Best Practices: Optimize Resource Utilization and Increase Project Profitability

Henrik Brandt, Director, Product Management, DeltekArno Kirstein, Silversoft – Deltek Premier PartnerPS-63

Session Topics

Resource Optimization | Short, mid and long term challenges

Project Profitability | Issues every organization faces

Demo | Increasing Project Profitability

Implementing a Resource Management System | Best Practices

Lessons Learned from the field | Customers Stories

Tell Us | Feedback, Q&A

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Demo | How to minimize resource optimization challenges2

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Resource Optimization

Short, mid and long-term challenges

3 Biggest Resource Optimization Challenges

1. Short-term planning

“We are not good at optimizing our resources on a short-term basis. We don’t effectively plan and optimize from day-to-day to solve issues”

2. Mid-term planning

“Our utilization rates are low and we still move around resources from project to project – we try to optimize on a 1-3 month basis”

3. Long-term planning

“Should we hire new people in certain areas?”

“Should we plan on reductions?”

“What do we do, if we get the three large orders, we have in our pipeline?”

3 planning modes | 1 solution

Timeline

#1 Scheduling

Who is doing what today and the coming week?

#2 Project & resource

Are we utilizing our people fully for the next 1-3 months?

#3 Long term capacity

Does ourpipeline and projects match our capacity?

Our advice! Start h

ere to

optimize utilitization & get

corporate overview

Scheduling

Scheduling What are my people doing in the coming week?

Scheduling What are my people doing today and next month?

Scheduling | project controlInstead of planning day-to-day, create to do lists by project for the coming week and employees

In addition to viewing to dos in Outlook, employees can mark them complete.

Project & Resource

Project & Resource Staff your projects at project level Detailed project task planning adds no resource overview value

plan by week

Staffing at the project level

Project & ResourceAchieve corporate overviews of staffing conditions = better decision foundation

Value = knowing what everybody is doing 3-4 months ahead

Extending your visability into the coming months on a detailed individual basis

Project & ResourceMake detailed planning to control project deliveries

Detailed planning ensures the right resources are working on the project

Project & Resource |Step 2 make detailed project control against baseline

baseline actuals remainingplans

+ =

New total

Project & Resourceuse skills matrix as an integrated part of your planning to utilize resource compentences

Long-term capacity

Long-term capacityplan portfolio of projects ahead on a monthly basis

Include projects & opportunities Plan on a monthly basis

Long-term capacityPlan on types of people rather than named employees

Long-term capacityachieve corporate overview of pipeline and forecasts versus resource situation

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Demo

How to minimize resource optimization challenges

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Achieving Project Profitability

Issues every organization faces

Juggling all the Variables

Plan for everyone Start plan from allocating at highest level Make Entire Project Plan Visible Implement approval workflow Plan from multiple POV React quickly to changes Accessible Plans & Visible Information Add resource costs

8 Steps to ensure profitability

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Demo

Increasing Project Profitability

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Implementing a Resource Management System

Best Practices

Perceived Value

Stage 1:time registration and invoicing

Stage 2:resource management

Stage 3:project planning &management

Stage 4:Full ERP

increased revenue+ cash flow

increased utilisation

increased project profitability

full decision support

Time

Successful implementation criteria

Successful implementation criteria

Risk of unrealisticTask

Phase

Project

Month Week Day Hour

Effective & Realistic

Best practice

Start at the corporate level ■ Keep it simple ■ Make it universal

Too detailed planning - example

• 100 employees• Run 1,000 projects per year• Average number of tasks per project: 20• Number of people per project: 3

• Planning on project level: 3,000 entries• Planning on task level: 30,000 entries

• 30,000 entries that needs to be updated as the plan changes !

Resource Management| Everyone’s Responsibility

Resource Management is not stronger than the weakest link.

Communication is key!

A successful resource management

implementation and solution still

needs people to talk to each other

Get everybody on board

Make a commitment to remove the siloed thinking and rogue players

Rules to manage the change

Rule #1:

Automation applied to an efficient operation will magnify the efficiency.

Bill Gates

Rule #2:

Automation applied to an inefficient operation will magnify the inefficiency.

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Lessons Learned from the field

Customer Stories

Feedback, Q&A

Thank You!