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As understood in the project management courses, these are the tracking resource metrics are most important for a project's success.
Track These 4 Resource Metrics
Resource utilization rate
When compared to their overall availability or capacity, resource utilisation indicates how efficiently resources are used. As a project manager, you must optimise your resources in order to generate revenue or achieve the desired return on investment (return on investment). Resource management software can help you assess your project team's overall productivity and determine if non-billable activities are taking up too much time. If that's the case, you can take the necessary steps to turn them into billable work. With a complete picture of the usage rate, you can allocate jobs evenly and prevent team members from being overworked or underworked.
Forecast vs. actual time
The difference between the time projected for completing a project's job and the actual time spent is known as forecast vs. actual time. You can notice any occasions where resources surpass the initial projections by tracking this difference in real time. You can look into why the variance occurred, such as scope creep, decreased productivity, or a lack of resources. You can take appropriate corrective measures to alleviate delays and avoid project disruptions. For example, if a resource shortage is the cause, you can ask the resource manager for more resources with the necessary skills, or communicate with HR to hire, always keeping the project budget in mind.
Resource cost variance
As understood in the project management courses, the discrepancy between projected and actual resource costs is known as resource cost variation. This variance can provide you a clear picture of the project's profitability and margins if you keep track of it. Forecast vs. real financial data on a resource management platform will help you keep track of and regulate the project's budget. You may locate cost-effective global resources for your project by recording resource-related information on a unified platform. Regularly review this report and take proactive steps to avoid project budget overruns.
Estimated vs. actual resources in use
The discrepancy between the anticipated number of resources and the actual number used on a project is known as estimated vs. actual resources in use. For example, you estimated four resources
for a work, but you ended up hiring two additional during the project's duration to complete the same task. As a result, project costs may rise, putting a strain on your budget. Inaccurate resource forecasts, disorganised resource procurement workflow, sub-optimal resource utilisation, and other factors contribute to this type of volatility. Analysing the difference between estimated and actual resources may aid you in developing future resource plans for comparable projects and improving your long-term planning. Need more insights on the same? Enrol in a Project Management or business analysis certification course today!