1. MBNA Fitness Center

2. 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

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

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

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

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

7. 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

8. 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

9. MBNA FITNESS CENTER

10. 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

11. MBNA FITNESS CENTER