| ¡¡ 
     
     Success           
    at KMI    
      
 For         
    11 and half years until I quit Semikor in Feb. 1970 since I had graduated         
    from college in Sept. 1958, I moved from one company to others many times,         
    from only one months at shortest to less than a year mostly at other jobs,         
    except Gold Star and Semikor for three and half years each. As they were all         
    temporary jobs, there is nothing much to describe here. This 11 and half         
    years were my ¡°Growing Period¡± learning a lot here and there, especially         
    ¡°What not to do¡± in Gold Star and ¡°What to do¡± in Semikor,         
    establishing my management skill and philosophy for later days.        
            
          
     Compared           
    to the above ¡°Growing Period¡±, it was ¡°Implementation Period¡± now on           
    starting from KMI, implementing what I had learned, testing it, creating           
    results and confirming whether it was the right management or not. The           
    reason I said ¡°testing¡± was there was no Korean company managed by           
    modern American way of   
    management and, though it was implemented in American subsidiaries in           
    Korea, the way of thinking and management philosophy of mine was not really           
    a usual American way either but ¡°the D. I. Cho Way" which was quite           
    different from usual American way too, which I was not sure whether it will           
    work or not in Korea and, if it works, how much it would be successful. It was my           
    challenge and wanted to test it and confirm the result..          
       
     The     
    chance came on Christmas Eve of 1969 when Manny Choy, former Controller of     
    Semikor who returned to U. S. after 2 years assignment of Fairchild Semikor only a     
    few months ago, called me after 10:00 PM asking me to meet him now. I     
    wondered why he was asking to meet at such a late evening but went to his     
    hotel as it seems to be something urgent and there was no curfew on     
    Christmas Eve fortunately.     
        
       
     At          
    the meeting, what I had learned was – He made a deal with a company          
    called AMI to establish an MOS-LSI assembly plant in Korea         
    and he wanted me to work for him as the Plant Manager with full          
    responsibility of the plant operation. He offered much higher salary than          
    what I was paid by Semikor at the time, though my interest was not the          
    salary amount but the chance I could test my management skill and philosophy          
    I had learned for more than 11 years.         
             
           
           
     However,          
    though I worked in semiconductor company, I had never heard about MOS-LSI nor the company name of AMI. I asked what they are and was told AMI          
    is the American Microsystems Inc. in   
    Silicon Valley         
    which was established only a few years ago but very successful company          
    producing MOS-LSI, which no one could ever mass-produced in the world,          
    making a lot of money. They made too much profit and wanted to invest in Korea        
    to avoid paying too much income tax to Uncle Sam.          
             
            
     Though     
    he himself couldn¡¯t explain MOS-LSI as well as I could understand, since     
    he was not an engineer but a financial guy, I could imagine it is a kind of     
    large sized semiconductor. I thought it could not be any more than a     
    different kind of semiconductor and I accepted his offer to work for him at    
    the first meeting.   
              
     This          
    was what I learned later but MOS means Metal Oxide Silicon (structure of the          
    product) and LSI is large scale Integrated Circuit with hundreds of          
    transistors in one small silicon chip (about human nail size). The latest          
    technology puts even more than a billion transistors in a chip and hundreds          
    means SSI (Small scale IC). But it was quite a large scale IC at that time          
    as most IC chips contained only tens of transistors.         
             
           
           
     While          
    Fairchild Semiconductors, Motorola and Texas Instruments – the first          
    generation of           
    Semiconductor TRIO – were all successful of MOS-LSI at research          
    lab., but all failed at mass-production lines, only AMI founded by 3 guys          
    from Fairchild was succeeded to mass-produce it for the first time in the          
    world.  
              
           
        
     It          
    was just about the time when the first simple electronic calculator was          
    introduced in the world (not the computer but the desk top calculator) and the demand          
    for MOS-LSI for the calculator was so great which made AMI a very rich          
    company within a few years. The second generation of semiconductor TRIO          
    – Intel, AMD and National Semiconductors – started at almost 
    same          
    time but they were far smaller company than AMI at that time.         
             
            
          
         
     Another       
    reason AMI wanted assembly plant in Korea in addition to tax saving was :       
    AMI had a subcontract assembly operation in Tijuana, Mexico, tested final       
    product in Santa Clara and shipped to customers manufacturing calculators       
    all over the world. Among these customers, Ricoh in       
    Japan    
    was one of the biggest customer for AMI and it would be very convenient for       
    AMI to assemble, test and ship to Japan     
    directly out of Korea, saving a lot of time and shipping cost. Therefore initial plan of      
    Korea  
    plant was to produce only the volume for Ricoh which was slightly lower than       
    20% of their total volume. I      
    joined KMI, the Korean Microsystems Inc., on March 1st. 1970. at      
    the age of 35. We established KMI at Boopyung Export Trade Zone, about half      
    way from      
    Seoul     
    to Inchon. When we started KMI, about 10 guys quit Semikor and joined us. Among them      
    were Kyu-Man Shim and Chung-Kyu An.     
              
     K.          
    M. Shim was just few years younger than me and had responsibility of          
    Engineering and Quality at Semikor. He was one of 3 Musketeers of Fairchild          
    Semikor with me (Manufacturing Engineering Manager) and Young-Il Lee          
    (Production Manager). He didn¡¯t have plant operation experience prior to          
    Semikor but graduated Engineering          
             
    College         
    of          
    In-Ha University, which I was going to enter but couldn't      
    because of simple error reading my watch as already described in another      
    chapter, at top school record. He was appointed as the Engineering Manager of KMI          
    with same responsibility as he had in Semikor but reporting directly to          
    Manny Choy, the General Manager of KMI.         
             
           
     On          
    the other hand, C. K. An has majored Chemical Engineering at Han-Yang        
    University        
    and was hired as the store keeper at Semikor at first. When we talk at the          
    cafeteria, he expressed many times he didn¡¯t like to work in store but          
    want an engineering job in the production area. When I was Manufacturing          
    Engineering Manager, I picked him up and appointed him to the Production          
    Equipment Maintenance supervisor which usually requires mechanical or          
    electrical engineering back ground rather than chemical engineering.          
    However, I was really amazed very soon, as he was such a hard worker       
    learning new knowledge so fast, functioning his new job even better than mechanical or electrical engineer          
    within just few months.         
             
      Therefore,          
    I gave him additional responsibility of Facility Maintenance too and he          
    digested that job also within a few months and he is now the best expert of          
    semiconductor assembly plant facility in whole Korea        
    perhaps. When I moved to Local Sales Manager, I made him to succeed my          
    position making him the Manufacturing Engineering Manager. He also joined me          
    to KMI and took same position as the Manufacturing Engineering Manager          
    reporting to me just as he did in Semikor.         
             
           
           
     Now,          
    K. M. Shim, C. K. An and          
             
    D.         
             
    I.         
             
    Cho became a new 3 Musketeers of KMI operation, tightly united together          
    under my lead, since not only I was the Plant Manager but also I was          
    most experienced on plant operation and eldest among three, which is another          
    important factor in Korea working together.         
     K.     
    M. Shim is very intelligent, calm and logical guy, while C. K. An is quite a     
    sentimental guy with strong ardor. There was nothing impossible to him and     
    drove his people crazy most of times to do the job. However, he also loved     
    his people so much and did whatever he can do to help his people even on     
    personal matters whenever his people faced difficulties. Therefore, his     
    people also loved and respected him very much.    
    These      
    3 Musketeers were very strongly united together always. I     
    couldn¡¯t find right Production Manager and acted the position myself.    
      
       
     On     
    the first day I joined KMI officially (March 1st. 1970), I left     
    for AMI to get 2 months training at AMI and K. M. Shim followed me about a     
    week later to join me. This was my first trip to United    
    States  
    and I traveled together with my 2nd. sister through Hawaii   
    by Korean Airlines flight. We stayed in Honolulu   
        
    for a few days and went to L. A.     
        
       
       
     At          
    the first night in          
    Honolulu, just as everybody experiences, I could not fall in sleep well, went out of          
    hotel and walked around beautiful Waikiki       
    beach streets at the midnight. When I walked around enjoying a lot of palm trees which I had      
    never seen in my life, a young white man with dirty clothes approached me          
    asking to help as he couldn¡¯t have dinner yet. Well,    
    I recalled instantly that we poor Koreans had been always helped by    
    Americans after the liberation from Japanese occupation in 1945, especially    
    during Korean War, and now, I got the chance to repay it.    
    I     
    didn¡¯t hesitate to give him a $1 bill. I had no idea how much I     
    should give to beggar in U. S. A.. Since $1 was not a big money in Korea, I just gave him $1. It seemed $1 had really surprised him and he said     
    ¡°Thank you¡± so many times and left.    
        
       
     Later,      
    when I arrived AMI, I told this story to AMI guys and I asked how much they      
    give to beggar usually. They laughed and said they usually give a      
    dime or a quarter at the most. It seemed Americans were far less generous      
    than us. Any way, I was very happy with the feeling that I have repaid small      
    part at least of what we owed them during last 25 years.  
       
     When       
    I arrived       
    San Francisco      
    airport through   
    L.A., Mr. Charlie Isherwood, the Vice-President Manufacturing of AMI greeted me and took me to       
    a very nice restaurant called Velvet Turtle in Santa Clara. I ordered roast beef following his recommendation and amazed how much       
    Americans eat for dinner. The beef was so big and thick that I had to cut       
    not only vertically but also horizontally (It is about an half size now.). I       
    could eat only 1/3 of it and took the left-over to our apartment in doggy       
    bag. They said it is doggy bag though every body knows it is not for dogs.       
    They just didn¡¯t want to say it was for themselves perhaps.      
     When     
    I saw American streets in Santa Clara    
    for the first time in my life, it looked like a dead city. There was no one     
    walking around and could not find any one to ask the direction, compared to     
    Korean streets with so many people crowded. It     
    was also very impressive to see so many trees in the streets. They were not     
    specially expensive trees while Koreans used only expensive trees not     
    growing fast in their gardens. I felt how nice it would be if Koreans would     
    plant a lot of any trees in their homes just as America, as whole town looked like a park to me.    
       
      
     Any     
    way, since it was my first visit to the United States, there were a lot of strange and interesting    
    things I had seen.    
        
       
      
     There          
    was a lady drawer in AMI who was a painter too. She invited us for a dinner          
    at her house one day and I went her house with K. M. Shim.          
    There, we could see what we would never dream to see.           
    In a wall of her living room, we saw a big nude painting of herself          
    drawn by herself. It was a great surprise for us and couldn¡¯t believe our          
    eyes. In addition, she invited her ex-husband and her current boy friend,       
    both lived   
    close,   
    also for the dinner, which was another surprise of us. Not only that, these          
    two guys were talking each other as if they were such good friends each          
    other. If it would be         
    Korea, no woman would invite ex-husband and boy friend at same time and these two          
    guys would act as enemy each other. These would never happen in  
    Korea        
    and there was no way to understand all of them for us. What a different          
    culture between   
    Korea        
    and United States!! It was really a cultural shock to us. Probably, we had seen the worst          
    case (or best case ??) of this crazy California. This was just an accidental and exceptional experience while we stayed in       
    California.  
       
     Not      
    only this crazy lady, all AMI friends were so kind to us taking us to      
    various beautiful and nice places such as Lake Tahoe, Yosemite National      
    Park, San Francisco etc. in every week end days.     
         
       
     After     
    2 months of training, before we return to Korea, I visited Mr. Charlie     
    Isherwood¡¯s office who was the Vice-President of AMI in charge of     
    Manufacturing to be responsible KMI operation too and asked him whether he     
    would send America expatriates to run KMI or not. I said ¡°If AMI send 
    expatriates to run KMI, you would be relaxed trusting their experience. But     
    Koreans would just follow their orders without taking any initiative, as it     
    will be their responsibility to run KMI. On the other hand, if you do not     
    send expatriate but let Koreans run KMI, you might worry about the operation     
    as we are not as experienced on AMI operation as they are but we have to     
    take full responsibility and have no choice but to take initiative for     
    everything. We are confident we can handle it, but it is up to you to decide     
    as it must be a very important decision you have to make.¡± He asked to     
    give him a few days to think about it and told me a few days later that KMI     
    would be operated under full responsibility of Korean management and he     
    would not send any expatriate but just one Engineering Advisor who will only     
    assist KMI engineers when there are unexperienced technical problems     
    without involving any KMI management at all. After we agreed this principle,     
    we returned home.    
    I         
    proposed this because I wanted to test my management in KMI taking quite a         
    risk as I was not experienced it myself either and was not fully sure yet         
    whether it would succeed or not.  However,         
    by this decision of Charlie Isherwood, I learned the difference between         
    internationalized American management living with all kinds of race together         
    and Japanese/Korean management who have to send so many own people whenever         
    new oversea plants are established, as they can trust no one but their own         
    race.        
       
      
     Meantime     
    in Korea, C. K. An was in charge of plant construction. AMI Facility manager was     
    designing KMI building in U. S.    
    at first and asked me how many cars would be parked in KMI parking lots. He     
    could not believe when I replied ¡°Space for 4-5 cars would be enough.¡±     
    and asked ¡°How many employees are you going to have?¡± Well, in U. S., every employee brings their own car. But, in    
    Korea, no employee had the car and there would be only a few company cars, which     
    AMI people just could not believe!!    
        
        
     Any     
    way, they said it would take about 6 months to design the plant and about a     
    year to build it. C. K. An could not accept it and surprised AMI people     
    saying he could design and build the plant in 6 months in total. As C. K. An     
    insisted it, AMI guys asked C. K. to do whole job in Korea    
    finally.   
        
        
     Actually,      
    C. K. stayed so many nights in the office of design company with designers      
    and the building construction was started in just about 1 month after the      
    design contract was signed. As we hired the first group of operators in 4      
    months after the ground breaking, it was even less than 6 months to start      
    the operation which really surprised AMI people and that was the C. K. An      
    style job!!     
     KMI      
    plant construction was started in early may right after I and K. M. Shim      
    returned to Korea    
    in early May and we had our offices in early August already. Then, except about 10 experienced staff members from Semikor,     
    we hired fresh college or high      
    school graduates only without any experience and started to train them. The      
    reason we hired fresh graduates only was : I      
    didn¡¯t want ¡°contaminated¡± people by other Korean companies and wanted to establish a ¡°KMI Spirit¡±     
    among them from the bigninning.     
           
         
      I    
    lectured on the first day of training of new employees myself and emphasized    
    :  
       
       
     1)     
    KMI is not a charity organization but a company established to make profit.     
    Never misunderstand KMI as a charity organization.    
        
       
      
     2)      
    Sorry to say but people is not much different from products in show windows      
    in a shop. The value is decided by demand and supply. No more no less. If      
    there are too many electronic enginners while not many electronic company in      
      
      
    Korea, you can get low wage only and vise versa. And, if your quality is high demonstrating      
    excellent performance, you will be paid high just as the high quality      
    product in the shop is priced high. Only way to get higher salary is to      
    improve your quality yourself.     
     3)     
    Company bought 8 hours a day of your time. Therefore, it is company time,    
    not yours.     
    Instead, company has no right to involve rest of your time of 16 hours a     
    day, which is all yours.    
        
       
      
     4)     
    The company does not give you a job requiring any more than 8 hours a day.     
    If you are capable guy to finish the job of the day in less than 8 hours,     
    you may go home earlier. On the other hand, if you can not finish the job in     
    8 hours, you must realize you are an incapable guy. Unless there is an     
    accident in the plant and you have to work longer than 8 hours, you have no     
    right to ask overtime pay just because you worked more than 8 hours, and     
    you shouldn¡¯t misunderstand as if you are a hard worker. We want efficient     
    workers rather than hard workers.   
        
       
     5)     
    Many people are asking the pay to guarantee your minimum living cost. What     
    kind of minimum life are you talking about? Minimum life just to survive with 3     
    noodles a day? Yes, we guarantee it. However, minimum life playing golf and     
    traveling around the world can not be guaranteed. Don¡¯t think of this kind     
    of unclear request to the company.    
        
      
     6)    
    These kinds of idea might be quite strange to you and hard to be accepted in   
    Korea. However, regardless right or wrong, or you like or not, these are facts    
    and I want you to think about them to work in this company.   
       
       
     I    
    trained new employees this way from the first day. It might be still same    
    mostly in    
    Korea  
    yet but this was really crazy revolutionary ideas in Korea  
    at that ime which must have made them puzzled very much when they heard of    
    it for the first time in their life. However, I heard a lot of feedback    
    later from them that they have really learned a lot from me and really    
    appreciated me for the lectures.   
      
     
     On     
    the other hand, the plant was built with C. K. An¡¯s idea mostly which was     
    quite different from typical Korean plant. The building was painted light     
    blue and white to create peaceful atmosphere, there was no wall but     
    beautiful trees around the plant as the fence, front yard had green grass    
    just as American companies in U.S. with beach parasol which was a rest area for employees, there was no    
    security guard house but information desk at the entrance hall of the building instead to     
    guide visitors (I hated guard house of Gold Star Co.) and all of these     
    considerations have created very friendly atmosphere to all employees as     
    well as visitors, which became a very famous plant in Boopyung Industrial     
    Park.  
        
      
     We   
    started to train the first 20 operators in mid-August and hired 20 operators   
    every week thereafter. They were trained for 2 weeks at Training Line and   
    sent to Production Lines after a Qualification Test by Quality Control. It   
    was hot summer and the plant was still under construction. Therefore, there   
    was no air-conditioner working yet and all of us were sweating a lot. We   
    provided Coca Cola in boxes to operators under training.  
      
      
     We    
    produced proto type products from early September. Other than very    
    experienced AMI¡¯s Manufacturing Engineering Manager helping us for just    
    about 2 months, we, K. M. Shim and I, were only guys trained for MOS-LSI    
    assembly just for two months only. Practically, KMI was started by Koreans    
    who had no experience of MOS-LSI operation at all, except these 3 guys. We    
    sent these products to AMI for test and, oh my god, they have all failed AMI    
    test. According to the failure analysis in AMI, some invisible contamination    
    were shorting circuits which AMI engineers could not identify what ¡°the    
    invisible contamination¡± was.   
       
       
     Now,     
    KMI¡¯s ¡°War against the Ghost¡± called ¡°invisible contamination¡± had     
    started. We did all we could do to find out what this ¡°Ghost¡± is. It     
    really took whole October and November to find out the ¡°Ghost¡± which was the     
    clear floor wax the Facility guys used to shine the floor of operation area.     
    When they dried, it became invisible clear particles floating around in the     
    air, burnt by 400F degree high temperature heater block and shorted     
    the circuits, while they were still clear and invisible even after they were     
    burnt and carbonized. It was just one of the standard wax many Korean    
    companies had been using in their plant. As the result, we paid quite tuition just to learn     
    nothing unconfirmed new material or process should be ever used nor     
    implemented until it is fully tested and qualified for products and     
    processes.  
     Whole    
    employees spent several days to remove this floor wax completely from whole    
    plant floor and additional week to clean them again. However, new products    
    we sent to AMI have passed their intensive test finally at the end of 1970,    
    which was the greatest Xmas present for all KMI employees.   
       
      
     We    
    finally started regular operation at the beginning of 1971, had some    
    difficulties from time to time due to the lack of experience as expected,    
    but could continue relatively smooth operation without any major accident    
    thereafter with the help of AMI¡¯s Technical Consultant stationed in KMI    
    for 2 years.   
       
      
     One     
    of my routine work at KMI was to patrol around operation area once or twice     
    a day and repeat same thing I had learned from Mr. Lyle Clevenger of     
    Fairchild Semikor. What I was pointing at the operation area were :    
        
       
      
     Is         
    the badge of operator really vertical in good order?Is operation instruction sheet hung in front of operator clean and perfectly         
    vertical?
 Are all dry box doors 100% closed always?
 Are all dry boxes always in straight line?
 Is every thing – materials, tools, - on the working table placed         
    neatly in parallel or vertical to working table?
 Is there any place with dirt, even at any corner?
 Those     
    are not directly related to the product mostly but most important for the operation     
    (Please read my Semikor story first, if you don¡¯t understand.) and,     
    whenever I walked in operation area, everyone was looking at their badges     
    first to make sure they were in vertical.    
        
       
      
     KMI     
    started this way. We could reduce product Defect Rate by 90% compared to     
    AMI¡¯s Tijuana   
    plant in 6 months and by 95% in a year. As the result, KMI made a lot of     
    money for AMI saving tremendous amount of material cost which was far     
    greater than KMI operating cost, which meant KMI made a lot of money without     
    spending any money to operate.    
       
      
     KMI     
    operation sailed smoothly for about 6 months and the operation was     
    stabilizing day by day, when there was a big accident in AMI  
    Tijuana   
        
    plant. The cause of the accident was a rather simple negligence of     
    precaution by a material handler there, but the result was horrible. AMI     
    lost millions of dollars every day and had to halt all shipments to     
    customers as their product was failing 100% at final test.    
        
        
     Hearing     
    this story, KMI proposed AMI to transfer all production to KMI from Tijuana. At first, AMI still could not fully trust KMI operation as it was just a     
    start-up operation with small volume only. They were not confident whether     
    KMI could expand to the full volume and still maintain same performance.     
    However, it was too big disaster for AMI and KMI was demonstrating such a     
    wonderful performance. As contract with Tijuana plant was about to expire in     
    3 months, AMI finally wanted to take a risk and asked us whether we could     
    expand our capacity to 5 times in 3 months.    
       
      
     Though         
    expanding the capacity to 5 times in 3 months could not be an easy task, we         
    could not miss the chance. We accepted the challenge and our effort of fast         
    expansion took place for 3 month from July through September.          
    We hired 60 operators a week instead of 20 a week, started 3 shifts         
    24 hours of training of new operators – 20 a shift - and expanded         
    operation too to 3 shifts from 2 shifts. We had to hire line supervisors,         
    mechanics, technicians, store keepers – all for additional shift and         
    lines in hurry (all totally unexperienced guys again) and train them in short period of time. In addition, we also         
    had to install many new equipments from AMI to expand the capacity. Since         
    not only there was no manager in grave yard shift including myself to         
    supervise the operation but also grave yard shift work itself was not well         
    known in Korea at that time. None of them were either familiar or         
    experienced to the grave yard work. It was really another war against time.        
     However,      
    for these 3 months, we have produced all volume AMI asked to produce on time      
    without any delay. All KMI employees were so well united for this unusual      
    task and there was no accident at all – even a small accident. During      
    this period, the Defect Rate, which AMI management worried so much as the      
    volume expanded so rapidly, also had been maintained very well going up only less      
    than 1%. Thus, KMI surprised AMI management so much and they called KMI     
    "A Miracle Operation¡±, which boosted KMI morale greatly and all of them      
    were so proud of their KMI operation managed by Korean people only without      
    American expatriate.    
       
      
     While      
    we were so busy to expand KMI production capacity, on one day in Sept., we      
    were called from Blue House (American White House of Korea) and was informed     
    Korean President Chung-Hee Park was going to visit us on very next day. Since KMI was always      
    so clean and everything well in order, we didn¡¯t need to prepare anything      
    but welcome his visit. It looks like he got a very strong impression and      
    sent his daughter Keun-Hye Park, who was a student of Seokang University      
    majoring electronics, to KMI for two weeks to learn about KMI operation      
    and I was awarded a Medal of Industry from the President Park in Blue House      
    in October.  
 By     
    the time we have successfully expanded our capacity to produce 100% of AMI     
    volume in only 3 months, the recession had started from the 4th     
    quarter of 1970. AMI had to reduce their work forces laying off people in     
    Santa Clara, CA. AMI had to request KMI also to reduce number of operators     
    by 1/3.     
        
       
      
     I    
    called AMI and told them ¡°We understand the situation. However, there is    
    no word of lay-off in Korea. Especially, if we lay-off people now right after crazy expansion, we will    
    loose our face to Korean society and we will have extremely hard time to    
    hire people again when we need them in the future. In my calculation, total    
    labor cost of 1/3 of operators in KMI is no more than the salary of just a    
    few engineers there. Why don¡¯t you lay-off a few more engineers there    
    which will be a lot more beneficial for the future of AMI., as the face of    
    the company is so important in Korean society. Unless we are facing the    
    situation of no choice but to shut down the plant permanently, I don¡¯t    
    think we can lay-off people here for the future.¡±   
     Finally,     
    AMI agreed to me and gave up the lay-off plan of KMI. However, our volume     
    decreased rapidly day by day because of recession and we had to work 5 days     
    a week at first and 4 days a week at last at the end of the year.    
        
       
      
     Under     
    this situation, I went to the General Manager one day and proposed craziest     
    idea to him. ¡°Now, since we don¡¯t have enough volume to operate KMI, how     
    about to shut down the plant for 2 weeks and send operators to celebrate New     
    Year with their family in country side.¡± It was OK up to here. I continued     
    ¡°The morale of the employees are very low now. Let¡¯s pay a half month     
    wages as the bonus so that they can travel to country side homes with some     
    New Year gifts for the family." I    
    still remember his face. His face showed ¡°This Plant Manager is totally   
    out of mind and crazy¡±  
       
      
     Well,     
    I was crazy sure but not out of mind. I had my own idea with a smart     
    calculation. The half month wage was no more than a few thousand dollars     
    only, as Korean wage rate was so low and we didn¡¯t have too many employees     
    at the time. There was a bonus system in Korean companies which was actually     
    a forced savings rather than bonus, as all companies paid fixed amount of     
    bonus regardless company makes profit or loss. It was always expected bonus.     
    And, no one appreciated this kind of bonus but it was considered as a part     
    of salary.     
        
       
       
      
     Now,     
    we were in very difficult situation and how much would all employees     
    appreciate to the company if we pay any amount of totally unexpected bonus     
    under this kind of difficulty? My idea was actually - Let¡¯s buy royalty     
    and unity of all employees with very cheap cost!!    
      
     The    
    General Manager was so surprised at first but had to agree to my idea when I    
    have explained my idea in detail. We paid bonus and all employees could    
    really enjoy two weeks of paid vacation with families. (I will explain    
    later, but this cost was recovered later by many many times.)   
       
       
     One   
    day, the General Manager complained operators were using company letter head   
    papers for their own personal letters to home or friends. I said ¡°They are   
    all from country side poor family. If they write a letter on the paper with   
    KMI logo, how proud their parents would be thinking their daughters are in   
    very important positions in the company and how proud operators too. The   
    total cost of office supply is less than 1% of our total operating cost. Why   
    don¡¯t we encourage them to use it and make them happy and proud. If we can   
    boost the moral of operators this way, I will recover many times of it¡¯s   
    cost improving defect rate by just 0.001%.¡± We didn¡¯t encourage it but   
    the General Manager didn¡¯t complain any further.  
       
      
     Another     
    episode is – the General Manager said ¡°The best operators will have     
    a company paid oversea trip as a reward on the Anniversary Day of the     
    company.¡± It was just an instant statement without thinking much.     
        
       
       
      
     Now,     
    the Anniversary Day was approaching but the cost was the secondary. There     
    was no way we could get passports of the operators to travel overseas from     
    government at that time. I had a dilemma how we could keep commitment of the     
    General Manager to the operators. My management philosophy was - regardless     
    who committed, General Manager or Supervisor, it is the commitment of the     
    company which must be kept to maintain the trust of employees. We can not     
    just cancel it saying it was our mistake.     
        
      
     I      
    came up with an idea and proposed to send the best operators to     
    Cheju    
    Island    
    which is a kind of ¡°oversea¡±. We sent 40 Best Operators with a      
    supervisor to Cheju    
    Island    
         
    for all company paid vacation trip for one week and operators were so      
    excited and happy, not only because of the trip but also taking airplane for      
    the first time in their lives. And, I was happy as we could keep our word to      
    the employees somehow.     
       
     One     
    time, it was the time of annual wage increase. I called all supervisors and     
    managers and discussed about the wage increase. I asked their honest opinion     
    how much increase would be the most reasonal increase in their mind. As I     
    have asked this face to face, they could not ask too much and asked about     
    7-10% as reasonable increase.     
        
       
      
     I    
    went to the General Manger and proposed 12% increase. He puzzled at first    
    about this always crazy Plant Manager but agreed as a few more % was not a    
    large amount anyway at that time. We increased wages by 12% and we had never    
    heard any wage complain from employees thereafter.   
      
     About     
    a year earlier before we moved to    
    U. S. A., there were great activities of labor union in  
    Korea. Especially, there was a Christian society agitating employees of every     
    company which was a great headache of many companies in our area.    
        
    However, they could not touch KMI because KIM was operated with family like     
    atmosphere and all employees were so loyal to the company. When I was asked    
    from a visitor what I would do if they try to penetrate, I replied ¡°Let them try in KMI.     
    I will not stop them as I am confident enough that the labor union would     
    never happen in KMI."  
     My   
    management philosophy is – Though the equipment and technology are  
    very important factors for the success of the plant operation, the most important factor   
    is operators, mechanics, supervisors who actually build the product most of   
    all. Because I firmly believe the key of the success really   
    depents on their mind, loyalty   
    and enthusiasm, I spent a lot of time with them talking at cafeteria   
    whenever I have time, to find their problems and become closer to them.  
      
     
     I    
    always emphasized the importance of operators to all supervisors and    
    engineers in the line saying ¡°The product is built by operators, not by   
    you.    
    Production supervisors and engineers are there not to supervise operators   
    but to do the best to assist them on the area where they need assistance because of lack of    
    knowledge, experience and/or authority. By same reason, I myself am here to assist you guys, not to    
    supervise you. If you do not ask me any assistance, I have nothing to do and    
    may be idling most of the times doing nothing.¡±     
     In       
    next year of 1972, production volume was still very low and there were too       
    many idling operators most of times. As it is very common that people tend       
    to become lazy and complaint much to the company when they are idling as I       
    had learned in Gold Star, I had to bring up some kind of idea to make them       
    busy somehow.       
          
          
     After   
    many study, I brought up ¡°ZD (Zero Defect) Campaign¡±. I heard about ZD   
    Campaign many times earlier but never really understood what it was and how   
    to do it. I went to book store, bought few books, studied it for the first   
    time and prepared ZD program for KMI. And then, I trained people as if I was   
    an expert of ZD Campaign.  
       
      
     My      
    real purpose of ZD activity in KMI was to keep people busy rather than to      
    reduce defect rate as the original purpose of ZD Campaign itself.      
    This way, I could still make them to concentrate to the operation rather      
    than to be idling and finding complains to the company. I would not discuss      
    about our ZD Campaign in KMI in detail as it would not interest most of      
    non-operational reader of this book.    
       
      
     The     
    first quarter of 1972 was spent concentrating ZD Campaign which was somewhat     
    helpful to reduce our defect rate further too and, from the 2/4, the     
    semiconductor business started to pick up. Our volume also started to pick     
    up rapidly and we became busier and busier week by week. Our efforts not     
    laying off operators at all and concentrating ZD Campaign resulted a good     
    training of all operators and ready for better operation. As their moral,     
    loyalty and trust of the company management were very high to accept any     
    hard work we had to ask them to produce high volume of good quality product,     
    we could produce any volume AMI asked us on time without any delay, enabling     
    only AMI could deliver good quality product on time to their customers. As     
    the result, it was hard to calculate but we had recovered many times of     
    our cost we paid as New Year bonus to all employees at previous year end.    
       
      
     After      
    that, there was nothing happened specially. KMI sailed very smoothly without      
    any major problem. Whenever, I made a trip to AMI, the Manufacturing VP met      
    me at San Francisco airport and AMI people trusted me so much whatever I      
    told them. KMI      
    operation itself was my best product in my life and it was the most      
    enjoyable life for me. However, there were KMI 3 Musketeers – D.     
    I.    
    Cho, K. M. Shim and C. K. An – and whole KMI managers, supervisors and      
    engineers as well as all other employees including all operators who had      
    fully supported me behind always. Actually, it was the result of team work      
    of all these people, reasonable and logical American style management      
    philosophy, family like atmosphere of KMI as a single family all together      
    etc. etc..      
         
        
       
     We   
    played poker with all managers almost every week in my Hwakokdong home which     
    was on the way back to their home from KMI after the work and went picnics     
    also quite often on Sundays with all managers¡¯ families. Because we have     
    lived all together just as a family and there are now many ex-KMI families     
    moved to U. S. A., we meet here in Silicon Valley quite often still after     
    more than 30 years, playing golf together once a quarter too.   
       
      
     In    
    summer of 1973, I was proposed by AMI management to come to Santa Clara for    
    2 years to educate AMI Americans and coordinate between AMI and KMI, as they    
    do not understand Korean people and society much, and cause some problems    
    supporting KMI. (At the time, there were not many Americans who had seen latest Korea  
    other than soldiers who saw only poor Korea  
    during Korean War.)    
      
        
       
       
       
        
     I     
    didn¡¯t have any intention to live in U. S. at that time. However, if it is only for 2    
    years, I could meet my     
    commitment to Jane to take her to a forein country in 10 years, when we     
    marry, though it was 1 year too late, and it seems not to be a bad idea to     
    teach English to our boys early enough as world will become smaller and     
    smaller moving to the globalization any way.     
        
       
     I     
    accepted the proposal because of these reasons but was still going to return     
    to Korea   
    after 2 years assignment. We moved to    
    Silicon Valley   
    this way, but did not return to Korea   
    and decided to live in California   
    permanently as to be explained later.    
        
       
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