the responsibilities of HumanResource Manager for that facility. Mike,who was the Assistant Industrial RelationsManager in Sprague Electric's Wichita Fallsfacility for 2Vz years, has worked in theemployee relations field for more than twen-ty years.

Mike, who is a member of Texas Okla-homa Personnel Association (TOPA) andAmerican Society of Personnel Ad-ministrators (ASPA), his wife Lou and twosons Mike, Jr. and Kevin have relocated toSan Antonio. San Antonio is fortunate tohave available a person of Mike's highcaliber and we join in congratulating Mikeon this well-deserved promotion.

SANFORD GROWINGSanford, Maine plant management

recently announced a new addition to theSanford facility. In mid-April, ground will bebroken for a 58,000 square foot structure tobe attached to the 1978 Radial assembly/finishing addition. Construction of the shellis expected to be completed by mid-fall ofthis year and occupancy has been slated forearly fall of 1986.

The new addition will accommodate theincreased need for production space in theplant and will also allow room for a new,more centrally located, cafeteria foremployees. Several departments will beable to make rearrangements upon its com-pletion, in particular the Radial group depart-ments and parts of the FormationDepartment.

In addition, the Sanford Plant has recent-ly entered into a three-year renewable leasefor a 25,000 square foot single-story buildinglocated across from its main facility. Thebuilding, which is in the Airport IndustrialPark, is owned by the Springfield Press andMachinery Company. SPM, as it is known,is a subcontractor for the lighting division ofSylvania and the building was used for themanufacture of lighting.

After the necessary renovations andremodeling are complete, the facility willhouse the plant's machine shop, the epoxypellet pressing operation and offices forsome members of the ManufacturingEngineering group. The building will also beused for some parts storage.

Thus far, new electrical services, parti-tions, and lots of paint have been added tothe building and it is expected to be fully oc-cupied soon.

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IDEAS PAYThe Sanford Plant Suggestion Committee

ended 1984 in a big way as two employeesreceived significant awards in December.

Donald Tremblay, a Radial Lead MoldMechanic on the third shift, received$3,625.92 for his idea regarding equipmentmodification that saved tantalum capacitorsand improved the equipment's performance.Don's common sense and ingenuity led himto recognize and solve a problem with flashremoval machinery. Production ManagerLarry Valliere presented Don his award.

Everett "Woody" Woodward, LeadVacuum Furnace Mechanic in the TantalumPelleting Department on the first shift, sug-gested that vacuum gauges be installed foreach zone of the department's binderremoval furnaces. This enables constantmonitoring of the delicate binder removalprocess and immediate reaction whencritical adjustments are necessary. The Sug-gestion Committee awarded Woody$2,481.60 for this tantalum-saving idea.Mike Allen, General Foreperson in thePelleting Department, made the awardpresentation to Woody.

The Sanford Suggestion Committeereviewed 192 suggestions in 1984, and isproud of the support and involvement ex-hibited by the Sanford employees. The Com-mittee looks at 1985 as another very suc-cessful suggestion year.

McKINSTRY CITED

The Concord Semiconductor Operationrecently awarded its 1984 Award forOutstanding Achievement to Deborah J.McKinstry, Assistant Human ResourcesManager. At a ceremony attended by themanagement of the Concord plant andmembers of the Human Resources Depart-ment, Debbie was cited for her ". . . will-ingness to own it all, to participate and tomake her contribution count."

Debbie has been with Sprague since1973, starting as an assembly operator andholding such positions as payroll clerk andSenior Human Resources Secretary. Shewas promoted to her present job in January,1983.

The other nominees for this prestigiousaward were:

Don Chase — Department Leader —Plant shared services

Doris LaClair — Department Leader —Chip Line

Betty Magoon — Group Leader — QARTrent Wood — Applications Engineer

— Hall Effect

ALUMINUM CONSOLIDATIONOn January 10, 1985 Sprague Electric

Company announced that it will move its

BULK RATEU.S. POSTAGE

PAIDNorth Adams, MA.

Permit No 458

assembly facilities for large can and tubulartype aluminum electrolytic capacitors inClinton, Tennessee to Lansing, NorthCarolina in a consolidation move.

The consolidation of assembly facilitieswill start the end of January and is expectedto be completed by mid-March. Thealuminum foil facility, in Clinton, will continueto operate as in the past.

According to Donald F. McGuinness, Ex-ecutive Vice President, "Sprague will con-solidate its large can and large tubularaluminum electrolytic capacitor productionat the Lansing, North Carolina operation.The Clinton foil facility and Sprague Elec-tric's other manufacturing locations in Lan-sing, North Carolina; Hillsville, Virginia; andGalashiels, Scotland will continue to servethe aluminum electrolytic capacitor marketworldwide."

QC'S WORKThe KRP Brigade, Quality Circle team

members from the Finish and Testingdepartment in Orlando, Florida are all smilesthese days. As a result of one of their recentprojects concerning the elimination of pre-stamping cases prior to building units, theteam members split a suggestion awardcheck in the amount of $1,040. Teammembers pictured from left to right are: MaryHines, Helen Kennedy, Frances Williams,Pauline Holcomb, Anna Faucher, AgnesFordham, Margaret Hughes, and DorothyVan De Mark. The Orlando plant presentlyhas eight active Quality Circles, coordinatedby the Facilitator, Fred Rotolo.

LANSING ACHIEVERSA Junior Achievement program at North-

west Ashe High School is being sponsoredby the Lansing Plant of Sprague Electric

Company. Junior Achievement, which wasfounded in 1919, is a non-profit organizationdesigned to teach young people about theworld of business. The students, who willestablish and run their own small company,will be producing wooden wall clocks andfirst aid kits. Elva Taylor, who was electedpresident of the company, is the daughterof Elwood and Flossie Taylor, both of whomare Lansing employees. Sprague advisorsare Steve Katz, Quality Control Engineer;Robert Goss, Section Head, EquipmentDesign Engineering and Maintenance; RonWatson, Assistant Plant Engineer; DonaldBrooks, Plant Nurse; and Jackie Blackburn,Process Engineer.

Left to right: Steve Katz, Robert Goss, RonWatson, Donald Brooks, and JackieBlackburn.

RIVERS TOP EMPLOYEE

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Leroy Rivers, a coilwinder, was namedAnnapolis Junction Employee of the Quarterfor the fourth quarter of 1984. Leroy waspresented a plaque and a $50 Savings Bondby Plant Manager, Katie Snodgrass at aChristmas luncheon on December 21,1984.Leroy has been with AJ since November1983.