Resource planning and allocation
Once you have a forecast of the project revenue — based on a detailed work breakdown and budget — you’ll have a good forecast of capacity requirements or issues. Assuming you have enough of the right staff to deliver the project in that timeframe, you now have to allocate your staff to the project. This is called resource planning and is also where an individual’s utilisation comes into it. If, for example, you only have one person who is BIM trained and your project has heavy BIM demands, that person is likely to be overutilised (this is an extreme hypothetical, of course — who would do that?). Your capacity to delivery a project depends on having the right balance of skills to meet the project requirements.
If you don’t have the capacity to deliver a particular project, a resource forecast highlights this early and you can plan to either hire the right resources, bring in contract workers for a set time, or outsource part of the project. Equally, the revenue and resource forecast tells you if you have excess capacity compared to the jobs in your pipeline — your options here are either to win more business or lay people off.
A forecast for revenue and resourcing is a ‘best guess’ at varying levels of sophistication — for example, you might write it all out on a napkin (low sophistication, low accuracy, quick), spend hours working it all out in a series of spreadsheets (medium sophistication, error-prone, laborious and time consuming), or use a cloud forecasting and resourcing application that does all the complex calculations in the background (high sophistication, high accuracy, flexible, fast).
Whatever your approach, it’s important to remember that any forecast of revenue and resources is only as good as the data you put into it — the more accurate you make it, the better the outcome.
Find out more about Synergy advanced forecasting and resource planning for architecture, engineering and construction design businesses and projects.