Does training for business and industry cost or does it pay


Problem

John Andrews and Martha Stevens are supervisors in the production department of ATV Inc., a manufacturer of various types of all-terrain vehicles. ATV is beginning to feel the pressure of global competition. To continue the growth it has enjoyed over the last five years, ATV is going to have to improve quality, productivity, customer service, and supplier relationships.

One task force has been formed to investigate the feasibility of supplier partnerships. John and Martha have been appointed to another task force to determine whether a partnership with a local college is feasible as a way to improve employee performance. Representatives from the college have interviewed employees, supervisors, and managers to determine what types of assistance ATV needs.

The college's director of business services made a presentation to the Education Partnership Task Force this morning. He made the following recommendations: (i) all production employees should receive training in benchmarking, continuous process improvement, use of the quality tools, and problem solving; (ii) the training should be provided on-site and on company time; and (iii) the company should pay all costs associated with the training. John and Martha are discussing these recommendations.

"There is no way ATV is going to pay what the college wants to charge," said John. "And I guarantee there won't be any training conducted on company time. All of this is too expensive. Management will turn the college down flat."

"I don't think so," said Martha. "If the training improves our performance enough to keep us competitive, it will be worth every penny and more."

Join this debate. Does training for business and industry cost, or does it pay? What is your opinion?

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Operation Management: Does training for business and industry cost or does it pay
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