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Training Cost Justification (ROI)


... for our PLC and Electrical Training Video Courses.

Training cost justification

Reduced Downtime and Operational Cost / (Video training cost / Number of employees) = Increased Profits


A maintenance manager recently asked how to cost justify the purchase of our PLC and Electrical Training Video Course to his upper management. We thought it may be helpful to you if we share our reply here. This is not all inclusive, just a quick review of some of the main cost justification points as they relate to our video courses specifically. You can make your manager aware of the few facts below which may help you with the cost justification.



Three hours of downtime saved to equal full cost of video course is a conservative figure. In a paper manufacturing company, 1 hour of downtime can cost $10,000. So in that example 1 hour of downtime saved would pay for the course many times over. After the course is paid for, all future downtime reduction and operating cost saved by the training will be addition to profits and bottom line for many years to come.



At just the cost to send one employee to a seminar or off site training, you can pay for this course and training all the rest of employees and even future employees! (After training all employees at one facility, you can send the video set over to the other facility.) So the cost per employee of training keeps on reducing, the savings grows exponentially.



You executive management is already well aware of the importance and savings from employee retention. But it doesn't hurt to slip in a reminder.



Knowledge gap between each employee and more importantly the knowledge between a new employee new to the work world (student just entering the workplace) and a seasoned long time employee.



The cost benefits of cross training have been know and utilized for a long time now. Just another reminder to upper management during the cost justification process.  Both of the two points above make your facilities more sustainable over a long period of time.


Also for budgeting purposes, your manager may want to share the cost not only on maintenance and engineering budget, but also share on HR departments and Safety's department ledgers.


Typically the above should easily cost justify the purchase of this training. But if not, you could also recommend an autonomous training program for operators. Operators become more familiar with their equipment and maintenance operation increasing their understanding, involvement and buy-in .


Of course you may know some of these already, and have other cost justifications not mentioned here.


By Don fitchett


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