Project managers have a lot of responsibilities. It’s their job to ensure projects succeed on time and in a budget. It’s a job that requires taking into account a lot of moving parts, making project decisions in advance and on the fly. It’s this shapeshifting nature of projects that means that, even with the best team and all the resources and time in the world, projects can still fail or not live up to expectations if resources aren’t utilized properly.
Resource utilization can be a formula for success. In this article we’ll be looking at the benefits of resource utilization and how you can make sure you’re getting the most out of all the resources available to you.
These processes might sound similar, but they have some slight and important differences:
Both processes are key to achieving project success, however resource utilization is often undervalued. Creating a robust framework for assessing the conditions of existing resources might seem complicated, but with the right tools it can be easy. Once you’ve decided on the budget and resources available, and the metrics you want to use to measure efficiency, you can implement resource management into your projects.
Resource utilization, ultimately, helps you make the most of your available resources:
The most common formula for project managers is full-time equivalent (FTE). This is used to calculate how optimally a resource is being used in terms of available workable hours. To calculate this, divide the allocated hours a resource will work during a project by the total number of workable hours available in the project. Multiply the result by 100 to create a percentage, and the product will indicate the effectiveness of the resource. For example, if a worker has been allocated to a project for 45 work hours, and that project has a total of 60 workable hours, then that resource has a utilization of 75% as per the FTE formula. It’s best to aim for a rate of around 80% – anything above this risks employee burn out, and anything less will not utilize the resourcefully.
Creating a resource utilization analysis report can show you all the resources you have available and how they’re currently performing. There’s no perfect formula to guarantee success since every project is different – this is something which can be difficult to manage in a DIY project management tool like Excel. In the past PMs relied on Excel to track resources, but Excel doesn’t have the capacity for data projections and scenario analysis that more advanced tools do. Resource utilization requires high-quality tools to give project managers the agility and insights they need.
With an intelligent resource management platform, project managers have dedicated tools to approach and master resource utilization:
In order to deliver successful projects on time and on a budget, project managers need intelligent resource management software. Tempus Resource gives project managers the ability to see individual resource availability and reallocate resources quickly if needed.
What-if scenarios allow risk-free project visualizations – it’s possible to see what will happen to a project if its budget or timescale changes. These visualizations enable risk-free decisions. Heat maps and cool maps offer easy visibility of resource performance, so project managers can quickly see if resources are being over or under-utilized.
Project managers need a tool that works as hard as they do. Tempus Resource can give you the resource insights you need to guarantee project success.
Tempus Resource helps you create resource models with intelligent data forecasts, reduce risk and increase ROI. To find out more about resource management, get in contact with us today.