Powerful information--resources and Microsoft Project (server or not)

Abstract

Many organizations struggle with the ability to quickly and easily understand their overall resource capacity and utilization at any given moment. Everyone, from executives to project managers, resource managers, and the resources themselves need to have the ability to see what is being worked on, what is being requested, and when the work is expected. Understanding who is working on what task, and when he or she is doing it, is critical information that can do more than just allow projects to “get done.” The power of the information about resource capacity can be used to determine things such as:

• What is our capacity?
• What are our available skill sets?
• When can we tell the customer this will be done?
• Can we take on this new project?
• If we take on this new project, what else will have to be adjusted?
• What will be our resource costs?

While this information can be used to help with internal work and projects, it can also be used as an external competitive advantage. If you can talk with customers about deadlines, costs, and abilities with confidence then you will establish that your organization is trustworthy and reliable.

Introduction

When an individual is assigned to a task on your project, do you know how many other assignments that person has that overlap with the work you just assigned? What is the total capacity of that person on any given day? Or, what is his or her capacity for any given week? What is the skill set of that person? What is the utilization of that person compared with his or her individual capacity?

In today’s environment, most people have conflicting assignments and roles on multiple projects, in addition to their “regular” work. On top of this, they may also have administrative duties. It is rare to have an individual who dedicates 100% of his or her time to one project. Sometimes, the project manager (and the organization as a whole) isn’t aware of all the current demands placed on a specific person. The person may be assigned to “small” tasks on many different projects and can be over-capacity, but nobody other than the person sees those conflicts. And, unfortunately, sometimes even that person doesn’t see the whole picture or know what is being expected of him or her in the next few days, weeks, or months.

Understanding the variables that affect a person’s ability to complete an assignment on your project will directly affect the timing and eventual completion of the overall project. Microsoft Project is a powerful tool that allows a project manager to better understand resource capacity, utilization, available time frames, cost, and much more; unfortunately, however, many project managers have never been shown how to use these capabilities.

This presentation is an overview of the built-in capabilities of Microsoft Project, which will help us to better understand how the realities of today’s business environment and the utilization of the people assigned to your tasks. Using Microsoft Project Server allows for enterprise-wide consistency and information about resources. However, even if you do not use Microsoft Project Server, there are methods to simulate the Server experience with regard to resource management.

Definitions

Throughout this paper, certain words are used, which may be interpreted differently by various readers. Here are the definitions for the following terms used in this paper:

Resource – a person you can assign to work

Generic Resource – a resource based on a skill set rather than a person (carpenter, database administrator)

Resource Calendar – the days and time periods that a resource is available to work

Capacity – the amount of time a resource has available that can be assigned to tasks

Utilization – the measurement of how much of a resource’s capacity has been used against his or her capacity

Task Types – Project 2010 allows for tasks to be one of three types:

Enterprise Resource Pool – a single source on Project Server that contains resource information and is used by all projects for obtaining and assigning resources

Resource Pool – the non-server version of a single source of resource information for projects to obtain resources

PWA – Project Web App (the web-based interface for Project Server)

Project Professional – the application software on the client desktop that can be used to interact with Project Server or can be a stand-alone product in which the schedules are built

Project Server – the server software for Enterprise Project Management

Understanding Resources

Views

While this presentation concentrates on Resources, it should be noted that there are many other decisions about how a project is set up that affect the way the schedule interacts with those Resources. The settings for task movement, task types, and the general way in which a schedule is constructed all affect how Resources interact with the schedule. It should also be noted that the security for what a Resource can and can’t do in PWA or Project Professional is determined by the Administrator and can be very restrictive or permissive. Security settings are outside the scope of this paper.

In Project Professional 2010, the Resource Sheet is a standard view that allows you to see the information for multiple Resources at one time. It should be noted, though, that these are only the Resources that are being used in this particular schedule. The columns can be re-ordered, added, or hidden just like any other view within Project Professional. Selecting any individual Resource name will open the Resource Information dialog box, where more information specific to that Resource can be reviewed or modified.

Another standard view that can be very helpful in determining the assignments for a specific Resource is the Resource Usage view. If you are using the Enterprise Resource Pool, or the Resource Pool, this view will show the combination of all assignments from ALL the projects for which the Resource has assignments. For example, Exhibit 1 is a screenshot of a Generic Resource called “Analyst.” The way this view is set up is that it is displaying the total number of hours that are assigned for a specific day on the top row. Because each day in this view is overcapacity, the totals appear in red. The other lines show the amount of hours being assigned by task and day.

Exhibit 1 – Resource Usage View

Another way to see this same information is to look at the Resource Graph view (Exhibit 2). This view represents that information in a graphic format. The black line is the capacity for the Resource, and the over-capacity amount of assigned work is indicated in red.

Exhibit 2 – Resource Graph View

In Project Professional, it is relatively easy to see information about a single Resource. However, it is more difficult to get information on more than one Resource at a time. In Project Server 2010, the Resource Center view is the location where you can see Resource information. Just as in Project Professional, the views can be modified. To select a Resource from the Resource center brings similar information that is found in the Professional’s Resource Information box (but in a different format) and there are some different options in PWA than what are found in Project Professional. Project Professional and PWA interact and, in the case of Resources, it is sometimes easier in PWA to select a number of Resources and then select the option to edit those Resources in Project Professional.

In the Resource Center, there is a Resource Availability (Exhibit 3) area with a few different views that allow us to see one or multiple users at one time with their corresponding capacity. For example, for our Generic Resource of “Analyst,” the view looks like this for the same week as shown in Exhibits 1 and 2 above. Note, though, that overcapacity is no longer highlighted in red.

Exhibit 3 – PWA Resource Availability, Single Resource

Also, please note a few things that are different about this graphic view. The capacity line for our Resource shows the capacity based on hours and by day. Unlike Exhibit 2 above, where it is based on percentage, this PWA view allows us to see the capacity based on the Resource Calendar. Note that it shows 6/18 and 6/19 with no capacity, which is because those dates are a Saturday and Sunday, respectively, and the Resource Calendar being used for Analyst is a standard 8 a.m. to 5 p.m., Monday-through-Friday calendar.

Also, note some other names on the side. In PWA, multiple users (Exhibit 4) can be selected or deselected to see the capacity and utilization of the Resource either individually or as a group. Notice that when I select more than just the one Resource, the capacity line moves to show us the capacities of all those selected and it distinguishes between different individuals by using separate colors.

Exhibit 4 – PWA Resource Availability, Multiple Resources

Settings

As mentioned earlier, security settings for Resources are outside the scope of this paper, but other settings specific to the Resource are available. We will concentrate on the settings that directly affect the issues, as outlined in the Abstract section at the beginning of this paper.

A Resource may be available for assignments only during a certain time frame. Resources can have their availability dates added to their accounts. For example, if an outside contractor is being hired for a three-month period, the dates of that time period can be entered into their account so that they can only be assigned to tasks during that time frame.

If you are assigning some sort of rate or cost structure to a Resource that is available as well, you can adjust the dates that certain rates are in effect, in addition to an overtime rate. For example, if a certain Resource’s cost is going to increase next month, you can enter that information now for that effective date.

In the next section , we will discuss calendars and how they affect capacity (although the calendar setting is set in the Resource Information section as well). This will determine the time frame of when a Resource can be assigned.

The Resource Custom Field of “Position Role” can be used as a field to determine skills so that a Generic Resource can be replaced by a Resource with the same skill set. Resources with the skill sets allow us to have reports like those in the previous exhibits for the “Analyst” position. Resources can also be assigned to Teams, which allow for reporting as well.

Understanding Capacity

Calendars

Project Server 2010 allows you to create Enterprise Calendars. These are designed to set the regular working hours that Resources will be placed into. You can set up many Resource Calendars for different working situations. For example, the Standard calendar is Monday through Friday, 8 a.m. to 5 p.m., with an hour lunch break. Another example might be to set up a calendar for Resources who work 10-hour days, Monday through Thursday. For standard calendars, we should add non-working days that our organization provides—perhaps Christmas Day is an official day off for the organization and this date can be added to the calendar.

Exhibit 5 shows a Standard Calendar. On the right-hand side you can see the working times for the selected date; also note the “Exceptions” and “Work Week” tabs.

Exhibit 5 – Standard Calendar

Calendars are a critical part of determining capacity and in defining when a task can be worked on. For example, if we created a calendar that had only one working day a week, Wednesday, and we put a Resource on that calendar and assigned that Resource to a task that was to start on Monday, the task should move to Wednesday automatically. This will happen because we have determined that the person is only available for work on Wednesday and if he or she is the only Resource on the task and we are allowing the program to do its job, the task will be worked on at the only time it can be, which is on Wednesday.

Working Time and Hours

It can’t be overstated that using calendars is important to ensuring proper scheduling techniques and being able to answer some of the questions mentioned in the Abstract to this paper. If we schedule a task without considering the implications of who is working on that task, when they are available, and what their capacity is during that time frame, then we are going on blind faith. Having a Resource assigned to the correct calendar gives us immediate insight into how and when he or she is able to work on that task. It is the calendar information that creates the capacity views we explored earlier.

Then, as we gain more understanding and comfort in using the tool, we can start to add even more detail for a specific individual. When a Resource is assigned a calendar, you still have the ability to add working exceptions for that person. We can enter his or her vacation time or other known non-working times. For example, perhaps a Resource is on the Standard Calendar and works 8 a.m. to 5 p.m., but every other Tuesday has an out-of-the-office commitment that keeps him or her from being able to work until 10 a.m. (Note: I am not advocating trying to put regular commitments like weekly meetings into the calendar. See the Utilization section below for a few possible ways to deal with those issues.)

Understanding Utilization

Project Work

While the calendar information creates the capacity information, the utilization calculation for a Resource is based on the amount of time assigned to tasks against the available amount of time. The time assigned to tasks is the easiest to understand and calculate and is often the only time considered by most organizations. Reports are often written based on the assignments.

Administrative Work

Using assigned tasks for reporting and trying to understand a Resource’s utilization works great when all the work a Resource performs for an organization is project based. However, this is very rare, because Resources tend to have work and duties that are not tasks on schedules. Some examples of non-project events that Resources do during working hours may be:

• Submitting a weekly timecard for payroll purposes
• Submitting daily or weekly reports
• Attending annual organizational meetings
• Attending weekly departmental meetings
• Maintaining or breaking/fixing assignments on an “as-needed” basis
• Reading and responding to e-mails and telephone calls
• Being called for Jury Duty
• “Water-cooler” discussions
• Illness

Various methods are employed to deal with these occurrences. The most common method of accounting for these issues appears to be ignoring them. However, there are a few relatively easy ways to deal with this situation in Microsoft Project, and one way is to create an “Administrative Schedule” that tries to capture all of the non-project work that is done by the Resource. If you are using the Timesheet part of Project Server, you can place Administrative work functions as parts of the regular updating process. Another method is to modify the number of available working hours per day, per Resource. Each method has its own set of potential issues that may affect other items.

New Work

One of the keys to understanding a Resource’s utilization and capacity is to determine which of the above methods your organization will use to account for all of his or her time and assignments. In addition to the methods listed above, understanding the choices and system calculations are based on the task types that your schedules use. If a task is designated as Fixed Work, Fixed Duration, or Fixed Units it will directly affect how the Resource’s time is accounted for in the system. This is covered in the next section.

Another option in assigning tasks to an individual is to determine if you are assigning the Resource in “proposed” or “committed” mode. In Microsoft Project, a proposed assignment “does not detract from the availability of the resource to work on other projects.” (Distribute project work evenly, 2010). A “committed” assignment means that it will affect your Resource’s calculations, which will affect reporting, capacity, and utilization calculations. The default setting is to have the Resource as “committed.” Exhibit 6 shows where the option is set for each Resource.

Exhibit 6 – Proposed and Committed Option

Understanding Task Types

In the Definitions section at the beginning of this paper, we included the task types that Microsoft Project uses. As a reminder, here is what was written in that section.

The type of task that is chosen is reflected in the Resource’s assignments and therefore affects their capacity and utilization. Understanding how this works is very important in being able to maintain effective and meaningful reports. Microsoft Project uses a formula to calculate the dates and Resource information. “For all tasks, after you assign a resource, the task is scheduled according to the formula Duration = Work /Units. For any task, you can choose which piece of the equation Project calculates by setting the task type.” (About Task Types, 2003) The following chart (Exhibit 7) appears in this article.

Exhibit 7 – Formula Explanation

For example, if we use Fixed Duration task types and assign a Resource to a two-day task, the system will assume 100% Units, and if we are using the default calendar it will assume 8 hours a day, Monday through Friday. Therefore, when we look at a report, the Resource will appear to be fully booked for two full days. But, what if the task is really a task that takes only two hours of work? If this is the situation, we will be showing 14 more hours of work for the Resource than are actually being performed.

Understanding the Enterprise Resource Pool

Once all of the settings for the Resource are determined and set, Microsoft Project Server allows all schedules that are built to use the same Resources. This allows us to have a common reference instead of having to re-create the same Resources again and again in each schedule. Having the Enterprise Resource Pool gives us the ability to create reports showing assignments, capacity, and utilization for a Resource across all schedules on the Project Server.

When in Project Professional, the Resource Manager just has to “Build Team from Enterprise” to get to the list of all available Resources. Exhibit 8 is an example of the list of Resources on the Project Server that can be selected for use on this schedule.

Exhibit 8 – Building Team from Enterprise Resource Pool

After selecting the Resource from the left-hand side and clicking on the “Add” button, that Resource becomes available to be assigned to tasks on this schedule. And, as assignments are made and the schedule is published back to the Project Server, those assignments become parts of the capacity and utilization reports. This is all in real-time and if you are in a report on the Server, hitting “refresh” will give you the latest data.

The Resource Pool is created by you, and there are a couple of different methods for creating and maintaining the list. The most common method is to manually enter (you can cut and paste when doing this for large groups) the Resources that you want to have available. Another method is to use your organization’s Active Directory to import/update Resources.

Understanding the Resource Pool

In Exhibits 1 and 2, we showed the basic reports that Project Professional will display for a single Resource. In the last section (Understanding the Enterprise Resource Pool), we discussed how Resources appear and can be used from a single source on the Project Server. However, there are some organizations that do not have Project Server but do have the desire to report across all schedules on their Resource loads. Although it isn’t as intuitively easy to do, and the reports that come from Server aren’t available, there is a way to have a single Resource Pool like the one Server provides.

In Project Professional, there is an option to “Share Resources” between schedules. This option allows us to share the Resources from one schedule to any other schedule of our choosing. To make this work most effectively, we have to institute business rules that require all the Resource Managers to use a single Resource Pool file. To create the Resource Pool, we just have to create a schedule with no tasks in it and only Resources. There will never be any tasks in this schedule—it is to be used only as the shared schedule for its list of Resources. Since we don’t have Server options, the only way to maintain this list of Resources is to manually enter and update them.

When a new schedule is created, we use the option to share the Resources (Exhibit 9) and we select the Resource Pool schedule as the file that provides the Resources. In the options section, it is important to use the “Pool takes precedence” option, which means that if there is a conflict between the Resource Pool schedule and the local schedule, then the Resource Pool will overrule the local schedule.

Exhibit 9 – Sharing Resources

When schedules are saved with assignments and the Resource Pool schedule is used, then we can get information about how a Resource is being used on all of the schedules. This is really a method to get Server-type reports, but without the Server. Any reports used will be from Project Professional, but you can build some powerful reports using the available tools.

Conclusion

This paper and the presentation that goes along with it provide very high level reviews of some of Microsoft Project and Project Server’s capabilities. Some of the setup takes some time and energy and sometimes requires more business methodology than technical skills. None of the screenshots or the discussions in this paper involves third-party tools or add-ins. There are many tools on the market that add functionality to Microsoft Project, which are very good and helpful, but our philosophy is that understanding the basic options of the tool as it comes “out of the box” can be very valuable.

Resource Management can be a constant source of frustration or a foundation for competitive advantage. Paying some attention to how Microsoft Project works and setting it up so that it works for you, can move your organization from the frustrated to the advantaged!