Business benefits:
• 10% increase in productivity.
• 10% decrease in absenteeism.
• Saved 15% annual utility costs.
• Increased overtime potential.
• Doubled work force without expanding facility.
• Improved employee morale.
• Enhanced efficiency.
• Maintained quality standards.

Statistics:
• Compressed workweeks began: 1994
• Staff working compressed weeks: 100%

“Moving to compressed workweeks was a smart decision. It helped increase productivity and decreased absenteeism.”
– David Wheatley, Production Manager

Bottom-line reasons sway management
Matsushita Kotobuki Electronics Industries of America, Inc. produces combination TV/VCRs under the brand names Panasonic and Quasar at its Vancouver, WA manufacturing facility. Japanese owned and managed, Matsushita Kotobuki implemented compressed workweeks for all employees in 1994. Work options, such as compressed workweeks, are uncommon in Japan. However, the management team was swayed by a list of bottom-line reasons for the change proposed by its General Manager and Director of Human Resources.

Matsushita continues to reap business benefits from its decision to adopt compressed workweeks. “Moving to compressed workweeks was a smart decision. It helped increase productivity and decreased absenteeism,” says Production Manager David Wheatley.

More production with more days off
“Last year was our busiest year ever,” Wheatley says. “Yet we were able to keep up with demand by working overtime on Friday during the busy times.” Human Resources Supervisor Teresa Hogan explains, “Should the need to schedule overtime arise, employees still get that weekend feeling with two days off, and the company receives an extra 10 hours of production.”

Proposal based on numbers
The General Manager at the time of implementation did his homework prior to proposing the change to management. He calculated an annual utility savings of 15%, projected a 5-10% productivity increase, and pointed out the overtime potential. The human resources department surveyed employees and asked for their input on several new schedule options. The majority requested four 10-hour days.

In 1994, 4/10s were implemented, and in 1998, Matsushita added a Friday through Sunday shift that works three 12-hour days. “Presenting bottom-line numbers to management, and getting employees on board so it was more than a top-down decision, contributed to a successful transition,” Hogan says. In addition, management and employees need time to adjust to change. “For a short time,” Wheatley says, “the adjustment period probably hurt productivity.” But the resulting benefits and increase in productivity convinced him it was the right decision.

Variety of shifts to fill business need
Matsushita Kotobuki has approximately 550 regular employees, and during peak seasons, an additional 185 temporary workers. Shifts now include 1) Monday through Thursday, 6:45 a.m. to 5:15 p.m.; 2) Friday through Sunday, 6 a.m. to 7 p.m.; 3) a swing shift in the paint area that works Monday through Thursday, 5:15 p.m. to 3:45 a.m.; and 4) two day shifts and two night shifts that work 12-hour days in the plastic injection molding area to maintain the temperature of the plastic 24 hours a day. Each molding shift works 36 hours one week, and 48 hours the next week with overtime pay. In addition, the maintenance department staggers its 4/10 schedules to increase coverage, with part of the staff working Tuesday through Friday. On Fridays, preventative maintenance tasks can be accomplished more efficiently with fewer production workers present.

Compressed week eliminates starts and stops
After each employee break period, productivity on the assembly line drops off during the first 30 to 45 minutes until workers get back in the rhythm of their jobs. By eliminating a day of starts and stops as well as two 15-minute breaks per week, and lengthening the time between breaks when the assembly line is working at full efficiency, the production area estimates it increased productivity approximately 10%.

Results put concerns to rest
Some managers were concerned that productivity would fall off toward the end of a longer day. Since the production department tracks the number of units assembled during each work period, this concern was put to rest with evidence that employees actually get a spurt of energy near the end of the day. Longer weekends may balance out the longer days, giving workers more opportunity to recharge mentally and physically. Another concern with stretching the day out for assembly work, in which some tasks are repeated as often as every 12 seconds, is repetitive stress injuries. Managers worried about a loss of quality due to eye strain or difficulty with concentration. Data shows that injuries did not increase and quality did not suffer.

Absenteeism decreased 10%
“Absenteeism is down approximately 10% since the schedule change,” Hogan says. Employees take care of personal business and doctor appointments on their day off whenever possible. Keeping absenteeism low and decreasing interruptions is a boon to the work flow on the assembly lines.

More efficient use of facility
Since Matsushita was growing at the time it implemented compressed workweeks, the ability to add more shifts helped make efficient use of the existing facility. The longer day enables the company to make better use of limited cafeteria and rest room space by staggering lunch and break times, while staying within labor requirements. Despite doubling its work force in five years, management was able to accommodate growth without the expense of expanding or relocating. Planners also paid careful attention to bus schedules when revamping start times to make optimal use of the facility's limited parking space.

More days off appeal to employees
Supervisors and managers at Matsushita report that morale increased after the change to compressed workweeks because of working fewer Saturdays. Besides more days off with their families, employees appreciate saving daycare costs and commuting stress and costs. Some who work the 3/12 weekend shift are able to pursue other activities during the week, including school or a second job. Usually, they are able to cut childcare needs to one day, if other family members are available on the weekend.

Steve Bloomstom, a Production Supervisor, has a simple answer to the question of why he works the weekend shift. “I like four days off,” he says. Bloomstrom says he believes the ability to work a shorter week would play a part in an employee's decision to stay at Matsushita.

Salaried staff find efficiencies, solutions
Managers and administrative personnel like having an extra day, if necessary, to catch up on paperwork, without sacrificing their weekend. Hogan says she has noticed that compressed workweeks can help administrative staff be more effective. When managers or administrative staff need to come in on Friday, they can tackle a project and complete it in much less time with fewer people here to interrupt them. “It's nice to come in on Friday for a couple hours and get something done if you get behind, but still have more total days off. So we are spending fewer days at work with no loss to the company,” she says.
One drawback to longer days is that employees are less interested in after-work informational meetings or voluntary activities. Hogan says one solution is to plan such activities during lunch or schedule voluntary meetings on Fridays.

Beyond employee satisfaction
The idea of more days off can be disconcerting to a president or board of directors. The management of Matsushita Kotobuki took a hard look at the numbers and proved that compressed workweeks are not only a positive for its employees, but ultimately add to the bottom line.

© 1999 Washington State University Cooperative Extension Energy Program. This publication contains material written and produced for public distribution. You may reprint this written material, provided you do not use it to endorse a commercial product. Please reference by title and credit Washington State University Cooperative Extension Energy Program and Commuter Challenge. Published April 1999.

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