Resource utilization template is used to keep track of the time and costs required for project management. It improves planning and supports cost control and also provides transparency and fosters accountability. Resource utilization template allows to manage the resources, such as labour hours and materials used, to monitor how much work has been completed and what needs to be done.

Components Of Resource Utilization Template

1. Project Utilisation: Project utilisation is how effectively the resources are used on a particular project. To define this, we have 2 types of resources:

• Planned Project Utilization: Here, it shows the use of resources that is expected or scheduled to be used for the project, based on planning.

• Actual Project Utilization: This shows the number of resources used during the actual performance of the project and its progress.

2. Planned Work - Based on scheduled projects, budgets allotted or timelines  planned work is documented. In other words, the work that is planned in advance. This section helps to compare the tasks carried out in the planned project utilization and actual project utilization to the actual planned work documented.

3. UnPlanned Work: Unplanned work is a task or activity that was not initially documented or accounted for in the resource planning. They can be issues that arise during the project. Like for eg., emergency tasks that can involve urgent requests, troubleshooting or problem-solving. There can be additional tasks to the current tasks that must be completed as well which were not present during the resource planning.

In the end, the overall Project Utilisation and the Team Utilization of the used resources are documented for that particular project. These 2 components give the exact and complete usage in percentage.

How To Use Resource Utilization Template?

• In the project utilisation row, there are two columns - P and A. P stands for the planned project utilization, that is, the resources planned to be used for each day, which is the planned hours, and A stands for actual project utilization is the actual hours the resources were used in that project.

• To start using the template, simply add the resources at the top in the planned work and the unplanned work sections simultaneously.

• Plan the allocations for the entire month by entering the hours of planned work that you think the resources will work on the projects.

• Daily, update the actual hours that were used in reality in the current project for an entire month.

• You can see the utilisation in percentage (%) for ongoing projects and the utilisation of resources by the total team which is mentioned at the bottom of the sheet, which utilises the entire team.

Analysis Involved In Resource Utilization Template 

1. Comparison Of Resource Usage  (Actual vs. Planned)

• Actual Usage Of The Resources: The resources that were actually used are reviewed and documented during the reporting period (e.g., budget, equipment, time).

• Planned Usage Of The Resources: Comparing the actual usage resources to the originally planned or allocated resources.

• Variance Analysis of Usage: This provides a breakdown of variance, explaining the causes like project delays, unexpected demand, and resource shortage.

2. Efficiency Assessment

• Resource Efficiency: Analyzing the efficiency of resource usage of how well equipment is being maintained or how human resources are being utilized.

• Utilisation Rate: It measures the utilization rate of each resource, calculating the percentage of a team member working at capacity or equipment's uptime.

• Underutilisation: It identifies and explains the potential reasons, such as overstaffing, or unnecessary equipment to why the resources are not being fully utilized. 

3. Impact of Resource Usage on Performance

• Project/Task Completion: It checks whether the method of utilizing resources has affected the completion of projects.

• Quality of Work: Reviewing if there’s a connection between the quality of the output and resource allocated. Underutilized resources might not be contributing at full potential to the project. Overloaded of resources might result in lower-quality work.

Benefits Of Resource Utilization Template

1. Efficiency is Improved - By tracking and allocating resources, the prevention of overuse or underuse of resources can be keenly documented, leading to efficient operations and reduced waste.

2. Planning & Forecasting Enhanced - Clear understanding of current resource usage, businesses can forecast future needs accurately and avoid excess capacity.

3. Decision-Making Made Better - With precise data on the resource usage, making decisions about resource allocation, whether it is equipment, budget or staffing, is improved and adhered to objectives.

4. Cost Control - Unnecessary expenses can be minimised with efficient resource utilisation, which helps ensure that resources are used the most when they deliver value.

5. Resource Allocation is Optimised  -  By tracking and allocating resources, it identifies the areas where the resources are underutilised or overutilised in their usage and allows for adjustments to improve overall productivity.

6. Collaboration is Improved - Improvement in communication and collaboration can be done by understanding resource allocation across teams and ensuring everyone knows the availability and the requirements.

7. Risk Mitigation - Resource utilization template helps identify potential resource-related risks priorly allowing teams to proactively address them. 

8. Productivity is Increased - Managing the resources effectively helps teams to focus on high-priority tasks, which results in better output and faster completion of the project.

Conclusion

Resource utilization template is used to keep track of the time and costs required for project management. It helps organisations to optimise resource allocation, aim to streamline operations and enhance productivity. Resource utilization template improves planning supports cost control and also provides transparency, and fosters accountability. Implementing a resource utilization template enables more efficient, on-time project goals to be met, and effectively scale while risks are minimised associated with resource overuse or underused.