{"id":3189,"date":"2020-06-03T17:48:15","date_gmt":"2020-06-03T17:48:15","guid":{"rendered":"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/?p=3189"},"modified":"2023-12-21T07:32:33","modified_gmt":"2023-12-21T07:32:33","slug":"how-to-measure-different-types-of-resource-utilization","status":"publish","type":"post","link":"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/how-to-measure-different-types-of-resource-utilization\/","title":{"rendered":"How to Measure Different Types of Resource Utilization"},"content":{"rendered":"<p>In the modern business landscape, <strong>resource utilization<\/strong> is a key performance indicator. The businesses strive to achieve <a href=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/maximize-profitable-resource-utilization-with-modern-resource-management-software\/\" target=\"_blank\" rel=\"noopener\">optimum utilization<\/a> of their workforce to enhance profitability.<\/p>\n<p>It is crucial to the firm as it has a direct impact on their <strong>bottom line<\/strong>. However, it&#8217;s not as simple as it seems, especially in the case of multi-faceted or complex projects. Resource utilization varies based on the types of industry. These are:<\/p>\n<ul>\n<li>Overall resource utilization.<\/li>\n<li>Billable resource utilization.<\/li>\n<li>Non-billable resource utilization.<\/li>\n<li>Strategic resource utilization.<\/li>\n<\/ul>\n<p><a href=\"https:\/\/www.saviom.com\/resource-management-software.php\" target=\"_blank\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" class=\"alignleft size-full wp-image-9707 fullwidth_img\" src=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/wp-content\/uploads\/2020\/06\/MicrosoftTeams-image.png\" alt=\"Measure Resource Utilization and Improve Productivity\" width=\"1195\" height=\"450\" srcset=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/wp-content\/uploads\/2020\/06\/MicrosoftTeams-image.png 1195w, http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/wp-content\/uploads\/2020\/06\/MicrosoftTeams-image-300x113.png 300w, http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/wp-content\/uploads\/2020\/06\/MicrosoftTeams-image-1024x386.png 1024w, http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/wp-content\/uploads\/2020\/06\/MicrosoftTeams-image-768x289.png 768w\" sizes=\"(max-width: 1195px) 100vw, 1195px\" \/><\/a><br \/>\nBefore diving into the technicalities of how to measure each type, let&#8217;s gain an in-depth understanding of the same.<\/p>\n<h2 id=\"1\" class=\"target\">Measuring Overall Resource Utilization<\/h2>\n<p><strong>Overall resource utilization<\/strong> is the method of measuring how much a resource is utilized in totality against its <a href=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/understanding-resource-availability-within-project-management\/\" target=\"_blank\" rel=\"noopener\">availability<\/a> or capacity.<\/p>\n<p>Which implies;<\/p>\n<p>Overall Resource utilization = Actual or allocated total time \/ Available resource time or <a href=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/the-comprehensive-guide-to-resource-or-workforce-capacity-planning\/\" target=\"_blank\" rel=\"noopener noreferrer\">resource capacity<\/a>.<\/p>\n<h2 id=\"2\" class=\"target\">Measuring Billable Utilization of Resources<\/h2>\n<p><a href=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/billable-hours-consulting\/\" target=\"_blank\" rel=\"noopener noreferrer\">Billable utilization<\/a> is the method of measuring how much a resource is utilized for billable work against its availability or capacity.<\/p>\n<p>Which means;<\/p>\n<p>Billable Resource utilization = Actual or allocated billable time \/ Available resource time or resource capacity.<\/p>\n<p><a href=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/billable-hours-consulting\/\" target=\"_blank\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" class=\"fullwidth_img aligncenter wp-image-5021 size-full\" src=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/wp-content\/uploads\/2019\/10\/Learn-About-Billable-Hours-Read-More-Post.png\" alt=\"5 Professional Services trends to watch out for\" width=\"830\" height=\"103\" srcset=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/wp-content\/uploads\/2019\/10\/Learn-About-Billable-Hours-Read-More-Post.png 830w, http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/wp-content\/uploads\/2019\/10\/Learn-About-Billable-Hours-Read-More-Post-300x37.png 300w, http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/wp-content\/uploads\/2019\/10\/Learn-About-Billable-Hours-Read-More-Post-768x95.png 768w\" sizes=\"(max-width: 830px) 100vw, 830px\" \/><\/a><\/p>\n<h2 id=\"3\" class=\"target\">Measuring Non-Billable Utilization of Resources<\/h2>\n<p>Non-billable resource utilization is a method of measuring how much a resource is utilized for non-billable work against its availability or <a href=\"https:\/\/www.saviom.com\/resource-management-software\/capacity-planning-software.php\" target=\"_blank\" rel=\"noopener\">capacity<\/a>. <strong>Non-billable work<\/strong> is related to non-billable projects, BAU, meetings, etc.<\/p>\n<p>Which means;<\/p>\n<p>Non-Billable Resource utilization = Actual or allocated non- billable time \/ Available resource time or resource capacity<\/p>\n<h2 id=\"4\" class=\"target\">Measuring Strategic Utilization of Resources<\/h2>\n<p><a href=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/5-protips-strategic-workforce-planning\/\" target=\"_blank\" rel=\"noopener noreferrer\">Strategic resource utilization<\/a> is the method of measuring how much a resource is utilized for <strong>strategic projects<\/strong>. Strategic projects are for achieving long term strategic goals of the business.<\/p>\n<p>So, we measure Strategic utilization as:<\/p>\n<p>Strategic Resource utilization = Actual or allocated strategic time \/ Available resource time or resource capacity<\/p>\n<div style=\"cursor: pointer;\"><a href=\"https:\/\/www.saviom.com\/ebook-registration\/?callFor=EBOOK&amp;ActionType=BDEBOOK&amp;ArticalTitle=the-comprehensive-guide-to-resource-capacity-planning\" target=\"_blank\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" class=\"fullwidth_img aligncenter wp-image-5347 size-full\" src=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/wp-content\/uploads\/2019\/04\/comprehensive-guide-to-resource-capacity-planning-image-02-2-1.png\" alt=\"The Fundamentals of Leadership in Project Management\" width=\"1024\" height=\"394\" srcset=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/wp-content\/uploads\/2019\/04\/comprehensive-guide-to-resource-capacity-planning-image-02-2-1.png 1024w, http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/wp-content\/uploads\/2019\/04\/comprehensive-guide-to-resource-capacity-planning-image-02-2-1-300x115.png 300w, http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/wp-content\/uploads\/2019\/04\/comprehensive-guide-to-resource-capacity-planning-image-02-2-1-768x296.png 768w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/a><\/div>\n<h2 id=\"5\" class=\"target\">Example of Types of Resource Utilization<\/h2>\n<p>Let us take the following example to get a better understanding of the concepts mentioned above:<\/p>\n<p>For example,<br \/>\nIf the capacity of an employee is 40 hours\/week, and total work allocated to this person is 44 hours.<\/p>\n<p>Let&#8217;s assume, 44 Hours of work has been allocated in the following ways:<\/p>\n<ul>\n<li>16 hours are allocated to billable work.<\/li>\n<li>20 hours are allocated to non-billable work.<\/li>\n<li>8 hours are allocated to strategic work<\/li>\n<\/ul>\n<p>So, this person&#8217;s different resource utilization will be calculated as:<\/p>\n<p>Overall Resource utilization = 44 hours \/ 40 hours = 110%<br \/>\nBillable Resource utilization = 16 hours \/ 40 hours = 40%<br \/>\nNon-Billable Resource utilization = 20 hours \/ 40 hours = 50%<br \/>\nStrategic Resource utilization = 8 hours \/ 40 hours = 20%<\/p>\n<h2 id=\"6\" class=\"target\">The Glossary<\/h2>\n<p><a style=\"border-bottom: 0px;\" href=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/the-complete-glossary-of-resource-or-workforce-planning-scheduling-and-management\/\" target=\"_blank\" rel=\"noopener noreferrer\"><img decoding=\"async\" class=\"alignright size-full fullwidth_img wp-image-4606\" src=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/wp-content\/uploads\/2020\/11\/the-complete-glossary-of-resource-or-workforce-planning-scheduling-and-management-post.png\" alt=\"A Comprehensive Guide to Resource Planning in Project Management\" width=\"728\" height=\"auto\" \/><\/a><\/p>\n<h2 id=\"7\" class=\"target\">The SAVIOM Solution<\/h2>\n<p>SAVIOM is the market leader in offering the most powerful and configurable solutions for <a href=\"https:\/\/www.saviom.com\/resource-management-software.php\" target=\"_blank\" rel=\"noopener noreferrer\">managing enterprise resources effectively<\/a>. Having more than 20 years of experience this Australia based MNC has established its global presence across 50+ countries and has helped top global companies address their business needs. SAVIOM also provides tools for project portfolio management, professional service automations and <a href=\"https:\/\/www.saviom.com\/workforce-planning-software.php\" target=\"_blank\" rel=\"noopener noreferrer\">workforce planning software<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>In the modern business landscape, resource utilization is a key performance indicator. The businesses strive to achieve optimum utilization of their workforce to enhance profitability. It is crucial to the firm as it has a direct impact on their bottom line. However, it&#8217;s not as simple as it seems, especially in the case of multi-faceted [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Measure various types of resource utilization<\/title>\n<meta name=\"description\" content=\"Billable or effective utilization is a significant KPI for most organizations. Learn how to measure different types of Resource Utilization for profitability.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/how-to-measure-different-types-of-resource-utilization\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Measure various types of resource utilization\" \/>\n<meta property=\"og:description\" content=\"Billable or effective utilization is a significant KPI for most organizations. Learn how to measure different types of Resource Utilization for profitability.\" \/>\n<meta property=\"og:url\" content=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/how-to-measure-different-types-of-resource-utilization\/\" \/>\n<meta property=\"og:site_name\" content=\"Resources Library\" \/>\n<meta property=\"article:published_time\" content=\"2020-06-03T17:48:15+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-12-21T07:32:33+00:00\" \/>\n<meta property=\"og:image\" content=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/wp-content\/uploads\/2020\/06\/MicrosoftTeams-image.png\" \/>\n<meta name=\"author\" content=\"Om Gupta\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Om Gupta\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/how-to-measure-different-types-of-resource-utilization\/\",\"url\":\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/how-to-measure-different-types-of-resource-utilization\/\",\"name\":\"Measure various types of resource utilization\",\"isPartOf\":{\"@id\":\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/#website\"},\"datePublished\":\"2020-06-03T17:48:15+00:00\",\"dateModified\":\"2023-12-21T07:32:33+00:00\",\"author\":{\"@id\":\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/#\/schema\/person\/086dde90d03f4d4aa613f8f1ea3e0875\"},\"description\":\"Billable or effective utilization is a significant KPI for most organizations. Learn how to measure different types of Resource Utilization for profitability.\",\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/how-to-measure-different-types-of-resource-utilization\/\"]}]},{\"@type\":\"WebSite\",\"@id\":\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/#website\",\"url\":\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/\",\"name\":\"Resources Library\",\"description\":\"Saviom\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/#\/schema\/person\/086dde90d03f4d4aa613f8f1ea3e0875\",\"name\":\"Om Gupta\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/#\/schema\/person\/image\/\",\"url\":\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/wp-content\/uploads\/2023\/08\/om-gupta.jpg\",\"contentUrl\":\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/wp-content\/uploads\/2023\/08\/om-gupta.jpg\",\"caption\":\"Om Gupta\"},\"url\":\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/author\/om-gupta\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Measure various types of resource utilization","description":"Billable or effective utilization is a significant KPI for most organizations. Learn how to measure different types of Resource Utilization for profitability.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/how-to-measure-different-types-of-resource-utilization\/","og_locale":"en_US","og_type":"article","og_title":"Measure various types of resource utilization","og_description":"Billable or effective utilization is a significant KPI for most organizations. Learn how to measure different types of Resource Utilization for profitability.","og_url":"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/how-to-measure-different-types-of-resource-utilization\/","og_site_name":"Resources Library","article_published_time":"2020-06-03T17:48:15+00:00","article_modified_time":"2023-12-21T07:32:33+00:00","og_image":[{"url":"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/wp-content\/uploads\/2020\/06\/MicrosoftTeams-image.png"}],"author":"Om Gupta","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Om Gupta","Est. reading time":"4 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/how-to-measure-different-types-of-resource-utilization\/","url":"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/how-to-measure-different-types-of-resource-utilization\/","name":"Measure various types of resource utilization","isPartOf":{"@id":"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/#website"},"datePublished":"2020-06-03T17:48:15+00:00","dateModified":"2023-12-21T07:32:33+00:00","author":{"@id":"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/#\/schema\/person\/086dde90d03f4d4aa613f8f1ea3e0875"},"description":"Billable or effective utilization is a significant KPI for most organizations. Learn how to measure different types of Resource Utilization for profitability.","inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/how-to-measure-different-types-of-resource-utilization\/"]}]},{"@type":"WebSite","@id":"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/#website","url":"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/","name":"Resources Library","description":"Saviom","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/#\/schema\/person\/086dde90d03f4d4aa613f8f1ea3e0875","name":"Om Gupta","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/#\/schema\/person\/image\/","url":"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/wp-content\/uploads\/2023\/08\/om-gupta.jpg","contentUrl":"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/wp-content\/uploads\/2023\/08\/om-gupta.jpg","caption":"Om Gupta"},"url":"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/author\/om-gupta\/"}]}},"_links":{"self":[{"href":"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/wp-json\/wp\/v2\/posts\/3189"}],"collection":[{"href":"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/wp-json\/wp\/v2\/comments?post=3189"}],"version-history":[{"count":21,"href":"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/wp-json\/wp\/v2\/posts\/3189\/revisions"}],"predecessor-version":[{"id":17705,"href":"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/wp-json\/wp\/v2\/posts\/3189\/revisions\/17705"}],"wp:attachment":[{"href":"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/wp-json\/wp\/v2\/media?parent=3189"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/wp-json\/wp\/v2\/categories?post=3189"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/wp-json\/wp\/v2\/tags?post=3189"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}