Labor Activity Over/Under Allocation Analysis

Allocated labor represents a major portion of Project/Investment expense. Understanding utilization of labor on project is very important to understand available capacity vs demand, making hiring decisions to support increased demand, stopping non-critical projects when the increased demand can’t be met through available budget. It also helps identify underutilized workforce and make allocation decisions where their available capacity can be optimally utilized.

In many cases, resource cost center and project cost centers are different, and one labor resource might be working on multiple projects, making the capacity vs demand analysis even more complicated. This results in a mismatch between capacity and demand leading to loss of available resource hours when under allocated and delays in project schedules when the labor resources are over allocated than actual capacity during the planning cycle due to false representation of actual capacity. It is hard to get visibility into total demand for various roles across the company vs available capacity and how much funds to allocate for the planned labor during the budget planning.

Integrated Investment Planning solves this challenge by introducing capabilities to completely prevent overallocation of resources or set up over allocation and under allocation thresholds and identify the resource allocations that don’t meet the set threshold.