Utilization/Optimization eReport Frequently Asked Questions
The Utilization/Optimization eReport will show the breakdown between Customer Billable Hours, Internal Billable Hours, and Non-billable Hours. This FAQ answers many questions regarding the report.
Who will be included in the Utilization and Optimization calculations?
All billable PGS employees and all non-billable employees who actually bill hours. Billable PGS employees will receive 40 Available Hours per week. Non-billable employees actually billing hours will receive Available Hours equal to the hours they actually bill (this results in 100% Utilization for Non-billable employees).
How am I able to view the Utilization/Optimization eReport?
By employee (with the ability to drill down to the project level); by dept/region; by job code.
Will Fixed Fee projects be included in the Utilization Calculation?
Fixed Fee projects will be included in the Utilization calculation. Data integrity is dependent upon
correct project setup.
What happens if a billable employee does not record their time to a time report?
The Utilization percentages are impacted by the
on-time submission of time reports. Utilization will be based on consultants within the practice regardless of whether they turn in their time report. Utilization for a consultant who does not turn in their time report will be zero.
Conversely, if a consultant turns in a time report in a subsequent period, Utilization for that period could be in excess of 100% for the week in which it was turned in. While the Utilization % for that time period would reflect the late time, the YTD Utilization % would not be impacted. The recording of revenue in the financial statements is dependent upon time reports and would also be reflected in the period that the time is submitted.
Why is the time report recorded in the week worked rather than the week submitted? Why can't we reflect what actually happened?
As revenue is recorded in the financial statements according to when the time reports were submitted, so must the Utilization % (also a Revenue number). Revenue is not generated for late time reports until the time reports have finally been submitted. Hours are not invoiced and the customer is not billed until the time reports are submitted. As a result,
we lose our revenue accrual and profit margin is impacted.
What happens if a consultant becomes billable in the middle of a week? How will their Available Hours be calculated?
Available Hours will be prorated at 8 hours per day. The following weeks will have 40 Available Hours.
What happens if a consultant terminates in the middle of a week? How will their Available Hours be calculated?
Available Hours will be prorated at 8 hours per day. The termination date, per HR policy, is the day after the last day worked. So if an employee has a termination date of Wednesday, he will receive 16 Available Hours for that week.
How is Utilization affected if a consultant submits their weekly time report late?
The snapshot for eReports is taken at approximately noon Pacific Time each Sunday. If a time report is submitted after the deadline for the previous week, it will be included in the next period's Utilization. This could result in Utilization greater than 100% in the next period. However, it will not affect YTD Utilization calculations. As of May 2004, the utilization cube was not accounting properly for late timesheets.
How is Utilization affected if hours are adjusted during Project Manager Review?
Adjusted hours will restate Utilization for the time period in which the original time report was submitted. As of May 2004, the utilization cube was not accounting properly for PPA’s.
How is Utilization affected if hours are adjusted via Prior Period Adjustments?
Adjusted hours will restate Utilization for the time period in which the original time report was submitted. As of May 2004, the utilization cube was not accounting properly for PPA’s.
What does not count towards Utilization/Optimization %s?
Shadow Consulting, Consulting Preparation (unless paid for by the customer), Training, Travel Time, Administrative Time, Time spent at regional meetings/conferences/etc., or any form of Leave.
From where does the Utilization/Optimization eReport pull time data?
From three sources: Projects (unapproved time); Project Manager Workbench (approved time); and T&E (Policy Time).
Does the Utilization/Optimization eReport take into account countries that have standard workweeks for other than 40 hours?
No. The Utilization/Optimization eReport is reporting actuals, not targets. Countries with other than a standard 40-hour workweek must adjust their target utilization.
What are the business rules to determine if a project is Optimized/Utilized?
For additional information, see Eureka! document 16815 — Utilization/Optimization Cube and Eureka! document 16817 — Business Rules for Optimization and ICP Flags.
Created by the PeopleSoft Knowledge Management Team.
Copyright © 2003
All rights reserved.
Created: dcb 08/14/2003
Revised: dcb 05/12/2004
Reviewed: 05/12/2004