Knowing how long it takes employees to complete a project is essential for business success. But too often, this is a lot easier said than done. Getting accurate estimates requires planning and the right tools.
If you haven’t calculated estimated time to completion (ETC), now’s the time to start. This technique empowers project managers to set realistic deadlines, gives workers a benchmark for time management and ensures team leaders see when employees may need more help.
Let’s explore the importance of ETC, along with common challenges organizations face when calculating it and how to use it the right way.
What does estimated time to completion mean?
Estimated time to completion, or ETC, is a general estimate of how much time it takes for employees to complete a project. The best way to calculate ETC is with historical data, such as how long it took team members to complete similar projects in the past or how much time employees spend on individual tasks. It helps managers determine how many hours team members will need for upcoming projects, and is valuable when distributing workloads.
Estimated time to completion and its importance in project management
How accurately you estimate time to completion determines how successful your team will be. When you over- or underestimate timelines, employees face major roadblocks when working toward scheduled deadlines. In fact, according to a Wrike survey, 49% of business leaders say their companies lost revenue because of missed deadlines — and a whopping 80% of projects fail to progress on schedule.
Measuring current project timelines against time estimates makes it easier to spot delays and keep your project schedule on track, either by allotting additional time or assigning project tasks to other employees. The result is more accurate budgeting and less waste from unexpected overtime or other labor costs.
But that’s not all. Regularly estimating time to completion at the outset of each project also empowers you to:
- Remove guesswork when assigning tasks to employees
- Allocate and manage resources correctly
- Distribute workloads efficiently to meet milestones without overburdening anyone
- Foster greater accountability and communication among team members
- Keep stakeholders informed with realistic timelines
- Provide greater clarity on deadlines and project progress
It all adds up to employees who are free to focus on getting tasks done and moving toward shared goals.
How to calculate time to completion: step-by-step
While every business is unique and will have different needs when calculating estimated time to completion, the following steps help streamline the process.
Step 1: Identify required tasks and activities
The first step in calculating estimated time to completion is identifying all required tasks and activities to achieve project goals. This will allow you to conduct “bottom up estimating,” which leads you to the overall project completion time by adding up all small tasks. Include everything from initial planning to project delivery, and make sure team members at all levels collaborate during this phase. It’s the best way to gain valuable insights into potential tasks so no elements are overlooked.
Step 2: Estimate individual task duration
After identifying tasks, the next step is to estimate the time each task requires. Use historical data, employee input and time-tracking software to make these estimates. It’s important to bake some flexibility into this step based on your workforce, industry and other considerations. And be sure to factor in potential scenarios, such as holidays when multiple people will be taking paid time off or additional priorities that may temporarily distract team members from the project at hand.
Step 3: Factor in employee availability and skill level
Once you know how long tasks take to complete, consider how employee availability and skills will affect project timelines. Then add this information to your project management software. This real-time information is vital for accurate project schedules, and makes it easier to see employee schedules and capabilities at a glance. Once you’ve factored in all data, assign tasks to team members based on individual expertise and availability to minimize bottlenecks and speed up timelines.
Step 4: Incorporate project buffer time
Even with the most accurate ETC, most teams need more time than anticipated — especially during the initial planning phase. Take your estimate and add in some buffer time to safeguard against unforeseen issues and delays. This will provide room for adjustments without jeopardizing deadlines. As a general best practice, add another 10% to 20% of your total project duration depending on your industry and workforce.
Step 5: Create a schedule template
Once you’ve gathered all the necessary data and information, it’s time to create a schedule template. Include which team members are responsible for each task, along with the estimated time they'll need to complete it. Your schedule will change along with project specifics — for example, if new team members are added or others are unavailable — but this provides a general idea of the path the project will follow to completion.
Step 6: Reevaluate over time
Estimated time to completion is an ongoing process. The more data you collect, the more you understand how your workforce functions and how long it takes to complete projects. Always be ready to factor in changes to your workforce — like additional headcount or new training initiatives — that alter your productivity metrics and affect task completion rates.
Considerations when estimating time to completion
In addition to following the basic steps for calculating estimated time to completion, apply the following concepts to help ensure accurate timelines.
Define project scope and objectives
To determine how much time your team needs to complete a project, you must first understand the project scope and objectives. Work with your employees to develop clear and actionable objectives — the kind that ensures all team members understand what needs to be accomplished, and when. Well-defined scopes are less likely to fall prey to scope creep, which can derail timelines and create unnecessary complications. In addition, consult with all stakeholders to confirm project goals are strategically aligned with organizational priorities.
Break down tasks and activities
Once you define the project scope, break down individual tasks and activities. This process, called work breakdown structure (WBS), includes dividing the project into smaller, manageable components. Use it to simplify your estimate and clarify each team member’s responsibilities. This is also the time to assign a duration for each task based on previous experiences and benchmarks.
Understand employee productivity and efficiency
Each team member has their own unique work style, which makes understanding individual employee productivity vital to accurate time estimation. In fact, employees who know and use their strengths are six times more likely to be engaged and 8% more productive. What’s the best way to achieve this? Measure productivity to gauge individual capabilities and take them into account when calculating time to completion.
Challenges in time to completion calculation
Every project comes with its own set of challenges, but creating a framework to calculate the estimated time to completion greatly enhances your chance of success. Just be on the lookout for these common challenges:
Task uncertainty
Uncertain task durations pop up often when calculating time to completion. This often occurs when managers underestimate potential roadblocks or employees fail to factor in meetings and other unfocused time. Adding buffer time to each project helps, as does using time-tracking software to account for all activity.
Employee issues
From absenteeism and turnover to insufficient training, employee issues often complicate accurate time to completion estimates. To keep them to a minimum, always keep the lines of communication open. And don’t overlook the importance of employee engagement initiatives and strong training and development programs.
Unexpected project changes
Project scope is bound to change, either due to shifting organizational needs or new client requests. To minimize these and other disruptions, communicate your project plans with stakeholders early and often.
Master estimated time to completion calculation with ActivTrak
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