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Volume 7, #2___________________________________________________________ March, 1988


Decision-Making At Digital by Ken Olsen, president


Today’s Key Issues - Planning And Productivity by Jack Smith, senior vice president, Manufacturing/Engineering/Marketing


Systems Security And The Threat Of Computer Hackers by Ray Humphrey, director of Corporate Security


The Community Right-To-Know Act And Interpretation Of Chemical Data by Mark McCarthy, Corporate Environmental Specialist


Focus On Safety - Digital’s Employee Right-To-Know Policy by Francis Mecler, manager, Corporate Toxicology Programs


Manufacturing For The Japanese Market


Digital And Hinditron Announce Joint Venture In India


New U.S. Policy Limits Smoking To Designated Areas


New Federal Reporting Requirement Regarding Former DoD Employees


Changes In Save Plan


Digital And Emulex Agree To Settle Litigation


Infinite Voyage Continues


Printed Wiring Board R&D In Greenville


Country Manager Named For Thailand


Corporate Manager Of Environmental, Health And Safety



Decision-Making At Digital by Ken Olsen, president


It is up to the Board of Directors and the Executive Committee to decide what we can af­ford, what businesses we are in, and how to balance profit with investment in product de­velopment, manufacturing, services and sales. It is the job of Engineering and Marketing to organize all the choices of products and markets so the cost, the risk, the return, the safety and the planning can be presented completely, thoroughly and systematically to those who make the decisions.


We need to know what it will take to make a complete product, who the customers are, what applications they want, and what the total costs are to us. Such information helps us choose projects that will give us a unique market with good profit.


A good manager looks for consensus on plans and gets everyone to participate in setting goals. But when there has been enough talking and enough participation, the manager has to synthesize a plan and strategy, then lead and manage.


Just as the president or chief executive officer should be sure there are strategies for the major parts of the corporate business, all managers should be sure they have explicit, clear, documented strategies for their areas of responsibility. Staff meetings and woods meetings are not an excuse for the lack of an explicit strategy. They are important for communicating and for getting inputs. Such meetings also should be occasions when formal or semi-formal proposals and strategies are presented for criticism and suggestions.


The woods meetings we remember for being productive are those in which there was very thorough preparation on a particular proposal. Because of the thoroughness, the in­terchange, suggestions and criticisms were very useful. This does not mean that every part of every plan has to be presented to a large group. In fact, after sufficient dis­cussion, the manager should write the formal plan, complete with all of the details. In the case of a product development plan, this means not only the engineering, but also the tooling, inventory, manufacturing, marketing, selling and training for the system being proposed. This formal statement can then be criticized formally, in writing, listing suggestions and what their effect would be on the rest of the proposal. Such suggestions can be very useful.


This approach to planning allows for the sharing and melding of ideas, but it also re­quires leadership and focus. If a manager brings up a proposal time and again on the as­sumption that there has to be consensus, nothing will come of it. This approach allows too many people to pick at little things with no responsibility to make sure a complete system is proposed and no responsibility to present a consistent viewpoint from one meet­ing to the next. That approach can lead to frustration and failure — not because the company could not come to agreement, but because the manager kept asking for criticism, accepted informal, irresponsible criticism, and never proposed a complete system.


Woods meetings and staff meetings sometimes generate truly good ideas and proposals for systems and products. However, these ideas often do not come to full fruition, and some­times they fail. Turning over vague, general ideas to an engineering group is a commit­ment to frustration. A newly proposed product should be worked on long enough to be sure the product is carefully specified, so when it is turned over to an engineering group to carry out, there is a clear understanding of what the problems are.


When making decisions, we should keep in mind the following basic rules of business management:


Don’t develop something unless you have or see an obvious and clear need.


Don’t be a follower. Followers are always behind. Followers always have to compete on price and never have the fun of influencing the world. Trying to follow the "industry leader" can be both frustrating and a waste of time if the industry leader doesn’t know where it’s going. You always want to be the lead dog in a dog team — all of the others have a poor view.


Beware of market research. If you ask about a product that the market has never seen, obviously, the answers you get back will be nonsense; and if you base your plans on that nonsense, you get nonsense in return. If you ask customers what they want, they will often say less expensive computers. They often don’t know about innovative things that they really need, and that we could provide. So it is our job to understand customer needs, not just customer wishes, and to recognize how we can use our expertise to fill those needs. Asking customers what they want in areas which they understand can give very useful information.


Remember that vague ideas mean different things to different people. When a product idea is still in the vague stage, it is always less expensive, has a much faster delivery and does much more than when it is thought out.


Base your strategy on your strengths. When facing the competition, we should make full use of such strengths as our cash position, our broad product line, including our VAX computers, our excellent sales force and our excellent software service, field service and education. We have the most extensive software system in VMS, the greatest network in DECnet, the only extensive local area system, NI clustering, Cl clustering and 12 years of software on the VAX family. We should exploit these strengths. It is not against the rules to choose the turf where you are going to fight your battles.


Today’s Key Issues - Planning And Productivity by Jack Smith, senior vice president, Manufacturing/Engineering/Marketing


Two important issues on which the Executive Committee is focusing are: improving indivi­dual productivity throughout the company and doing a better job of determining where we should make investments.


At Digital, we decide how to invest our dollars based on where we think we’re going to get our return. So our product strategy drives our total investment across the company: every dollar of product investment leverages another ten dollars across manufacturing, sales, service and administration.


Throughout the company’s history, the product strategy has been determined largely by the direction of technology. But now the business needs of customers have also become an important factor. Today’s customers want us to provide total solutions for their business problems, not just hardware and operating systems. If we don’t take the customer view­point into account, we could develop a product strategy that has holes in it from the standpoint of the work customers want to get done and the applications they want deve­loped.


Of course, we must always start from an understanding of where the base product technology is going. It is essential that we maintain and advance our technology leadership. But this new factor must be taken into account as well.


So we’ve been developing a process to balance technology trends and customer needs in for­mulating the product strategy. Several years ago, we formed Product Marketing under Pete Smith, and Industry Marketing under Bob Hughes and Jerry Witmore. Now those groups are providing customer-oriented input - helping us understand where we should invest and what kinds of returns we should expect.


Industry Marketing people determine the opportunities in their particular industries and which areas offer the highest returns. They pass that information to Product Marketing, which translates those customer needs into products, and gives that information to the systems development people. We are still formulating the best way to manage those information handoffs from Industry Marketing to Product Marketing to systems development.


In many cases, the base computing platforms required for different industries are the same. The same hardware that serves in the insurance business could also be applicable in manufacturing, education or the communications industry.


Meanwhile, in parallel with this review process, Bill Strecker, vice president, Product Strategy and Architecture, continues to drive the technology side of the product strategy — making sure we understand technology trends and take full advantage of them to provide leadership products.


This spring we’ll bring together the technology and the marketing inputs, see if there are any holes and resolve any differences. And, for the first time in the history of the company, the solutions that we have to provide for our customers will be an important part of our product strategy.


The second major issue facing Digital today is productivity. Basically, being productive means getting the most out of our efforts and our resources, whatever our job may be. We have to find the best moves - to make the best decisions based on the best information, to foresee problems and do the right thing the first time, to get all our resources in place at the right time.


Today we’re in the networking business. We used to sell individual computer systems that came in discrete cabinets. Now the network is the system. The overhead that goes along with developing that business is quite high. The marketplaces we are targeting are costly from the point of view of pre-sales and post-sales - the Field resources needed for sup­port. To be in a position to afford those increased investments, we’re going to have to be more productive across the entire company.


We have to get the break-even point for the company — which is one measure of productiv­ity — into a completely different arena. That means everybody in the company is going to have to become significantly more productive in everything they do.


We need common definitions of productivity from function to function, and we have to set targets for productivity levels to get the returns necessary for a strong and stable future. We’re going to be working very hard on that over the next few years.


Systems Security And The Threat Of Computer Hackers by Ray Humphrey, director of Corporate Security


The stereotype of "harmless hacking" has been perpetuated in stories of hobbyists acces­sing seemingly complicated corporate and government systems and achieving instant "folk hero" publicity. However, hacking is not a ’game.’ and it’s not humorous. It is an intru­sion, similar to housebreaking, with potentially devastating consequences.


A February Datapro Research Corporation newsletter provided an evaluation of "hacking" that puts the crime into proper perspective: "What if individuals entered your office;


rifled your file cabinets and made photocopies of reports, correspondence, meeting notes, and telephone logs; borrowed your set of master keys; moved undetected from office to of­fice looking through other file cabinets; and, before returning your master keys, had cop­ies made so their friends could open any file cabinet in your building whenever they wished?"


Digital employees invest valuable time, talents, and energies in creating innovative products, defining sensitive marketing and pricing strategies, developing critical finan­cial projections, storing personal employment data, etc., in electronic databanks. Routine global business requires the electronic transmission of sensitive data over corporate net­works. Unauthorized entry into our systems is a violation of both corporate and personal trust, and awareness, vigilance and judgment are critical elements in safeguarding our electronic networks. Today’s hacking is being committed by a wide range of individuals, representing diverse nationalities and political loyalties, and having a variety of moti­vations for accessing business data. Many are not the stereotypical "whiz kids" of yester­day, but are skilled "high-tech" intruders who share their techniques on a worldwide basis. A number of groups even have their own electronic bulletin boards, newsletters, and hardcopy monthly journals.


Although hacking continues to pique the interest of the public and the news media, there is a growing awareness on the part of governments that such activities pose both a commer­cial and national security threat. Many countries, including the United States, are creat­ing legislation and agencies to combat such activity.


For instance, a recent U.S. statute affords some Federal protection to Corporate data­bases. The statute establishes criminal sanctions against electronic intrusion of elec­tronic mail, computer data communications, video conferencing, etc. The Electronic Commu­nications Privacy Act of 1986 covers communications during transmission and temporary electronic storage. It establishes criminal and civil liability for interception, use of devices to intercept, disclosure of contents, and use of contents except under certain specified conditions.


The first line of defense, however, still remains the employee. The "Digital Dictionary" defines a "system manager" as "the person responsible for the policies, procedures, and the daily operation of a computer system." In today’s business environment, each Digital employee who uses a computer has to assume some responsibilities of a "system manager."


Specifically, each Digital terminal user should be aware of unusual computer activity. For example, log-on attempts; notification of earlier log-on failures; indications that computers have been used during non-business hours; scrambled data; and similar "non­routine" signals should be reported to management and/or organizational security personnel.


Other proactive measures include:


o Use and protect not easily guessed passwords of at least six characters in length.


o Do not share sensitive information, internal publications, etc., with ex-employees and other "outsiders."


o Change passwords every three months in accordance with Corporate Standard 11.1, "Electronic Account Protection."


o Do not provide unrestricted ("world") read/write access to files.


o Immediately change default passwords whenever new systems are brought on-line.


o Enhance VAX/VMS protection by installing and using various software tools available in SECURPACK.o Consider making security features default (e.g., the user has to make a conscious effort to disengage security features; otherwise they are an integral part of the "system").


o Do not share corporate passwords and other entry protocols with non-Digital personnel, including children attending school. (In several instances, Digital access procedures have been found posted on dormitory bulletin boards at nearby colleges).


o Use "proprietary information disposal containers," paper shredders, or other secure means within the corporation to dispose of material that contains system codes, sensitive telephone numbers, or other information useful to hackers. (One Digital or­ganization recently detected "dumpster pickers" going through our rubbish for sensitive material).


o Cost center managers should ensure that every system or networked terminal is known to the organizational IS function. Only in this way can the "system" be managed in a dis­ciplined manner, with the integrity of information and other systems accessible through gateways maintained. (Surprisingly, there are a number of Digital systems that are  "unregistered").


o In cases where extra-sensitive information must be electronically transmitted, explore the possibility of encrypting the information.


In particular, much publicity has been generated recently concerning "virus" programs which, once implanted in a corporate data system, have the capability of crashing an entire system. Whether on a home computer or network, or within the corporate environment, the downloading of programs from "public electronic bulletin boards" is a common technique to introduce a virus into a system. Like water from a stream, if you don’t know its purity, don’t drink it.


Further information about systems security can be obtained from local security and IS re­source personnel.


The Community Right-To-Know Act And Interpretation Of Chemical Data by Mark McCarthy, Corporate Environmental Specialist


Under new U.S. legislation, known as "The Emergency Planning and Community Right-to-Know Act," companies are required to provide the public with detailed information regarding the types of chemicals they use, how they use them, and in what volumes. The first major re­porting deadline, dealing with site chemical inventories, is March 1 this year, with subsequent reports to be filed annually thereafter. Another part of the same law calls for annual reporting of routine chemical "emissions," beginning July 1.


The reporting of chemical inventories is intended to help communities prepare for and deal with emergencies. For instance, if there were a fire in an industrial building, the fire fighters would need detailed information about any chemicals stored there.


Much of the information to be released is common knowledge to employees who work with chemicals in manufacturing areas. They already have received training on safe handling of the chemicals they use under the company’s "Employee Right-to-Know Policy." But people who work in non-manufacturing areas may find that their facilities are reporting large quantities of chemicals that the U.S. Environmental Protection Agency (EPA) deems hazard­ous. These include chemicals used in the general maintenance of buildings — in air condi­tioning and cooling towers, and for general cleaning and painting. Many of these are the same type of chemicals that are used in homes, only in somewhat greater quantities.


This information will be used by local emergency planning committees, which consist of elected officials, representatives from fire and police departments, the media (including radio, television and newspaper), community citizens, local environmental groups, and designated representatives of local companies that store and use specified chemicals in certain reportable quantities.


The annual reporting of chemical "emissions" is an extension of previous laws, such as the Clean Water Act and the Clean Air Act in the U.S., which strictly limit what can go up through exhaust stacks or into sanitary sewers. This part of the new law is intended to gather detailed information and data on routine emissions regardless of compliance with other existing laws and permits. Such data could serve as the basis for scientific research into complex atmospheric and environmental interactions that are not well understood today — such as acid rain and depletion of the ozone layer. Over time, this data should enable government agencies to better interpret environmental problems and to issue more logical and effective standards.


Only a limited number of chemicals need to be reported under this part of the law, but the form of the report can be difficult to interpret for people unacquainted with chemical data. The quantities are to be reported by weight, rather than by liquid measure, and are given in total amounts for the year. It is hard for some people to visualize what it might mean to emit a ton of some chemical into the atmosphere.


To put this into perspective, take paint as an example. When you paint your house with enamel, about half the weight of that paint consists of organic solvents that allow the paint to spread. These solvents quickly evaporate, leaving behind the pigments and other solids as the paint dries. If you use the equivalent of a 55-gallon drum of paint on your house, about 250 pounds of organic solvents — which are considered toxic chemicals — are released into the atmosphere. If eight such drums were used to paint an industrial building over the course of a year, that would mean that a ton of organic solvents were emitted.


These annualized numbers should prove very valuable to scientists once they find ways to sort through and analyze the immense volumes of data that will be reported by hundreds of thousands of companies throughout the U.S. But employees and people in surrounding commu­nities need to be reminded that data in this form does not relate directly to health out­comes. Health effects of chemicals depend on the dose — the concentration of the chemi­cal, the length of time a person is exposed to it and its inherent properties. The manner in which a chemical is used determines whether it represents a health hazard. Those are the considerations that Digital’s own safety people take into account when establishing standards for the safe use of chemicals in the workplace and controlling exposure to acceptable levels.


The public release of this information about chemicals used and stored and emitted by Digital facilities can lead to misunderstanding and unwarranted concern. On the other hand, this represents an excellent opportunity for Digital to heighten awareness of our existing safety programs and to promote better understanding of the proper use of chem­icals both at work and at home.


For further information about the law and how it applies to Digital, contact Mark McCarthy at DTN 223-4051, (617)493-4051. For further information about chemicals used in your facility, contact your local Environmental, Health and Safety representative or Frank Mecler, Corporate Toxicologist at DTN 251-1076, (617)264-1076.


Focus On Safety - Digital’s Employee Right-To-Know Policy by Francis Mecler, manager, Corporate Toxicology Programs


In the U.S., the "Employee Right-to-Know Act" states that people who work with chemicals should know the potential health effects of working with those chemicals. There are two main reasons for such a law. First, employees who understand hazards are more likely to take seriously the safety measures and precautions that are an important part of their jobs, and to take proper steps in the unlikely case of an emergency. Secondly, individuals who tend to be particularly sensitive to the effects of certain chemicals need to make in­formed decisions about where and how they should work. Such people may not wish to work in areas with chemicals to which they are sensitive, or may wish to use special equipment such as a respirator.


Recognizing the importance of this kind of information for an effective health and safety program, Digital adopted its own Right-To-Know Policy in 1984. prior to enactment of the


Federal law (known as the "Federal Hazard Communication Standard"). The Federal law exclu­des workers who in the normal routine performance of their duties would not be exposed to chemicals, and, of course, only applies to the U.S. Digital’s policy includes all workers at all Digital sites, worldwide.


Manufacturing sites have programs including at least generic chemical handling training for everyone. In many facilities, the physical layout is such that manufacturing chemical usage may take place in fairly close proximity to an office area. So, while routine exposure to such chemicals does not occur, awareness and training are important so people know what to do and how to react in case of an unlikely accident. Therefore, even people doing office jobs should be given basic chemical safety information, letting them know the types of chemicals handled at the site and the types of effects these can have. In addi­tion, there is detailed training on how to handle materials safely for the people who act­ually work with chemicals.


Even Sales and Field Service sites should have Right-To-Know programs, because maintenance chemicals are used everywhere and some of those — like the chemicals you use around your home — can have hazardous effects if not handled properly.


It is up to the site to establish its own program, but it is Digital’s policy that every site should have a program. At some leased sites, where maintenance is handled by non­Digital people, the chance of chemical exposure may be so remote as to be non-existent; and the "program" in that case may simply be an acknowledgment that there is no need for training of employees.


Digital’s Right-To-Know Policy is already having an important effect on the way Digital does business. We have to consider the effect that the chemicals used in a plant might have on employees and also on the community. At some of Digital’s large manufacturing facilities, the people who deal with environmental, health and safety issues sit on the committees that review capital requests. This helps ensure that the impact of proposed new equipment or processes that use chemicals is reviewed from that point of view.


Today, implementation of Digital’s Right-to-Know Policy varies because cultural dif­ferences translate into different levels of employee concern about issues related to chem­ical exposure. But recognizing that this is the "right thing to do," Digital is working for worldwide implementation, rather than waiting for the enactment of local legislation.


For further information about Digital’s employee right-to-know policy, contact your local Environmental, Health and Safety representative or Frank Mecler, Corporate Toxicologist at DTN 251-1076, (617)264-1076.


Manufacturing For The Japanese Market


Digital’s G.I.A. Manufacturing & Engineering Group has begun manufacturing and is con­solidating various related operations in a facility at Ichikawa, in the suburbs of Tokyo, Japan. The plant employs about 75 people, all but 12 of whom were previously involved in Software Services, Distribution, and Quality Assurance Manufacturing for Digital in Japan. All of Digital’s products being imported into Japan pass through this facility. In addi­tion, this site will manufacture VAX 8800, VAX 8700 and VAX 8500 systems for sale in Ja­pan. This is "stage two" manufacturing, using components from Digitl’s plants in the U.S. and Puerto Rico, and following the same procedures as those used at the Salem, N.H. plant.


Joe Cosgrove, who most recently served as plant manager at Colorado Springs, has been named director of Manufacturing Operations in Japan. Kazuaki Kawase has been named Manu­facturing Operations manager of the Ichikawa plant.


Manufacturing these products and bringing these operations together in one facility are part of the efforts to improve Digital’s position in the Japanese market — the second largest computer market in the world.


Plans call for building a new plant and moving from this leased facility in the near fu­ture. The new building would house the present manufacturing operations, plus Computer Special Systems (CSS) and Field Services Repairs, and would serve as a showplace for cus­tomers.


Digital And Hinditron Announce Joint Venture In India


Digital Equipment (India) Ltd. was incorporated as an Indian company in January. On re­ceipt of additional government approvals and when fully capitalized, this joint venture will be a public limited Indian company with investment in equity by Digital, the Hindi- tron group of companies of India, and the Indian public at large.


This arrangement is intended to strengthen Digital’s position in the Indian market. Laws and government regulations in India have been increasingly restricting imports of compu­ters in order to foster growth of an indigenous computer industry. Therefore, this new joint venture plans a manufacturing facility on the outskirts of Bangalore to make Micro­VAX computers, starting with current MicroVAX II products, for sale in India. The venture also plans to include software development centers in Bangalore, Bombay and the Santacruz Export Zone (SEEPZ).


Hinditron has served as Digital’s distributor in India for the last 17 years. Over that time, Digital’s computers have been purchased by a number of India’s national organiza­tions. Applications include monitoring of a major pipeline; passenger reservations for railways at Delhi, Calcutta and Bombay; atmospheric data switching for the Indian Meteor­ological Department; on-line monitoring at thermal and hydro power stations; launch veh­icle development, satellite tracking and Remote data processing for the Indian space research organization; and computer-aided design/computer-aided manufacturing (CAD/CAM) applications in automotive and manufacturing organizations. Digital has also supplied systems to India’s leading educational institutes, businesses and software export companies.


New U.S. Policy Limits Smoking To Designated Areas


Digital is changing its U.S. smoking policy to reflect new medical evidence, the wishes of many employees and a changing social and legal climate.


As of Jan. 1, 1989, smoking will be limited to designated smoking areas (DSAs) at all U.S. facilities. The policy change is the result of more than a year’s study by the Smoking Policy Task Force, a committee of smokers, non-smokers and ex-smokers, from all company functions.


The Task Force reviewed new medical evidence, employee feedback and trends within the com­pany. Medically, the U.S. Surgeon General's office indicated that passive smoke, the smoke that permeates the atmosphere around a smoker, is a health hazard. Various feedback mech­anisms, showed that employees were dissatisfied with the old policy which basically allow­ed smoking in public areas provided all parties agreed. In addition, facilities in Color­ado Springs, the Southwest and California had begun limiting smoking to designated areas because laws in their communities had required them to do so.


A designated smoking area is enclosed by floor-to-ceiling walls and has a separate exhaust system which vents the smoke outside of the building. Where it isn’t possible for Digital to ventilate a DSA to the outside due to lease restrictions, the facility is required to provide an unventilated area. Smoking won’t be allowed in enclosed offices. All facili­ties must provide a DSA.


The DSAs will be furnished with chairs and tables only. Terminals or work-related equip­ment are prohibited. Employees are expected to use the DSAs during lunch and/or breaks. Facilities can comply with the new policy earlier than the implementation date, provided employees are given a three month notice. The smoking policy will be in effect on a 24- hour, seven-day-a-week basis.


Smoking outside the buildings but on company property will be allowed. This policy covers only facilities; employees who use company vehicles and smoke are encouraged to respect the rights of others.


Managers must ensure that this policy is implemented and enforced in their organizations. Facility managers must make sure the DSAs are properly constructed and signs describing the policy are prominently placed at all entrances. The Personnel Organization will inform applicants and new employees of the policy.


New Federal Reporting Requirement Regarding Former DoD Employees


As a result of a statute effective April 16, 1987, Digital, as a major government contrac­tor, must report to the federal government when it employs certain former Department of Defense employees. The purpose of the new law is to eliminate possible conflicts of in­terest in sales to the government from its major vendors. Any current Digital employee, contract employee or consultant hired after April 16, 1987, who worked for the Department of Defense in a negotiating or procurement function within two years of coming to work for Digital, may be affected by this law.


To satisfy the reporting requirements for this year, Corporate Employment will soon con­tact and screen employees hired during 1987. A cross-organizational group of employment, administration and systems people will be created to deal with the long-term compliance process for this new law. Permanent compliance will involve modifying applicant screening and new-hire administration processes, and developing system capability for report pur­poses. If you have any questions regarding this law and how it applies to Digital, con­tact John Regan in Corporate Employment, DTN 251-1299, (617)264-1299.


Changes In Save Plan


The Tax Reform Act of 1986 significantly tightened rules which apply to 401(k) plans. It requires that such plans meet a "discrimination" test to ensure that this tax benefit is appropriately distributed among people of all salary ranges. The intent of the law is to limit the amount of deductible contributions for employees with annualized earnings of $50,000 or more. The Digital SAVE Plan must pass this test as of July 2, 1988, for Fiscal Year 1988 and continue to do so in future fiscal years.


To ensure it is in compliance with the law, Digital’s plan will stop the SAVE contribu­tions of participants with annualized earnings of $50,000 or more for a ten-week period beginning with the March 24, 1988, paycheck and ending with the May 26, 1988, paycheck. The Plan Administrator will monitor the results of this action and may extend the rollback period if necessary. The Plan will permit resumed contributions at the previously elected rate as of the June 2, 1988, check if the Plan is projected to pass the test by that date.


This approach also affects newly enrolled members. Any employee with an annualized salary of $50,000 or over who joins the Plan on April 1, 1988, will not be able to contribute un­til the rollback ends as of the June 2, 1988, paycheck. These employees will also receive a personalized message explaining the law and action taken.


As a reminder, any changes in contribution percentages to be effective on July 1, 1988, must be received by Investor Services by June 15, 1988, and changes to be effective Oct­ober 1, 1988, must be received by September 15, 1988.


Digital And Emulex Agree To Settle Litigation


Digital and Emulex Corporation of Costa Mesa, California, have announced the settlement of all pending litigation between the two companies. They had been in litigation since 1985, when Digital filed an action against Emulex in the U.S. District Court for the District of New Hampshire. The lawsuit alleged that certain of Emulex’s computer disk and tape drive products infringe various patents on Digital’s SBI, CMI, UNIBUS and Q-bus computer inter­connection and control technology, and that Emulex had misappropriated certain Digital trade secrets. The lawsuit included counterclaims by Emulex that Digital had violated an­titrust laws.


In August 1986, Emulex filed a lawsuit against Digital in the Superior Court of the State of California, in Orange County. Emulex alleged that Digital had violated obligations to provide Emulex with various computer products and services and had interfered with the sale of products and services to Emulex by other suppliers.


Although the details of the settlement were not disclosed, the companies jointly stated that:


o Digital’s patent infringement and trade secret misappropriation lawsuit and Emulex’s lawsuit will be dismissed.


o Emulex will be licensed to manufacture devices that utilize Digital’s SBI, CMI, UNIBUS and Q-bus interconnection and control technology and will pay Digital for that right.


o Digital and Emulex will confer in the future to attempt to resolve potential patent infringement issues between the companies prior to instigating legal action. Emulex also will enforce a policy for protection of confidential information of other parties, including Digital, in a manner expected to avoid future trade secret litigation.


Infinite Voyage Continues


The third episode of Digital’s Infinite Voyage series - "Fires of the Mind" -r will air in the U.S. nationwide over PBS on April 6 and on local commercial and cable stations be­tween April 10 and 18. (Consult local television listings for channel and time). This show features scientists who are conducting research on the human brain and probing the secrets of learning and creativity.


Produced by WQED/Pittsburgh in association with the National Academy of Sciences, the Infinite Voyage is a 12-part series of television programs about scientific adventure,


exploration and discovery. The programs are underwritten on public television and spon­sored on commercial television by Digital. Surveys indicate that the series is helping increase awareness of Digital as a quality company. Negotiations are under way to air the programs in Europe and GIA.


Printed Wiring Board R&D In Greenville


Construction is under way in Greenville, South Carolina, for Digital’s Printed Wiring Board Manufacturing Process Research and Development Center. The center will serve as a state-of-the-art showcase for the manufacturing process development and production of printed wiring boards.


"This facility will be the world hub for all Digital’s manufacturing work in the research and development of printed circuit boards," says John Caulfield, Greenville site manager.


The R&D Center will develop processes and strategies to ensure that future new products can be built using state-of-the-art technology. Rod Schmidt, group manager of the Printed Wiring Board organization in Westford, Massachusetts, adds that the new facility will improve the company’s time-to-market competitiveness. "When you’re developing and intro­ducing high-tech manufacturing processes, it's absolutely critical to combine the develop­ment of the process with the volume manufacturing of the product," he says. "Centralizing our development and manufacturing resources will help us to be just that much more effi­cient. "


The Greenville plant, a 200,000-square-foot facility, currently employs about 950 people. The research center will add about 100,000 square feet, along with another 200 highly skilled jobs. The project is expected to be completed in early 1989.


Country Manager Named For Thailand


Phil Curran has been appointed country manager of Digital’s new Thailand subsidiary. As such, he will be responsible for establishing the legal entity, and developing and growing Digital’s business in Thailand, to complement the Far East Region’s business portfolio.


For the past five years Phil has been based in Tokyo as regional manager of Finance and Administration for Digital’s subsidiary in Japan. Prior to that assignment, he spent three years in Sydney, Australia, as regional manager of Finance and Administration for the South Pacific Region. He joined Digital in 1976, working in Large Computer Group, and spent time in Merrimack, New Hampshire, as product line controller for the Commercial Ser­vices Industry Product Line. He has a degree in chemical engineering from the University of Massachusetts, and an M.B.A. from Boston University.


Corporate Manager Of Environmental, Health And Safety


David Barrett has been named to the new position of corporate manager of Environmental, Health and Safety reporting to John Sims, vice president, Strategic Resources. He is responsible for coordinating and integrating the company’s environmental protection, health and safety programs, including programs in environmental protection, health servi­ces, industrial hygiene, safety and hazardous material transportation. He will assess fu­ture needs, insure that Digital’s programs are state-of-the art and that environmental, health and safety considerations are included in the company’s strategies and business plans. In addition, he will help insure that Digital’s interests are represented on major environmental public policy issues.


David comes to Digital from the Hoechst Celanese Corporation, where he held various posi­tions, including corporate director of Environmental, Health and Safety Policy. He began his career as an industrial hygienist for Western Electric. David received a Master of Science degree in Physiology and a Master of Public Health Degree in Environmental Health from the University of Oklahoma.



Rick Carwile, technical manager of the Job Evaluation and Classification (JEC) Project, has been named Corporate Compensation manager, reporting to Harvey Jones, manager, Corporate Compensation and Benefits. In this position, Rick will continue to concentrate on the successful completion of the JEC Project and its impact on the development and delivery of compensation program policies and systems. Rick has been with Digital since 1980. Prior to joining the JEC Project, he was Compensation and Benefits manager for the Corporate Finance, Administration and Strategic Resources organizations. He held various positions in the Field Compensation Group as well.


Al Hall has been appointed Mid-Atlantic Area Sales vice president, reporting to Ray Wood, vice president, U.S. Sales Areas. Al has 20 years of computer industry experience. Before joining Digital in 1972, he worked for Honeywell Information Systems and Raytheon Data Systems. He has been manager of the Washington Sales District, overseeing its evolu­tion to three sales districts covering defense agencies, civilian agencies and prime con­tractors. Most recently, he was DNA manager with direct responsibility for all Mid-Atlan- tic Area industry named accounts.


Tom Hastings has been named Senior Consulting Software Engineer for the Desktop Systems Group (formerly Terminals Business Unit), reporting to Rick Landau, DSG Program Office manager. During his 20 years at Digital, Tom, and groups led by him, wrote many of the architectural specifications that have helped the company build compatible printing and video products. Tom was a member of the VAX architecture team, and is currently leading the corporate Printing Systems Model effort. An internationally recognized expert in the area of character sets and encodings, Tom holds seven patents. He earned bachelor's and master’s degrees from MIT.


Laurie Macintosh has been named Marketing Programs manager for General Services Industry Marketing (GSIM), reporting to Peter Robohm, GSIM director, and Ed Kamins, manager, Cor­porate Communications. In this position, Laurie will be responsible for developing mar­keting programs, using resources from Media Communications and outside vendors. Laurie joined Digital in March, 1987, after a 10-year career with IBM in sales, market support and marketing communications, in both the United States and Canada. She is a graduate of Smith College, Northampton, Massachusetts.


Jack Rahaim has been named Artificial Intelligence (Al) Marketing manager, reporting to Scott Flaig, Group manager, Al Technology Center. In this position, Jack will have world­wide responsibility for Al marketing strategy and related programs and third-party rela­tionships. He will also be responsible for relationships with the various product and in­dustry marketing organizations which focus on AI. In addition, Jack will continue to man­age the Technology Transfer Consulting Group and the AI Information Center. Jack has been with Digital for seven years and has held a number of management positions in Personnel, Administration and MIS. He is a graduate of Worcester Polytechnic Institute and holds an M.B.A. from the University of New Haven in Connecticut.  privacy statement