Businesses worldwide are experiencing an increasingly competitive and dynamic market—a dog-eat-dog world. Resource costs are vital to many companies, which is why it is one of the most expensive overhead costs on their balance sheets. As a result, an organisation must use its resource constraints to achieve maximum value.
Resource capacity is a planning process of identifying the amount of work that resources at a corporation can accomplish, determining the tasks and projects that those resources can achieve, and coordinating activities to be performed with accessible resources to fulfil present and future expectations. Resource capacity is an efficient business management solution that is specialised to systematically plan and manage the infrastructure of available resources to allocate for a project. Efficient resource capacity planning enables you to achieve greater means of project collaboration in your project pipeline with maximum resource utilisation for integrated project management.
Benefits of Resource Capacity
Companies are used to using basic programs such as Excel spreadsheets or other ineffective methods to perform capacity planning. The problem is not a lack of resources but rather that they lack a viable and more efficient tool to connect their efforts to gain company-wide access to resources.
Understanding and developing precise plans of present and emerging available capacity enables a business to optimise its resources and billable hours. Resource capacity will show precisely how to conduct resource capacity planning and provisioning efficiently, enhance organisational project management with capacity planning, leverage talent balancing in the organisation, and better comprehend the resource demands and the gap between them. As such, your company will be better equipped to achieve your OKR and KPI goals and project objectives with a focus on a high-performance culture.
Knowing how capacity planning and management differ per industry will assist companies that are willing to listen to the changes the future will continue to bring. Resource capacity necessitates a solid understanding of resource capabilities, the demands of each commercial enterprise, accurate project timeframes, and an efficient resource strategy.
Listed below are the main benefits of Resource Capacity Planning:
- Greatly reduce administrative employment tasks and repetitive tasks using a workforce capacity and corporate tools specialised for specific projects
- Use a comprehensive system to reduce cost for global resources and maintain the same quality
- Prevent any discrepancies in booking resources and reduce burn rate
- Eradicate and prevent over or under-valuing resources on projects
- Maintain and adapt to any unplanned attrition
- Prevent labour costs due to last-minute decisions
Key Features of Resource Planning
In project management, resource capacity planning is essential. Planning and estimating pipeline opportunities support the convergence of selling and delivering. The project manager analyses resource requirements and commence the requisition process when a pipeline project achieves an ideal and certain maximum probability. The associated resource manager then continues the fulfilment planning and implementation. But first, the associated resource manager must determine whether or not the appropriate steps were taken to maximise resources to initiate the project.
However, when performed appropriately, it could have a substantial beneficial impact on a company. For instance, a company with an eight-person department working the standard 40 hours per week will employ capacity planning to calculate the exact amount of average billable hours, allocate team members to projects, and establish a task timeline to meet a deadline.
Using different viewpoints, such as position, department, team, talents, and much more, the resource manager assesses the current resource capacity to the project demand. It facilitates the early detection of any deficiencies or surpluses. As a result, managers can use appropriate resourcing methods, such as recruiting permanent or contractual personnel to bridge the gap.
Establishing advance notice significantly reduces selection and recruitment costs errors and guarantees that the necessary resources are allocated for projects at the appropriate time with a levelled budget. Concurrently, capacity planning decreases unproductivity by preemptively introducing personnel training, modifying timeframes, or selling additional capacity.
Other tips to increase resource capacity planning include utilising the pareto distribution, having a project kick-off meeting or creating a weekly workplan template to improve your work performance.
Choosing the Right Solution for Resource Capacity Planning
Capacity planning is a crucial element of the contemporary business to optimise performance. Companies must seek an imperative digitalisation solution that stretches beyond their current planning functions. It should ensure that they have a planning system that can supply several valuable capabilities relevant and personalised to its needs.
Many organisations have implemented a matrix organisational structure to make the maximum use of available resources. It must be interoperable with the matrix organisational structure. Therefore, businesses require a functional capacity planning tool with the matrix organisation structure and its accompanying intricacies.
Companies should be able to execute multi-dimensional predictions with the support of resource capacity planning. The right digital solution will be equipped with digital workflows that will deliver real-time business analytics to improve productivity, revenue, and performance outcomes that allows you to work smarter.
Tessaract: The Optimal Cloud-Native, Low Code Workflow Automation Solution for Your Business
Resource capacity planning contributes to forming an efficient project team, minimising the project budget, and the long-term prosperity of the workforce against a volatile market and economic instability. Tessaract will help your business succeed in the current highly competitive and unstable market. Our consultative group will help your business bloom using customised resource capacity planning that we tailor to your needs and the needs of your consumers through agile workflows and resource levelling. With Tessaract's cloud-native, low-code workflow automation solution, fulfil your ever-changing business needs and keep ahead of the digital acceleration curve.
Our specialists have worked in various industries and for businesses large and small. We offer guidance and support from the beginning of the process to complete implementation. We can collaborate with your PMO to help you navigate the stages. Let us help you avoid the costs of unfulfilled commitments, unproductive employees, and wasted time. With features such as digital signing and customisable client onboarding forms and even time tracking, start on your digital transformation roadmap today for greater productivity and efficiency.
Contact Tessaract's expert team today to discuss the services we provide or how we may power your business in your capacity planning process.