return on investment

CALCULATOR

Instructional Technology & Services (800)726-6951

Cost of Development Data Sheet

Development costs include all expenses associated with the analysis, design, and development of the training course. These cost estimates may be drawn from your company's past experience, vendor proposals, or published industry studies.

GENERAL BACKGROUND What is the title of the training course? What is your current method of training (i.e., ILT, CBT, WBT)? What is the new method being considered (i.e., ILT, CBT, WBT)?

Course Title Method #1 Method #2

Current Method COST OF DEVELOPMENT PERSONNEL A1 What is the estimated internal labor cost for developing the course? A2 What are the estimated contractor costs for developing the course? Contractor #1: Contractor #2: Contractor #3: Describe here Describe here Describe here Method #1

New Method Method #2

$ $ $ $ $

$ $ $ $ $

PRODUCTION & MATERIALS A3 What are the production and material expenses for developing the course? (i.e., equipment rental, masters, printing, etc.) Expense #1: Describe here Expense #2: Describe here Expense #3: Describe here Expense #4: Describe here MISCELLANEOUS A4 Include any additional expenses related to the training course. Misc. #1: Misc. #2: Misc. #3: Misc. #4: Describe here Describe here Describe here Describe here

$ $ $ $ $

$ $ $ $ $

$ $ $ $ $

$ $ $ $ $

REVISION A5 How much revision to the course content is expected per year? [Enter as a percentage of initial development cost: i.e .12 = 12%]

12.0%

12.0%

Once you have completed this page, proceed to "Delivery Costs"

1997 MediaPro, Inc. All rights reserved 10900 NE 8th Street, Suite 900 Bellevue, WA 98004 Tel: (425) 641-4002 Fax: (425) 643-0113 http://www.mediapro.com

return on investment

CALCULATOR

Instructional Technology & Services (800)726-6951

Cost of Delivery Data Sheet

Delivery costs include all expenses associated with the implementation and deployment of the training course. This includes salaries and costs of personnel, travel, materials, facilities, and equipment over the life of the course.

Current Method COST OF DELIVERY B1 B2 B3 B4 How long (in days) is the class? How many classes per year? How many students per class? What percentage of students must travel from outside the Method #1
0 0 0 0% 0 0.0

New Method Method #2

0 0 0 0% 0 0.0

local area (i.e. require airfare, per diem, etc.)? B5 How many trainers per class? B6 What is the estimated life of the training course (in years)? STUDENT COSTS C1 What is the average student compensation (salary & benefits)? C2 How many work days per year (i.e. industry average = 235 days)? C3 What is the average student Per Diem? C4 What are average travel costs per student? C5 What is the cost of course materials per students per class? INSTRUCTOR COSTS D1 What is the average instructor compensation (salary & benefits)? D2 How many work days per year (i.e. industry average = 235 days)? D3 What is the average instructor Per Diem? D4 What are the average travel costs per instructor? D5 What is the cost of course materials per instructor per class? EQUIPMENT COSTS E1 What is the cost of equipment purchased for this course? E2 What percentage of this cost is allocated to this course? E3 What is the estimated maintenance cost per year (in percent -%)? FACILITY COSTS F1 What is the cost of facilities per year? F2 What percentage of this cost is allocated to this course?

$ $ $ $

47,250 235 -

$ $ $ $

47,250 235 -

$ $ $ $

60,750 235 -

$ $ $ $

60,750 235 -

0% 15%

0% 15%

50%

50%

Once you have completed this page, proceed to "Training ROI Report"

1997 MediaPro, Inc. All rights reserved 10900 NE 8th Street, Suite 900 Bellevue, WA 98004 Tel: (425) 641-4002 Fax: (425) 643-0113 http://www.mediapro.com

return on investment

MediaPro, Inc.
Instructional Technology & Services (800)726-6951

CALCULATOR

Return On Investment Summary Report

This analysis compares annualized training costs of Method #1 and Method #2 for the production of the Course Title course.
Current Method COST OF DELIVERY
A6 A7 A8 A9 A11 A12 Total cost of development personnel: Total cost of production and materials: Total cost of miscellaneous expenses: Total cost of course revision: Total cost of development over life of course: $ $ $ $ $ $

New Method Method #2

$ $ $ $ $ $ -

Method #1
-

Total Cost Per Year (Course Development) =

COURSE DELIVERY COSTS

B7 B8 B9 B10 B11 Total number of students per year: Total number of students that require travel per year: Total number of students trained over the life of the course: Total number of instructors per year: Total number of instructors required over the life of the course: 0 0 0 0 0 0 0 0 0 0

STUDENT COSTS C6 Average student cost per class (salary, benefits, & materials): C7 Average student travel cost per class (travel & per diem): C8 Average total student cost per class (all costs): C9 Total student cost per class (salary, benefits, & materials): C10 Total student travel cost per class (travel & per diem): C11 Total student cost per class (all costs): C12 Total Cost Per Year (Student) = INSTRUCTOR COSTS D6 Average instructor cost per class (salary, benefits, & materials): D7 Average instructor traveling costs per class (travel & per diem): D8 Total instructor cost per course: D9 Total Cost Per Year (Instructor) = EQUIPMENT COSTS E4 Total equipment purchase requirement: E5 Cost of equipment per year over the life of the course: E6 Cost of maintenance per year: E7 FACILITY COSTS F3 T1 T2 T3 T4 T5 T6 T7

$ $ $ $ $ $ $

$ $ $ $ $ $ $

$ $ $ $ $ $ $ $ $ $ $

$ $ $ $ $ $ $ $ $ $

Total Cost Per Year (Equipment) = Total Cost Per Year (Facilities) =

TOTAL COST OF TRAINING PER YEAR = TOTAL COST OF TRAINING OVER LIFE OF THE COURSE = TOTAL SAVINGS PER YEAR = SAVINGS OVER LIFE OF COURSE = PERCENT SAVINGS OVER LIFE OF COURSE = DELIVERY METHOD OFFERING THE BEST VALUE = RETURN ON INVESTMENT (total savings / total cost) = MONTHS TO BREAK EVEN =

1997 MediaPro, Inc. All rights reserved 10900 NE 8th Street, Suite 900 Bellevue, WA 98004 Tel: (425) 641-4002 Fax: (425) 643-0113 http://www.mediapro.com

return on investment

MediaPro, Inc.
Instructional Technology & Services (800)726-6951

CALCULATOR
Calculation A1, A2, , A5 A6 A7 A8 A9 A10 A11 A12 B1, B2, , B6 B7 B8 B9 B10 B11 C1, C2, , C5 C6 C7 C8 C9 C10 C11 C12 D1, D2, , D5 D6 = User-defined constants = A1 + A2 = A3 = A4 = (A6 + A7 + A8) * A5 = A9 B6 = A6 + A7 + A8 + A9 = A11/B6 = User-defined constant = B2 * B3 = B7 * B4 = B7 * B6 = B2 * B5 = B10 * B6 = User-defined constant = ((C1 / C2) * B1) * C5 = (C3 * B1) + C4 = C6 + (C7 * B4) = C6 * B3 = C7 * B3 = C9 + C10 = C11 * B2 = User-defined constant = (((D1 D2) * B1) + D5) * B5 Explanation

This sheet contains descriptions of the equations used in the ROI calcuator.

Data entered by user in Worksheet #1, "Development Costs". Sum total of development personnel costs, including company labor and consulting costs. Carry-over value from Worksheet #1, "Development Costs". Carry-over value from Worksheet #1, "Development Costs". Sum total cost of development multiplied by estimated percentage of annual revision. Total cost of courseware development divided by estimated life of program. Sum total of all development costs, including estimated cost of revision. Total of all development costs divided by the life expectancy of the course. Data entered by user in Worksheet #2, "Delivery Costs". Number of classes per year multiplied by the number of students per class. Total number of students per year multiplied by the percentage of students requiring travel to attend training. Number of students per year multiplied by the life expectancy of the course. Number of classes per year multiplied by the number of instructors per class. Number of instructors per year multiplied by the life expectancy of the course. Data entered by user in Worksheet #2, "Delivery Costs". Sum total of student salary per class (annual salary divided by working days per year multiplied by number of days per class) and cost of student materials per class. Sum total of student per diem per class and cost of travel per class. Sum total of student cost per class and percentage of student travel costs per class. Average student cost per class multiplied by the average number of students per class Average student travel cost per class multiplied by the average number of students per class Sum total of total student cost per class and total student travel cost per class. Total student costs (all costs) multiplied by the number of classes per year. Data entered by user in Worksheet #2, "Delivery Costs". Sum total of instructor salary per class (annual salary divided by working days per year multiplied by number of days per class) and cost of instructor materials per class multiplied by the number of instructors per class. Sum total of instructor per diem per class and cost of travel per class multiplied by the number of instructors per class. Sum total of total instructor costs per class and total instructor travel costs per class. Total instructor costs (all costs) multiplied by the number of classes per year. Data entered by user in Worksheet #2, "Delivery Costs". Total cost of equipment multiplied by percentage of allocation for the course. Total cost of allocated equipment cost annualized over the life expectancy of the course. Total cost of required equipment multiplied by estimated percentage of yearly maintenance. Sum total of annualized equipment and maintenance costs. Data entered by user in Worksheet #2, "Delivery Costs". Annualized cost of facilities multiplied by the percentage of allocated use for course. Sum total cost per year for courseware development, personnel, materials, and equipment & facilities. Total cost of training per year multiplied by the life expectancy of the course. Higher of the two sum totals for cost of training per year subtracted by the lower. Total savings per year multiplied by life expectancy of course. Total savings per year divided by higher of the two sum total costs of training per year. Total savings per year divided by total cost of training per year. Total cost of training over the life of the course divided by the monthly savings.

D7 D8 D9 E1, E2, E3 E4 E5 E6 E7 F1, F2 F3 T1 T2 T3 T4 T5 T6 T7

= ((D3 * B1) + D4) * B5 = D6 + D7 = D8 * B2 = User-defined constant = E1 * E2 = E4 B6 = E4 * E3 = E5 + E6 = User-defined constant = F1* F2 = A12+ C12 + D9 + E8 + F3 = T1 * B6 = T1(larger) - T1(smaller) = T3 * B6 = T3 T1(larger) = T3 T1 = T2 (T3 12)

MediaPro, Inc.
Instructional Technology & Services

MediaPro specializes in the development of e-Learning and Computer Based

Training applications for business and education. The firm was founded in 1993 and has designed and developed hundreds of successful interactive learning applications for companies such as Boeing, Costco Wholesale, IBM, Microsoft, Safeco Insurance, and Verizon Wireless (to drop a few well known names). In 1996 the company established a web-based consulting practice that specializes in delivering interactive learning applications over the internet/intranet. MediaPro provides development services and product training in Authorware, Dreamweaver, CourseBuilder, Designer's Edge, and Flash. Custom training courses and on-site training are also available from our top-ranked instructors (and average course evaluation of 9.4 out of 10). Please visit our web site for current schedules and pricing. The company also provides strategic consultation, instructional design, and graphical and user-interface design services. Custom services plans are available for companies who want to cost effectively "jump-start" their e-Learning development efforts. Contact us to view award winning samples of our work! For more information on how your organization can get started in e-Learning, contact us by phone at (425) 483-4700, (800) 726-6951, or by e-mail at sales@mediapro.com.

T: (800) 726-6951 (425) 483-4700 F: (425) 402-1441

http://www.mediapro.com

19820 N. Creek Parkway Suite 301 Bothell, WA 98011