Download Excel File<\/button>\n<\/div> \n\n <\/p>\n
What Is a Resource Utilization Report?<\/h2>\n A resource utilization report shows the utilization rate of resources to determine what resources are currently available and whether there will be sufficient resources to execute future project tasks.<\/p>\n
There is no standard format for making resource utilization reports, but here are a few elements that can be included.<\/p>\n
\nLabor Costs:<\/strong> One of the key objectives of any resource utilization report is to document the costs associated with the project resources that are allocated<\/a> for the execution of activities.<\/li>\nResource Schedule:<\/strong> Utilization reports should include resource scheduling information to indicate when resources will be utilized and for how long.<\/li>\nResource Capacity:<\/strong> Organizations must compare their current resource utilization against their resource forecasts<\/a> and total resource capacity to determine whether they can take on more projects without affecting their operations.<\/li>\nResource Availability:<\/strong> A utilization report should document the current availability of resources<\/a> of any project or organization, and any resource constraints which constantly fluctuate as tasks are completed.<\/li>\n<\/ul>\nWhat Tools Can Be Used to Track the Utilization of Resources?<\/h2>\n Here\u2019s a quick overview of some of the most commonly used tools for tracking<\/a> the utilization of project resources.<\/p>\nGantt Charts<\/h3>\n A Gantt chart<\/a> is a project scheduling tool that can be used to make a resource schedule. It has two parts, on one side there\u2019s a grid that lists project tasks, resource allocation information, estimated costs, due dates and dependencies. The other half of this chart is a stacked bar chart that helps visualize the tasks in a resource schedule.<\/p>\nWorkload Management Charts<\/h3>\n Workload management charts show employee utilization rates and indicate which are over or underallocated, so managers can reallocate tasks to balance their team\u2019s workload<\/a>.<\/p>\nTimesheets<\/h3>\n Timesheets record the work hours of employees for payroll processing purposes. They help employers and employees agree on the work that\u2019s been done and its corresponding payment, which is important for tracking project budgets<\/a>.<\/p>\nResource Utilization Dashboards<\/h3>\n Resource utilization dashboards are ideal for monitoring the everyday utilization of resources of a project or organization. Ideally, organizations should use software with a real-time data dashboard<\/a> to track the progress of tasks, the utilization of resources, timelines and costs.<\/p>\nResource Utilization Example<\/h2>\n To better understand how resource utilization tracking works, let\u2019s go over a real-life scenario. Imagine that a manufacturer is evaluating purchase orders<\/a> that have been recently received from potential clients.<\/p>\nBefore taking on these projects, the manufacturer must establish its total resource capacity and compare it against its current resource utilization to determine what its current resource availability is. If there are enough available resources, the manufacturer might decide to move forward with these orders.<\/p>\n
However, that\u2019s not the only factor to weigh into this decision. Many resource constraints<\/a> can affect the availability of resources such as supply chain issues, scheduled maintenance activities, machine breakdowns or employee turnover.<\/p>\nResource Capacity Planning Template<\/h2>\n Our free resource capacity planning template<\/a> helps you monitor your resource utilization. It allows you to list your team members, their hourly rate, weekly availability, and the total number of work hours that are assigned to them.<\/p>\n While it’s a useful resource planning tool, this Excel template has limited project resource management features. If you need to manage the resources of your project or organization, you should use resource management software like ProjectManager<\/a> instead.<\/p>\nHow to Calculate Resource Utilization Rate<\/h2>\n Even though there\u2019s only one definition of resource utilization, there are different utilization rates to measure which can be used for different resource planning<\/a> purposes. Here are the main resource utilization formulas.<\/p>\nUtilization Rate Formula<\/h3>\n Utilization rate = Total Billable Hours \/ Total Available Hours<\/em><\/p>\nThe utilization rate formula is used when project managers need to assess how profitable their resource utilization is which is done by comparing billable hours against the total available hours of a worker.<\/p>\n
Billable hours are labor hours<\/a> that are charged to a client once the work is completed. Usually, project managers should aim for a utilization rate of 0.8 or 80 percent. This is done to guarantee a high billable resource utilization while leaving some room for employees for a healthy life-work balance.<\/p>\nOn the other hand, a high non-billable utilization indicates that the team is spending too much time on non-critical tasks.<\/p>\n
Capacity Utilization Rate Formula<\/h3>\n Capacity Utilization Rate = Total of all employees utilization rates \/ Total number of employees<\/em><\/p>\nIdentify the utilization rate for individual team members and then calculate the resource utilization rate for the whole team. To do so, use the capacity utilization<\/a> rate formula, which averages the team’s current utilization rate.<\/p>\nOptimal Utilization Rate Formula<\/h3>\n Optimal Utilization Rate = Resource costs + Overhead costs + Profit margin \/ Capacity utilization rate<\/em><\/p>\nThe optimal utilization rate formula balances resource costs, overhead<\/a> costs and profit margin with the capacity utilization rate.<\/p>\nIdeal Utilization Rate Formula<\/h3>\n Ideal Utilization Rate= Resource costs + Overhead costs + Profit margin \/ Total available hours * Ideal billable rate<\/em><\/p>\nThe ideal utilization rate formula balances resource costs, overhead cost and profit margin with the total available hours and ideal billable rate, which is the price charged to customers.<\/p>\n
How to Streamline Resource Utilization to Be More Productive<\/h2>\n Here are some tips to help streamline the resource utilization process so the project team<\/a> can achieve more while avoiding burnout.<\/p>\n1. Define Billable and Non-Billable Hours<\/h3>\n The first step to measuring resource utilization accurately is to define the billable and non-billable activities the project team will execute. Once that’s defined, calculate overall utilization, billable utilization and non-billable utilization.<\/p>\n
2. Determine the Available Hours of Each Team Member<\/h3>\n Figure out the available hours for each team member based on their contracts, whether full-time, part-time or unit pricing. Now, it’s easier to assign team members work. Use timesheets, resource calendars<\/a>, resource histograms and other tools\u00a0to track resource utilization.<\/p>\n3. Use Timesheets to Measure Resource Utilization<\/h3>\n Timesheets<\/a> are an essential tool to measure resource utilization because they document the team\u2019s time, use resource utilization formulas and measure the overall resource utilization.<\/p>\n4. Use the Resource Utilization Formula<\/h3>\n Use the resource utilization formulas above and, based on the project’s needs (billable, non-billable or strategic resource utilization), measure the resource utilization.<\/p>\n
5. Determine the Employee\u2019s Productivity<\/h3>\n Based on the resource utilization analysis<\/a>, determine which workers are overallocated, under-allocated and which have a low performance based on a peer comparative analysis and the work they\u2019ve done in terms of deliverables.<\/p>\nResource Management Templates<\/h2>\n We have dozens of free project management templates<\/a> to help manage projects. Here are three templates that are helpful when measuring resource utilization for resource management needs.<\/p>\n
![\"\"](\"\/wp-content\/uploads\/2022\/07\/Construction-Gantt-light-mode-task-info-general-CTA-BUTTON-1.jpg\")
<\/a>![\"\"](\"\/wp-content\/uploads\/2023\/12\/Capacity-planning-template.jpg\")
\t<\/div>