Levels Tought:
Elementary,High School,College,University,PHD
Teaching Since: | May 2017 |
Last Sign in: | 261 Weeks Ago, 6 Days Ago |
Questions Answered: | 20103 |
Tutorials Posted: | 20155 |
MBA, PHD
Phoniex
Jul-2007 - Jun-2012
Corportae Manager
ChevronTexaco Corporation
Feb-2009 - Nov-2016
PLEASE SHOW CALCULATIONS AND ANSWER BREIEFLY
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Background:
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Nicky's Carpet Cleaning Company
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You run Nicky's Carpet Cleaning Company which cleans carpets for commercial businesses. On average one carpet cleaner can clean six offices in a seven hour shift, Monday through Friday. You have 100 cleaners currently working for you, and they work 250 days per year. A recent analysis of the rework that must be done finds that, on average, one in every 6 carpets cleaned is not up to your standards. Because of Nicky's "Satisfaction Guarantee" when a carpet does not meet the standards it is redone immediately at no extra cost to the customer.Â
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The profit on cleaning each office is $25. You pay your cleaners $15 per hour. ($105 per day) When you have to re-clean a carpet you lose $20 in employee time.Â
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Your training manager has done a needs assessment regarding this issue at your request and has identified the cause as being a lack of KSA's. The training manager proposes a training program that he estimates will reduce the re-cleaning by 50%. The training would take 4 hours and they could train 25 employees per session. Training could therefore be completed for all 100 employees over two Saturdays, by running two four hour sessions on each Saturday.Â
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Costs Associated With Training
Costs Associated With Training
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Postage to mail out pre-training materials to all employees        $300
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20 days of training manager's time for creation  of training program $3,200Â
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Training Facilitator Costs     ($325 per day)                     $650Â
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Training Facility Rental                                                    $1000
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AV Equipment Rental for 2 Days ($1000 per day) Â Â Â Â Â Â Â Â Â Â $2,000
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Refreshments for employees                                           $600
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Employee Wages (Nicky decides to conduct training on a Â
Saturday and pay his employees an extra $5 per hour as  $8000
overtime) $20 per hour per employee                              Â
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          Cost of Facilitators Hotel Room/Expenses         600          Â
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Clerical Support to assist training manager in creating 200
Program- (20 hrs @ $10 per hr.) Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â
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External Consultant Fees associated with reviewing 800
Training Program created by training manager              Â
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Photocopying costs to produce brochure for all employees $200
with training information sent out prior to training. Â Â Â Â Â Â Â Â Â Â Â Â
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Administrative support to prepare attendee lists/schedules $120
for training dates ( 10 hrs. @ $12 per hour)
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Cost to purchase new LCD projector for training $2000
department to share as old one no longer works             Â
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Case Study Questions
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1.  In reviewing the related costs associated with the training program please identify which ones falls into the following categories:
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Development Costs
Direct Costs
Indirect Costs
Trainee Compensation
Overhead Costs
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2.  How much do the re-cleanings cost Nicky each year? Show all mathematical calculations.
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3.  After the training is complete, what is the estimated annual cost savings each year? Show all mathematical calculations.
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4.  What is the total cost of conducting the training? Â
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5.  If training was cancelled the day before, what would the training costs then be? (assume no cancellation fees would apply) Please list items, show related costs and provide a final total.
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