From Bottlenecks to Breakthroughs: How SGI Rewired Its Workflow for the Digital Age

Faced with growing pains and skyrocketing demand, SGI overhauled its outdated manual processes with an agile, integrated automation system—boosting productivity, safety, and space efficiency while future-proofing for rapid market shifts.

From Dinosaurs to Digital: How Silicon Graphics Morphed Operations for Peak Performance

The Client: Silicon Graphics (SGI)

Silicon Graphics Inc. (SGI), a pioneer in visual computing, was scaling rapidly while supporting a constantly shifting mix of advanced workstation products. To stay competitive in a high-growth market, SGI needed manufacturing operations with the same adaptability and precision as its products.

SGI partnered with FloStor to redesign assembly and burn-in flow into a scalable, reconfigurable automation environment built for sustained growth.

The Challenge

Manual Job-Shop Limits: A labor-heavy batch process became a throughput bottleneck as demand accelerated and travel distances increased inside the plant.
Burn-In Chokepoints: Long burn-in dwell times (10 to 48 hours) created persistent queues, work-in-process buildup, and scheduling instability.
Ergonomic Risk: Heavier product units (40 to 45 lbs.) required repetitive manual handling that raised safety concerns and strain.
Volatile Product Mix: Model demand and configuration requirements shifted rapidly, requiring a system that could be reconfigured quickly.
Extreme Space Constraint: Leadership required roughly triple capacity in a footprint about 10% smaller, in a high-cost Silicon Valley real estate environment.

“Though our volumes were getting to be pretty substantial, we were running the operation more like a job shop.” – Jim Mullen, Industrial Engineer, SGI

The Solution

FloStor engineered a flexible conveyor-and-AS/RS architecture that connected assembly, transport, burn-in, test, and reconfiguration workflows into one intelligent system. The design prioritized rapid changeover, vertical cube utilization, and sequence control instead of rigid fixed-line automation.

The platform used modular stations, configurable routing, and data-aware controls to preserve product-mix flexibility while raising throughput and reducing manual handling dependence.

Systems Used

Main Highway Conveyor with Modular Branch Lines: A point-to-point conveyor spine fed three assembly lines and 39 workstations, supporting dynamic routing and balancing.
Portable Reconfigurable Workstations: Addressable station modules could be unplugged, moved, and returned to operation quickly as product mix changed.
Bar-Coded Universal Transport Pallets: Cast aluminum pallets with multi-position turntables and universal fit carried all current chassis types and supported future growth.
On-Line Electrical Test Connectivity: Buss-bar power contact allowed units to be tested directly on conveyor at multiple points without repetitive off-line handling.
Ceiling-Mounted Zero-Pressure Accumulation Conveyors: Overhead routing preserved floor space and improved traffic conditions while maintaining controlled flow.
Vertical Lift Pairs and Integrated AS/RS Burn-In: Lifts moved units efficiently between elevations, while the AS/RS provided high-density storage and any-slot burn-in/testing flexibility.

Silicon Graphics Inc. (SGI) - Scheme — A conveyor highway delivers work-in-process to highly reconfigurable modular workstations branching from the main line, enabling much higher capacity in less space.

The Power of Integration in Action

FloStor’s integrator role connected conveyors, lifts, AS/RS controls, pallet tracking, and workstation logic into one coordinated production engine. This eliminated fragmented handoffs and enabled predictable flow despite long burn-in dwell times and changing model demand.

Because controls recognized station moves and routing changes automatically, SGI gained near-overnight reconfiguration capability without prolonged reprogramming cycles.

The Results

SGI transformed from a constrained job-shop model to an adaptable high-throughput manufacturing system that balanced flexibility with scale. The new architecture reduced burn-in delays, improved space utilization, and strengthened daily production control.

By combining modular automation with intelligent flow management, SGI achieved major capacity gains while preserving the ability to shift quickly with market demand.

Key Performance Gains

Capacity Expansion: Designed to deliver approximately 3x throughput in a footprint roughly 10% smaller than prior operations
Rapid Reconfiguration: Physical line and workstation reconfiguration could be completed in about five hours
Cycle-Time Improvement: Burn-in flexibility and faster failure detection reduced average cycle time by about two hours
Operational Continuity: End-to-end implementation completed in under six months without disrupting active production

“One of the things we are most proud of is the fact that this whole project was completed in less than six months, and we did it without production ever missing a beat.” – Jim Mullen, Industrial Engineer, SGI

Why This Worked

This implementation worked because SGI and FloStor prioritized integration strategy over isolated automation purchases. The system was designed to absorb variability in product mix, sequencing, and demand without losing control.

End-to-End Workflow Design: Assembly, burn-in, testing, and material transport were integrated into one controllable sequence.
Flexibility by Design: Modular stations, universal pallets, and automatic controls recognition enabled fast adaptation to new models.
Vertical Space Optimization: Overhead accumulation and lift integration unlocked throughput gains without expanding floor footprint.
Operator-Centered Execution: Reduced heavy manual handling and unnecessary travel improved safety and sustained productivity under growth.

Related Services

System Integration and Controls Architecture
Conveyor, Lift, and AS/RS Workflow Design
Modular Workstation and Flexible Manufacturing Design
Phased Implementation, Commissioning, and Lifecycle Support

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