WIXLIB

PMP Exam Prep Course - Class of April 2011Page 6Cost ConsiderationsFunding for the PMP Exam Prep Courses required making early commitments that fixed themaximum class size to 20 students. Gross costs (before any taxes) included a training facility,presentation equipment, Windows computer and software, student materials, instructionalmaterials, administrative supplies, market research, advertising, promotional flyers, registration,transactional costs, and food services. Human resources were assumed to come from volunteerism.Training Facility: A FedEx training facility wasavailable at no cost as long as FedEx did notneed to use the space. The facility met all ofour needs to facilitate a class size of 10 to 20students, and it was typically used only duringthe day. Our class was scheduled at nightwhich considerably reduced the risk that wewould loose the space due to a conflict with aFedEx event.Presentation Equipment:Our minimumrequirements included having a laptop ordesktop Windows capable computer with CDplayer, remote presentation control/pointer,an overhead projector, projection screen,sound equipment, and a whiteboard. Optionalequipment included having a flip chart stand.Our chapter recently purchased a laptopcomputer pre‐loaded with PowerPointsoftware which met our computer needs. TheFedEx training facility provided for theremaining presentation equipment needs atno cost. We had an older remote controlpresenter that was found to be defective andmissing the Bluetooth receiver. A new onewas purchased to replace the old one. Student / Instructor Materials: We chose topurchase Andy Crowe’s training materials at afixed cost per student. For every four studentkits we purchased we received one instructorkit for free. We had three tiers of student kitsto choose from which required a decision. Tierone provided a student text and workbook at 99 per student. Tier two was chosen at 129per student which included the text,workbook, flash cards, and quick referenceguide. Tier 3 at 189 per student exceeded ourneeds for this class.Food Services: A precedence to provide foodservices had already been set. Last year, ourevening classes served a light dinner thataveraged close to 7 per registered student.We assumed managing our food costs withinthe same budget by student was possible butwe increased the projection to 10 per studentso that we could ensure enough food would bemade available for our class auditors, ourinstructors, and our volunteers.Promotion / Marketing / Advertising:Marketing research was not fundedconsidering we had no way to measure theeffectiveness of this spending. There was noadditional cost to advertise the class on ourwebsite, and no additional cost to leverage ourchapter's mailing list by using our Cventservices. Cvent's online tools and our internetservice provider (ISP) are fixed costs approvedby our Board of Directors which have becomean integral part of the ements that advertised the PMPExam Prep Class were made at our monthlychapter meetings.Project Management Institute PMI Memphis TN Chapter P.O. Box 383283 Germantown, TN 38183-3283 www.pmimemphis.org

PMP Exam Prep Course - Class of April 2011Registration / Transactional Costs:Wetypically use Cvent to advertise our chapterevents and manage online registration. Theirweb‐based system provides us witheMarketing tools for creating event webpages, automated email, online registration,and for processing credit card transactions.There is no additional cost to use Cvent formanaging advertising and online registrationfor the PMP Exam Prep Course. Transactionalcharges for processing credit card purchasesincurred during registration are chargedthrough to our bank services provider.Transactional charges were assumed to beinsignificant when planning the PMP ExamPrep Course budget. Bank service charges aretracked by our VP of Finance and not includedfor reporting within this document.Page 7State & Federal Taxes: PMI Memphis isorganized as a not‐for‐profit entity under thestate of Tennessee and is eligible for taxexemptions. Both state and federal incometax laws apply for non‐profit organizations,and we have certain filing requirements foreach based on our chapter’s gross receiptsfrom all of our income generating activitiesplanned for 2011. Filing thresholds and taxes(if any) are determined by our VP of Financeand not included for reporting within thisdocument.Promotion & AdvertisingMaking the most effective use of advertising and promotional activities was critical to oursales, and with a high degree of certainty it is safe to say 100% of our sales were a direct result ofbasic communications in several forms. Understanding our effectiveness remains subjective andgoes beyond just counting students. It requires a marketing analysis to give us the informationneeded to modify, improve, and adjust our advertising program based on our learning. Our chaptercurrently lacks the ready resources needed to accomplish such an expert analysis for this report.Instead, this discussion will focus on the modes of communication used to advertise April's PMPExam Prep Course.Cvent Advertising: Our chapter currently uses Cvent as an eMarketing tool for managing eventnotifications. Cvent’s automated Email system was used to send announcements that described thePMP Exam Prep Course. A clone of the event from last October’s class was used for April’sinvitations. Minor changes were made to adjust for the new location and class dates. The invitationtargeted over 2700 people currently managed by our chapter’s Email list which is resident to Cvent.Nearly 1000 people ‘opted‐out’ in the past leaving about 1,750 people on the list. It was assumed themajority of the remaining invitees would receive our invitations knowing it was likely the contactinformation for some people was out‐of‐date. The first invitations were sent out on February 5th.Two timely reminder invitations were sent as the event approached the start date.Project Management Institute PMI Memphis TN Chapter P.O. Box 383283 Germantown, TN 38183-3283 www.pmimemphis.org

PMP Exam Prep Course - Class of April 2011Page 8Chapter Website:Doug Price, our VP of Communicationsvolunteered to create a website advertisement which was posted onFebruary 12th. The banner ad (shown on the left) was featured on ourchapter’s home page and ran up until the class started on April 5th.The banner ad provided a link to Cvent web pages created to providemore information about the course and facilitate electronicregistration.Personalized Email/Telephone Conversations: Numerous inquirieswere generated through referrals and our advertising. Invitees wereencouraged to contact Mike Fulton, VP of Education by telephone orEmail to discuss any questions or concerns. Roughly eight of thesecommunications directly contributed to student enrollments. Someinquiries came from ‘cold calls’ meaning the candidate customer wasunaware of April’s upcoming class. This group was mostly comprisedof non‐chapter members or other interested parties that were notexposed to our advertising.Chapter Meeting Announcements: Class announcements were madeduring February’s and March’s monthly chapter meetings. Attendee’swere asked to inform their peers and co‐workers. Plus, it has become acommon practice for us to ask first time attendees to stand up andintroduce themselves. During March’s meeting, Mike Fulton spottedfor these new attendees and then reached out by delivering hisbusiness cards to them at their tables. This action directly contributedto two student enrollments including David Kyle's. His picture is shownon the left.Referrals / Word‐of‐Mouth:No effort was focused on trackingwebsite referrals or word‐of‐mouth advertising. Yet, it is likely severalstudent registrations for April's class resulted from peer discussions atSedgwick. This is evident to us considering eight Sedgwick employeesare presently signed up on our 'waiting list' for the next class. Thiscomes after having five Sedgwick employees as students in April.Project Management Institute PMI Memphis TN Chapter P.O. Box 383283 Germantown, TN 38183-3283 www.pmimemphis.org

PMP Exam Prep Course - Class of April 2011Page 9Financial ResultsThe discussion in the financial section should be read in conjunction with all other sections ofthis report. Operating results for the PMP Prep Course held in April 2011 exceeded the plan in GrossProfit derived from higher than expected Total Sales Revenue and Total Cost of Sales. It is importantto understanding class enrollment and costs fluctuate from a class‐to‐class basis. Significance ofpractices underlying our financial results is a principal factor and critical information important forany material judgments or assumptions.PMP Prep Course - April 2011Stated in DollarsReturn on sales [L/J]66.8%CurrentPeriod as% of Sales% 031.4%0.0%Student sales: PMI members - 2 weeks before class (1 budget / 1 actual)595.00595.005.4%0.0%Student sales: PMI members - 1 week before class (1 budget / 0 actual)635.0010.000.0%-0.001,330.00212.1% 1000%Student sales: non-PMI members - 3 weeks before class (6 budget / 6 actual)3,630.003,630.0033.0%0.0%Student sales: non-PMI members - 2 weeks before class (1 budget / 0 actual)625.0010.000.0%-0.001,995.00218.1% 1000%Sales RevenueStudent sales: PMI members - 3 weeks before class (6 budget / 6 actual)Student sales: PMI members - 1 day before class (0 budget / 2 actual)Student sales: non-PMI members - 1 week before class (0 budget / 3 actual)Student sales: non-PMI members - 1 day before class (0 budget / 0 actual)Total Sales Revenue [J] (15 students budgeted / 18 students t of SalesStudent Materials (15 students budgeted / 18 students actual)2,085.002,462.0922.4%Food & %36.0%Class SuppliesTotal Cost of Sales [K]Gross Profit [L J-K]Gross Profit: Our Gross Profit was projected to yield 5,400dollars. An increase in total sales contributed to an actualgross profit of 7,344 dollars (rounded).As a direct result of operations, we posted a plus 36% profitabove plan and a 66.8% Return on Sales (1,9952 13302). Apositive net variance of 2,065 dollars resulted which was a plus23.1% change from budget.Project Management Institute PMI Memphis TN Chapter P.O. Box 383283 Germantown, TN 38183-3283 www.pmimemphis.org

PMP Exam Prep Course - Class of April 2011Page 10Total Sales Revenue: Our Sales Revenue was projected toachieve 8,935 dollars in income. Actual sales totaled 11,000dollars which exceeded plan by 23.1%.The planned mix of discounts offered and enrollment bycategory (student sales by member status and time baseddiscounts) contributed to a variance of minus 1260 dollars(6351 6251), and actual sales by category contributed to avariance of plus 3,325 dollars.Total Cost of Sales: Overall, our Cost of Sales was 33% of ourtotal sales receipts. Planned costs were projected to be 3,535dollars, and actual costs totaled 3,656 dollars (rounded) whichexceeded plan by 3.4%.The increase in cost was due to student materials whichexceeded budget by 377 dollars. The budget was for fifteenand eighteen students had enrolled. Extra materials werepurchased above plan to provide for three additional students.We had greater control over our food and beverage costs bymaking small corrections from week to week. Despite the higher student enrollment total foodservice costs came in under budget by minus 9%. A budget for class supplies was provided foradministration and operational costs including paper, pens, copies, printing, software, etc. A totalcontingency of 250 dollars was planned which included a likely replacement for the old remotepresentation controller/pointer. Our purchases totaled 102 dollars. The planned budget exceededour actual needs by 148 dollars.Summary: We always strive to make a profit on our PMP Exam Prep Courses as a benefit needed forfunding our chapter's programs and as a means to fund operations. A net gain of 7344 was earnedand applied to our chapter's bank account.Project Management Institute PMI Memphis TN Chapter P.O. Box 383283 Germantown, TN 38183-3283 www.pmimemphis.org

PMP Exam Prep Course - Class of April 2011Page 11Our Engagement TeamThe team behind organizing and executing our PMP Exam Prepcourse aimed at increasing the overall satisfaction of ourstudents and instructors. Our Engagement Team comprised ofthree volunteers starting from the left Debra Schrack, MikeFulton, and Ching‐Chi Anita Hsu. PMI Memphis has a greatethic of volunteer service and member commitment that buildsmomentum. Each volunteer worked with passion in a meaningful and coordinated wayto make a measurable difference in our chapter’s priorities.Mike Fulton, SDRM, PMP: Mike currently serves as our VP ofEducation at PMI Memphis and oversees the PMP Exam Prep Courseprogram along with other duties. For the April class, he planned &managed the budget, staffed our Engagement Team, performed allpromotion & marketing activities, procured supplies, reserved thetraining facility, registered students, and provided student customerservices on and offsite. Mike is an aircraft engineering & management professionalcurrently employed by FedEx Express as an avionics Project Engineer in Air Operations.He has a bachelor’s degree in engineering (BSET) from the University of Memphis, amaster’s degree in engineering management (MEM) from Christian Brother’s University,certificate in Strategic Decision and Risk Management (SDRM) from Stanford University,and is a Project Management Professional (PMP) since 2005.Debra Schrack: Debra has previously served as our VP of Finance at PMI Memphis and shecontinues to generously volunteer her time when called upon. As administrator, Debra managed allcommunications for recruiting our course instructors for April's class. She coordinated all classscheduling, instructor evaluations, and ensured our volunteer instructors received proper directionand class materials. She performed with excellence and was instrumental in ensuring the VP ofEducation was well‐informed for making timely decisions. To enhance learning, Debra organizedand actively participated in a student study group. She gained valuable insights into our student's needs. This enabledus to make minor adjustments based on their feedback. Debra was previously employed by First Horizon as ProjectManager in Enterprise services. She has a bachelor's degree in business administration (BBA) from the University ofMemphis and aspires to earn her PMP this summer.Ching‐chi Anita Hsu: Hsu is a newcomer to the Memphis area. She recently joined PMI andimmediately exhibited her passion to get involved with our chapter. Hsu volunteered to manage allfood service activities for April's class including our food budget. Meticulously, she selectedrestaurants with catering and carry‐out services from well‐known franchises and local restaurantowners. Hsu ensured proper meals were available for our students on special diets. She personallypicked up meals, delivered them to our training facility, set up the food line, catered to students, and cleaned up. To savemoney, Hsu shopped for sales at local grocery stores on the weekends to buy beverages, water, chips, pickles, andcookies. As a direct result of Hsu's financial controls our total food & beverage costs came in under budget by 9%. Hsu iscurrently employed by International Paper as Supply Planner II. She has a bachelor's degree in supply chainmanagement (BA) from Michigan State University, an ASQ Green Belt certificate, and is a current graduate studentearning a master's degree in supply chain management from Michigan State University. Hsu plans to earn her PMP thissummer.Project Management Institute PMI Memphis TN Chapter P.O. Box 383283 Germantown, TN 38183-3283 www.pmimemphis.org

PMP Exam Prep Course - Class of April 2011Page 12Course InstructorsIn April 2011, our PMP Exam Prep Course was generously taught by thisteam of twelve volunteer instructors (shown below) who donated theirdiscretionary time as PMI Memphis chapter members.Each and every instructor is a certified PMP. All have the breadth anddepth of PMI’s kn

PMP Exam Prep Course - Class of April 2011 Project Management Institute PMI Memphis TN Chapter P.O. Box 383283 Germantown, TN 38183-3283 www.pmimemphis.org Page 6 Cost Considerations Funding for the