Training Assessment

Topics: Cost, Training, Practice Pages: 2 (562 words) Published: May 9, 2013
Tricky Nicky’s Carpet Cleaning Co
1. How much does the re-cleaning cost Nicky per year? Show all mathematical calculations.

1 person cleans 6 carpets per day * 100 employees = 600 carpets per day 600 carpets per day * 250 days per year = 150,000 carpets per year

1/6 of 150,000 = 25,000 unsatisfactory carpets per year
25,000 carpets at $20 each to re-clean = $50,000 per year in re-cleaning costs. 2.If everyone is trained, how much will the training cost? How much will training cost if only the group with the most errors is trained? Show costs in a spreadsheet and all mathematical calculations. Training Piece| All Employees| 50 Employees (most errors)| Development| 4000| 4000|

Direct Costs| 400| 240|
| ($20 * 20 hrs.)| ($20 * 12 hrs.)|
Training| 500| 500|
Materials| 2000| 1000|
|  | (2000/2)|
Refreshments| 600| 300|
Salaries| 12,000| 6,000|
| ($30 OT * 4 hrs. * 100 ees)| ($30 OT * 4 hrs. * 50 ees)| Indirect Costs|  |  |
Training| 1600| 800|
| (160 per day * 10 days)| (160 per day * 5 days)|
Materials| 600| 600|
Clerical| 200| 100|
Total| $21,900 | $13,540 |

3. If everyone is trained, what is the cost savings for the first year? If only the group with the highest re-cleaning requirements is trained, what is the cost savings for the first year? Show all mathematical calculations

Cost savings for all employees:
Pre: 1/6 of 150,000 = 25,000 carpets to re-clean @ $20 each = $500,000 Post: 1/12 of 150,000 = 12,500 carpets to re-clean @ $20 each =250,000 Post re-cleaning (228,100) less cost of training ($21,900) = $228,100 savings

Costs savings for most deficient employees:
Pre: 1/6 of 150,000 = 25,000 carpets to re-clean @ $20 each = $500,000 Post: 1/9 of 150,000 = 16,667 carpets to re-clean @ $20 each =333,333 Post re-cleaning (333,333) less cost of training ($13,540) = $180,207 savings

4. What is your recommendation? Should just the group with the most...
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