Knowing how long it takes employees to complete a project is essential for project management and overall business success. Estimated time to completion (ETC) gives workers a benchmark for their time management, lets project managers set realistic deadlines and ensures managers know when employees may need more help. But getting these estimates requires planning and the right tools.
Explore the importance of ETC, the challenges organizations face in calculating it and how to calculate it for your workforce in this article.
What does estimated time to completion mean?
Estimated time to completion, or ETC, is a general estimate of how much time it takes to complete a project. Project managers calculate the ETC based on historical data such as how long it took team members to complete similar projects or how long it generally takes team members to complete individual tasks.
Estimated time to completion and its importance in project management
Estimating time to completion accurately is foundational for project management success. When timelines are over- or underestimated, projects face major challenges in hitting scheduled deadlines. A survey by Wrike found 49% of business leaders said they lost revenue due to missed deadlines. Project managers who can measure a current project timeline against estimated time can spot delays to keep the project schedule on track, either by asking for additional time or assigning project tasks to other employees. This means more accurate budgeting and reduced wastes from unexpected costs.
Effective ETC takes the guesswork out of assigning work tasks to employees. It also empowers project managers to allocate and manage resources correctly. Accurate estimates empower project managers to align employee workload with available resources, ensuring employees aren’t overburdened while still meeting project goals.
Effective time estimation also fosters accountability among team members through better communication and engagement. Stakeholders are more likely to stay informed when project managers provide realistic timelines. Employees and managers understand deadlines and project progress more clearly, allowing them to focus more on productivity and collaboration.
How to calculate time to completion: step-by-step
While every business is different and will have different needs when calculating estimated time to completion, the following steps will 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 should include everything from initial planning to project delivery. Team members from all levels should collaborate during this phase 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 how long each task should take. Project managers use historical data, expert opinions and time-tracking software to make these estimates. ActivTrak provides automatic time tracking for context and actionable data. It’s important to bake some flexibility into this step based on your workforce, industry, time in business and other considerations. For example, using methods like the PERT (program evaluation and review technique) means you can consider uncertainty by calculating a weighted average of optimistic, pessimistic and most likely durations.
Step 3: Factor in employee availability and skill level
Once you know how long tasks take to complete, you can consider how your employee availability and skills will affect project timelines. Scheduling has to reflect the task requirements and the real-time availability of each employee to be accurate. Project management visualization tools make it easier for project managers to see employee schedules and capabilities at a glance. Ideally, project managers will assign tasks to team members matching their expertise and availability to minimize bottlenecks and increase project flow.
Step 4: Incorporate project buffer time
Even with the most accurate ETC, projects often need additional time than predicted in the planning phase. Additional buffer time safeguards against possible delays and unforeseen issues. They also provide room for adjustments without jeopardizing deadlines. Most research indicates projects will need 10-20% of their total budget time for buffers, but that changes depending on your industry, history 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. This will include which team members are responsible for which tasks and the estimated time it will take for each task to be completed. The schedule will change depending on specifics of the project – for example, if new team members are added or others are unavailable – but will provide a general idea of the path a project will follow to completion.
Step 6: Reevaluate over time
Estimated time to completion is an ongoing process for most organizations. The more data you collect, the more you understand how your workforce functions and how long it takes to complete projects. At the same time, changes to your workforce – like additional headcount or new training initiatives – will change productivity metrics that affect task completion rates.
Considerations when estimating time to completion
Beyond the basic steps of calculating estimated time to completion, there are several concepts that will guide the planning and execution of projects in your organization.
Defining project scope and objectives
To determine how much time it will take to complete a project, you must first understand the project scope and objectives. Leaders must develop clear and actionable objectives so all team members understand what needs to be accomplished by when. Well-defined scopes are less likely to fall prey to scope creep, which can derail timelines and create unnecessary complications. Project managers should consult with all stakeholders to confirm project goals are strategically aligned with organizational priorities.
Breaking down tasks and activities
Once the scope of a project is defined, managers must break down tasks and activities. This process, called work breakdown structure (WBS), includes dividing the project into smaller, manageable components. This simplifies the process of estimating and clarifies each team member’s responsibilities. An effective WBS also fosters better collaboration as team members better understand their roles in the project. Make sure each task has an assigned duration based on previous experiences and benchmarks within the organization for consistency and accuracy.
Understand employee productivity and efficiency
Understanding employee productivity and efficiency is vital for accurate time estimation. Each employee has a unique work style and productivity level which managers should take into account when calculating time to completion. Using tools like performance metrics empowers project managers to better gauge individual capabilities. A Gallup report indicated that employees who know and use their strengths are 8% more productive than those who don’t.
Challenges in time to completion calculation
Challenges are part of any project, but creating a robust framework to calculate the estimated time to completion greatly enhances your chance of success. There are several challenges to watch for when you begin time to completion calculations in your organization:
Uncertainty in tasks
Uncertain task durations pop up often when calculating time to completion. Some issues that introduce uncertainty include:
- Unpredicted complexities in new task types
- Underestimating possible roadblocks
- Not including time spent on non-productive or “insignificant” tasks (e.g. meetings, reporting, check-ins)
To mitigate this uncertainty, managers should stay adaptable and prepared. Techniques to battle uncertainty include:
- Agile project management techniques to refocus team efforts and adapt quickly
- Thorough time-tracking software to account for all tasks (even insignificant ones)
- Ensuring all project timelines include buffer time
Employee issues
Many employee issues can pose challenges to estimating time to completion, such as:
- Absenteeism
- Turnover
- Adding or removing headcount
- Insufficient training
Managers, leaders and human resources professionals should work to keep these issues at a minimum. There are several tactics to employ:
- Continuous and open lines of communication
- Team-building and engagement programs
- Effective training and development programs
Unexpected project changes
Unexpected project changes are a recurring issue for any team. Common issues that arise include:
- Shifting organizational needs
- Client requests
To minimize disruptions, project managers should:
- Implement effective change management protocols
- Communicate clearly and effectively with all stakeholders
Master estimated time to completion calculation with ActivTrak
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