Project managers oversee the myriad moving parts of every project and are responsible for making decisions both proactively and onsite. Resource utilization is one of their major responsibilities to successfully complete the project on time and within budget. They always try to keep each individual engaged without making them over or underutilized while making sure that each individual’s role is valuable and billable to the company. Resource allocation software enables organizations to master the art of effective resource utilization and, thus, achieve better business outcomes.
What is Resource Utilization?
Resource Utilization is the strategic process of measuring resource effectiveness. It can also be described as the process of planning a project and ensuring that the company’s available resources are used optimally. Project managers can help identify overused employees so that responsibilities can be assigned to other employees as needed, and similarly, identify underutilized employees and assign them to new projects.
The Advantages of Resource Utilization:
Resource allocation software enables project managers to have a robust framework in place to measure the effectiveness of resources. A few significant advantages that effective resource utilization offer to projects include:
- Effective resource utilization reduces over-or underutilized resources.
- Optimized resource utilization implies enhanced productivity and hence a better ROI for projects.
- Resource utilization enables project managers to handle the project with more visibility, thereby reducing any last-minute glitches.
- When resources are underutilized, effective resource utilization allows for the opportunity to diversify resources to different tasks.
- Efficient resource utilization allows project managers to be nimble and reschedule resources quickly if needed to avoid upcoming problems.
Pro Tips while Implementing Resource Utilization tool:
- Take advantage of real-time visibility: Even though the projects exist separately in big organizations, they influence each other over time. Instead of viewing projects as separate entities, capture project-specific metrics and develop resource usage plans that provide an overview of all resources in your organization. This helps you assess overall capacity and resource performance at scale and identify areas for improvement across your organization.
- Deal smartly with scope creep: Due to the evolving nature of projects, some projects will inevitably require additional time and resources. It is the project manager’s responsibility to have a resource utilization strategy that helps you ensure that the project does not exceed the allotted time or budget.
- Be ready for all situations: As a project manager, visualize and cycle through different situations that may arise, and prepare for them as if they were inevitable.
eResource Scheduler: A leading and highly customizable Resource allocation software for effective Resource Utilization in Real-Time:
Even if you’ve optimized your resource utilization formula to meet your organization’s needs, your team data is constantly changing, requiring you to adapt your project management strategy. Regular data updates and constant monitoring of resource utilization are essential business practices. One of the best ways to do this is to implement eRS, a Resource allocation software that offers a configurable resource utilization report. The report covers utilization across resources, roles, locations, teams, and functional areas. It also has a smart feature that includes a custom-defined color-coded heat map to show up under-utilized or over-utilized resources. Are you ready to maximize your resource utilization? Sign up today for our 14-day free trial, to gain resource utilization insights for your organizations to ensure sustained project success.