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INTERCOMNEWSLETTER FOR MEMOREX EMPLOYEES

VOLUME 5, NUMBER 7

OUTSTANDING SALESMAN and sales contest winner Tom Holmes, left, aeeepts anengraved desk set from National Sales Manager Hill Gastrins, center. Hill I'alsurisdisplays "Outstanding Sales Performance" plaque, that now holds Tom's name.

Shipments Start on NASA Contractstringent NASA specifications relatingto durability and magnetic propertiesand ability to withstand temperatureand humidity changes incurred intransport and handling.

JULY, 1968

Tom Holmes WinsSales Contest

Sales Representative Tom Holmeshas won the first "Outstanding SalesPerformance" contest for graduates ofour Marketing sales training classes.

Allen Kline, South Central Region,was second and John DaGrosa, CentralAtlantic Region, finished third.

Tom sold more disc packs duringthe contest (May 15-Junc 28) thanany of the 12 others who graduatedfrom the May, 1968, class for newlyhired salesmen. We can't mention theactual quantity of disc packs Tom sold,but it was a three digit number.

He works out of our Belmont office,for Northwest Regional Sales ManagerBill Patsuris. Needless to say, Bill isquite proud of his new man's accomplishment.

Tom's name goes on a plaque inthe Marketing conference room. Theplaque is reserved for the names ofthose who contribute outstanding salesachievements to the Marketing efforteach year. He also receives a personalized award for his desk, a dinnerfor two and a key chain.

Similar awards will be presented tocontest winners from each sales training class.

Memorex has begun to supply facilities of the National Aeronautic andSpace Administration with enough precision magnetic tape to encircle theearth five times—some 120,000 miles oftape—under terms of a $3 million contract announced this month.

NASA said the tape will be used intelemetry applications monitoring deepspace probes, Apollo lunar flights, andfor NASA's data acquisition, communications and manned space flight networks.

The tape will be used by the God-dard Space Elight Center, Greenbelt,Maryland; Kennedy Space Center,Cape Kennedy, Florida; Manned Spacecraft Center, Houston, Texas; MarshallSpace Flight Center, Huntsville, Alabama; Ames Research Center, Mountain View, and Jet Propulsion Laboratory, Pasadena.

Approximately 60% of the contractwill be for the latest wideband tapewhich we will manufacture to meet

Congressmen Write About Memorex TapesMemorex video tapes will play an

important part in a great many 1968reelection campaigns, partly because ofletters mailed out by two United StatesCongressmen.

About two months ago, Congressman Alvin E. O'Konski, from Wisconsin, wrote a letter to each of his fellowHouse of Representatives members advising them of the superiority of Memorex video tapes. Congressman O'Konski owns and operates a full color television station, so he knows about videotapes.

Last month a follow up letter wentout to the 433 members of the U. S.Congress, this time from the Honorable

Charles S. Gubser, Congressman fromCalifornia's 10th District. CongressmanGubser's letter read, in part:

"As their manufacturing facilitiesare located within my district in theState of California, I have had theopportunity to witness their growthfrom a new company in 1962, intothe second largest manufacturer ofmagnetic tape in 1968.

(Continued on Page 5)

COMPANY SETS QUARTERLYPROFIT SHARING RECORD

See Page 2

PROFIT SHARING POINTERSBy JOHN MORSE

QUARTERLY PROFIT SHARING RECORD: $305,000

For the three months ended June30, the Profit Sharing reserve for Mem-orex's annual contribution to ProfitSharing was $305,000, a record high forany quarter and 67% above last year'sSecond Quarter Profit Sharing figure.

The efforts of all employees to curtail operating expenses and improveprofits in the Second Quarter paid offin substantially higher Profit Sharingand improved operating results for theCompany.

On sales of $14,392,000 in the Second Quarter, Memorex earned profitsof $1,223,000, a 45% year-to-year in

crease over the Second Quarter profitsof last year. Earnings per share were34^ compared tQ 26^ in the same threemonths period last year.

The above operating results produced a Profit Sharing figure of$305,000' for the Second Quarter, upfrom $166,000 allocated in the FirstQuarter.

The outlook for Profit Sharing inthe Second Half of the year continuesto be favorable, but also depends onthe continued efforts of all of us tocurtail operating expenses and improveprofits.

Profit Sharing Investments Post 7% Gain

During the Second Quarter, the investments in our Profit Sharing Trustsubstantially increased in value, showing a 7% gain in market value fromMarch 31 to June 30. This increase inthe value of Profit Sharers' accountswill be shown on the ParticipationStatements mailed to members at theend of July.

The above increases in our ProfitSharing accounts are due primarily tothe higher market values of the common stock investments made withProfit Sharing funds from prior years'contributions. The value of these investments will fluctuate from monthto month, but the long-term trend intheir value has been upward over thethree years of our Plan's existence.

A number of questions have beenasked about the Participation Statements and the meaning of quarterly

changes in account values. The following comments may help to answerthese questions.

First, only members of the Plan whoparticipated in 1967 Profit Sharing willreceive Participation Statements in1968. Employees who become members of the Plan in 1968 will receivetheir first Statement for the period ending March 31. 1969. This Statementwill show all members' shares of the1968 Profit Sharing contribution.

The current changes in the value ofmembers' accounts shown in the quarterly Participation Statements have norelation to the 1968 Profit Sharing contribution. These changes are causedsolely by investment income andchanges in the market value of ourProfit Sharing investments as mentioned above.

EMPLOYEES

ON THE MOVE

Former Video Production SupervisorAl Uhrich has been promoted to videoproduction manager. Al has a B.A. inMechanical Engineering and a Master's Degree in Industrial Management.He came to Memorex in November oflast year after nine years with VarianAssociates.

Vic Manriquez has been promotedfrom production technician to foremanof production, at Disc Pack in Hawthorne. Vic has been with Disc Packfor about a year and was one of thatcompany's first production technicians.

Harry Uristow's many friends atComdata were happy to see him returnto work after a 2'/2 month illness.Harry is plastics foreman.

Roger Disinger, manager of Systems and Procedures at Santa Clara,received a special Merit Award at lastmonth's meeting of the Systems andProcedures Association. Roger washonored by the group's internationalassociation for his nine years of activeparticipation, including a term as president of the local chapter when heworked in Southern California.

We don't normally write about fishstories, but this one comes from an unimpeachable source, even though he isan avid fisherman. Howard Burk-hart, controller at Peripheral Systems,caught a 120 pound sailfish off thecoast of Mexico, near Mazatlan. Theunusual part is that three others on thesame boat caught sailfish that day.Howard says many fishermen go fordays without catching a sailfish, but"we were extremely lucky." He andhis wife were on a 14-day cruise downthe coast of Mexico.

"Help Thy Neighbor," New Plan To Ease Heavy Secretarial Workloads"Help Thy Neighbor" is the name

of a unique new plan to provide secretarial and clerical assistance to departments in the Santa Clara plant whentheir workloads are unusually heavy.Nearly 20 secretaries and clerks havevolunteered to do work from otherareas when they have a few spareminutes during the day.

Personnel Assistant Dorothy Pace iscoordinator of the new program. Whena department needs assistance, Dorothy calls the volunteers on her list

until she finds someone who can do

it. She says it usually only takes twoor three calls.

Dorothy says the plan has providedabout 25 hours of volunteer help in lessthan a month and "reports back fromthose who have received help havebeen good."

The program promotes close cooperation between departments and alsogives the volunteers a chance to gaina broader knowledge of the company

by allowing them to do work fromdifferent areas.

Dorothy explains that the volunteerscan normally do the work at their owndesks and they are never expected toaccept work from another departmentwhen their own workloads are tooheavy.

The list of helpers is still growingand anyone wishing to "Help ThyNeighbor" can call Dorothy at extension 301.

Hounslow Becomes

Manufacturing Mgr.

Jack Hounslow is the new manufacturing manager in the tape plant,announces Hig Tavrow, tape plantmanager.

Jack has more than 17 years of industrial experience, in jobs rangingfrom slitter operator to vice presidentand general manager.

The first manufacturing job he everheld was slitting coated film base forGeneral Analine (Ansco) in his hometown of Binghamton, New York. Atthe time, he was working nights andattending State University of NewYork during the day.

Jack worked at Ansco and went tocollege for six and one-half years before he received his B.S. in ProductionManagement. By the time he obtainedhis degree he was manager of QualityEngineering. Then, he transferred tothe Syracuse Graduate School of Business, where he was awarded his MBAthree years later.

When Jack finally left General Ana-line to move to IBM he was qualitycontrol manager. At IBM he workedhis way up from industrial engineerto project manager, Supplies Division.

NEW MANUFACTURING MANAGER Jack Hounslow, tenter, visits Packaging, whichis one of the areas that will report to him. Here he talks with Vin Gosslinp, right,and Dave Hennessy.

His next move was to Pacific Elec-tricord in Gardcna, California, wherehe was plant manager.

Most recently Jack was vice presidentand general manager for StohsnerManufacturing in Napa. He was responsible for many innovations in thecompany's product line, which resultedin higher volumes of industry, com

COMPANY PRESIDENT Laurence Spitlers, renter, was at the New York Stock Exchange on June 19, when Memorex was listed on the Rig Roard under the tickersymbol "MRX". With him were Stock Exchange President Robert Haack, left, andJack Zicharth, of Wilcox and Co., specialists in our stock.

merce and defense contracts.

Jack is presently undergoing a training period to familiarize himself withMemorex. When he assumes his fullduties as manufacturing manager, allproduction operations (mix, coating,slitting, computer finishing, instrumentation, video and packaging) will report to him.

MIXED SCRATCH LEAGUE

The Memorex Mixed Scratch Leaguewill open its new season at MoonliteLanes, Wednesday, September 4.

This may sound like a league forthose who like co-educational itching,but it is really for bowling. The actionwill begin at 6:15 p.m. Interested employees should contact Joanne Gerry,264-2751, or Mike Munson, extension272.

INTERCOMNEWSLETTER FOR MEMOREX EMPLOYEES

EDITOR: Gary Williams

STAFF: Sara Millar, Roger CookJudy Bonino

CORRESPONDENTS:Jim Boothe (L. A. Subsidiaries)

Virginia Koeberle (PSC)

An official publication for employees ofMemorex Corporation. Published monthlyby the Industrial Relations Division, 1180Shulman Ave., Santa Clara, Calif. 95050.

Member of:

BASIC

Bay Area Societyof Industrial

Communicators

litho in u s

InternationalCouncil

of IndustrialEditors

Critical Path Scheduling Used To Guide Work on Belgian PlantWalk into Phil Conley's office and

you will see charts that look like largecounty road maps on his wall, tableand desk. If you look around theSanta Clara plant you will see othercharts like Phil's displayed prominentlyon the walls of several offices.

These charts, or Critical Path Schedules, are part of a complicated programMemorex is using to insure that startup of our Belgian tape plant goessmoothly and according to schedule.

Phil is project coordinator for Memorex European Operations and is responsible for Critical Path Scheduling(CPS). He reports to Roland Jang,director of Engineering and overallmanager of the MEO launch team.

Phil's job is to use CPS to makelaunch project managers aware of wheneach of their jobs should be startedand when each of them should becompleted. This involves the carefulscheduling of more than 800 differentactivities that must be done before theplant can begin operating. (An activity involves work being done. Forexample, training supervisors is an activity. On our CPS charts, an activitytakes more than a day, but generallyless than three weeks.)

These evaluations and estimateswent to Phil. With the assistance ofRoland and the launch managers, hesorted them out and placed each of

MEO CRITICAL PATH NETWORK

Initial Eight Activities

HIRE & TRAIN SUPV.

WEEKS

the activities on the Critical PathSchedule chart.

Phil started with some of the basicactivities like those in the sample CPSchart on this page. He used the estimates given him by the launch managers to write in the number of dayseach activity would take to complete.This is an extremely difficult part ofthe scheduling, because the amount oftime a job will take can be varied according to the amount of money spent

ciiiorcx European Operations and the mandiscusses a revised CPS chart with Lillian

PHIL CONLEY, project coordinator for Mresponsible for Critical Path SchedulinPrindle.

on it. A job can be done faster byspending more money—how much canbe spent, though, depends on howmuch the budget will allow. This iscalled "time-cost-tradeoff."

As you can see in the sample chart,the starting point for each activity isrepresented by a circle. The chartshows that planning must be done before contractor's bids can be obtained.So an arrow is drawn from the circlethat represents the beginning of planning (point A for easy reference) toa circle that represents obtaining bidsfrom contractors (point B). The linefrom point A to point B represents thepath of the planning activity and thearrow on the end of that line is thecompletion of planning.

Notice that four lines, or paths, runfrom circle B to other circles on theschedule. These lines show that fouractivities can begin once planning iscompleted. Bids can be obtained, andat the same time, the longer processesof hiring and training supervisors;building and installing equipment; andbuying supplies can begin.

When the bids are in and a contractor selected, actual construction ofthe facility can begin.

These two activities will take a totalof 52 weeks. At the end of that time,all activities between points B and Dmust be completed, so the next stepcan begin.

Notice that these activities take different lengths of time to complete. Because the longest path was the onebetween B and D, the manager incharge of obtaining supplies had 52

(Continued on Page 5)

NEWLY ELECTED MAG officers look over posters announcing the August 10th annual picnic at Frontier Village. Board of Directors inemhers are, from left, MikeHopkins, Mel McPherson, Pat Kostelnik (Secretary), Joe Richards (Treasurer), KitWeaver (Vice President), Ron Cavender, Don Casclas (President) and Mary Nelson.

CPS Guides Belgian Plant Project;(Continued from Page 4)

weeks to complete his 21-week job.The 31 extra weeks arc called the"float," meaning the leeway he is allowed to finish his activity. The managers in charge of building and installing equipment work on a much closerschedule—they have only one week of"float."

Since this is just a simple illustrationand not the actual Critical Path Schedule, can you imagine what the realthing is like with its 800 activities-many with little or no "float?"

Phil's job is already complicated, butit was more complex during the earlystages of CPS. The activities on theschedule are updated every two weeksand he used to have to do all calculations by hand. Now the launch managers give him their reports and LillianPrindlc, project coordinator assistant,prepares the information for the keypunch machines.

Then, the reviseddata is run throughour computer by members of TedBernas' Electronic Data Processing Operations group. During the development stage of CPS, Bob Kastelic, computer programmer, and Sue Wiesncr,computer program analyst, were instru

mental in setting up the computer information program. Eddie Jung andPing Tom, from drafting, use the newinformation to draw the revised CPScharts. The revised computer schedulereport and CPS charts arc then distributed to the various launch managers.

It's a complicated program, but itis working quite well for Memorex andindications arc that the first reel oftape will come out of our Belgian planton schedule, in early 1969.

Congressmen WriteAbout Memorex Tape

(Continued from Page 1)"I believe that this company's

growth and (he success of their products are the direct result of their'white room' approach to manufacturing, the industry's most thoroughquality control procedures, and theirtotal company commitment towardproduct reliability and performance."I strongly endorse their product

quality and urge that you considerusing Memorex video tape for yourtelevision broadcasting."

Dr. Harold Eding JoinsChemical Research

A Ph.D with 20 years of experienceat Stanford Research Institute is thenewest member of the Memorex Research Division.

Dr. Harold Eding, who received hisPh.D from Stanford University in 1944,is now a senior research chemist in theChemical Research Department. Heworks with Dr. Saul Chaikin, chemicalresearch manager, who also came toMemorex from SRI.

Dr. Eding's job is to lead a programthat is underway to develop improvedversions of the basic magnetic ingredients of our tapes.

He has worked in the general area ofoxides since he joined SRI in 1948. Oneof his jobs at the research institute wasto solve the Atomic Energy Commission's problem of how to dispose ofradioactive atomic waste materials.

YOUTH AND COMMUNITY CENTERSare hut one of many services providedby the Salvation Army—assisted hy theSanta Clara County United Fund. OnSeptemher 3, the United Fund will kickoff its 1968 campaign, marking the endof the first decade of UF fund raising inSanta Clara County. Proceeds of thisIOth anniversary campaign will benefitthe Salvation Army and 80 other charitable agencies, including the followingnew ones: Peninsula Children's Center;Bay Area Health Facilities PlanningAssn.; California Council on Crime andDelinquency; National Urban League;Ituddv Program Project (Volunteer Bureau) ; Police Athletic League (PAL).The highest-ever goal of $3,181,401, isa formidable challenge for UF volunteers, since it means they must raise 10per cent more than the amount collectedlast year. This goal doesn't seem SO highwhen you consider that UF campaignsonly once each year and the money goesto support its 81 agencies for the next12 months. None of us knows when wemay need the services of one of theseagencies. Hut if we should, they will bethere to help. That's why United Fundhopes you'll say "yes" when asked to"pledge your fair share."

MEMOREX INTERCOM

Memorex CorporationSanta Clara, Calif. 95050

RETURN REQUESTED

SCAG Holds FirstSummer Picnic Aug. 4

The Southern California ActivitiesGroup (SCAG) will hold its first summer picnic Sunday, August 4, at ElnidoPark in Torrance.

The group, which is open to employees at Disc Pack (Hawthorne),Comdata and Substrate, will furnishmeat and drinks and members willsupply the rest of the day's menu.

Besides lots of delicious food, therewill be a number of games for children and adults, with prizes for thewinners. There will also be a drawingfor an AM/FM radio.

SCAG President Del Deffenbaughreports that nearly 100% of the employees at Disc Pack have joined thenew group. Comdata has about 70%membership and Substate has about50%. Overall percentage of membership for the three companies is approximately 70%.

DIVOTEER GOLFERSDivoteer golfers will gather at Aptos

Beach Country Club Saturday, August24, for another in their series of summer tournaments. Contact John Lowe(ext. 224) or Ann Bassford (ext. 563)for further information.

Jim Taylor shot a low gross scoreof 82, net 66, and topped the firstflight at Riverside, July 13. Mel Mc-Pherson took second with a net 71 andHoward Earhart and Tony Burgos liedfor third with net 73's.

The second flight finished in a two-way tie between Dick Switzer and TomChapman, with net 68's. Bruce Bushwas third with a net 75.

Peripheral Systems golfers were firstin both flights in the June tournamentat Pasatiempo. Bob Bailey won thefirst flight with a net 69, followed byJerry Cayton (net 70) and Dick Ray(net 75).

Dave Duncan topped the secondflight with a net 73. He was followedby Bud Trier (net 78), Don Smithand Bob Wallin (net 81).

FRONTIER VILLAGE SITE OF MAG PICNICMAG members should circle August

10th on their calendars. That's thedate of the annual Memorex ActivitiesGroup picnic which will be held againthis year at Frontier Village, San Jose.August 10th is a Saturday and the funwill start at 10 a.m., continuing until5:30 p.m. Admission is by ticket andthey can be picked up at Pat Kostcl-nik's desk in the Personnel lobby. AllMAG members and their immediatefamilies or dates are eligible to attend.

General chairman for the picnic isRon Cavender, with Kit Weaver serving as his assistant. Ron promises lotsof good food, beer, soda pop and funfor all. The menu this year will include choice steaks for the adults, ham

burgers for the children and hot clogsfor tots (children 4 years and under).Included with the admission are ticketsfor rides. Adults may also enjoy horseshoes and volleyball.

Since the menu is an expensive one,Ron has one special request to maketo MAG members. While urging everyone to attend the picnic, he asks thatthose who do not plan to attend toplease NOT PICK UP TICKETS. Wewill be charged for each ticket that isissued even though they are not used.

So put a red ring around August10th on your calendar and plan a dayof family fun with your Memorexfriends.

*k.

JOIN THE FUN AT FRONTIER VILLAGE SATURDAY, AUGUST 10