Report #: Q0216

Path: Live Data > Live Data Reports > Labor Capacity Forecast

Purpose:

The Labor Capacity Forecast report is a powerful feature within Q360 designed to offer in-depth insights into labor capacity and allocation for a specified period.  This report, a vital tool for effective operations management, assists users in making informed decisions to optimize labor schedules and maintain a well-balanced workforce

Key Benefits:

1. Optimized Operations Management: By providing visibility into labor capacity, the report allows users to effectively manage their operations, ensuring that schedules are in line with available resources
2. Proactive Resource Allocation: The “Delta” column alerts users to potential overallocations, facilitating proactive decision-making and the avoidance of resource bottlenecks
3. Early Sales Opportunity Forecasting: The ability to include sales opportunities in the forecast allows users to plan for operational capacity as early as the quoting phase, contributing to better resource allocation and revenue projections (see below).

Forecasting Mechanism
Version 23.01 or later
Versions Prior to 23.01
Capacity Calculation
Delta Column
Including Sales Opportunities

Forecasting Mechanism

The Labor Capacity Forecast report employs a sophisticated forecasting mechanism to generate “Scheduled” values, which are crucial for efficient operations management. This mechanism depends on the version of the Q360 system and involves the following steps:

• Version 23.01 or later:

  In versions 23.01+, the “scheduled” values are derived from the scheduled effort on the lowest nested project tasks.  These efforts are spread across the task’s duration, taking into account the start date and end date.  The hours are then categorized into labor types based on the time bill category assigned to the project task

• Versions Prior to 23.01:

  For versions prior to 23.01, the “scheduled” values are calculated from the estimated effort on parent project tasks.  Similar to the later versions, this effort is spread over the task duration (start date and end date).  The allocation is categorized by the time bill category on the project task into labor types on the Labor Capacity Forecast

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Capacity Calculation

The “Capacity” column in the Labor Capacity Forecast report is determined by the data from the “Schedule” tab on an HR > Employee record.  This calculation considers:

• Hours per week available to the employee
• Deductions for HR reservations (such as statutory holidays, paid time off, etc.)
• Deductions for non-available hours specified in the HR > Employee > Details tab

These computed capacity hours are then categorized under labor types and summed per branch and per period in the Labor Capacity Forecast, based on the Labor Type assigned to the employee record in the HR > Employee > Details tab
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Delta Column

The “Delta” column in the Labor Capacity Forecast report is calculated as the difference between the “Schedule” and “Capacity” values for the specified period.  This delta value provides critical insights into operations management.

• A negative delta, or a cell turning red, indicates that the number of hours scheduled has exceeded the available capacity for that period
• This situation signifies the need for re-evaluation of scheduling, potential staffing adjustments, or consideration for subcontractors to address consistent overallocation

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Include Sales Opportunities

If desired, users have the option to include sales opportunities in the Labor Capacity Forecast report via the filter.  Specifically, labor line items (L-type items) on quotes that are not flagged as “option” and are linked to active sales opportunities can be incorporated into the report.  This feature allows users to forecast operational capacity as early as the quoting phase.

Prerequisite for forecasting labor from quotes: accurately associate master numbers with time bill categories in Accounting > Admin > Misc. > Labor Rates screen.  The report will allocate the quoted hours using the straight-line method between the sales opportunity’s “close date” and “install finish date.” Furthermore, users may filter sales opportunities included in the labor capacity forecast based on the probability percentage set on the sales opportunity.

In summary, the Labor Capacity Forecast report is an indispensable resource for operations managers and workforce planners, enabling them to optimize labor schedules, account for sales opportunities, and ensure that operations management aligns with available capacity and resource availability.
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