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

The Client: A Pioneer in Visual Computing

Imagine the breathtaking special effects that brought dinosaurs to life in Jurassic Park. Behind that magic stood Silicon Graphics Inc. (SGI), a company renowned for its powerful computer workstations capable of manipulating graphic images with stunning realism using processes like “morphing” – the seamless transformation of one image into another. Just as they transformed visual landscapes for the film industry, SGI recognized the need to transform their own operational landscape to keep pace with a rapidly changing market. They were at the forefront of visual computing, and their internal operations needed to perform at the same high level.

The Challenge: Outgrowing the Manual Mold

SGI was a thriving business, experiencing rapid growth and innovation. However, their internal operations, particularly in manufacturing and assembly, were starting to feel less like cutting-edge computing and more like… well, manual labor. As their innovative products grew in popularity and complexity, their existing system, which relied heavily on manual processes, began to strain under the pressure. This created significant roadblocks to efficiency and future growth.

The Growing Pains of Success

• The “Job Shop” Bottleneck: While their manual approach initially offered flexibility, allowing them to build products in small batches (even lot sizes of just one), it became a significant bottleneck as volumes grew rapidly. It was like trying to hand-craft every cup of coffee in a cafe suddenly serving a stadium crowd – the artisanal touch is great, but it doesn’t scale when demand explodes. This manual handling led to wasted time and long travel distances within the facility.
• The Burn-In Backlog: A critical step in their quality control was “burn-in,” where assembled computers were tested under elevated temperatures for anywhere from 10 to 48 hours. This long dwell time was a major chokepoint in the process. Imagine rush-hour traffic trying to merge into a single parking spot – everything slows down, causing significant delays. SGI faced constant juggling acts trying to match specific products to available test chambers, leading to substantial work-in-process piling up, sometimes for two or three days. This directly impacted their ability to deliver products quickly and respond to changes in production schedules.
• Heavy Lifting, High Risk: Some of SGI’s new, high-end products were getting heavier, weighing in at 40 to 45 lbs. Moving these manually through the assembly process wasn’t just inefficient; it raised serious concerns about employee safety and potential repetitive motion injuries – an issue antithetical to a company dedicated to high performance, and a critical consideration for any responsible business owner (as seen in the LeeSar case study where reducing manual handling improved safety).
• Forecasting the Future in a Dynamic Market: Predicting the exact needs of a fast-moving tech market is notoriously difficult. Product mixes were continually shifting, and volumes were growing over 30% a year. SGI needed a system that could adapt quickly to these changes, much like their computers could morph images. Their manual system, despite its initial flexibility, wasn’t built for high-volume adaptability or rapid changeovers.
• The Silicon Valley Space Squeeze: Operating in Silicon Valley meant sky-high real estate costs (around $60 a square foot!). Company leadership issued a directive that would make any operations manager gulp: design a system with three times the capacity in a space 10% smaller than before. This wasn’t just a challenge; it was a spatial puzzle demanding an innovative, space-saving approach.

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

Jeff Korcan, Director of Manufacturing Engineering, summarized their dual goal: “So I guess you could say that with the new system, we wanted to have our cake and eat it, too. On the one hand, we wanted to eliminate the problems we had, and we knew that automating elements of the process would ultimately help us gain better control of our inventory and costs. But on the other, we wanted to preserve the flexibility that we had.”

The Solution: Engineering a Flexible Future Through Integration

SGI realized they needed a fundamental shift. This wasn’t a problem that could be solved by simply buying a few pieces of equipment. They needed a cohesive, intelligent system – a workflow “architect” and “general contractor” who could design and build a solution where all the pieces worked together seamlessly. This is the power of a material handling system integrator like FloStor. As the FloStor case studies demonstrate (from EAS Supplements building an “Order Fulfillment Powerhouse” to Peet’s Coffee achieving a “Symphony of Precision”), an integrator looks at the entire operation to design a tailored solution.

FloStor stepped in to be that architect and general contractor for SGI, designing and implementing a state-of-the-art system that addressed the challenges of volume, flexibility, space, and ergonomics head-on. They leveraged proven technologies but integrated them in a way that created unprecedented adaptability.

Building Blocks of Flexible Automation

The heart of the new system was a cleverly designed conveyor network and an automated storage and retrieval system (AS/RS). But unlike older, rigid automated systems (think of a hulking oil tanker, difficult to turn quickly), this design prioritized adaptability and rapid reconfiguration.

• The Modular, Morphing Assembly Line: The system featured a main “highway” conveyor providing point-to-point transport and feeding three assembly lines with 39 workstations. The genius lay in the modularity and intelligent control.
  • Product Agnostic Flow: Any assembly line could handle any type of product SGI built, allowing them to shift production seamlessly based on demand.
  • Interchangeable, Portable Workstations: The workstations themselves were like movable furniture – each self-contained, with addressable controls, and could be easily physically relocated as needs dictated. Any job could be performed at any station.
  • Plug-and-Play Reconfiguration: As Jim Mullen explains, adapting the lines was remarkably fast: “We just unplug the workstations, unbolt them from the conveyor, and in about five hours we’ve got the system up and running in a totally new configuration.”
  • Intelligent Control Adapts Instantly: The system’s software automatically recognized which stations had been moved and where they’d been moved to, eliminating complex reprogramming headaches. This “morphing” capability mirrored SGI’s own technology, allowing them to change their entire manufacturing mix and capacity overnight.
  • Built-in Scalability: The design included capacity to add about 20 more workstations, ensuring the system could handle SGI’s rapid growth for years to come.
• Multi-Purpose, Intelligent Pallets: The products traveled on bar-coded transport pallets designed with future growth and process flexibility in mind.
  • Universal Fit: Constructed of cast aluminum with a multi-position turntable, these pallets had locating pins designed to accommodate all nine of SGI’s current chassis types and future, potentially larger products. It was future-proofing built into the very carriers, anticipating their needs.
  • On-Line Testing Capability: The conveyor provided electrical contact to the pallets via a flexible buss bar system, allowing computers to be tested directly on the line at any workstation location. This was possible because SGI’s computers featured a universal connector, enhancing system flexibility further.

Maximizing Space and Eliminating Bottlenecks

Addressing the space constraint and the critical burn-in bottleneck required innovative use of vertical space and intelligent system design.

• Taking Operations Upstairs: To keep valuable floor space clear for pedestrian walkways and aisle space (a key consideration in high-cost areas), a network of ceiling-mounted, zero-pressure accumulation conveyor was installed 15 feet above the floor. Instead of space-consuming incline belts, two pairs of vertical lifts were used to efficiently move products up to this overhead highway, maximizing the facility’s cube utilization – a smart solution for tight footprints, similar to how LeeSar used spiral conveyors for vertical transport in a compact space.

“Actually the lifts have really worked out well for us, because we can take one product off the system as we’re putting another on, said Mullen. “The throughput is really outstanding.”

• The AS/RS Burn-In Powerhouse: The high-density Automated Storage and Retrieval System (AS/RS) did double duty, serving as both automated storage and the fully automated burn-in testing system.
  • Any Product, Any Slot for Burn-In: Thanks to the universal connectors on the pallets and in each storage bay, any product could be stored and tested in any location within the AS/RS. This eliminated the previous constraint of specific products needing specific chambers, drastically improving flexibility in the burn-in operation which previously required multiple dedicated conveyor lanes eating up floor space.
  • Independent Control for Optimized Flow: Because each storage location was controlled independently, the system could store and retrieve computer products in any sequence required for final configuration and testing, optimizing flow after the lengthy burn-in process.
  • Faster Failure Detection: A “watchdog” computer integrated with the system immediately alerted operators to product failures during burn-in, potentially saving hours compared to the old manual process where failures might only be found after many hours of testing. In the fast-paced computer market, even a few hours saved can be critical.

The Integrated Advantage: Predictable, Adaptable Flow

This wasn’t just a collection of conveyors, lifts, and a storage machine. The key was how FloStor, as the system integrator, designed these components to work together seamlessly, controlled by intelligent software. The integrated system ensured continuous, predictable flow, routed products correctly based on real-time needs, managed inventory within the AS/RS, and provided real-time visibility into the process. It transformed SGI’s operation from a series of manual handoffs and bottlenecks into a smooth, predictable, and highly adaptable workflow, much like the seamless flow achieved for International Paper’s beverage cartons.

The results were impressive and directly addressed SGI’s challenges:

• Triple Threat Capacity Achieved: Successfully met the directive to achieve three times the previous throughput capacity within a smaller footprint.
• Flexibility Preserved (and Enhanced): Maintained and significantly improved the ability to handle a continually shifting product mix and volume, even allowing for rapid physical reconfiguration of the lines in just hours.
• Bottlenecks Eliminated: The AS/RS solved the critical burn-in bottleneck, drastically reducing work-in-process queues and improving cycle time.
• Improved Ergonomics and Safety: Automated movement of heavy products via conveyors and lifts, along with bringing work to the operator, significantly reduced strenuous manual handling and improved worker safety and comfort (echoing the benefits seen at Cooper B-Line and LeeSar).
• Faster Cycle Times: Added flexibility in burn-in and faster failure detection shaved about two hours off the average cycle time.
• Scalability for Future Growth: The modular design and built-in capacity to add more workstations ensured the system could accommodate SGI’s rapid growth for years to come.

Mullen highlighted the project’s rapid success and collaborative nature: “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. I think we were successful because the whole project was a team effort.”

Just as the dinosaurs became extinct due to their inability to adapt, SGI understood that survival and success in a dynamic market required operational adaptability.

By partnering with an expert integrator like FloStor to design and implement a flexible, integrated material handling system, Silicon Graphics engineered an operation capable of “morphing” to meet the demands of today and whatever future innovations they dream up. They didn’t just buy equipment; they invested in an adaptable, high-performance future.

FloStor’s role as the system architect and project manager was key to turning complex components into a harmonious, efficient, and future-ready operation.