Resource Utilization Tool – How It Helps in Calculating Resource Utilization Better

Resource utilization is one of the most critical KPIs for project-based service firms to monitor. Measuring resource utilization enables firms to make more informed resourcing decisions, increasing staff productivity and project profitability.

Every organization’s performance and growth are determined by various elements, the most important of which are its personnel. Project managers must work effectively and fast to ensure that their projects are completed on schedule. They must understand how productive their team members are, what projects they are working on, their skill sets, future availability, and so on.

However, regardless of size or type, most businesses have yet to recognize the importance of assessing resource usage rates. As a result, they do not keep track of resource use statistics and actuals.

In this blog, we will answer your question that might be hitting hard in your mind regarding resource utilization.

Understanding Resource Utilization

Project managers can identify under or over-allocated project resources by using the resource utilization statistic, which monitors the use rate of resources across time.

To ensure that the company operates as productively as possible, it can help us plan how to use the resources more efficiently.

Employers and employees can both benefit from efficient resource management. On one side of the spectrum, it can also prevent overworking and burnout, resulting in a more balanced work-life. On the other hand, it ensures that employees have enough work to make their roles viable and lucrative.

Calculating Resource Utilization 

The best approach to gauge how well resources are being used in relation to their capacity or availability is through their resource utilization. In other words, it involves monitoring team production and determining whether they are over or underwhelmed. Calculated using the following formula:

Resource utilization formula= Actual/allocated work time /resource capacity

You can measure it in hours/days/percentage and FTE(Full-time equivalent).

Optimal Utilization: It is the process of making the best use of resources to use them to their maximum possible. Their planned vacations, training schedules, and any other administrative-related tasks are also considered when determining the available capacity.

Unveiling the Profound Benefits of Resource Utilization Tools

Let’s look at approaches to increase resource utilization and develop better planning procedures with Resource Utilization Tool:

• Resource utilization tool is perfect to manage tasks properly.

Having the right Resource Utilization Tool is critical to make it easy for the team to perform business and manage their activities to improve resource utilization. 

Resource management software, such as eResource Scheduler, makes it simple for teams to log their time, organize tasks, communicate with one another, and provide outcomes to clients.

The resource utilization tool can help us gain a better understanding of the team’s schedules and who is responsible for certain tasks. All of the increased efficiency contributes to better resource usage over time.

• Create a detailed resource planning schedule.

By using a resource utilization tool, teams can organize and structure their time to complete projects and tasks on time and by the proper employee. It is an essential component of project management and can aid in resource utilization. When team members’ work schedules are clearly written out, it helps individuals accomplish their tasks better and provides supervisors with a better understanding of timeframes, deadlines, and responsibilities.

• Track team members’ time.

Time tracking is an essential component of resource utilization. Time tracking allows you to see in real-time how many hours staff spend on billable projects and how much time they spend on internal meetings or administrative tasks. To maximize profitability and get the most out of your team’s time, you should measure hours.

When we track time, we understand how long it takes to finish projects, which can help us with billable utilization. We may also learn when staff are underutilized or overutilized and reshuffle tasks to make everyone happy.

• Future projects forecasting.

We may use the resource utilization tool to estimate and plan future initiatives accurately. It enables us to make better judgments early in the planning process, avoiding the need to rewrite schedules and allocate assignments. It also ensures that the appropriate personnel are assigned to the project.

Resource utilization tools help us to make  accurate project estimates and plan future initiatives. It enables us to make better judgments early in the planning process, avoiding the need to rewrite schedules and allocate assignments. It also ensures that the appropriate personnel are assigned to the project.

• Reduce non-billable activities.

While working, non-billable activities are unavoidable. Non-billable tasks like email checking, document filing, internal marketing, attending meetings, and teamwork will always need to be completed. However, these kinds of activities sometimes consume an excessive amount of time.

Managers can identify which staff has many non-billable hours and why by looking at resource utilization data. If there is space in their schedules, they may then think about making adjustments like decreasing meeting periods or giving them more projects.

• Analyze actual hours vs. planned hours.

Managers can identify which staff has many non-billable hours and why by looking at resource utilization data. If there is space in their schedules, they may then think about making adjustments like decreasing meeting periods or giving them more projects.

The resource utilization tool assists us in understanding how much time is spent on a project so that we can compare it to the time you anticipated the project would require. This will improve client quotations and reduce the workload on team members.

Utilize the resources efficiently with eResource Scheduler.

We understand how critical it is for you to have the necessary resources for your initiatives at eRS. We also understand that to meet your goals and track your billable hours. It would be best if you had the necessary tools in place. That is why we provide solutions for businesses of all sizes to better plan projects and increase workplace productivity.

Sign up for eRS today to learn more about how we improve businesses and help our customers succeed.