There are three key areas you should focus on when quantifying training benefits. They are time savings, increased productivity, and better personal performance.
Time Savings
- Shorter lead time to reach proficiency (hours saved × dollars per hour)
- Less time required to perform an operation (hours saved × dollars per hour)
- Less supervision required (supervisory hours saved × supervisory pay per hour)
- Better management of time (hours freed × dollars per hour × opportunity cost of freed hours)
Increased Productivity
- Faster work rate (dollar value of additional units, sales, etc.)
- Time saved by not waiting for help (hours saved × dollars per hour + hours of helper’s time saved × dollars per hour)
- Decreased downtime (dollar value of reduced nonproductive time) Improved Quality
- Less scrap produced (dollar value of scrap × decreased scrap level)
- Fewer rejects (dollar value of reject × decreased reject level)
- Improved market share (percentage increase in market share × dollar value of increase)
Better Personnel Performance
- Less absenteeism/tardiness (hours of increased production × dollars per hour)
- Reduced grievances, claims, accidents (dollars saved on paperwork, actions, medical claims, insurance, and lost time)
- Avoiding the need to hire new employees (salary and benefits savings)
Source: Karl M. Kapp, Transforming Your Manufacturing Organization Into a Learning Organization, Institute for Interactive Technologies, Bloomsburg University, Pennsylvania.