Utilization Rate KPI

Utilization Rate KPI

Utilization Rate KPI (or Billability) is a project key performance indicator that measures the percentage of billable hours the employees work over particular period of time. Billable hours are the number of hours within time period when the employees are working at the client’s expense and bring profit to the company.

Utilization Rate KPI can be measured using two methods:

Method 1.  Utilization Rate = Billable Hours / Work Hours

Work Hours are the number of hours a project is supposed to take.

Method 2.  Utilization Rate = Billable Hours / Working Hours per week.

Using this method you may have Utilization Rate over 100% if total Billable Hours value exceeds total Working Hours per week.

Your can use Utilization Rate KPI if your company charges time to the clients. The higher the value of this KPI is, the better it is for the company. The companies should tend to have above 70% of Utilization Rate.

To calculate Utilization Rate KPI for your company projects using Method 1 please follow the steps below:

• Create the custom field "Working Hours" with Code "cf_work_hours"



• Create the custom field "Billable Hours" with code "cf_billable_hours"



Note: if you would like to enter the value of the custom field "Billable Hours" per project manually you need to right click on task group with project tasks, select "Custom fields options" and select "Edit"



To enter the value for the custom field right click on task group and select "Edit"



• Create the custom field "Utilization Rate" with the formula:

 $cf_billable_hours / $cf_work_hours * 100



To calculate Utilization Rate KPI using Method 2 please do the following:

• Create the custom field "Billable Hours" with Code "cf_billable_hours" as shown above
• Create custom field "Working Hours" for the task group with Code "cf_working_hours"



Right click on the task group, select "Custom fields options" and select "Edit" option



To enter the value for custom field right click on task group and select "Edit"



Add total estimated working hours per week to this custom field

• Create the custom field "Utilization Rate" with the formula:

$cf_billable_hours / $cf_working_hours * 100



• On Task Tree select the task group for which you need to display Overhead Percentage and select "Custom fields options"



• Set the following custom fields settings for the following custom fields: "Billable Hours" and  "Work Hours"
  • in "Settings for" select "This task group"
  • select "Enable"
  • in "Aggregated (for task group)" field select "Sum" from drop-down list and the corresponding custom field name





• Select custom field "Utilization Rate" set the following settings for these custom fields:
  • in "Settings for" select "This task group"
  • select "Enable"
  • select "Calculated by custom field formula (for task group)"





Utilization Rate KPI on Task Tree