Fueling High-End Performance: How Silicon Graphics Integrated Automation for Control and Flexibility

The Client

Silicon Graphics, Inc. (SGI), founded in 1981, was a leading public company specializing in the production of state-of-the-art computers primarily used for graphics. With manufacturing facilities in Mountain View, CA, Switzerland, and Japan, and employing over 4,000 people, SGI was experiencing significant growth and high output demands.

The Challenge

As Silicon Graphics grew, the need to maintain high production volumes while simultaneously producing a wide variety of high-end and low-end computer models within the same system became paramount. Their existing processes, which involved separating high-end and low-end production across two buildings totaling 165,000 square feet, were heavily reliant on manual handling and proved to be significant bottlenecks.

Key challenges included:

• Manual Handling & Ergonomic Risk: Production was highly labor-intensive, involving substantial manual lifting of heavy boxes (up to 40 lbs. each), posing safety concerns for employees who might lift hundreds of systems daily.
• Information Management: The increasing volume of products necessitated a more automated way to handle the associated production data and tracking.
• Scaling Production: SGI projected a need to triple their production output, a feat impossible with their existing manual processes and forklift-dependent material movement.
• Maintaining Flexibility: Despite the need for automation, a critical requirement was the ability to adapt quickly to new computer models and reconfigure production lines due to short product life cycles.
• Inefficient Workflow: The manual process of moving units off and onto conveyor lines for testing, burn-in (which could last 10-48 hours), and quality control stations created significant delays and required manual intervention like lifting or using cranes.

As Jim Mullen at Silicon Graphics described, their system was “maxed out” at 100-150 units a day, severely limiting their growth potential.

The Solution

Recognizing the limitations of their manual processes and the need for a strategic shift to accommodate growth, enhance safety, and ensure flexibility, Silicon Graphics partnered with a trusted material handling system integrator. FloStor Engineering, having successfully completed previous projects with SGI, was brought in from the concept phase to completion.

FloStor, acting as the system architect, collaborated with SGI to design a comprehensive, automated conveyor system. This solution wasn’t just about adding equipment; it was about engineering a seamless workflow that integrated production, testing, burn-in, quality control, packing, and shipping into a single, efficient process. The project involved consolidating operations from two buildings into the existing 100,000 sq. ft. low-end facility.

The integrated system was designed with key innovations:

• Elevated Conveyor Lines: To improve traffic flow on the floor, the conveyor lines were strategically placed off the ground.
• Integrated Power Pallets: A crucial innovation was the use of special power pallets designed to carry the computer units. These pallets had their own power connectors that could “snap in” at every test station along the line, eliminating the need to manually remove and replace units from the conveyor.
• Modular Test Stations: Test stations were designed to be modular, allowing them to be easily moved and reconfigured to different lines, ensuring the required flexibility for rapidly changing product models.
• Multi-Phase Workflow: The system was implemented in three integrated phases:
  1. Assembly & Burn-in: Workstations fed completed units on power pallets onto a “main highway” conveyor (Hytrol SPA). Vertical lifts and more SPA conveyors transported units to burn-in.
  2. Final Testing & Pack Out: After burn-in, units returned to the “main highway” for final testing (again without leaving the pallet/conveyor) and ascended via vertical lift to the second phase for packaging. SP and incline belts moved units to packaging, with a holding area for finished product before boxing. Pallets were returned to the assembly area via conveyor.
  3. Shipping Staging: Packaged computers were pulled from a large flow rack system onto a take-away conveyor, transported overhead, and lowered by a vertical lift to the loading area for palletizing and shipping.
• Proven Technologies: The final system design, refined through simulation from six initial ideas, utilized proven conveyor technologies (Hytrol SPA, SP, incline belts, pop-up O-ring transfers) and integrated them with custom elements and control software (by Serra Systems).

The Results

The implementation of the integrated conveyor system transformed Silicon Graphics’ operations, delivering significant, quantifiable benefits and overcoming their previous limitations. These included:

• Dramatic Increase in Throughput: The facility’s capacity surged from a maximum of 100-150 units a day to approximately 400 units a day across three product lines, with potential for further increase.
• Tripled Output in Reduced Space: By consolidating into a 100,000 sq. ft. building, SGI was able to produce three times the number of boxes compared to their previous 165,000 sq. ft. setup.
• Reduced Manual Handling & Improved Safety: The system significantly decreased the need for employees to manually lift and carry heavy boxes, addressing critical safety concerns and reducing physical strain.
• Enhanced Flexibility: The modular design, reconfigurable lines, and integrated power pallets allowed SGI to quickly adapt the system to new product models with short life cycles.
• Seamless Workflow & Eliminated Bottlenecks: The automated movement of units on power pallets through testing and burn-in eliminated previous manual steps and traffic jams on the line.
• Impressive ROI: Despite the investment, the conveyor line was considered cost-effective, contributing to a period where sales increased significantly from $700 million to over $1 billion.
• Zero Production Downtime During Installation: Crucially, the system was installed in phases over less than six months without requiring a shutdown of existing production, allowing SGI to “just moved everything and kept producing stuff.”
• High Reliability: The system proved remarkably reliable, running up to 24/7 during peak times with minimal issues, primarily operator errors or minor maintenance needs. As Jim Mullen stated, “It’s become a non-entity, it’s just like the lights going on at night, it just happens.”

By partnering with FloStor Engineering for a comprehensive, integrated solution, Silicon Graphics successfully navigated the challenges of rapid growth, diverse product lines, and the need for operational flexibility. They transformed a labor-intensive, space-constrained operation into a high-throughput, safe, and adaptable automated powerhouse, securing a significant return on their investment and establishing a foundation for future growth.