Capacity Planning in Magnifi

Capacity Summary

You enter the employee capacity data under Capacity Summary including productivity %, sell rate etc to project the annual capacity. 

The Capacity Summary includes 2 options to calculate the capacity;
  1. Simple; This means the inputs will be constant throughout the year including productivity, sell rate, recovery rate & leave entitlements.
  2. Drivers; The inputs including productivity, sell rate etc will vary on a monthly basis based on the data entered in Capacity Drivers. 

How is the Capacity Calculated?

The Capacity calculation includes various components;
  1. Available Hours = Standard working hours less Leave. 
  2. Total Hours = Available Hours x (1+ Overtime %) 
  3. Billable Hours = Total Hours x Productivity % x Recovery %.
  4. Capacity $ = Billable Hours x Sell Rate

Only employees that have been classified as "Direct" will be included on the Capacity Summary. 

You can also include Contractors who are effectively deemed employees.

How are Available Hours calculated?

If you hover over the Available Hours, it will reveal the calculation based on;

      (Total Hours - Leave Hours) x Direct Labour %. 

The leave hours are entered as a default % under Capacity-Capacity Rates . The leave hours can be amended for a specific employee by expanding the dropdown. 




How do I allocate an employee to a Division?

You can change an employee's divisional % allocation by clicking on the employee and entering the %. However, if you need to make multiple changes, it is quicker to do it under Capacity Summary. For example, under the following Division (shown as "Service Division"), you can update the Divisional % column for a specific employee or click the down arrow to copy the values down to all employees. 



After making the changes, if you change the Division to "All Divisions" you can check that the divisional allocation for all employees totals 100%. 

If you hover over the Divisional %, it will show you the Divisional breakdown.

Click on "Show all employees" if you want to enter a % for an employee that is yet to be allocated to the division.

You can also update Divisional allocations in bulk under Labour Drivers - Employees - "Division Allocation"

How do I allocate the productivity %?

The default productivity % for an employee is entered under Capacity - Capacity Rates.

You can update the employee's productivity % under Capacity Summary. You can click on the down arrow if you want to apply the same productivity % to all employees.

How do I enter the Sell Rate?

You can enter the employees Sell Rate under Capacity Summary. Click on the down arrow if you want to apply the same rate to all employees.

You can apply a default rate at either the Organisation or Divisional level under Capacity - Capacity Rates. In the example below, a Default rate has been entered against the "South" Division. A Default Rate means that any new employee in the South Division will be assigned this rate but it is possible to change the hourly rate against the employee. If it was a Fixed Rate, the user cannot change the employee's hourly rate.



If multiple Divisions exist, there are 2 options to enter the Sell Rate;
  1. Option 1 (default option); You enter the Sell Rate at the Divisional Level, meaning you can have a different divisional sell rate for an employee who has been allocated to multiple divisions. This means you cannot update the employee's Rate per Hour at the All Divisions level. 
  2. Option 2; If the employees Sell Rate will be the same regardless of their divisional allocation, you can untick the following box that appears under Capacity - Capacity Rates. This means that the Sell Rate can be updated at both the Divisional or All Divisions level.


How do I enter the Recovery %?

The recovery % is entered at either the organisation or divisional level. 


The recovery will be applied to the Productive Hours. In the example above, the Billable Hours for David Adams of 1,307 is based on 1,452 productive hours x 90% recovery.

How do I enter the Overtime %

The overtime is entered at either the organisation or divisional level.



The Total Hours are calculate by multiplying the Available Hours x (1+Overtime %).

The overtime % reflects the "paid" overtime. If an employee works additional "unpaid" hours, their productivity will reflect a higher %. For example, if an employee works a 50 hour week (but only paid for 38) and charges 30 hours to clients, their productivity % will be calculated based on 30 hours divided by their base weekly hours (38) = 79%



How is the projected income calculated?

At the bottom of the Capacity Summary it will show the Projected Capacity v Projected Income and calculate the Capacity Surplus/Deficiency;



The Projected Income is based on the income accounts that have been flagged as  Capacity Building accounts under Chart of Accounts. You can also update the accounts by expanding the box that appears next to Projected Income and specifying the accounts. 

How do I report on monthly capacity?

The Capacity Summary is a high level annual Capacity planning tool that assumes the variables (eg productivity, leave, sell rate etc) will be the same for the entire year.

Capacity Drivers is a more detailed monthly calculation that allows you to change the variables on a monthly basis.

How do I report on the capacity by division?

When you export the Employee Capacity report to excel, there are 2 worksheets. The first worksheet will show you the capacity calculation for the organisation. The second worksheet, will show the capacity per division which is reported by employee.