OSHA COMPUTER-BASED TESTING & TRAINING PILOT PROGRAM

Subject
This business case examines the benefits and associated costs to Utility Customer (UC) for implementing the computer-based safety and compliance testing and training software proposed by Vivid Learning Systems, Inc. It reports the results of a three-month pilot program conducted by Utility Customer, using Vivid's Electrical Worker Training (EWT) CBT product among 48 Customer Operations employees in Albany and Bainbridge.

Purpose
The purpose of this business case is to evaluate the effectiveness and cost reductions associated with the use of Vivid Learning Systems' computer-based safety and compliance training and testing automation software. Vivid's testing/training software has proven to dramatically reduce "non-productive" labor-hours dedicated to the cognitive portion of safety and compliance training and retention. The costs of this project include the creation of customized lesson titles from UC's current instruction titles to computer-based testing and training.

Executive Summary
From January through March 2001, UC conducted a pilot program to test the feasibility and potential benefits of Vivid's computer-based safety and compliance software. This software is designed to allow employees to "test out" of knowledge they already know and then to deliver whatever compliance knowledge is lacking via self-paced interactive computer-based training. The Bainbridge pilot group was given the "test out" option and the Albany pilot group was required to complete all training prior to being allowed to "test out". Based on the results of this pilot program, the following conclusions can be made:

	Vivid's computer-based testing/training program will reduce non-productive labor-hours by more than 65%, the equivalent of 61,350 labor-hours per year. The Bainbridge pilot group completed a lesson in an average time of 18 minutes. The Albany group took just 1 minute longer to complete a lesson with an average completion time of 19 minutes. This represents a savings of more than 40 minutes per lesson over the current delivery method.
	By reducing 61,350 non-productive labor-hours, UC will realize a $1,411,058 per year savings when compared to current safety and compliance training/testing delivery methods.
	UC employees involved in the pilot are comfortable using computers for OSHA training and testing. Both groups responded with a high degree of comfort in terms of using computers. The data suggests that Albany has a higher comfort level in this area than Bainbridge.
	These employees ranked Vivid's computer-based training and testing product very high and indicated preference to it over other computer-based training programs they may have been exposed to. The Albany group indicated a very high level of preference, 89.1%. The Bainbridge group indicated a preference, 63.6%. Combined, both pilot groups indicated a strong preference, 75.8%.
	Both pilot groups believe that self-paced training on a computer enhanced employee learning. Scoring to this question was very similar and the average of both groups was 73.9%.
	Vivid's computer-based testing/training accomplished learning objective for these lessons in terms of safety in the work environment. Both groups scored this question very similar as well with an average of the two at 73.1%
	Vivid's computer-based testing/training course was ranked as being more effective than the current safety training method used. While both groups preferred this delivery method over the current method of training, the Albany group indicated a higher level of preference.
	Vivid's computer-based course was effective in delivering mandated compliance training. Both groups ranked Vivid training as being effective.

Additional benefits of Vivid's computer-based safety and compliance training/testing are:

	Automated testing and tracking of regulatory requirements. Scheduling, reporting and verification of training is all accomplished within the robust Learning Management System
	Increased availability of training and refresher training. Vivid's software can be made available at almost any location and is available to employees 24 hours per day, seven days per week.
	Electronic updating of employee training records. This will save more time and money by eliminating the need to manually input employee training records into the UC training tracking database.
	Provides existing instructors more time for hands-on and other important training.
	Increased ROI from existing computers.
	Increased consistency of training content.
	Test security. The computer gives each employee a different test by randomly selecting test questions from a pool of test questions.

The lessons used in the UC pilot were off-shelf lessons. Data from other large Vivid Learning Systems customers indicate that employee survey responses improve following the customization of lesson material and test questions. In addition, average time to "test out" of lessons continues to drop each year.

For example, one Vivid customer who has been using Vivid's products for over 10 years, annually tests/trains over 14,000 employees per year. Each year, their average computer-based training and testing time has decreased. In 2000, these 14,000 employees tested out of an average of 18 lessons in just 4.4 minutes per lesson.

Costs
UC will be charged an annual maintenance fee of $1.06 per lesson per employee, plus a first-year customization fee to modify existing lessons, making them Utility Customer-specific. Twenty percent of the annual maintenance fee will be used to customize and upgrade these lessons for the following year.

These costs will be offset by a reduction in instructor and training material costs dedicated to these topics and by non-productive man-hour costs of at least $1.4 million per year.

Recommendations
Based upon this analysis the following recommendations are made:

Value Added
Vivid Learning Systems also provides the following services/products to customers in the utility industry:

Next Steps

Disclaimer
This summary provides approximations of important financial consequences that should be considered in decisions involving the licensing, installation and configuration of computing software. The analysis is based on information provided by UC, as well as information believed by Vivid Learning Systems to be accurate.