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Deltek Insight 2012: Best Practices: Optimize Resource Utilization and Increase Project Profitability using Deltek People Planner
 

Deltek Insight 2012: Best Practices: Optimize Resource Utilization and Increase Project Profitability using Deltek People Planner

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For many professional services firms, optimal usage of the human capital is paramount for achieving a high level of profitability in the projects. Many firms report that they are struggling to find ...

For many professional services firms, optimal usage of the human capital is paramount for achieving a high level of profitability in the projects. Many firms report that they are struggling to find the right people with the right skills for the projects with the required availability. Gathered from years of experience, Deltek and our SA partner will introduce you to best practices for resource management. Whether you use Maconomy or another established back office system, you share the same desire which is to increase resource utilization in your firm. In this cannot miss session, we will show you through practical applications and a series of demonstrations using Deltek People Planner how you can achieve your desired levels of utilization and profitability. Intermediate Level

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  • Achieving profitability can be a major juggling act! THEN CLICK TO FOCUS ON WHAT THOSE VARIABLES AREWe have so many variables to consider and some of the challenges that firms may experience when scheduling resources onto project tasks include: a fixed resource poolthe individual skills that exist within the resource poolthe distribution of those skills within the resource poolavailability of resources with a given skillthe varying level of competence a resource has in a skillthe varying cost rates of different resourcesother project task allocations each resource has been committedoverruns in the hours utilized project tasks a resource is allocated todetermining when tasks should be executedresource prioritization to the most profitable projects and tasksthe dependencies between different project tasksunforeseen changes in the nature of tasksunforeseen changes in the availability of resource already allocated and plannedunforeseen changes and adjustments required in project plansthe dependencies between the tasks in different project plansthe reallocation of resources as requiredthe impact changing resources has on required durations during task executionhaving an accurate schedule of planned allocations far into the futurehaving high level visibility to identify potential risks within projectshaving good visibility to key information in order to make confident decisions quicklycommunicating project plans, when project tasks are scheduled, resource allocations made and changes in all of these to all relevant people within the firm  
  • 2.3People Planner Best Practice Use Cases 52.3.1To get Total Overview Visibility Everyone must be Planned 52.3.2First Plan Allocation at a High Level (Project Level) 52.3.3Have the Entire Project Plan Visible 52.3.4Implement an Approval Workflow 62.3.5Do Not only Plan from a Project Point of View 62.3.6React Quickly to Changes Required 62.3.7Make the Plans Accessible and Relevant Information Visible 62.3.8Add Resource Costs 7
  • You should not mix project management and resource managent once you do your first implementation – it becomes to complex. Get resource planning and management in place first, there is a lot of value in this by focusing on increasing the utilisation
  • Introducing resource management one of the key criteria is the level of detail at which you plan – on the y – axis you have the level of detail at which you plan (project – phase – task) – with PP you can plan on all 3 levels. On the x-axis you have the level of detail you plan at in terms of time horizon – by month-week-day-hour – again PP can handle all 4 levels.We would recommend to stay within the best practise – the added value by making two detailed planning is not high – please do remember that everybody has to do it. The key thing to focus on is to get the corporate overview first – that is done by applying simplicity and ensure everybody is doing it. To detailed planning applies a lot of data discipline as the plans has to be updated more freequently
  • The thinking that “I love my Excel spreadsheet –it provides me with what I need” only protects the individual and their little fiefdom. Everyone needs to see the light. You need to make a commitment to change the thinking of your organization and stamp out any rogue players
  • Rule #1: Automation applied to an efficient operation will magnify the efficiency.Automation does not fix the underlying problemsSometimes it just helps them occur more quickly and in higher frequencyLike beget Like!One example:Moving from a simple project planning tool (Spreadsheet) to a more advanced (MS Project) does not neccessarily make the project management any more efficient – in fact, there are many examples of the opposite!

Deltek Insight 2012: Best Practices: Optimize Resource Utilization and Increase Project Profitability using Deltek People Planner Deltek Insight 2012: Best Practices: Optimize Resource Utilization and Increase Project Profitability using Deltek People Planner Presentation Transcript

  • Best Practices:Optimize Resource Utilization andIncrease Project ProfitabilityHenrik Brandt, Director, Product Management, DeltekArno Kirstein, Silversoft – Deltek Premier PartnerPS-63
  • Session Topics1 Resource Optimization | Short, mid and long term challenges2 Demo | How to minimize resource optimization challenges3 Project Profitability | Issues every organization faces4 Demo | Increasing Project Profitability5 Implementing a Resource Management System | Best Practices6 Lessons Learned from the field | Customers Stories7 Tell Us | Feedback, Q&A
  • Resource Optimization Short, mid and long-term challenges3 CONFIDENTIAL ©2011 Deltek, Inc. All Rights Reserved
  • 3 Biggest Resource Optimization Challenges1. 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 solutionWho is doing whattoday and thecoming week? Are we utilizing our #1 Scheduling people fully for the next 1-3 months? Does our pipeline and projects match #2 Project & resource our capacity? #3 Long term capacity Timeline
  • Scheduling
  • SchedulingWhat are my people doing in the coming week?
  • SchedulingWhat 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 andemployees 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 valueStaffing at the project level plan by week
  • Project & Resource Achieve corporate overviews of staffing conditions = better decision foundation Extending your visability into the coming months on a detailed individual basisValue = knowing what everybody is doing 3-4 months ahead
  • Project & ResourceMake detailed planning to control project deliveries Detailed planning ensures the right resources are working on the project
  • Project & Resource |Step 2make detailed project control against baselinebaseline actuals remaining New plans total + =
  • Project & Resourceuse skills matrix as an integrated part of your planning to utilize resourcecompentences
  • 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
  • Demo How to minimize resource optimization challenges20 CONFIDENTIAL ©2011 Deltek, Inc. All Rights Reserved
  • Achieving Project Profitability Issues every organization faces21 CONFIDENTIAL ©2011 Deltek, Inc. All Rights Reserved
  • Juggling all the Variables
  • 8 Steps to ensure profitability Start plan Make from Entire Implement Plan from React Accessible Add Plan for Plans & allocating Project approval multiple quickly to Visible resourceeveryone at highest Plan workflow POV changes Information costs level Visible
  • Demo Increasing Project Profitability24 CONFIDENTIAL ©2011 Deltek, Inc. All Rights Reserved
  • Implementing a Resource Management System Best Practices25 CONFIDENTIAL ©2011 Deltek, Inc. All Rights Reserved
  • Successful implementation criteria Perceived Value Stage 4:full decision Full ERPsupportincreased Stage 3:project project planning &profitability management Stage 2:increased resourceutilisation managementincreased Stage 1:revenue time registration+ cash flow and invoicing Time
  • Successful implementation criteriaStart at the corporate level Keep it simple Make it universal Task Risk of unrealistic Phase Effective & Realistic Best practice Project Month Week Day Hour
  • 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 changeRule #1:Automation applied to an efficient operationwill magnify the efficiency.Rule #2:Automation applied to an inefficientoperation will magnify the inefficiency. Bill Gates
  • Lessons Learned from the field Customer Stories33 CONFIDENTIAL ©2011 Deltek, Inc. All Rights Reserved
  • Feedback, Q&A
  • Thank You!