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Direct Project Costs
Design & Development Costs: This
cost category includes the internal labor costs and external
consulting fees required to produce participant-ready program
materials. This category covers the professional research and
development time it may take to tailor or custom-design the training
program to your specifications. It also includes time spent on project
reviews and program revisions as well as all related shipping, travel
and living costs.
Program Materials Costs: All costs
associated with purchasing and producing the course materials are
included in this category. This includes the price of participant
workbooks and instructor guides purchased from external suppliers as
well as the costs they charge for shipping the materials to designated
training sites. If a license to produce the program materials is
acquired, then the license price and internal reproduction, bindery
and shipping costs need to be calculated.
Promotional Costs: This cost category
is intended to collect all direct labor costs to prepare promotional
materials to support the announcement, description and internal
marketing of the training program. Both internal labor costs and costs
of external agencies should be considered as well as other direct
costs to produce and distribute the promotional material. This
encompasses the production of program brochures, posters and program
announcements.
Management and Administrative Costs:
The direct labor costs of the training department's personnel involved
in managing and administering the training program needs to be
considered. Time spent managing the contract and supervising the
project effort needs to be determined. Time required of internal staff
to schedule training programs, register participants and support the
implementation and follow-up of the training programs should also be
recognized in this category. Time spent evaluating the effectiveness
of the programs and reporting results to senior management should be
recognized in this category.
Instructor/Facilitator Costs: The
direct labor costs of internal trainers/employees to learn how to
conduct the training program (certification costs), time required to
prepare for each session, travel time, classroom time and any
follow-up consulting time with the participants should be included in
this category. Further, the costs of outside instructors/faculty should
be identified. Again, this would include the day rates charged for
teaching and follow-up consulting plus travel and living expenses.
Other Delivery Costs: If the courseware
is to be delivered over the Internet, then there will be costs
associated with the delivery of the e-learning programs that need to
be recognized. Costs associated with purchasing and installing a
Learning Management System (LMS) should be calculated as part of this
cost category. In addition, if an Application Service Provider (APS)
is contracted, then its per-participant access charges and any
relevant maintenance fees should be calculated and included as well.
Outside Training Facility Costs: The
out-of-pocket costs for training rooms and all costs for food and
refreshments should be determined. In addition, the cost of any
equipment used during training should also be included.
Participant Costs: The payroll costs
incurred when employees attend training as well as their travel time
to and from training represent the most significant cost elements of
training. In addition to their payroll costs, participant travel and
living expenses should be calculated as part of this category. Only
time associated with preparation of and participation in training
programs should be included in this category. The labor costs
associated with refining, reviewing and implementing plans back on the
job should not be recognized as part of the training costs. Rather,
these performance planning and implementation steps are part of the
participants' on-going job responsibilities.
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