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Cost Comparison
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Assumptions |
Scenario 1 |
Scenario 2 |
Scenario 3 |
Scenario 4 |
Scenario 5 |
Scenario 1 - MicroWidgets |
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MicroWidgets desires to conduct team training for 2,000 employees. The employees are equally distributed between four offices in Los
Angeles, Dallas, Chicago and Atlanta. The decision is made to use two contract facilitators at each site, and to use existing company
classroom space to conduct the training on-site. Ideal class size is set at 25 participants. The training is scheduled to start on March 1, 2000.
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Classroom Training |
Material Costs |
$405,600.00 |
Participant Guidebooks |
400,000.00 |
Facilitator Guidebooks |
2,400.00 |
Presentation Support |
3,600.00 |
- 2,000 participants and 8 facilitators (2 per site)
- Participant guidebook cost of $200 per participant
- Facilitator guidebook cost of $300 per facilitator
- Presentation support material cost of $450 per facilitator
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Classroom Costs |
$33,600.00 |
Classroom Time |
33,600.00 |
- 80 classes of 80 hours duration = 6,400 hours
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Facilitator Costs |
$1,492,000.00 |
Professional Fees |
1,280,000.00 |
Travel Expenses |
212,000.00 |
- 80 classes of 80 hours duration = 6,400 hours
- 80 classes x 10 days = 800 travel days
- Air travel of one round trip per 2 weeks
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Seat Costs |
$3,449,600.00 |
Employee Time |
3,449,600.00 |
- 2000 participants x 80 hours training = 160,000 hours
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TOTAL TRAINING COSTS |
$5,347,200.00 |
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Estimated Completion Date: August 1, 2000
- Each site holds two simultaneous classes
- Each class is 80 hours in length
- 500 participants per site / 25 per class = 20 classes / 2 classes per period = 10 class periods x two weeks = 20 weeks
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Team Tools Interactive™ |
Material Costs |
$735,600.00 |
Software Subscription License (1 year) |
720,000.00 |
Network Installation |
12,000.00 |
Travel Expenses - Install |
3,600.00 |
- 2,000 participants
- Software license of $30/month per participant
- Two day network install at four locations
- Travel expenses for four locations, 2 days each
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Classroom Costs |
$0.00 |
Classroom Time |
0.00 |
- Classroom is not required for Team Tools Interactive™
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Facilitator Costs |
$0.00 |
Professional Fees |
0.00 |
Travel Expenses |
0.00 |
- Facilitator is not required for Team Tools Interactive™
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Seat Costs |
$1,724,800.00 |
Employee Time |
1,724,800.00 |
- 2000 participants x 40 hours training = 80,000 hours
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TOTAL TRAINING COSTS |
$2,460,400 |
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Estimated Completion Date: April 1, 2000
- Participants complete 10 hours of training per week
- 40 hours of training /10 hours per week = 4 weeks
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