HP Memories

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How it all Began -- HP Loveland Facility
by Kenneth Jessen

Hewlett-Packard's Loveland Facility,
How it all Began

by Kenneth Jessen

Foreword

The thought that this document could become an important part of the Hewlett-Packard history in Loveland came to me several years before the recently announced separation of HP into a computing and imaging company and a measurement organization. With the advent of the separation, it now seems even more important to capture this period before the opportunity slips away.

I knew when I began this project that I needed not only an author with talent, but I needed someone with the passion of an early employee. I found that in Ken Jessen. When I first approached Ken with the idea following a meeting on another subject, I could tell I'd made the right decision. He began talking about the concept and his ideas as we walked down the hall. I knew I'd discovered a kindred spirit.

Ken and I have talked about the dangers of writing a history of this nature. Research is limited to the few existing artifacts we kept, primarily old Hi-Points magazines, faded photographs and interviews with retired employees. And when you set about to name names, it's impossible to recall or record all the players involved. Be that as it may, this represents our attempt to record and relate the history of a unique place and time for hundreds of people we called HPites.

This book is dedicated to all those we described who made HP Loveland a brief and shining "Camelot." To those whom we've named and to those who were also players on the stage, but whose names are not recorded, you were all a part of it. And to Virginia DeBoer, my mother-in-law, without whose presence I would not have been a part of it.

Jim Willard
Site Public Relations Manager and
Hewlett-Packard employee 1967-1999

Acknowledgments

The author would like to thank all of those who provided insight and ideas for this project. On the top of the list is Jim Willard who conceived of the idea for this project and who provided a great deal of guidance. Others, who not only proof read the entire document but provided new information, include Bob Bump, Chuck Platz, Judi Hoefer, Laraine Frost, Linda Johnson, Arlen Amundson, Noel Pace, Al Sperry and Art Helgeson. Don Wick, Paul Febvre, Jack Kirkpatrick and Bill Brunelli helped recall some of the early events and product development activity. Walt Skowron filled in the blanks were information about people and events was missing from written records. I would also like to thank my professional readers Mary Edelmaier, Sandy Perlic and Susan Hoskinson.

Introduction

Hewlett-Packard has undergone many changes over the years. Up until the late 1960s, its entire product line consisted of instruments designed to make fundamental electrical measurements. The company's roots are based on the world's first practical, low-cost Wein Bridge oscillator, invented by Bill Hewlett. Hewlett-Packard rapidly expanded this product line through acquisitions, and the development of new products by its own divisions. The Company entered the computational equipment field in the late 1960s in gradual steps with the introduction of a mainframe computer, a desktop electronic calculator and a pocket calculator. The final development and manufacture of the desktop calculator was done at the Loveland site. Printers and plotters were also developed by HP until today, instrumentation plays only a minor role in overall sales. In March, 1999, Hewlett-Packard's management decided to split the $47 billion company onto two parts: an independent company, with its focus on test and measurement, and the Hewlett-Packard Company, with its focus on computation and imaging products. Given HP's growth objective, this decision was made in response to the difficulty in managing HP's diverse product line.

Founded on the beliefs of Dave Packard and Bill Hewlett, the idea for new products was tied to technical contribution in the measurement field. Projects were cancelled if they would not offer new performance at a reasonable price. The idea of entering commodity markets, where price and brand name were the primary driving forces, is relatively new to HP's business philosophy.

In 1964, Bill Hewlett issued these objectives, "Twenty-five years ago, when Dave Packard and I began to design and manufacture electronic measuring instruments, we resolved on two prime objectives. One was to produce instruments that constituted true technical contributions. The second was to produce instruments that embodied quality at moderate cost."

Dr. Deming, considered the Father of Statistical Process Control, taught the Japanese the virtues of using quality components as a means of improving reliability. To achieve similar quality objectives, Hewlett-Packard discovered very early that it could not purchase quality precision components for its products. Delivery time was also an issue. It also found that it was unable to find outside vendors for many of its specialized fabrication operations. Therefore, the company became vertically integrated performing the majority of manufacturing operations within its own plants. As HP grew and was almost self-sufficient, out-sourcing was a rare event. At the Loveland site alone, precision resistors, relays, air-variable capacitors, meters, rotary switches, terminal boards, cables, transformers, optical components, integrated circuits, molded parts, sheet metal parts, machined parts, PC boards and PC assemblies were all fabricated within the plant.

This has changed dramatically. PC fabrication was sold off and PC assembly will soon close (as of 1999). Practically all of the other manufacturing functions are out-sourced to a variety of vendors. The emphasis has been on the development of vendors to provide quality and cost-effective processes for HP. What survives, from a manufacturing viewpoint, is final assembly and test. Gone are all the thousands of square feet once dedicated to manufacturing precision components. Even some of the design work, once held sacred by the lab, has been sent to outside vendors. At one time, the population of a HP plant was nearly 100% HP employees. Today, all types of functions are performed by contract employees working for an employment service.

The company has also come a long way in encouraging women and minorities. The attitudes of the day were reflected in corporate culture, and few women or minorities held professional or managerial positions. In a rather demeaning way, female employees were referred to as "gals" or "girls." For the same job classification, women were once paid less. Although attitudes, opportunities and pay have changed, this is not to say things cannot be improved. Today, the employee population is diverse through all levels of the company.

Management style has also changed. Dave Packard, and to some degree, Bill Hewlett, made "management by wandering around" an institution. Employees had direct access to their managers, and in turn, the managers could learn important details about their operation. Managers were asked to set objectives and to allow the workers to decide on the details. For many years, this same personal style of management was carried out at the Loveland facility.

This book covers the early history of Hewlett-Packard's Loveland facility and how it got started. It reflects an earlier attitude towards employees. It also shows how, during its first decade, the product mix at Loveland changed dramatically. A great deal of the information came from the company's local employee-oriented magazine, Hi-Points, with additional information from interviews, newspaper articles and company records.

Jim Willard, Public Relations Manager, originated the idea for this project. As the Loveland facility approaches its 40th anniversary, he saw the need to pass this information on to future generations of employees.

Kenneth Jessen
Loveland, Colorado
1999

Table of Contents:

AFTERWORD

MY CAREER AT HEWLETT-PACKARD -- Kenneth Jessen

I started in International Marketing in Palo Alto, then in 1965, transferred to the new Loveland facility where I worked as a sales engineer. I became Advertising Manager for Sources and Analyzers, then Service Manager for the same line of products. I also, at the same time, managed the Operating and Service Manual group. I remained in this job for five years. Later, I was a Material Engineer helping the R&D lab find suitable components for new designs.

In the early 1980s, the time from release to manufacturing products ready to ship was many months and at times, a year. A new position was created called New Product Manufacturing Engineer. I was transferred to the R&D lab to work with the design team, but focusing on manufacturability and built in diagnostics. At the same time, I was responsible for integrity of the material list and organizing the production line for new products. This job lasted over a decade.

After the product was completed and production started, I returned as a Manufacturing Engineer. In 1994, I was loaned out to General Electric's Transportation Systems in Erie, Pennsylvania. I consulted on the manufacture of a new product, the GE AC4400CW locomotive. Upon my return, I became the Application Center Engineering and Production Manager. Due to reorganization, I went back to Manufacturing Engineering assuming responsibility for Software Development. This was my last job, and I retired as an employee in 1999.

After the required six months, I returned as a contractor doing custom system design. The plant closed in 2003 and that job ended. Many years later, using my background in contract law, I returned as a contractor working in the Medical Group on service contracts.

HEWLETT-PACKARD DAYS

After a brief time in New Product Training on Page Mill Road, I was assigned as a sales engineer under Vice President of International Marketing Bill Doolittle. We all sat together in the corner of 3 Upper. Dick Alberding came along, and I worked with him on increasing the sale of products in South America. Lacking a sales force, we used manufacturing representatives. I moved to the new Loveland facility in 1965 working for Tom Kelley. I was in Geneva on a series of sales calls, and stopped by to see Alberding, now European Marketing Manager. He treated me to lunch in the -hp- cafeteria with others looking on wondering who the heck I was!

One tradition was to invite the newly hired engineers to have a lunch with company executives. It was at a local restaurant called Ricky's. Another new engineer and I were escorted to one of the tables and seated by the Packards. They both showed genuine concern for us including our lives outside the company. Lucile asked me about my social life, and I was embarrassed to say "none."

Hewlett and Packard, along with other executives, came to the Loveland facility for an annual new product review. It was a dog and pony show where the lab showed them what was in the works. Packard would leave the meeting and walk out onto the production floor to visit individually with line workers at the wire and assembly stations. I could see him from where my disk was located, and he never seemed rushed to move on to the next station. It was his management by walking around. It created a sensation among the predominately female workforce building loyalty. To me, it showed his care for those that worked for his company.

Years after Packard turned over the reins to his company to John Young, he returned to Loveland. The engineers were asked to meet with him in the courtyard. He talked briefly about the company's history and development, and then he asked if there were any questions. Somehow the conversation turned to how many layers of management were above a given engineer. One engineer volunteered his answer, but I do not remember the exact number. The answer clearly disturbed Packard because the HP Way meant that all employees would have access to management. That was the last time I saw this great man and leader.

TECHNICAL ARTICLES WRITTEN SPECIFICALLY FOR HEWLETT-PACKARD

(All articles were highly illustrated)

1. "Taking the Mystery out of DVM specs," The Electronic Engineer, October 1969, vol. 28, No. 10, pp. 48-52
2. "Thermopile yields real RMS, " EDN, April 15, 1970, pp 75-78
3. "Marketing Engineer - The Designer's Partner," EDN, April 15, 1970, pp 69-71.
4. "Techniques for True-RMS Conversion in DVMs," EEE Spectrum, April 1970, pp 50-52.
5. "The DVM as a Measurement System, "Instruments and Control Systems, July 1972, pp. 40-41.
6. "DVM as a Measurement System," Instruments and Control Systems, July 1972, pp. 40-41.
7. "How Accurate is your AC Measurement, "Electronic Design, April 12, 1978, pp. 55-56.
8. "Product Service Ability," Electronic Design, April 12, 1978, pp. 100-103.
9. "The Future for Factory Technicians," Electronic Servicing, July 1977, pp. 26-28.
10. "Fractional N Simples Frequency Synthesis." Bench Briefs (HP publication), May/August 1977, pp. 1-3.
11. "How Accurate is your AC Measurement?" Bench Briefs (HP publication), February 1980. pp. 1-2.
12. "New Circuit Design in Data Acquisition System's Digital Voltmeter," Engineering Digest, July/August 1980, pp. 24-27.
13. "Digital Voltmeter gets Speedy. Accurate Results," Electronic Design, June 7, 1980, pp. 149-156.
14. "In-Circuit Tester answers uP-Board Challenge," Electronic Design, November 8, 1980, pp. 97-101.
15. "Production Testing - Microprocessor-Based Products," Circuits Manufacturing, January, 1981, pp. 21-32.
16. "Production Line Testing of Microprocessor-Base Products," Test, pp. 13-22 (reprint)
17. "DMM is First to work on Automated Interface Loop," Electronic Design, December 24, 1981, pp. 88-93.
18. "Automate Bench Measurements," Engineering Digest, January 1982, Vol. 128, No. 1, pp. 28-30.
19. Taschenrechner Steuert Zweidraht - Bussystem," Elektroniki, January 15, 1982, pp. 49-52 (German).
20. "Premier Instrument de Mesuré Compatible HP-IL, un multimètre 200 00 points," Electronic Industrielle, January 15, 1982, pp. 53-56. (reprint Franch)
21. "Overview Approaches for Automatically Testing PCBs Part 1," Assembly Engineering, March, 1982, pp. 16-20.
22. "Overview Approaches for Automatically Testing PCBs Part 2," Assembly Engineering, April, 1982, pp. 18-21.
23. "Overview Approaches for Automatically Testing PCBs Part 3," Assembly Engineering, May 1982, pp. 14-18.
24. "Overview Approaches for Automatically Testing PCBs Part 4," Assembly Engineering, June 1982, pp. 12-15.
25. "Special Problems in Testing Microprocessor-Based Products," Assembly Engineering, July 1982, pp. 38-39.
26. "Why Design for Testability," Assembly Engineering, August 1982, pp. 21-29.
27. "Now HP 3421A/41C/CV Lowers Portable Data," Instrument News (HP internal use only), September 1982, pp. 17-19.
28. "Testability can yield Improved Profits," Assembly Engineering, October 1982, p. 29.
29. (Co-author John Barto) "Static Control Team Concept - Implementation of ESD Protection in Manufacturing," Evaluation Engineering, November/December 1983, pp. 99-104.
30. "Improved Digital Architecture Speeds In-Circuit Testing," Electronics Test, March 1984, pp. 54-62.
31. Kenneth Jessen (introduction) "Selecting an ATE System - Which is Best?" Assembly Engineering, March 1984, pp. 24-27.
32. "Seleccion de una unidad de aquisicion de datos y control," Electronica, October 1984, pp. 59-63. (Spanish)
33. " Mit Relais-Multiplexern Fangt es an," Messen&Testen, October 1984, pp. 49-50 (German).
34. "Functional or In-Circuit Testing - Which is Best? "Electronics Bulletin, September 1984, pp. 57-60 (reprint Singapore).
35. (Co-authored with Doug Olsen) "Multimeter uses Snap together Parts to Lower Cost," Electronic Packaging, July 1985, pp. 86-89.
36. "Data Acquisition System plots Relationships among vital Variables," Electronic Design, October 31, 1985, pp. 135-138.
37. "Making Digital In-Circuit Testing Safer," Electronic Test, May 1985, pp. 77-84.
38. "Low-Cost Functional Testing using a Bed-of-Nails Test Fixture and Programmable Switch/Text Unit," Electronics Bulletin, July 1987, pp. 69-71 (Hong Cong Productivity Council reprint).
39. "Ridotte I tempi di sviluppo del software,"Automazione, September 1987, pp. 84-97 ( reprint Italian).
40. "Scouring the Harbor," Mechanical Engineering, October 1987, pp. 46-48.
41. "Low-Cost Functional Testing using a Bed-of-Nails Test Fixture and Programmable Switch/Text Unit," Evaluation Engineering, August 1987, pp. 37-40.
42. "Ridotti I tempi de sviluppo del sistema de collande," Automazion, November 1987, pp. 10-19. (reprint Italian)
43. "VXI Bus: a new Interconnection Standard for Test modules," Australian Electronics Engineering, September 1989, pp. 70-74.
44. "Digitize Waveforms with a Digital Multimeter," Electronic Products, June 1989, pp. 51-53.
45. "A Neglected Process Tool," Circuits Manufacturing, May 1989, pp. 43-47.
46. "VXI: A new Interconnection Standard for Modular Instruments," Hewlett-Packard Journal, April 1989, pp. 90-95.
47. "VXI Bus Product Development Tools," Hewlett-Packard Journal, April 1989, pp. 96-98.
48. (Co-author Steve Cook) "Fixturing for ATE," Evaluation Engineering, April 1990, pp. 100-102.
49. (Co-author Bob Peever) "Using a Visual Programming Language to Increase Productivity," APICS (Education for Resource Management), October 1998, pp. 30-34.

Kenneth Jessen as a contributor to books:

1. Handbook for Electronics Engineering Technicians, Milton Kaufman editor, McGrew- Hill Book Company 1984.
2. Electronic Sourcebook for Technicians and Engineers, Kaufman and Seidman editors, McGraw-Hill Book Company 1984

BOOKS BY KENNETH JESSEN

1. Utah Ski Industry
2. Railroads of Northern Colorado
3. Trolley Cars of Fort Collins
4. Thompson Valley Tales
5. Eccentric Colorado
6. Bizarre Colorado
7. Colorado's Strangest
8. Georgetown - A Quick History
9. Estes Park - A Quick History
10. The Great Western Railway
11. The Wyoming/Colorado Railroad
12. How it all Began
13. An Ear in his Pocket
14. Out the Back and Down the Path
15. Colorado Gunsmoke
16. Ghost Towns, Colorado Style Volume One (Northern)
17. Ghost Towns, Colorado Style Volume Two (Central)
18. Ghost Towns, Colorado Style Volume Three (Southern)
19. Ghost Towns, Eastern Colorado
20. Rocky Mountain National Park Pictorial History
21. Estes Park Beginnings
22. Colorado's Best Ghost Towns
23. Frontier Colorado Gunfights
24. Colorado Ghost Town Guide (due fall of 2022)

COLORADO HISTORY AUTHOR

Kenneth Jessen

Kenneth Jessen has lived in Loveland since 1965 and has contributed to area newspapers for more than four decades. He has written more than 2,300 illustrated articles published along with 22 books. Jessen is in his eighth year teaching adult education at Colorado State University (OSHER program) and has lectured in Northern Colorado.

All Stories

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LOVELAND REPORTER-HERALD ON HEWLETT-PACKARD MOVE TO TOWN

Reprinted with permission

Click HERE for Part One pdf file

Click HERE for Part Two pdf file

9100A Brochure

Click HERE for PROMOTION BROCHURE FOR HP 9100 Desktop Computer    Author Ken Jessen

Loveland Desktop Computer History

by Jon Johnston, HP Computer Museum, Australia

HP Loveland Campus, Building, 815 Fourteenth St SW, Loveland, Co, founded in 1960, Photo contributed by: Ken Jessen.

By the end of the 1950s, HP had become a public company and was looking to expand its manufacturing presence outside of the San Francisco Bay Area. David Packard had a soft spot for his home state of Colorado, and the cities of Boulder and Loveland were considered as sites for HP expansion. HP selected Loveland. Boulder was almost selected, but the two sites HP considered in the area both ended up having significant problems. One of the sites was located over an old coal mine that had been burning for most of the century (and still was burning). The other site was located in a low-lying area. Although HP was assured that the location was not a flood risk, the site was inundated in a flash flood three years later. The city of Loveland had offered to give HP land for its facility, but HP insisted that it didn't expect something for nothing (Measure, Nov-Dec '82, page 9) and purchased the site outright. HP became the first large electronics firm to establish a plant in Colorado.

HP started building in Loveland in February of 1960, and the first structure was completed in June of that year. The 12,800 square foot building was located at the corner of Third Street South and Lincoln Avenue. The first general manager of the new division was Stan Selby. The plant employed 28 people when production began in July of 1960. The first products built at Loveland were power supplies, including the 711, 712, 715 and 721. R&D at the division began in March of 1961 in a Lincoln Avenue Quonset hut. HP intended these first two buildings to be temporary. HP completed its first permanent building (Building A) at 815 Fourteenth St NW in October of 1962. At the time of its completion, Building A was the largest single structure in HP.

In 1966, Building B was completed, adding 123,000 square feet to the capacity of the division. In the summer of 1969, HP began construction on Building C. The exterior of the building was completed in 1970. The interior of the building was not finished and Building C was not occupied due to the slowdown in business caused by the recession. After sitting vacant for two years, Building C was occupied in April of 1972.

In March of 1965, Ray Demere replaced Selby as GM of the division. Selby left to become general manager of the new Colorado Springs Division (oscilloscopes). In March of 1970, Marco Negrete succeeded Demere as general manager of the division.

Loveland became involved in the computer business when production of the 9100A commenced in February of 1968. The 9100A was developed at HP Labs in Palo Alto. It was HP's first desktop computer and created an industry revolution. By the end of the year, the 9100A was one of HP's top four revenue products averaging 200 units per month. Within a year, the new calculator business was as large as HP's 211X minicomputer business. The 9810A was developed at Loveland and introduced in 1971 to replace the 9100B. In 1971, the Loveland Calculator Division introduced HP's first digitizer, the 9107A. The 9107A was connected to the 9100B calculator. This digitizer would later become the 9864A.

In 1972, the Loveland Division sold HP's 15,000th desktop calculator.

The Loveland Division developed all HP desktop computers until responsibility for the product range was transferred to the new Fort Collins Division in 1977. These desktop computers included the 9820A and 9830A (1972), the 9805A (1973), the 9815A (1975) and the very successful 9825 (1976) and 9845 (1977) computers. The Loveland Division also made or sourced the peripherals that attached to the desktop computers, including HP's first daisy-wheel printer, the 9871A (1975). While the HP desktop computers were very successful, the bulk of the products that came out of Loveland were instruments, particularly voltmeters.

In November of 1974, HP established the Calculator Group which included Loveland Calculators (managed by Tom Kelley) and the Advanced Products Division. This group was headed by George Newman. Bob Watson replaced George Newman as head of the Calculator Products Group in August of 1976. Don Schultz was appointed general manager of the Loveland Calculator Division (also known as the Calculator Products Division) in September of 1976.

In April of 1976, HP bought a site a few miles from the Loveland Division in Fort Collins as the future home of the desktop computer business (still being called "calculators" at the time). In August of 1978, the Calculator Products Division moved to Fort Collins and was renamed the Desktop Computer Division.

The Loveland site continued to grow rapidly even after the computer operations had transferred out. In 1981, the site employed 3,000 people, five percent of HP's worldwide workforce. That year, the division had turnover of $173M. Voltmeters and Source Analyzers accounted for almost 80 percent of revenue.

Agilent operated the division after the company split with HP in 1998. By 2005, there were only 500 or so employees working at the site. Agilent vacated most of the site in 2007. Agilent employed about 300 people in Loveland when Keysight Technologies was formed in 2014.

"How It All Began, Hewlett-Packard's Loveland Facility" is a detailed history of HP's Loveland Division. The book was written by former HP employee (and great guy) Kenneth Jessen and was published by J.V. Publications. ISBN 1-928656-02-1. (1999).

The Loveland Division began publication of Keyboard Magazine newsletter in 1969.