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Matyas Gerlai :
Videoton (Hungary) Computer Manufacturing
In Years 1970-1990

Gerlai Mátyás:
Videoton Számítástechnikai gyártás 1970-1990
Starting with a simple statement
2011. November 30. 2
(almost…) everybody can build up computers…
Let’s see some examples!

3
..a boy in kindergarten
built by LEGO

4
…anybody…
…by photoshop

5
..a Michelangelo great-great grandchild…
… by marble…

6
a confectioner student, after a Commodore course..
…by sweet materials…

Gerlai Mátyás:
STOP KIDDING…!
..let’s take this topic a bit more seriously!

Gerlai Mátyás:
…let’s see the content list for our today’s chat…
 DON’T FORGET ! … (positioning our story in the history!)
 Comparising this story with today’s status.. (..in HU, and worldwide)
 What was the VIDEOTON product (radio, TV) portfolio before her
„ computer ages ”? (1950-1970)
What kind of computer product portfolio VIDEOTON had finally ?
 Technology basis at VIDEOTON (1970-1990)
The product line management
 VIDEOTON computer manufacturing technologies QA included
 Volumes
 Final assesment

Gerlai Mátyás:
DO NOT FORGET!
o This story started 40 years ago, and
has finished 20 years before today …
o Political and economical maps of the
world have changed (e.g.
outsourcing, EMS)
 Examples:
- IBM, hard disk mfg; …and the Lenovo story;
- Bull (Zenith PC); than Villeneuve-d'Ascq (Fr)
1984-1994;
- HP (Compaq acquisition),
 European mfg and logistics sites stopped,
e.g.DEC Scotland (Ayr), IBM Scotland
(Greenock), Holland logistics centres
 Electronic manufacturing services (EMS) for all
large brands
IBM ->SanminaSCI Szfehérvár >Foxteq

The (2010) status in Hungary
Electronical assembly players :
Foxconn, Jabil Circuit, Flextronics, Elcoteq, Sanmina-SCI, Zollner,
Videoton (copyright: ITD Hungary)
This map is outdated already today in nov. 2011
10

Videoton products in timeframe 1950 -1970
(two decades before computer ages)
Radio TV
Military products

Construction and technological examples later,
from years (1970-1990)
Assemblies
Ferrit memories
Products and key subassemblies)
TPA 1001 computer cards,
power supplies, boxes

Gerlai Mátyás:
Basic technology elements
• Multilayer printed circuit boards
• Large plastic cover elements for
equipment ; painted, metallic
covered, (metal dusting…)
• Precision molding, metal cutting
• Leading edge subassemblies, like
line printer printing drums,
printing tapes, hammer banks
• Large sized metal sheets, painted,
galvanic surface treated
• Printed circuit (automated)
assembly
• Elecrical testing (in-circuit,
functional)
• Equipment testing
• System integration
• SW copying, multilanguage
dokumentation
• Quality assurance (component to
system levels)
• System installation at customer
site, case by case application
installation, solution fine tuning,
customer training
2011. November 30. 13

Gerlai Mátyás:
Technology processes flow
2011. November 30. 18
SYSTEM INTEGRATION
Printed c ass.
Transport
Machining
proc
Store
SW and docum
Store
Metal sheet
proc
Store
Machining
plant
Customer
services
Installation
application
Handover
Transport
StoreStore
Equipment
assembly
Stor
e
PC test
Painting
R
P c.
manufac
turing
Store
PC assemblyAu;
Tefl.
Spec coverages
Packaging
Integratio
n
Galvanic
CUSTOMER
PARTS AND ASSEMBLIES MFG

Gerlai Mátyás:
PRODUCTION LINE MANAGEMENT
Basic principles
• Commercial and Industrial catalogues ;
• Construction and manufacturing documentation
• Small and medium size lots of production, individual system
integration
• Individual system dossiers
• Computer aided production control (at that time batch)
• THERE WAS NO POSSIBLE ON-LINE ACTIONS!!!
• Yearly commercial and production plans, monthly production
programs
• Materials and semi-finished goods inventory
2011. November 30. 19

Gerlai Mátyás:
QUALITY ASSURANCE
• Quality assurance in development:
declared common basic standards, standard prototype
assesment & certification;
• Quality assurance in production:
– Technological processes and products with predefined
(developing) quality levels
– continuous self-monitoring and evaluation, quality
incentives
– Component requirements (sometimes MIL 883!)
Screening at the input (income inspection and
evaluation)
– Dynamic long-term operation, burn-in equipment and
system level. )
– Reliability tests, evaluations, analyzes, jointly with
university (Budapest Techn. University) and research
institute (Component Technology Research Institut,
HIKI) experts
2011. November 30. 20

Gerlai Mátyás:
KEY TECHNOLOGIES AND PRODUCTION LINES
Videoton
Chemical Plant
• Two and a multi-
layer printed circuit
board (PCB)
manufacturing
• Large plastic cover
elements for
equipment ; painted,
metallic covered,
(metal dusting…)
• Large metal sheets
with surface
treatment and
painting
2011. November 30. 21
Photo technology etching galvan processes
Multihead drilling Plastic molding painting

Gerlai Mátyás:
In-come inspection,
inventory, Warehouse
2011. November 30. 22
Incoming
components testing
•Shocking of IC-s
(MIL 883)
•Incoming equipment
tests (burn in)
•Storing in Comp
controlled warehouse
•Parts inventory
collection (for semi-
finished assemblies
production lots)

Gerlai Mátyás:
Prod. Plant in
TAB City
• metal sheet working
• Precision (CNC)
Automatic cutting
• Core memory
assembly
• PCB assembly
• Wave soldering, test
• equipment start-up,
testing, burn-in
2011. November 30. 23
Metal sheet components Metal sheet working Automatic cutting

Gerlai Mátyás:
Equipment Production
Plant in City
Szekesfehervar
KEY TECHNOLOGIES AND
PRODUCTION LINES
(later: VIDEOTON AUTOMATICS)
• Precision (CNC)
Automatic cutting
• Automatic sheet
metal working
• Specific units
assembly and test,
e.g. hammer banks,
character drums
• Equipment assembly,
test, burn-in
2011. November 30. 24

Gerlai Mátyás:
System
integration
Plant
• Equipment start-up
• System
configuration
• System test, burn-in
• SW and
documentation
• Packaging
2011. November 30. 25

Gerlai Mátyás:
VIDEOTON Computer Production (Volume in
Million HUF ; exch. rate at that time: cca.30HUF=1$)
2011. November 30. 26
0
1000
2000
3000
4000
5000
6000
1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983
Árbevétel
Termelés
Production value and income in
MHUF (1971-1983)
Income from different business (Rbl,HUF, $)
relations [MHUF] 1971-1983
0
500
1000
1500
2000
2500
3000
3500
1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983
Belföld
Szocialista
Tőkés

Gerlai Mátyás:
Videoton Számítástechnikai gyártás 1970-19902011. November 30. 27
VIDEOTON Computer Production and other
parameters (1983-1987 );
exch. rate at that time: cca. 30HUF=1$)
Parameter 1983 1984 1985 1986 1987
Income [M HUF] 5002 5731 6360 6494 7100
Number of
employees
3435 3613 3899 3888 3860
Income/capita
[M HUF]
1,456 1,586 1,631 1,670 1,839
R&D [M HUF/y) 353 525 590 787 567
Production segments: (1986)
-comp. systems
-printers
-videoterminals
-SW & services
-others

Gerlai Mátyás:
Total prod. volumes (1970-1990)
 Computer systems: 3000+ systems
 Office computers for small companies:
3000+ systems
Videoterminals:
90000 pcs
 Lineprinters: 10000+ pcs
 TVC TV-computer 12000+ pcs
 PC-k: 10000 + pcs
 Others (plotters, cardreaders,..) 2000 + pcs2011. November 30. 28

Gerlai Mátyás:
2011. November 30. 29
ASSESMENT
By the Videoton Computer Business Unit…
• The knowledge received by licences
has been effectively used and
developed further
• Based on this knowledge
outstanding original tech.
development activity could be
delivered
• This knowledge, jointly with
university resources has been
developed further, creating a high
level local technical culture.
• VIDEOTON became an
extraordinarily good cooperation
partner for both western and
eastern business/scientific world.
BUT (!)
• Couldn’t be prepared for actual
technical/economical
restructuring processes of the
business world. (Ratio of HW-SW-
Applications segments;
contractual manufacturing, … )
• Couldn’t achieve any
governmental/political support
for helping her to surviwe these
changes.

Gerlai Mátyás:
ASSESMENT
BUT!!
 This cca 3800+ people prezented high
effectiviy of excellent teamwork.
WE ARE PLEASED TO SAY A GREAT THANK
YOU, FOR ALL OF MEMBERS OF THIS TEAM.
We are happy having opportunities
working together with this community !
2011. November 30. 30

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Videoton (Hungary) computer manufacturing (1970 1990) english version

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Videoton (Hungary) computer manufacturing (1970 1990) english version