GPE Resource Utilization Metrics and Guideline - 2014 R1 - 6507359 - 01

PETRO TECHNICAL SERVICES
GEOSCIENCES PETROLEUM ENGINEERING
RESOURCE UTILIZATION METRICS AND GUIDELINE
Reference: PTS GPE RPM – Resource Utilization
Archive location: InTouch
Release Date: 30-July-2014
Owner: GPE – Project Controls
Issued by: Dian Lir Widhiati
Reviewed by:
Approved by: Nihal Ian Wijeyesekera
Private
Table of Revisions
Date Name Version Change Description

30-July-2014 Dian Lir Widhiati 1.0 First release
Draft updated with comments from Area Project Control
02-July-2014 Dian Lir Widhiati 0.2
Manager, GPE VP, PTS Business System Manager
26-June-2014 Dian Lir Widhiati 0.1 Initial Draft
Once printed this document is not controlled and may not be the most recent version. See documents under
http://intouchsupport.com/index.cfm?event=content.preview&contentId=6507359 for the most recent version.
PAGE 1 of 9
Table of Contents
1 STATEMENT OF GUIDELINE ...................................................................................................................................3
2 BACKGROUND...........................................................................................................................................................3
3 SCOPE .........................................................................................................................................................................3
4 DEFINITION ................................................................................................................................................................3
4.1 Utilization ....................................................................................................................................................................3
4.2 Target Hours ..............................................................................................................................................................3
4.3 Time Counted Towards Utilization..........................................................................................................................4
4.4 Utilization Types ........................................................................................................................................................4
4.4.1 Business Related Utilization (BRU) ....................................................................................................................4
4.4.2 Billable Utilization (BIU).......................................................................................................................................4
5 CALCULATING UTILIZATION ..................................................................................................................................5
6 UTILIZATION TARGET ..............................................................................................................................................5
7 LEVEL LOADING ........................................................................................................................................................5
8 ROLES AND RESPONSIBILITIES ............................................................................................................................6
8.1 GPE Professionals.....................................................................................................................................................6
8.2 GPE HUB Managers .................................................................................................................................................6
8.3 GPE Project Control Managers ...............................................................................................................................6
8.4 PTS RPM Support .....................................................................................................................................................6
9 PROCEDURES IN RPM .............................................................................................................................................6
10 MONITORING & REPORTING ..................................................................................................................................7
GPE Utilization Report .........................................................................................................................................................7
APPENDIX 1 - CONTRACTORS ..........................................................................................................................................9
PAGE 2 of 9
1 STATEMENT OF GUIDELINE
GPE acknowledges utilization as a critical metric for financial success and sustainability of its operations.
Utilization must be clearly explained, simply calculated, consistently implemented and fully understood
across the GPE organization.
The procedure for calculating utilization must be benchmarked against and consistent with common
technical consulting services practice.
2 BACKGROUND
In technical consulting services, employees are the most valuable element of the offering and represent the
highest cost to the organization. Utilization is an important metric to determine whether resources are
utilized effectively and efficiently and it is heavily linked to the organization’s profitability.
Reliable utilization data will allow GPE management to better manage resources, i.e.:
(a) Conduct planning more effectively
(b) Manage the balance between project delivery and business development, etc.
(c) Manage level loading of employee time – ensure visibility of overworked or under-utilized
professionals to allow better work-life balance and motivation
(d) Reduce ‘bench time’ and optimize profitability
All major professional service companies (including professionals as diverse as management consultants,
technical consultants, lawyers, etc.) track utilization time for reasons similar to the above.
3 SCOPE
This applies to all permanent GPE billable and non-billable professionals.
4 DEFINITION
4.1 Utilization
Utilization is a measure of the time spent working on or assigned to a pre-defined set of activities. Utilization
rate is defined by GPE as the comparison between hours spent working and/or assigned and target hours.
4.2 Target Hours

Target hours in RPM represent 8 hours a day, 5 days a week, 52 weeks a year—which is 260 days—minus
public holidays in the country the person is assigned to.
Target hours is a reference which is used as a baseline for total possible hours worked. This is not the target
for an individual or a business unit.
Target Hours = (8 hours X 5 days X 52 weeks) – public holidays

= 2080 hours – public holidays
PAGE 3 of 9
4.3 Time Counted Towards Utilization
- Project Time
- Non-Project Time
- Not Billable Business Related (NBBR)
- Training
Time Off, STA Time Off and Not Billable Not Business Related (NBNBR) are not included in utilization
computation.
Time categories are explained in detail in the GPE Time Tracking Guideline:
http://intouchsupport.com/index.cfm?event=content.preview&contentId=6453463
4.4 Utilization Types

Two types of utilization are used as performance metrics:
‐ Business Related Utilization (BRU)
‐ Billable Utilization (BIU)
4.4.1 Business Related Utilization (BRU)

BRU measures the allocation of a resource on a specific set of business activities, including client and
internal work, and excludes ‘bench time’ during which the resource is working on neither billable nor non-
billable work.
BRU is computed as follows:
BRU = (Project Hours + Not Billable Business Related Hours + Training Hours)
Target Hours
4.4.2 Billable Utilization (BIU)

BIU is defined by GPE as the comparison between the hours spent on billable project tasks – capped to a
maximum of 8 hours a day, whether an internal or external project, and target hours.
BIU is computed as follows:
BIU = Capped Project Hours

Target Hours
There are several reasons to use capped hours when calculating BIU, amongst others:
‐ To have a standard reference, most clients only pay by day and not hours
‐ To be aligned with standard industry practice
Note that BRU is not capped in order to track total hours being worked by individual.
BIU is used by managers to ensure that our professionals are utilized adequately on paid projects.
BRU is used by managers to ensure that professionals have an appropriate work-life balance and are not
over-working on a consistent basis.
PAGE 4 of 9
5 CALCULATING UTILIZATION
The table below shows how BIU and BRU are calculated for GPE billable professionals:
Hours (not Hours
TIME CATEGORIES BRU BIU
capped) (capped)
PROJECT TIME 1600 1300 1600 1300
NON PROJECT TIME
NOT BILLABLE BUSINESS RELATED (NBBR) 320 300 320
TRAINING 56 56 56
STA TIME OFF 0 0
TIME OFF 240 240
NOT BILLABLE NOT BUSINESS RELATED (NBNBR) 284 284
TOTAL HOURS 2500 2180 1976 1300
TARGET HOURS 2080 2080 2080 2080
BRU % & BIU % 95% 63%
6 UTILIZATION TARGET
The 2014 GPE BIU target is set at 60% and 2014 GPE BRU target is set at 80%. The target is benchmarked
against professional consulting services, is reviewed on a yearly basis and is subject to change depending
on organizational needs.
RESOURCE SETC BU BRU BIU BRU

CATEGORY Level Target Target calculation Calculation
Non-Billable
All Zero 80% Excluded Included
Professionals
Advisor 60% 80% Included Included
Principal 60% 80% Included Included
Senior3 60% 80% Included Included
Senior 2 60% 80% Included Included
Billable
Senior 1 60% 80% Included Included
Professionals
Member 60% 80% Included Included
FSTEP3 60% 80% Included Included
FSTEP2 60% 80% Included Included
FSTEP1 60%* 80% Included* Included
* FSTEP1 will be excluded in the next RPM revision to indicate that the majority of this population will not be
directly billable to Client.
7 LEVEL LOADING
The level loading (LL) provides an indication of the distribution of the billable utilization (load) among the GPE
billable professionals. GPE calculates level loading as the ratio between the number of billable professionals
with a BIU >50% versus the Total Billable Professionals:
PAGE 5 of 9
LL = Number of Billable Professionals with BIU> 50%
Total number of Billable Professionals
This metric will allow managers to monitor level loading of employee time to ensure visibility of professionals
who are overworked or under-utilized in order to allow better work-life balance and motivation.
8 ROLES AND RESPONSIBILITIES
8.1 GPE Professionals

(a) Understand the importance of this policy
(b) Request RPM access to track time from official start date
(c) Inform Hub Manager if he/she needs to be un-assigned from RPM
8.2 GPE HUB Managers

(a) Ensure resources are set up correctly in RPM:
‐ Zero target hours for non-billable professionals
‐ 2080 target hours for billable professionals
(b) Review target hours in each location under his/her area.
(c) Update SETC level of each resource to apply correct utilization target.
8.3 GPE Project Control Managers

(a) Promote the use of monthly RPM utilization and level loading reports
(b) Review the metrics, applicability and highlight issues or areas of concern.
(c) Communicate to the organization when departure from target KPOs are noted and highlight
the expectations listed above.
8.4 PTS RPM Support

(a) Set target hours in each location at beginning of year
(b) Provide support to GPE team in matters related to updating the status and target hours of
GPE billable professionals.
(c) Ensure the the availability of suitable RPM reports for HUB, Area and Project Control
Managers
9 PROCEDURES IN RPM
 PTS RPM Support, with the help of HUB Managers, set target hours and deduct hours for public holidays
in certain locations at the beginning of the year. In 2015, no public holidays will be deducted to ensure a
consistent reference target.
 PTS RPM Support, with the help of HUB Managers, set resource types based on the following
categories:
‐ Zero Target Hours
‐ 2080 Target Hours
Please refer to the User Accounts Guidelines document created for the Hub Managers.
 Area HUB Managers regularly review the SETC level of GPE professionals. Adjustments have to be made
to reflect promotions or new roles (from billable to non-billable or vice versa).
PAGE 6 of 9
 The Area HUB Managers ensure the start and end date of resources are correct. Both will affect
utilization calculations.
 As per GPE Time Tracking Guideline, when needed, Area HUB Managers must un-assign the GPE
professionals in RPM or request the un-assignment via an email to IT Help with the specific date of un-
assignment. Another request has to be sent to re-assign when GPE Professionals return. The impact of
being un-assigned is that their time will be excluded from target hours and not counted towards
utilization calculations.
10 MONITORING & REPORTING
GPE uses RPM to monitor and report BIU and BRU. The procedure to enter the time in RPM is indicated in
the GPE Time Tracking Guideline:
http://intouchsupport.com/index.cfm?event=content.preview&contentId=6453463
GPE Utilization Report
50% < B.U. <60% 60% < B.U. <75% B.U< 50% or B.U. >75%
PAGE 7 of 9
60% < BRU <80% 80% < BRU <90% BRU< 60% or BRU>90%
In both BIU and BRU reports, managers can drill down to locations and by individual to evaluate BIU & BRU
of individual business units. Managers can also identify areas/business units/individuals who are under- or
over-utilized to ensure better resource planning.
GPE Level Loading Report
Source: http://tableau.reporter.slb.com/t/PTSPlanner/views (currently limited for Area Business Manager and Area
Hub Manager)
PAGE 8 of 9
APPENDIX 1 - CONTRACTORS
GPE contractors who have LDAP access, while they are required to enter time in RPM, will be excluded from
utilization computations for the following reasons:
‐ Contractors do not have target hours, since requirements may vary
‐ Contractors are paid only when they work
‐ We do not want to dilute GPE’s utilization with contractors
Contractor time is required in RPM and must be recorded in the projects they are working on. This will allow
project managers to have full visibility of project resources and task progress, including those tasks
performed by contractors.
To exclude contractors from utilization calculations their submission cycle is set as “not applicable (N)”.
SUBMISSION TARGET Include in OTP

WORKGROUP/ RESOURCES TYPE
CYCLE HOURS Calculation
CONTRACTOR N 0 N
BILLABLE RESOURCES Y 2080 Y
NON BILLABLE RESOURCES Y 0 N
The pre-defined filter to procedure BIU Report:

‐ Workgroup: Global GPE
‐ Exclude submission cycle “N”
‐ Include in OTP Calculation “Y”
The pre-defined filter to procedure BRU Report:

‐ Workgroup: Global GPE
‐ Exclude submission cycle “N”
PAGE 9 of 9

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PETRO TECHNICAL SERVICES

GEOSCIENCES PETROLEUM ENGINEERING

RESOURCE UTILIZATION METRICS AND GUIDELINE

Reference: PTS GPE RPM – Resource Utilization

Archive location: InTouch

Release Date: 30-July-2014

Owner: GPE – Project Controls

Issued by: Dian Lir Widhiati

Approved by: Nihal Ian Wijeyesekera

Date Name Version Change Description

This applies to all permanent GPE billable and non-billable professionals.

4.2 Target Hours

Target Hours = (8 hours X 5 days X 52 weeks) – public holidays

4.4 Utilization Types

4.4.1 Business Related Utilization (BRU)

BRU is computed as follows:

4.4.2 Billable Utilization (BIU)

BIU is computed as follows:

BIU = Capped Project Hours

RESOURCE SETC BU BRU BIU BRU

8 ROLES AND RESPONSIBILITIES

8.1 GPE Professionals

8.2 GPE HUB Managers

8.3 GPE Project Control Managers

8.4 PTS RPM Support

10 MONITORING & REPORTING

GPE Utilization Report

GPE Level Loading Report

SUBMISSION TARGET Include in OTP

The pre-defined filter to procedure BIU Report:

The pre-defined filter to procedure BRU Report:

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