Layer 3

 

Custom-Designed Employee Work Schedules

 

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Cost reduction tactics

When organizations are forced to cut costs or they undertake lean manufacturing initiatives, there are three types of scheduling changes that can help improve their efficiency:

 

1. Shift length. The most efficient shift length always depends on the workload distribution and associated coverage requirements. If the workload is evenly distributed throughout the day, the best choice is 8 or 12-hour shifts. The choice between 8s and 12s depends on whether the group wants fixed shifts or rotating shifts (see Schedule Format below). 10-hour shifts are not a good choice for steady workloads because they have 6 hours of overlapping shifts each day. As a result, they require at least 25% more personnel than 8 or 12-hour shifts. If the workload is not evenly distributed, the most efficient shift length depends on the details of the distribution. It may require multiple shift lengths to gain overlaps that boost the coverage during the busier periods.

 

2. Schedule format. With 8-hour or 10-hour shifts, rotating shifts are usually more efficient than fixed shifts. This means that they will require fewer personnel for the same amount of coverage. Depending on the coverage needed, fixed shift schedules can have overlapping days of work that aren't necessary. Imagine one shift that operates 7 days a week that only needs 1 person coverage. With two employees on 8-hour shifts, there would be 3 days a week in which they were both working. With two employees on 10-hour shifts, there would be 1 day a week in which they both were working. With 12-hour fixed shifts, there would be zero days of overlap. With 12-hour shifts, using either fixed or rotating shifts requires the same number of people, so they are equally efficient.

 

3. Overtime. Many 24/7 operations are over-staffed. They became this way either to avoid overtime in the schedules or to avoid using overtime to cover absences (vacations, illness, training, etc.). These organizations should do an analysis that compares the cost of overtime with the personnel costs that could be eliminated. Here is a quick example. Let's say the organization has 18 employees and needs a minimum of 3 people working at all times. They could reduce the headcount to 12, but they would need 2 hours of overtime each week for all 12 employees plus additional overtime to cover absences. If they have a high absence rate, they could reduce the headcount to 15, keep the overtime in the schedule, and that would give them 3 extra staff to use for relief coverage. They could adopt a schedule that has the relief coverage built into it so that everyone rotates through the three weeks of relief coverage responsibility. The net result is a smaller headcount and elimination of overtime for absence coverage.