SCENARIO:

Fancy Foodstuffs Inc. is evaluating the costs to conduct ongoing ergonomics training at its

manufacturing facility. You may want to use the table presented in class.

1. Compute the total yearly cost of the training given the following information:

Two safety professionals (non-loaded hourly pay is rate = $40/hr.) deliver the training; however,

only one has to do the scheduling.

The course materials have already been developed, and the yearly ongoing cost for

development and for materials is negligible. One of the professionals delivers the 2 hr training.

One professional needs one hour for one of the safety professionals is required for scheduling

and preparation for each session.

They deliver training to one shift once per month, totaling 12 different training sessions.

• Approximately 400 wage employees (non-loaded average hourly pay rate = $23/hr.) from the

plant attend the training each year.

In addition to the training time, the cost of employee benefits is approximately 50% of the

employee's pay rate.

Each time wage employees attend the ergonomics training, production slows down. Although

jobs are rotated to minimize the impact, historical data has shown that production drops by 5%

on days when the training is delivered. The average profit value of one full shift of production at

this plant is $7,500.

It is anticipated that implementation of the new program will save $35,000 in injury costs this

year.