Annex:
TRAINING, LOGGING AND LICENSING COSTS
TRAINING AND
LOGGING
If one takes a company predicated say, on 300
people with a Sales & Marketing team and Engineers who have
regular contact with customers of say, 50% of those 300 people,
one is left with a training bill which adds up as follows:
| 300 x 1.14 | =
| 342 days |
| 300 x .5 = 150 x 4—a further |
| 600 days |
| Total | = | 942 man days per year.
|
| Each employee works a total of 216 man days 216 x 300
| = | 64,800 man days per year
|
| % Man days for training | |
|
| 942/64,800 x % | = | 1.4%
|
| A rough rule of thumb is that personnel cost multiplied by a figure of 2.5 = overheads.
| | |
| 942 x 2.5 | = | 2,355
|
| 2,355/64,800% | = | 3.6%
|
| Add in, then, the need for probably two people to maintain the database of customer contact and transfers
| | |
| 2 x 216 | = | 432 man days
|
| The time of the 50% of people logging information at say, 10% of their working time (This is my experience from my last business trip and the paper I sent the DTI in Jan 2003). This is a further
| | |
| 300 x .5 x .1 x 216 | = |
3,240 man days |
| Total man days | |
|
| 942 + 432 + 3,240 | = | 4,614 out of a total of 64,800 = 7.12% of personnel costs.
|
This might then be multiplied by the 2.5 factor and then
one might get a figure of 17.8% increase in overheads just to
train and complete the bureaucratic requirements of logging etc.
However until we actually run this system we could not make this
latter claim. Up to now we can show that the evidence is pointing
to a figure of well in excess of 2% on training costs alone.
Further training for new joiners and update training for
the existing workforce is not covered in these estimates. Our
experience so far is that the update training requires almost
as much effort as the initial training, mainly to keep pace with
changes in the legislation (this is largely dictated by DTI reinterpretation
of the regulations).
LICENCE APPLICATIONS
These figures do not include the activities of applying for
and administering the F 680 or licences we need to carry out the
four phases of any project.
Each form takes roughly .75 man hour to complete and process
and then .25 man hour to deal with on return provided there are
no follow up questions.
Smiths Detection's (arguably the worst effected company)
figures arrived at in conjunction with DTI LU 3 and DESP in DESO
show that there will be between 19,500 and 100,000 forms which
is a total of 19,500 man days per two years or 9,750 man days.
Or 9,750/216 = 45 people!!
Major efforts are being made, in conjunction with LU 3 and
DESP, to reduce the number of licence applications. However these
currently seem to be of no avail and all we are doing is moving
the piece of paper that has to be filled out from one ministry
to another.
April 2004
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