MBNA Fitness Center

MBNA FITNESS CENTER Background: MBNA bank branch in CA. Recently launched a wellness program Fitness Center as part of the wellness initiative. Adequate space available

MBNA FITNESS CENTER Overview of Project Proposal for on-site fitness center Introduce employees to a healthy lifestyle

MBNA FITNESS CENTER Problem Increase Healthcare costs Increase in Absenteeism Costs hurting the bottom line

MBNA FITNESS CENTER Project Objective Increase employees health Reduce costs Decrease in unscheduled absenteeism Decrease in company healthcare costs

MBNA FITNESS CENTER Project Objective Increase employees health Reduce costs Decrease in unscheduled absenteeism Decrease in company healthcare costs

MBNA FITNESS CENTER Costs Project Cost = $71,465 Current Costs Design $325 Material $18,195 Fitness Equipment $35,932 Labor $17,013 Current Costs Absenteeism Cost per employee/per hour $50 Average employee health cost per year $6,300

MBNA FITNESS CENTER Benefits # Unscheduled absent work days: 2002 : 3,500 unscheduled absent days Totals cost (8hrs x $50 x 3,500) = $1.4 million Drops by 8% in the first year 3,220 absent work days Total savings = $112,000

MBNA FITNESS CENTER

MBNA FITNESS CENTER Build Fitness Center Probability 70% $71,465 Probability 70% Probability 40% Probability 60% $90,000 Probability 30% $50,025 Build Fitness Center YES NO Success Failure Cost Total Risk $27,000 $30,000 $150,000 $12,000 $77,025 $102,000

MBNA FITNESS CENTER