I see these terms used through Parallax, but what do they mean and how do they differ from one another and how do I use them? What's the difference between Capacity and Utilization? How is Schedule used to determine Availability? Below we'll break down what these terms mean and how to use them.
|Schedule||What is an Employee's Schedule and where is it set? Check out this section to find out.|
|We'll cover what Billable Capacity is and how to use it.|
Here we'll break down what Availability means and how it's determined.
This section will cover what Utilization means and how to effectively use it.
The Schedule is the broadest way of thinking about hours - it's the baseline business that your Employees are scheduled to work. It is set for your Company as a whole under Settings > Customization, but you can override that schedule on an Employee basis under their profile under Settings > Employees.
- My Organization has a baseline of 8h per day each on Monday - Friday, for a total of 40h.
- However, Employee A has baseline 8h per day on Monday - Thursday, for total of 32h.
The Billable Capacity is the maximum hours an Employee can spend on Billable activities, expressed as a percentage. It is set by the Role in Settings > Roles, but can be overridden at the Employee level under each Employee's profile under Settings > Employees.
- The Role of QA Lead will have 4h of Internal Projects assigned weekly, leaving 36h for Billable work. They have been set to 90% for Billable Capacity.
- However, Employee B - while still a QA Lead - is being reserved only for billable work. As such, their Billable Capacity is set to 100%.
While you won't specifically see the term Availability mentioned within Settings, availability represents how many hours an Employee has available for Allocation without reaching their Billable Capacity. Since Availability needs to factor in Holidays and Time-Off, it is represented by the following equation:
(Schedule - Holidays - Time-Off) x Capacity = Availability
- Employee A is a QA Lead with the standard Schedule of 40h and Capacity of 90%. During the week of New Years, we have one Standardized Holiday (8h) and the Employee has requested no additional PTO. Their Availability for that week will be:
(40h - 8h) x 90% = 28.8h (7.2h per day)
- Employee B is also a QA Lead with the same Schedule and Capacity, but took an additional day of PTO. Employee B will have the following availability:
(40h - 8h - 8h) x 90% = 21.6h (also 7.2 per day)
- Employee C is also a QA Lead but has a custom Capacity of 80%, and did not take any additional PTO. Employee C will have the following availability:
(40h -8h) x 80% = 25.6 (6.4h per day)
If Billable Capacity represents the maximum of an Role/Employee's hours that can be billable, then Utilization represents how well you are executing against that - how much of the available time is being spent on billable work? Target Utilization then represents how well you expect the Employee to perform over time. It is a goal or Target that allocations can be tracked against over time to see how much of their time is being spent on Billable work. Essentially, if Capacity is what your Employees can do, Utilization is an average goal to hit over time. Like Capacity, it is set by the Role in Settings > Roles, but can be overridden for an individual Employee under Settings > Employees.
- The Role of QA Lead has a Billable Capacity of 90%, however, to account for additional Internal Projects that may come up, we've set a goal of 80% Utilization. This allows us to scheduled not just against the maximum that the Role can achieve, but instead against a goal we can track over time.
- Employee A is a QA Lead, but we want to keep them specifically dedicated on Billable work as additional internal projects come up, so their individual Utilization is 90%.