Understanding resource capacity and need in a cost perspective
Leif Arild Åsheim
The priority when looking at resource capacity versus need for an engineering organization is competence:
- Is there a match between the available competence in the organization and what is required from the future project portfolio we are expecting?
- Can we get the right competence mobilized at the right time for our new projects?
- Which competencies are we short of and which do we have in excess?
These are key questions we at Promineo are asked when we talk to companies who are looking at how they can improve resource planning.
But in a competitive market there is also a question about having the right competence at the right cost.
- What is the cost level of my future resource availability within a certain competence?
- Based on resource availability, what prices can we quote and still secure an acceptable project margin?
- What changes do I need to make to my organization to secure resource capacity at the right cost level?
To the CFO and Business Development, these are key questions to secure both competitiveness and profitability. And they are sometimes in conflict with the engineering organization’s desire to ensure execution excellence by using the best (and most expensive) people.
The topic always makes for interesting discussions when we bring it into the need versus capacity conversation.
In Promineo we have been looking at how to bring the cost perspective into our software, and how we can help our customers bring the cost perspective into their project staffing process and drive profitability and competitiveness.
If you want to learn more feel free to contact us directly to discuss this topic.