In this paper, we focus on the use of signature-based output compactio
n technique for built-in self-testing of VLSI circuits, We give algori
thm for single-output and multiple-output signature generation using e
xhaustive test patterns extending the syndrome concept. The signature
we develop is a functional signature and is very effective for both in
put and internal line fault detection, as seen from simulation on vari
ous benchmark circuits. The signature generators can be easily impleme
nted using the current VLSI technology.