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Functional broadside tests were defined to address overtesting that may occur due to high peak current demands when tests for delay faults take the circuit through states that it cannot visit during functional operation (unreachable states). The fault coverage achievable by functional broadside tests is typically lower than the fault coverage achievable by (unrestricted) broadside tests. A solution to this loss in fault coverage in the form of observation point insertion is described. Observation points do not affect the state of the circuit. Thus, functional broadside tests retain their property of testing the circuit using only reachable states to avoid overtesting due to high peak current demands. However, the extra observability allows additional faults to be detected. A procedure for observation point insertion to improve the coverage of transition faults is described. Experimental results are presented to demonstrate that significant improvements in transition fault coverage by functional broadside tests is obtained.