Executive Synopsis
The potential cost savings of using high-tech training methods to deliver annual MSHA compliance training are substantial and readily available to all organizations regardless of size. This brief study will explore how and why several traditional and widely used training delivery methods fail a cost benefit analysis when put in a head-to-head comparison with web-based training. Finally, the potential retention rate of web-based training is much higher for workers than traditional training. The bottom line, web-based training is less expensive, gets better results and is clearly the best practice.

The training method chosen to deliver annual safety compliance training will impact the bottom line of every organization regulated by MSHA. The cost difference between methods is substantial. Therefore, it is important for senior management to understand that there are differences and have information available to make an informed decision about selecting the most appropriate training method for the organization.

There are three primary methods used by the industry to deliver annual safety compliance training. Two of the methods may be termed traditional because of their long standing in the industry and widespread usage. The first traditional method involves instructor led worksite training known as tailgate talks. These on-site sessions are usually conducted in fifteen-minute increments and led by the supervisor or foreman. The second traditional method is instructor led classroom training. Within the industry, this method usually involves one eight-hour session either on site in a maintained classroom or off-site in a rented classroom. The third method is non-traditional and involves self-directed web-based training. (See Table 1 for a comparison of nine separate criterion for each of the three methods).

The lost productivity criterion in Table 1 identifies where the bottom line will be affected the most. In the first model, an assumption is made that only four minutes of socialization time is lost at the beginning of the tailgate talk and four minutes at the end of the tailgate talk. The eight minutes per session amounts to 4.25 hours of lost production plus the 8 hours of actual training time required to satisfy regulatory responsibilities. In other words, this method requires an expenditure of 12.25 hours to complete 8 hours of training.

The second model fares somewhat better with only eight hours of lost production while the miners are away from the job in a classroom getting their annual safety compliance training. On the other hand, the third model offers potential for production to be maintained while the training is completed. Organizations are creatively scheduling web-based safety training into the process during the normal workday in the same way as breaks and lunch periods have been scheduled into the process for years.

Obviously, at this point it should be clear that the cost of training involves much more than just the price tag for the training material; and, tailgate lessons delivered by a supervisor are not really free. Sending the crew down the road to a classroom for eight hours involves a lot more expense than just the cost wages and instructor fees. Time is a perishable commodity that has value. Obtaining a better ROI on capital equipment season after season is an obvious competitive advantage. High-tech web-based safety training can provide an opportunity for management to manage time better than the competition.

The following examples (See Table 2) were derived from data available from the U.S. Geological Service for 2003. The examples were designed to show potential lost revenue resulting from utilization of each traditional annual training model for one year and for five years. The web-based training model was not included in the example because it was assumed that most organizations would be able to assimilate annual compliance training into normal work schedules because others have done it and the method affords ultimate scheduling flexibility.

Example - Crushed Stone
Total production- 1.49 billion tons
Total employment - 78,000
Ave price/ton - $5.78

Calculations are based on the following formulas:

Total production	=	Tons produced per employee hour
Total employment X 2000 hours

Tons produced per employee hour X Ave price/ton = Revenue lost per hour

Note: Lost revenue for Construction Sand and Gravel and Industrial Sand and Gravel may be calculated by applying the following multipliers. 

Construction Sand and Gravel - 1.49

Industrial Sand and Gravel      - 3.66

Progressive organizations intent upon implementing best practices are using high-tech web-based safety training along with the application of good people management skills to gain a competitive advantage and put some distance between themselves and the nearest competitor.  It is difficult to defend the continued use of the traditional training models when the benefits of new training models are so obvious. 

Will there be challenges involved in adopting web-based training?  Of course there will.  The biggest challenge will be resistance to change.  However, a wise man once said, “Every management system is perfectly designed to get the results it is getting”.   If the organization wants better results, it must overcome the resistance to get the change.   Fortunately, resistance to change is generally founded in personal or cultural opinion.  Overcoming this resistance should only be an academic exercise for most organizations since data and information in a mature management system always trump opinion.

 References

R. R. McHaney, CSP, and M. A. Copeland, CIH, “It’s Time to Take a Stance on Compliance to Part 46”, Aggregates Manager, November 2000.

Ron McHaney, CSP, “The Advantage of Training for Value”, Aggregates Manager, October 2003.

Table 1