Incorporating e-learning technologies in corporate training can have significant impact on costs. Usually, companies realize savings in costs attributed to instructor and employee travel, vendors, facilities and equipment used in training, program design, development and delivery.

One aerospace defense products company found e-learning a viable solution to meeting budget constraints while attaining training goals. By using e-learning, the company reduced its annual training budget by 40 percent. Today, more than half of the company’s courses are delivered in an e-learning format.

Recently, the company used e-learning to complete a training initiative for 1,000 managers in two weeks. Choosing e-learning saved the costs of 20 separate training sessions.

When the directive to cut spending on training was issued, a circuit board manufacturer turned to e-learning to reach 4,000 users. The demand for instructor-led classes was reduced by 30 percent, helping the company reach its budget targets.

A circuit manufacturer used an online module to educate employees about electrostatic discharge. In one month, 99.6 percent of the company’s 2,000 employees had completed the course. The company realized an $80,000 savings.

According to a recent survey, less than 10 percent of manufacturers said they employ e-learning in their training process. But this overshadows an emerging trend: Survey participants believe that using e-learning can save money and improve productivity.

One of five respondents said they saw or could measure improvements in performance in a variety of key areas, including employee knowledge and efficiency, desired behaviors, customer satisfaction and product quality.

And recognition means e-learning will be on the rise. Almost one-fourth of survey participants indicated they were going to increase their use of e-learning options. They point to the need to improve employee skills, reduce training costs, broaden course work offered and improve employee retention by creating a more stimulating environment.

One sign that e-learning is gaining greater credibility is the fact that companies are beginning to measure the return on investment it yields, though most find it difficult. One-third of the survey respondents have an established method to quantify ROI.

Size seems to be irrelevant in a company’s ability to embrace e-learning. A National Association of Manufacturers (NAM) survey found the vast majority (93 percent) of large companies use e-learning. In spite of fewer resources, small companies are also aggressively pursuing e-learning. More than half (55 percent) of the small companies taking part in the survey said their programs include some type of e-learning.

A Viable Option

For Many Companies

The NAM Virtual University is an ideal option for small to medium-sized companies that want to explore or incorporate e-learning into their training process.

Designed to meet the specific needs of manufacturers, the Virtual University offers about 500 courses online available to members for fees ranging from $15 to $300.

These e-learning courses are organized under 10 colleges: supply chain management/lean manufacturing; information technology; general manufacturing/technical training; quality; OSHA health and safety; basic core skills/personal development; human resources/legal; customer service/sales/marketing; leadership/people skills; and business/finance/accounting.

“What we have compiled is best-of-breed content,” said Dan Akman vice president of marketing and e-business for the NAM.

Akman recommends that manufacturers find a “sweet spot” to test and experiment with when considering e-learning.

“Companies should examine a six-month time frame for their training program,” he pointed out. “Identify areas the company knows they will train on anyway, ones that don’t necessarily require a trainer. OSHA and compliance issues or sexual harassment are possible courses that a broad spectrum of employees would be required to take.”

The beauty of e-learning is that it is self-paced and easily accessible, Akman said. Employees can take the course within a specified time and still have the luxury of learning at their own pace. They also have the opportunity to go back to the training and check specifics or refresh their knowledge.

Access can be critical. Since few people on the shop floor have desk tops, some manufacturers create kiosks that have a computer and headphones.

Employees can instantly check how to fix a piece of equipment or immediately deal with other manufacturing issues.

Most companies use a blended approach to e-learning, combining online information with an instructor who is available via phone or e-mail. Other delivery avenues include static graphics, flash information, streaming video and Web conferencing, which has become a powerful tool in sales

training.

Consider the impact e-learning recently had when a manufacturer sent an e-mail with a link to a new product to 500 salespeople. They all learned about the product at the same time and were ready to introduce it to customers immediately, Akman said.

Support from the top can make an incredible difference in the return on investment of e-learning

initiatives.

A chemical manufacturer whose CEO is involved in e-learning requires all employees to receive training via e-learning. Employees receive notification that they are to take a course through e-mail.

Several e-mails are sent prior to a notice being sent to the supervisor. Tracking completion of student progress and completion of course work is also done via e-mail.

“e-learning has become a way of life for everyone in the company,” Akman said.

e-learning gives employees the opportunity to go above and beyond requirements. Individuals can take additional courses to develop skills needed to move to other jobs. Career paths can be created. The workplace becomes more dynamic and energetic.

Virtual learning gives companies the ability to grow their own at a variety of levels within the organization. Retaining skilled employees is a boost to the bottom line when it comes to a small pool of qualified talent.

The skills gap in many high-tech jobs in manufacturing and the productive partnership of manufacturers and local educational systems may drive greater acceptance of e-learning.

“We’re beginning to see community colleges and universities becoming involved in creating content of e-learning in manufacturing,” Akman said.

He cautioned manufacturers to put e-learning in the proper

perspective.

“It’s not a panacea,” Akman stressed. “It is a valuable tool. The speed of training that can be achieved with e-learning can be a huge advantage over the competition.”

Carol Gentes is a freelance business writer based in Chica