IBM alternate work schedules (AWS)

Abstract

In early 1990, the IBM Microelectronics Division Semiconductor Manufacturing facility in Essex Junction, Vermont was operating eight-hour shifts around-the-clock. To reduce cost and fulfill an ever increasing demand for its products, it became imperative that this traditional three-shift operation be refocused to more efficiently maximize the use of the facility's physical assets and the effectiveness of its people. After studying the work schedules of numerous companies in the United States and Europe, it was determined that a 12-hour shift schedule would result in a significant reduction in overtime and increased productivity, both key goals of site management. To implement such a dramatic change of schedules, however, would require an in-depth understanding of its effect on employees and their families. To achieve such an understanding, manufacturing employees were asked to participate in round table discussions, opinion surveys and discussions with middle and first-level managers. Some of the areas examined were travel time to work, arrangements for child care, spousal work schedules, sleeping habits and the overall status of an individual's health. A pilot program was launched before actually changing schedules. Compensation adjustments were reviewed during this program to determine the most flexible and attractive approach for employees, one that: also contributed to overall savings for the corporation. This approach to compensation has been changed only once since its inception. During the first half of 1990, IBM's semiconductor fabricators began their migration to the 12-hour, alternate work schedules (AWS). Productivity improvements and overall benefits of an alternate work schedule relative to the IBM manufacturing community will also be reviewed.