Quantifying the Benefits of Training

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.

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