Resource cost variance simply refers to the difference between the projected cost of the resources being utilized and their actual cost. Resource cost variance can be calculated by calculating the actual cost spent on a particular resource and comparing it with the projected or budgeted cost. Continuous tracking of the resource cost variance either manually or by using resource planning software helps to keep track of the profitability of the firm. It also helps in taking remedial measures whenever the resource cost variance goes beyond acceptable levels. The acceptable levels of variance are decided by a firm as part of establishing control measures for tracking the costs spent by the firm. Resource planning software assists in planning and establishing such control measures.
Resources are undoubtedly one of the most high-priced investments for any firm. Resource planning involves the management of business resources by identifying, forecasting, and allocating the right business resources to the right projects at the right time and cost. It helps in efficiently managing the resources of the firm at their optimal level. At a time when organizations are undertaking projects at an unprecedented scale, the effective deployment of resources has become more important. To simplify the resource planning and management process, Resource management software is now being used extensively in several industries. Let’s dive deep into why Resource management software is a must for every enterprise:
Increased visibility in business demand resource availability
Resource planning software helps to bridge the gap between the demand and supply of resources at hand. It helps in removing the information barrier between sales and project delivery teams by streamlining the sharing of information between all parties.
This helps the sales teams in evaluating the available resources and capacity at hand before making any future customer commitments and similarly, it assists the project execution teams in better planning the production levels with the expected demand pipeline.
Even the option of restricted access to information is available, wherein the information available to every user of the software can be decided beforehand, offering the feature of role-based access to critical company information.
Analyze the resource skills and competencies in depth
A top-of-the-line resource management software helps in keeping track of the various dimensions of skills and competencies of all resources. These also help in tracking the past performance of available resources, their expertise, location, cost rates, etc., and making this information available to all the stakeholders accessing the software. It helps in better managing the resources at hand.
Optimize the resource allocation process
Good resource management software helps in analyzing the best resource for a particular job, thereby saving on the cost and time spent on a particular project. It analyses the requirements of a project and matches those requirements with the skillsets of the available resources, thereby suggesting the best resource available for a task at hand.
Interactive and effective scheduling
Resource management software assists in effectively performing the scheduling tasks. It assists with features like resource identification, recurring resource bookings, and drag & drop scheduling and also makes the scheduling process interactive. It hence offers hassle-free scheduling of resources and tasks and helps in improving the productivity of the firm.
A manager can analyze the firm’s performance on various resource utilization measures using good resource management software. Resource cost variance calculations are available in the software to help in tracking the overall performance and deviations observed from the budgeted amounts. Key metrics like revenue, cost, and profit information are available at the resource and project levels as well.
Configure resource utilization with real-time dates
This implies that multiple custom calendars can be accommodated for various resources, highlighting their availability for each particular duration on a month, day, and even hour level. This is very beneficial for firms that have cross-country functions or have operations in multiple countries.
A resource management software that supports third-party integration with other existing applications makes the entire resource planning process quite seamless. It helps in syncing data available in other apps and makes that available in a single place.
Investing in advanced resource management software has the potential to significantly improve the management of firm resources and regularly track any resource cost variances. It provides a holistic and digitized overview of the firm’s performance, detailing resource allocation, tracking, cost optimization measures, timely effort tracking, and optimizing the entire resource utilization process. A well-developed or top-of-the-line resource planning software has a high ROI (return on investment) and helps to significantly reduce the overall cost for the firm. Do check out the Resource management software by eResource Scheduler, offering a high level of customization for user firms and is one of the most effective software with incredible features for helping in managing the resources of the firm and optimizing the overall cost. Check out eResource Scheduler’s resource allocation software, which provides a high level of customization for user firms and is one of the most effective software with incredible features for assisting in managing the firm’s resources and optimizing the overall cost.