{"id":846,"date":"2022-06-21T00:00:54","date_gmt":"2022-06-21T00:00:54","guid":{"rendered":"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/?p=846"},"modified":"2023-12-20T08:22:48","modified_gmt":"2023-12-20T08:22:48","slug":"implement-effective-resource-capacity-planning-in-aec-industry","status":"publish","type":"post","link":"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/implement-effective-resource-capacity-planning-in-aec-industry\/","title":{"rendered":"How to Implement Effective Resource Capacity Planning in AEC Industry?"},"content":{"rendered":"<p><em>Architecture, Engineering, and Construction (AEC) is a rapidly growing industry with an expected <a href=\"https:\/\/www.alliedmarketresearch.com\/aec-market-A11590\" target=\"_blank\" rel=\"noopener\">CAGR of 10.7% <\/a>from 2021 to 2028.<\/em><\/p>\n<p>This growth can be attributed to the increased demand for real estate, advanced <a href=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/technology-trends-that-will-transform-the-business-landscape\/\" target=\"_blank\" rel=\"noopener\">technologies<\/a>, and more. The <strong>AEC projects<\/strong> can range from constructing skyscrapers to government projects such as building bridges, etc. Like every other industry, resources are the focal point of AEC projects as their efforts and skills steer the project to succeed. However, building an <strong>optimized workforce<\/strong> while ensuring every project is delivered successfully is easier said than done.<\/p>\n<p><span class=\"quote-style\">Making the right resource available at the right time involves techniques such as <a href=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/resource-forecasting-guide-for-project-managers\/\" target=\"_blank\" rel=\"noopener\">forecasting<\/a> and resource capacity planning.<\/span><\/p>\n<p>The pertinent question is, what is <a href=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/the-holygrail-of-resource-planning-in-project-management\/\" target=\"_blank\" rel=\"noopener\">resource capacity planning<\/a> and how to implement it in the <strong>AEC industry<\/strong>?<\/p>\n<p>This informative article will address the query and delve deep into this concept. Let\u2019s get started.<\/p>\n<p><a href=\"https:\/\/www.saviom.com\/resource-management-software\/capacity-planning-software.php\" target=\"_blank\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-12073 fullwidth_img aligncenter\" src=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/wp-content\/uploads\/2017\/07\/MicrosoftTeams-image-18.png\" alt=\"Benefits of Resource Capacity Planning \" width=\"1195\" height=\"450\" srcset=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/wp-content\/uploads\/2017\/07\/MicrosoftTeams-image-18.png 1195w, http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/wp-content\/uploads\/2017\/07\/MicrosoftTeams-image-18-300x113.png 300w, http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/wp-content\/uploads\/2017\/07\/MicrosoftTeams-image-18-1024x386.png 1024w, http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/wp-content\/uploads\/2017\/07\/MicrosoftTeams-image-18-768x289.png 768w\" sizes=\"(max-width: 1195px) 100vw, 1195px\" \/><\/a><\/p>\n<h2 id=\"1\" class=\"target\">What is the AEC industry?<\/h2>\n<p>AEC stands for <strong>Architectural, <a href=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/what-is-engineering-resource-planning\/\" target=\"_blank\" rel=\"noopener\">Engineering+<\/a>, and <a href=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/all-you-need-to-know-about-construction-resource-management\/\" target=\"_blank\" rel=\"noopener\">Construction<\/a><\/strong>, which describes the collaboration of architects, engineers, and construction professionals on construction-related work such as designing, concreting, carpentry, plumbing, electrical work, etc.<\/p>\n<p>Let\u2019s understand each sector in-depth:<\/p>\n<p><strong>Architectural<\/strong> \u2013 Visual aesthetics are an essential component of any <a href=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/why-construction-projects-fail\/\" target=\"_blank\" rel=\"noopener\">construction project<\/a>. Architects design durable, functionally safe, and aesthetically pleasing buildings. They stay involved in the project from the conceptual stage till completion, create plans according to client needs, environmental factors, and <a href=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/steps-to-develop-a-reasonable-project-budget-that-gets-approved\/\" target=\"_blank\" rel=\"noopener\">budget<\/a>. The <strong>Architecture department<\/strong> is responsible for:<\/p>\n<ul>\n<li style=\"margin-bottom: 15px;\">Creating designs and drawings based on the client\u2019s requirements.<\/li>\n<li style=\"margin-bottom: 15px;\">Coalescing with the team to quantify and qualify the project w.r.t regulations, budget, and site characteristics.<\/li>\n<li style=\"margin-bottom: 15px;\">Coordinate with engineering\/construction teams and validate the work.<\/li>\n<\/ul>\n<p><strong>Engineering<\/strong> &#8211; AEC industry requires civil, mechanical, and electrical engineers. It includes professionals who evaluate and execute the structural, mechanical, and electrical requirements of different AEC projects. The key responsibilities of the engineering department are:<\/p>\n<ul>\n<li style=\"margin-bottom: 15px;\">Evaluate the designs, and understand the material and equipment requirements before the construction work begins.<\/li>\n<li style=\"margin-bottom: 15px;\">Ensure the materials comply with the required quality.<\/li>\n<li style=\"margin-bottom: 15px;\">Identify and resolve technical issues in the construction process.<\/li>\n<\/ul>\n<p><strong>Construction<\/strong> \u2013 In the most widely used context, the <strong>construction sector<\/strong> is associated with structural additions, infrastructure, and industrial facilities. The construction managers coordinate with architects, engineers, and laborers to ensure the <a href=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/time-management-how-it-is-important-for-project-delivery\/\" target=\"_blank\" rel=\"noopener\">timely completion<\/a> of the construction project. In addition, the construction department oversees the following activities:<\/p>\n<ul>\n<li style=\"margin-bottom: 15px;\">Coordinate with architects and engineers to build the <a href=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/detailed-guide-construction-project-management-plans\/\" target=\"_blank\" rel=\"noopener\">construction plan<\/a><\/li>\n<li style=\"margin-bottom: 15px;\">Hire construction workers and <a href=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/effectively-delegate-responsibilities-across-the-organization\/\" target=\"_blank\" rel=\"noopener\">delegate tasks<\/a>.<\/li>\n<li style=\"margin-bottom: 15px;\">Manage relationships with clients and <strong>AEC professionals<\/strong><\/li>\n<li style=\"margin-bottom: 15px;\">Supervise the entire construction and identify and mitigate potential risks<\/li>\n<\/ul>\n<p>By integrating these seemingly independent sectors into one industry \u2013 architects, engineers, and construction, managers can work more efficiently to attain the common goal.<\/p>\n<p>Now that we know what AEC comprises, let us understand the list of resources required for project execution.<\/p>\n<p><a href=\"https:\/\/www.saviom.com\/ebook-registration.php?callFor=EBOOK&amp;ActionType=BDEBOOK&amp;ArticalTitle=The%20Comprehensive%20Guide%20to%20Resource%20Capacity%20Planning\" target=\"_blank\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-5822 fullwidth_img aligncenter\" src=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/wp-content\/uploads\/2017\/11\/Ebook-resource-capacity-planning-image-03.png\" alt=\"resource capacity planning\" width=\"1024\" height=\"394\" srcset=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/wp-content\/uploads\/2017\/11\/Ebook-resource-capacity-planning-image-03.png 1024w, http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/wp-content\/uploads\/2017\/11\/Ebook-resource-capacity-planning-image-03-300x115.png 300w, http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/wp-content\/uploads\/2017\/11\/Ebook-resource-capacity-planning-image-03-768x296.png 768w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/a><\/p>\n<h3 style=\"font-size: 24px;\">Key resources in the AEC industry<\/h3>\n<p>Different human and non-human <a href=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/resource-management-a-comprehensive-handbook-for-project-managers\/\" target=\"_blank\" rel=\"noopener\">resources<\/a> are required to bring the construction projects to fruition.<\/p>\n<p><strong>Human resources<\/strong><\/p>\n<ul>\n<li style=\"margin-bottom: 15px;\"><strong>Contractor<\/strong> &#8211; The contractor is responsible for planning, <a href=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/fundamentals-leadership-project-management\/\" target=\"_blank\" rel=\"noopener\">leading<\/a>, and supervising the construction work.<\/li>\n<li style=\"margin-bottom: 15px;\"><strong>Supervisor<\/strong> \u2013 The construction <strong>supervisor<\/strong> is the bridge between contractors and construction workers in the field.<\/li>\n<li style=\"margin-bottom: 15px;\"><strong>Estimator<\/strong> \u2013 The estimator estimates the cost of material and labor required to work on the project.<\/li>\n<li style=\"margin-bottom: 10px; line-height: 1.8em;\"><strong>Surveyor<\/strong> \u2013 The <strong>surveyor<\/strong> advises the clients on style=&#8221;margin-bottom: 15px;&#8221;<strong>contractual matters<\/strong> and building costs throughout the construction process.<\/li>\n<li style=\"margin-bottom: 10px; line-height: 1.8em;\"><strong>Others<\/strong> \u2013 Other than the roles mentioned above, multiple other professionals work to bring AEC projects to fruition. For instance, architects envision the <a href=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/enhance-customer-experience-using-resource-management-software\/\" target=\"_blank\" rel=\"noopener\"><strong>client\u2019s needs<\/strong><\/a> and develop blueprints. Engineers oversee electrical, mechanical, and civil activities, and so on.<\/li>\n<\/ul>\n<p><strong>Non-human resources<\/strong><\/p>\n<ul>\n<li style=\"margin-bottom: 10px; line-height: 1.8em;\"><strong>Equipment<\/strong> \u2013 Construction equipment refers to heavy-duty vehicles and machinery specially designed for executing construction and engineering activities. <strong>For example,<\/strong> excavators are used for heavy lifting &amp; demolition, bulldozers are used to remove rock strata or soil, etc.<\/li>\n<li style=\"margin-bottom: 10px; line-height: 1.8em;\"><strong>Materials<\/strong> \u2013 Materials such as \u2013 fittings, tools, <a href=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/how-to-select-the-best-software-using-cost-benefit-analysis\/\" target=\"_blank\" rel=\"noopener\">software<\/a>, systems, timber, thatch, stone, steel, concrete, etc., are required to complete the construction.<\/li>\n<li style=\"margin-bottom: 10px; line-height: 1.8em;\"><strong>Facilities<\/strong> \u2013 In the AEC industry, facilities include the <strong>necessary amenities<\/strong> such as storage sheds, field office, safety requirements, living accommodation, fire protection, etc.<\/li>\n<\/ul>\n<p><a href=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/all-you-need-to-know-about-construction-resource-management\/\" target=\"_blank\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-12074 fullwidth_img aligncenter\" src=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/wp-content\/uploads\/2017\/07\/MicrosoftTeams-image-19.png\" alt=\"Importance of Construction Resource Management \" width=\"830\" height=\"103\" srcset=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/wp-content\/uploads\/2017\/07\/MicrosoftTeams-image-19.png 830w, http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/wp-content\/uploads\/2017\/07\/MicrosoftTeams-image-19-300x37.png 300w, http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/wp-content\/uploads\/2017\/07\/MicrosoftTeams-image-19-768x95.png 768w\" sizes=\"(max-width: 830px) 100vw, 830px\" \/><\/a><\/p>\n<h3 style=\"font-size: 24px;\">Characteristics of the AEC industry<\/h3>\n<p>AEC projects are highly structured endeavors owing to long-term commitments and the demand for a coalition of three departments. These are extremely fluid, which means the changes in weather, equipment, technology, and permits can wreak havoc on a <a href=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/what-is-project-scheduling-and-why-is-it-important\/\" target=\"_blank\" rel=\"noopener\">project\u2019s schedule<\/a>.<\/p>\n<p>Here are some key characteristics &#8211;<\/p>\n<ul>\n<li style=\"margin-bottom: 10px; line-height: 1.8em;\">AEC projects are <strong>resource-driven<\/strong>. From highly skilled architects to engineers and on-site workers, they require <strong>diverse expertise<\/strong>. <em>According to the <a href=\"https:\/\/www.bls.gov\/careeroutlook\/2018\/article\/careers-in-construction.htm\" target=\"_blank\" rel=\"noopener\">US Bureau of Labour and Statistics<\/a>, job opportunities in the construction industry are expected to reach 7.5 million by 2026.<\/em><\/li>\n<li style=\"margin-bottom: 10px; line-height: 1.8em;\">Each construction project is unique and is attributed to <strong>geographical conditions<\/strong>.<strong> For instance,<\/strong> if two identical dams are to be constructed at two different places, the soil properties, site characteristics, climatic conditions, environment, etc., will introduce multiple variations in the project requirements.<\/li>\n<li style=\"margin-bottom: 10px; line-height: 1.8em;\">A <strong>bulk labor force<\/strong> is engaged in construction whose employment pattern and working conditions are different from other industries. <strong>For example,<\/strong> the construction workers in the field are not selected based on their certifications or academic qualifications, they are solely recruited based on their manual <a href=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/why-are-people-skills-important-for-successful-delivery-of-projects\/\" target=\"_blank\" rel=\"noopener\">skills<\/a>. Additionally, they are often employed on an ad-hoc basis and paid hourly wages, encouraging them to work for a longer duration.<\/li>\n<li style=\"margin-bottom: 10px; line-height: 1.8em;\">Most AEC firms operate in silos where departments use independent software to function or still use spreadsheets. Many companies still employ outdated data processors and controllers to export\/import data from the systems.<\/li>\n<\/ul>\n<p><a href=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/why-construction-projects-fail\/\" target=\"_blank\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-12075 fullwidth_img aligncenter\" src=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/wp-content\/uploads\/2017\/07\/MicrosoftTeams-image-20.png\" alt=\"Why Construction Projects Fail? \" width=\"830\" height=\"103\" srcset=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/wp-content\/uploads\/2017\/07\/MicrosoftTeams-image-20.png 830w, http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/wp-content\/uploads\/2017\/07\/MicrosoftTeams-image-20-300x37.png 300w, http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/wp-content\/uploads\/2017\/07\/MicrosoftTeams-image-20-768x95.png 768w\" sizes=\"(max-width: 830px) 100vw, 830px\" \/><\/a><br \/>\nSubject to these traits, often AEC industries find it challenging to employ the right personnel. The following section explains these resourcing challenges and how effective capacity planning can help overcome them. Let\u2019s delve deep,<\/p>\n<h2 id=\"2\" class=\"target\">Resourcing challenges faced by the AEC industry and how to overcome them<\/h2>\n<p>There are many pitfalls in the construction <a href=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/what-is-project-lifecycle-and-how-to-get-it-right\/\" target=\"_blank\" rel=\"noopener\"><strong>project lifecycle<\/strong><\/a>. According to a <a href=\"http:\/\/www.mckinsey.com\/industries\/capital-projects-and-infrastructure\/our-insights\/the-construction-productivity-imperative\" target=\"_blank\" rel=\"noopener\">study<\/a>, <strong><em>77% of AEC projects suffer delays, and 98% go over budget.<\/em><\/strong><\/p>\n<p>So, what is the leading cause of these issues? Here is a look at what\u2019s affecting the industry &#8211;<\/p>\n<h3 style=\"font-size: 24px;\">Ineffective scheduling of AEC resources due to siloed information<\/h3>\n<p>As mentioned above, multiple resources, including civil engineers, CAD designers, carpenters, plumbers, equipment operators, etc., are required to complete an AEC project.<\/p>\n<p><span class=\"quote-style\">Failing to plan and <a href=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/the-definitive-guide-to-resource-scheduling\/\/\" target=\"_blank\" rel=\"noopener\">schedule the resources<\/a> appropriately can impact the quality, delivery, and overall project success.<\/span><\/p>\n<p>Many firms still use <strong>legacy systems<\/strong> and <strong>traditional spreadsheets<\/strong>, which often lead to <strong>siloed data<\/strong> and a lack of visibility into resources\u2019 present and future schedules. This can lead to double-booking, unnecessary <a href=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/effective-hiring-strategy\/\" target=\"_blank\" rel=\"noopener\">hiring<\/a>, etc.<\/p>\n<p><strong>For example,<\/strong> construction laborers work on a shift basis, and due to a lack of visibility into their bookings\u2013 managers might book the same laborer in two shifts, causing an excessive workload.<\/p>\n<p><strong>Solution:<\/strong> A robust <a href=\"https:\/\/www.saviom.com\/resource-management-software.php\" target=\"_blank\" rel=\"noopener\">resource management<\/a> tool helps break down the silos within an organization by providing <strong>enterprise-wide visibility<\/strong> of resource schedules. With a unified <a href=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/gantt-charts-how-they-help-to-optimize-resources-within-a-project\/\" target=\"_blank\" rel=\"noopener\">Gantt chart<\/a> view, managers can book the resource using simple <strong>drag and drop capability<\/strong> and make amendments when required. Additionally, the tool provides a warning if any resource is booked more than the capacity and helps prevent overutilization.<\/p>\n<p>Moreover, the real-time <a href=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/what-is-resource-utilization-and-its-significance\/\" target=\"_blank\" rel=\"noopener\">utilization<\/a> and <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> reports help managers make informed decisions and ensure uniform workload distribution.<\/p>\n<p><a href=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/the-definitive-guide-to-resource-scheduling\/\" target=\"_blank\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-12313 fullwidth_img aligncenter\" src=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/wp-content\/uploads\/2022\/06\/The-Definitive-Guide-to-Resource-Scheduling.png\" alt=\"definitive guide to resource scheduling\" width=\"830\" height=\"103\" srcset=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/wp-content\/uploads\/2022\/06\/The-Definitive-Guide-to-Resource-Scheduling.png 830w, http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/wp-content\/uploads\/2022\/06\/The-Definitive-Guide-to-Resource-Scheduling-300x37.png 300w, http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/wp-content\/uploads\/2022\/06\/The-Definitive-Guide-to-Resource-Scheduling-768x95.png 768w\" sizes=\"(max-width: 830px) 100vw, 830px\" \/><\/a><\/p>\n<h3 style=\"font-size: 24px;\">Growing shortage of skilled engineers &amp; construction workers<\/h3>\n<p>\u2018Aging workforce\u2019 closer to retirement is one of the major <strong>resourcing bottlenecks<\/strong> for AEC industries. According to a recent <a href=\"https:\/\/eyeonhousing.org\/2017\/04\/young-adults-the-construction-trades\/\" target=\"_blank\" rel=\"noopener\">survey<\/a><em>, <strong>only 3% of young people were interested in pursuing their careers in the construction field. <\/strong><\/em>So, due to the current resources retiring and the lack of a new generation workforce, there is an acute <strong>labor shortage<\/strong> in the AEC industry.<\/p>\n<p>Moreover, there is an increasing demand for<strong> skilled talent<\/strong> because of ever-evolving customer expectations, global competition, and rapid technological improvements. As a result, many construction firms are looking for professionals with advanced skills like \u2013 AutoCAD, Rhino 3D, SketchUp, Revit Architecture, etc. Since the existing talent pool is not well versed with these tools and tech, the skills gap is widening tremendously.<\/p>\n<p>So, what is the best possible resolution?<\/p>\n<p><strong>Solution:<\/strong> With a forecasting and resource capacity planning solution, managers can foresee project demand and identify the skills gap in advance. They can leverage the <a href=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/how-to-measure-resource-capacity-and-demand\/\" target=\"_blank\" rel=\"noopener\"><strong>capacity vs. demand<\/strong><\/a> reports to assess the excess and shortage of resources and implement corrective measures ahead of time.<\/p>\n<p>If there is any skill gap, they can <a href=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/retraining-upskilling-future-proof-your-workforce\/\" target=\"_blank\" rel=\"noopener\">train\/upskill<\/a> the existing workforce in the latest technologies mentioned above. In case of resource shortage, they can even initiate <strong>planned hiring<\/strong> to recruit competent resources and ensure the seamless execution of future construction projects.<\/p>\n<p><a href=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/retraining-upskilling-future-proof-your-workforce\/\" target=\"_blank\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-11923 fullwidth_img aligncenter\" src=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/wp-content\/uploads\/2018\/05\/MicrosoftTeams-image-19.png\" alt=\"ways to retrain &amp; upskill resources and future-proof them\" width=\"830\" height=\"103\" srcset=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/wp-content\/uploads\/2018\/05\/MicrosoftTeams-image-19.png 830w, http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/wp-content\/uploads\/2018\/05\/MicrosoftTeams-image-19-300x37.png 300w, http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/wp-content\/uploads\/2018\/05\/MicrosoftTeams-image-19-768x95.png 768w\" sizes=\"(max-width: 830px) 100vw, 830px\" \/><\/a><\/p>\n<h3 style=\"font-size: 24px;\">Lack of foresight into pipeline AEC projects<\/h3>\n<p>Many organizations still use legacy systems such as excel spreadsheets or desktop applications to manage AEC projects. As a result, they fail to foresee <strong><a href=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/4-steps-perfect-project-pipeline-management-strategy\/\" target=\"_blank\" rel=\"noopener\">pipeline projects\u2019<\/a> demand<\/strong>.<\/p>\n<p>Due to a lack of foresight in projects, the construction managers end up requesting workers at the last minute, leaving no room to form an action plan. It may lead to <strong>last-minute firefighting<\/strong> for resources, <strong>wrongful hiring<\/strong> leading to compromised project quality, budget and schedule overruns, etc.<\/p>\n<p><strong>Solution:<\/strong> Construction managers can foresee an opportunity that is at an approval stage or has reached a certain probability of closure and estimate resource requirements well ahead of the curve.<\/p>\n<p>Then using the <strong>resource management software<\/strong>, the project managers can <a href=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/easy-steps-to-efficient-resource-requesting\/\" target=\"_blank\" rel=\"noopener\">request resources<\/a> and provide enough lead time to deploy the right ones at the right cost. In case a critical resource such as an architect or engineer is allocated to an ongoing project, managers can implement <strong>out rotation and backfill strategy<\/strong> to ensure the construction activities are not disrupted.<\/p>\n<h3 style=\"font-size: 24px;\">Increase in bench size in the construction firms<\/h3>\n<p>The majority of AEC projects are prone to frequent <a href=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/balance-ramp-ups-and-ramp-downs-in-a-project\/\" target=\"_blank\" rel=\"noopener\"><strong>ramp-ups\/downs<\/strong><\/a>. Typically, they include phases: initiation, pre-construction, procurement, construction, and closeout. <strong>For example,<\/strong> the manager may require thousands of workers in the procurement and construction phase.<\/p>\n<p>However, once the project reaches the closeout phase, there can be a massive ramp down of resources. Due to this, most of the <a href=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/workforce-planning-how-to-master-it-for-business-efficiency\/\" target=\"_blank\" rel=\"noopener\">workforce<\/a> (typically construction workers and engineers) land on the bench, impacting overall business profitability.<\/p>\n<p><strong>Solution:<\/strong> Managing the capacity of resources and <strong>minimizing bench time<\/strong> is one of the main aspects of a construction\/industrial project. To achieve this, managers can implement resource management solutions and leverage <strong>project vacancy<\/strong> and <strong>people on the bench reports<\/strong>. This will help them get foresight into resources likely to end up on the bench and allocate them appropriate project tasks (from the project vacancies) beforehand. Moreover, the managers can also provide upskilling\/training to benched employees and utilize them on future projects.<\/p>\n<p><a href=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/balance-ramp-ups-and-ramp-downs-in-a-project\/\" target=\"_blank\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-12078 fullwidth_img aligncenter\" src=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/wp-content\/uploads\/2017\/07\/MicrosoftTeams-image-21-1.png\" alt=\"Manage Ramp-Ups and Ramp-Downs \" width=\"830\" height=\"103\" srcset=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/wp-content\/uploads\/2017\/07\/MicrosoftTeams-image-21-1.png 830w, http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/wp-content\/uploads\/2017\/07\/MicrosoftTeams-image-21-1-300x37.png 300w, http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/wp-content\/uploads\/2017\/07\/MicrosoftTeams-image-21-1-768x95.png 768w\" sizes=\"(max-width: 830px) 100vw, 830px\" \/><\/a><\/p>\n<h3 style=\"font-size: 24px;\">Inability to meet the volatile resource demand<\/h3>\n<p>The AEC industry is one of the volatile markets with increasing uncertainties and risk factors. According to a <a href=\"https:\/\/geospatialmedia.net\/reports\/geobim-market-in-aec-industry-report\/#:~:text=The%20cumulative%20global%20AEC%20market,global%20AEC%20market%20in%202019.\" target=\"_blank\" rel=\"noopener\">report<\/a> by KPMG<em>, <strong>78% of engineering and construction companies believe that the risks of construction projects are increasing.<\/strong><\/em><\/p>\n<p>Since AEC projects are susceptible to <a href=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/why-is-change-management-important-in-the-timely-delivery-of-projects\/\" target=\"_blank\" rel=\"noopener\">change<\/a> due to external and uncontrollable factors, the resource demand is volatile and can change dynamically. For example, if you are working on building a shopping mall, the initial idea was to keep it 4 storeyed. However, the client requests you to add one more.<\/p>\n<p>Due to a lack of visibility into the resource pool, managers are not in a position to fulfil this demand cost-effectively. How can one combat this?<\/p>\n<p><strong>Solution:<\/strong> To meet the volatile resource demand, managers can form a balance of permanent and <a href=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/what-is-a-contingent-workforce-and-why-an-organization-needs-it\/\" target=\"_blank\" rel=\"noopener\"><strong>contingent workforce<\/strong><\/a>.<\/p>\n<p><span class=\"quote-style\">Before forming the mix, <strong><a href=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/six-reasons-why-businesses-need-to-invest-in-resource-managers\/\" target=\"_blank\" rel=\"noopener\">resource managers<\/a><\/strong> can go through the current and future resource demand, evaluate if it\u2019s one-time or recurring and make an informed decision.<\/span><\/p>\n<p>Considering the previous example, managers can hire a contractual resource (engineer and supervisor) to oversee the 5th floor\u2019s construction along with a mix of permanent and freelance manual labor to keep the costs in check.<\/p>\n<p><a href=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/beat-market-volatility-with-efficient-resource-capacity-planning\/\" target=\"_blank\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-12079 fullwidth_img aligncenter\" src=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/wp-content\/uploads\/2017\/07\/MicrosoftTeams-image-22.png\" alt=\"Efficient resource capacity planning \" width=\"830\" height=\"103\" srcset=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/wp-content\/uploads\/2017\/07\/MicrosoftTeams-image-22.png 830w, http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/wp-content\/uploads\/2017\/07\/MicrosoftTeams-image-22-300x37.png 300w, http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/wp-content\/uploads\/2017\/07\/MicrosoftTeams-image-22-768x95.png 768w\" sizes=\"(max-width: 830px) 100vw, 830px\" \/><\/a><br \/>\nLet\u2019s go through some more tips to improve resource capacity planning.<\/p>\n<h2 id=\"3\" class=\"target\">Additional tips for AEC managers<\/h2>\n<p>Construction projects are more likely to be delivered on time when the resource <strong>capacity planning<\/strong> is done right. However, managers can implement additional tips to ensure successful delivery,<\/p>\n<ul>\n<li style=\"margin-bottom: 10px; line-height: 1.8em;\">Facilitate <a href=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/5-ways-to-improve-collaboration-between-departments\/\" target=\"_blank\" rel=\"noopener\">collaboration<\/a> between departments to manage <a href=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/project-interdependencies-span-portfolio\/\" target=\"_blank\" rel=\"noopener\"><strong>interdependencies<\/strong><\/a>, foster trust, empower the workforce and boost productivity.<\/li>\n<li style=\"margin-bottom: 10px; line-height: 1.8em;\">Bring <a href=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/foster-trust-and-transparency-in-remote-teams\/\" target=\"_blank\" rel=\"noopener\">transparency<\/a> in communication and set expectations right to ensure everyone is on the same page. Lack of transparency in defining goals and objectives can lead to discrepancies and conflicts.<\/li>\n<li style=\"margin-bottom: 10px; line-height: 1.8em;\">Keep track of <strong>workforce competency<\/strong> across the enterprise. It helps to proactively plan for niche skills needed in a new construction project<\/li>\n<li style=\"margin-bottom: 10px; line-height: 1.8em;\">Monitor billable, strategic and overall <strong>utilization<\/strong> of resources and take corrective measures to ensure <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\">profitable utilization<\/a>.<\/li>\n<\/ul>\n<h2 id=\"4\" class=\"target\">Final thoughts<\/h2>\n<p>The AEC projects are complex, <strong>resource-intensive<\/strong>, and of long-duration. To ensure timely delivery, AEC firms have to ascertain they have an optimized workforce in all three areas. It\u2019s about time they implemented a robust <strong>resource forecasting<\/strong> and capacity planning solution to build an optimized workforce and futureproof them against <a href=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/beat-market-volatility-with-efficient-resource-capacity-planning\/\" target=\"_blank\" rel=\"noopener\"><strong>market volatilities<\/strong><\/a>.<\/p>\n<p>How do you tackle your resourcing bottlenecks?<\/p>\n<h2 id=\"5\" class=\"target\">The Glossary<\/h2>\n<p><a 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\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-11323 fullwidth_img aligncenter\" src=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/wp-content\/uploads\/2022\/03\/MicrosoftTeams-image-21-4.png\" alt=\"the glossary\" width=\"1040\" height=\"250\" srcset=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/wp-content\/uploads\/2022\/03\/MicrosoftTeams-image-21-4.png 1040w, http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/wp-content\/uploads\/2022\/03\/MicrosoftTeams-image-21-4-300x72.png 300w, http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/wp-content\/uploads\/2022\/03\/MicrosoftTeams-image-21-4-1024x246.png 1024w, http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/wp-content\/uploads\/2022\/03\/MicrosoftTeams-image-21-4-768x185.png 768w\" sizes=\"(max-width: 1040px) 100vw, 1040px\" \/><\/a><\/p>\n<h2 id=\"6\" 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\">managing enterprise resources<\/a> efficiently and effectively. Having more than 20 years of experience, this Australian-based MNC has a global presence in over 50 countries. It is also popular with more than 100 customers and helps them achieve their business goals. SAVIOM also has products for project portfolio management, <a href=\"https:\/\/www.saviom.com\/professional-service-automation.php\" target=\"_blank\" rel=\"noopener\">professional service automation<\/a>, and <a href=\"https:\/\/www.saviom.com\/workforce-planning-software.php\" target=\"_blank\" rel=\"noopener\">workforce planning software<\/a> which can be easily customized as per business requirements.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Architecture, Engineering, and Construction (AEC) is a rapidly growing industry with an expected CAGR of 10.7% from 2021 to 2028. This growth can be attributed to the increased demand for real estate, advanced technologies, and more. The AEC projects can range from constructing skyscrapers to government projects such as building bridges, etc. Like every other [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":16971,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[43,4],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Resource Capacity Planning for the AEC Industry: A Checklist<\/title>\n<meta name=\"description\" content=\"Getting your resource capacity on point can change the way you deliver projects. 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