Initial Resource Forecast Template – Free Word Download
Introduction to the Initial Resource Forecast
Resources are the fuel that powers the project engine. Without them, a project plan is nothing more than a wish list. The Initial Resource Forecast is a strategic document created early in the planning phase to identify the types, quantities, and timing of resources required to deliver the project scope. Enjoy this Initial Resource Forecast Template – Free Word Download
This document differs significantly from a detailed staff roster. At this early stage, you likely do not know who will be doing the work (e.g., “Bob from Accounting”). Instead, you focus on the roles and capabilities needed (e.g., “Senior Financial Analyst”). This distinction is critical. By forecasting demand based on roles, you provide the Functional Managers and the HR Department with the lead time they need to hire, train, or allocate the necessary people.
The Initial Resource Forecast covers three primary categories:
- Labor (People): The skills and effort hours required.
- Equipment (Machinery): Cranes, servers, vehicles, or specialized testing gear.
- Materials (Consumables): Concrete, cabling, or software licenses.
Failure to complete this forecast accurately is a leading cause of project delay. If you wait until the week before coding starts to ask for a Java Developer, you will likely face a 6-week hiring delay. This template helps you look ahead, predicting the “peaks and valleys” of resource demand so that the organization can prepare. It serves as the handshake between the Project Manager (who demands resources) and the Resource Manager (who supplies them).
The following sections will guide you through defining resource types, calculating Full-Time Equivalents (FTE), creating a time-phased utilization plan, and identifying critical bottlenecks.
Part 1: Forecast Context and Scope
Before listing needs, you must define the parameters of the forecast. This ensures that the Resource Managers understand the timeline and the assumptions behind your request.
Project Metadata
Instructions:
Provide the identifying details.
- Project Name: [Insert Name]
- Forecast Version: [e.g., v1.0 (Initiation)]
- Date of Forecast: [DD-MM-YYYY]
- Planning Horizon: [e.g., Jan 2025 – Dec 2025]
Scope of Forecast
Instructions:
Define what is included. Are you forecasting for the whole project or just Phase 1?
- Phases Covered: [e.g., Discovery, Design, and Build]
- Exclusions: [e.g., “This forecast excludes the ‘Go-Live Support’ team, which will be forecasted in Q3.”]
- Basis of Estimate: [e.g., “Based on the WBS Version 2.4 and historical data from Project Alpha.”]
Part 2: Labor Resource Requirements (The “Who”)
This is usually the most complex part of the forecast. You must define the human skills required. Use “Generic Resources” at this stage.
Role Definitions
Instructions:
Define the specific skill sets. Do not just say “Engineer.” Say “Structural Engineer with Seismic Experience.”
Table: Role Competency Matrix
| Role ID | Generic Role Title | Skill Level | Key Competencies/Certifications |
| ROL-01 | Project Manager | Senior | PMP Certified; Experience with Agile methodologies. |
| ROL-02 | Solution Architect | Senior | Cloud Infrastructure (AWS); Microservices architecture. |
| ROL-03 | Java Developer | Mid-Level | Java 11+; Spring Boot; SQL Database proficiency. |
| ROL-04 | Business Analyst | Junior | Requirements gathering; Jira/Confluence usage. |
Estimation of Effort (Total Demand)
Instructions:
Calculate the total amount of work needed for each role over the life of the project. Use “Person-Hours” or “Person-Days.”
- Method: Look at your Work Breakdown Structure (WBS). Sum up the estimated hours for all tasks assigned to “Java Developer.”
- Example:
- Task 1.1 (Database Design): 40 hours.
- Task 1.2 (API Coding): 200 hours.
- Task 1.3 (Unit Testing): 60 hours.
- Total Demand for Java Developer: 300 Hours.
Part 3: Equipment and Material Requirements (The “What”)
Projects often fail because the people are ready, but the tools are not. Use this section to forecast the non-human resources.
Capital Equipment
Instructions:
List heavy machinery or expensive hardware that needs to be reserved.
Table: Equipment Forecast
| Item Description | Quantity | Duration Needed | Lead Time |
| High-Performance Server | 2 Units | 12 Months | 6 Weeks |
| Mobile Testing Lab | 1 Unit | 3 Months | 2 Weeks |
| Construction Crane (50 ton) | 1 Unit | 4 Weeks | 8 Weeks |
Why Lead Time matters:
If the crane takes 8 weeks to arrive, you must order it 2 months before you need it. This forecast triggers that order.
Consumables and Licenses
Instructions:
List items that will be used up.
- Software Licenses: 10 Seats of “Adobe Creative Cloud” for the Design Team.
- Physical Materials: 500 meters of Fiber Optic Cable.
Part 4: Time-Phased Resource Plan (The “When”)
Knowing you need “300 hours of a Developer” is not enough. You need to know when you need them. If you need all 300 hours in January, you need 2 people. If you need them spread over 6 months, you might only need 0.5 people (part-time).
The Utilization Histogram
Instructions:
Map the demand across the timeline. This is often done in a spreadsheet. Use Full-Time Equivalent (FTE) units.
- 1.0 FTE = One person working full time (approx. 160 hours/month).
- 0.5 FTE = One person working half time.
Table: Monthly Resource Demand (FTEs)
| Role | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Total FTE Months |
| Project Manager | 1.0 | 1.0 | 1.0 | 1.0 | 1.0 | 0.5 | 5.5 |
| Architect | 0.5 | 1.0 | 0.2 | 0 | 0 | 0 | 1.7 |
| Developer | 0 | 0.5 | 2.0 | 2.0 | 1.0 | 0 | 5.5 |
| Tester | 0 | 0 | 0.5 | 1.0 | 2.0 | 1.0 | 4.5 |
Analysis of the Histogram:
- Ramp Up: Notice how Developers start at 0, move to 0.5, and peak at 2.0. This is a realistic curve.
- Peak Demand: In Month 3 and 4, we need 2.0 Developers. This means we need two physical bodies, not just one person working harder.
Part 5: Sourcing Strategy (Internal vs. External)
Where will these people come from?
Internal Resource Availability
Instructions:
Assess if the company has these skills on the bench.
- Role: Project Manager.
- Source: Internal PMO.
- Status: “Confirmed. Sarah Jones is assigned.”
External Sourcing Needs (The Gap)
Instructions:
Identify gaps where you must hire contractors or vendors.
- Role: Java Developer (2.0 FTE needed).
- Internal Supply: “We only have 1.0 FTE available internally (John Doe).”
- Gap: “We are short 1.0 FTE.”
- Action: “Hire a contractor via the IT Staffing Agency for a 3-month contract.”
Strategic Note:
This section connects directly to the Procurement Strategy (Template 35). If you cannot find resources internally, you must buy them.
Part 6: Resource Utilization and Assumptions
You must state the rules used to calculate the numbers. Using “100% availability” is a rookie mistake.
Availability Assumptions
Instructions:
Define the “Effective Working Time.”
- Productivity Rate: “We assume resources are productive 80% of the time (6.5 hours/day). The remaining 20% is for admin, meetings, and breaks.”
- Holidays: “The schedule accounts for the 2-week winter shutdown in December.”
- Ramp-Up Time: “We assume a new resource takes 2 weeks to become fully productive (onboarding).”
Constraints
Instructions:
What limits your ability to get people?
- Budget Freeze: “No new external hires are permitted until Q2.”
- Security Clearance: “All resources accessing the database must have ‘Secret’ level clearance. This reduces the pool of available candidates.”
Part 7: Cost Implications
Resources cost money. This section provides a rough estimate of the labor budget based on the forecast.
Instructions:
Multiply the hours by the “Blended Rate” for that role.
Table: Resource Cost Forecast
| Role | Total Hours | Blended Rate ($/hr) | Estimated Cost |
| Project Manager | 880 | $100 | $88,000 |
| Architect | 272 | $150 | $40,800 |
| Developer | 880 | $120 | $105,600 |
| Tester | 720 | $90 | $64,800 |
| TOTAL | $299,200 |
Note:
This number should align with your Initial Cost Estimate (Template 25). If they are different, you have a disconnect between your budget and your resource plan.
Part 8: Risks and Bottlenecks
What if you can’t get the people?
Critical Resource Risks
Instructions:
Identify “Single Points of Failure.”
- Risk: “The Solution Architect role requires knowledge of our legacy mainframe. Only one person in the company (Jane Smith) has this skill.”
- Impact: “If Jane is pulled to a higher-priority project, our Design Phase will halt.”
- Mitigation: “Request Jane be ‘Ring-fenced’ (protected) for this project. Start training a backup Architect immediately.”
Resource Contention
Instructions:
Who else wants these people?
- Conflict: “Project Beta is launching at the same time as us. They also need 2 Testers in Month 5.”
- Resolution: “Escalate to the Resource Management Committee to prioritize allocations.”
Part 9: Resource Request and Approval
This document acts as a formal “Order Form” to the organization.
The Ask
Statement:
“The Project Team requests the provisional allocation of 17.2 FTE Months of labor as detailed in Part 4. We specifically request authorization to hire 1 External Contractor for the Java Developer role.”
Sign-off
- Project Manager: Verifies the demand is accurate based on the WBS.
- Resource Manager / Functional Head: Confirms that the internal staff can be made available.
- HR Director: (If external hiring is required).
Part 10: Step-by-Step Guide for Creating the Forecast
Step 1: Start with the WBS
You cannot forecast resources without a plan. Look at the tasks. Who does them?
- Task: “Write Code.” -> Role: Developer.
- Task: “Sign Contract.” -> Role: Sponsor.
Step 2: Estimate Effort, Not Duration
This is crucial.
- Duration: “We have 2 weeks to finish this.”
- Effort: “It takes 80 hours of work.”
- Result: If you have 1 person, 80 hours takes 2 weeks. If you have 2 people, 80 hours takes 1 week.
- Forecast: You need 80 hours of effort.
Step 3: Apply the “Bell Curve”
Most projects follow a standard shape:
- Start: Low staffing (PM + Architect).
- Middle: High staffing (Developers, Builders).
- End: Low staffing (PM + Testers).
- Check: Does your histogram look like a Bell Curve? If it is a flat line, you are probably underestimating the middle or overestimating the start.
Step 4: Consult the Functional Managers
Show your draft to the Engineering Manager. Ask: “I estimated 200 hours for this. Is that realistic?” They are the experts; use them.
Step 5: Factor in “Drag”
People are not robots. If a task takes 10 hours of pure work, schedule 12 or 14 hours to account for emails, coffee, and context switching. A common rule is to plan for 6 hours of “real work” per 8-hour day.
Part 11: Glossary of Resource Terms
- FTE (Full-Time Equivalent): A unit that indicates the workload of an employed person. 1.0 FTE is full-time.
- Resource Leveling: Adjusting the project schedule to keep resource usage constant (e.g., delaying a task so that Bob doesn’t have to work 80 hours in one week).
- Resource Smoothing: Adjusting resources within the slack/float of a task to avoid peaks and valleys, without changing the critical path.
- Bench: A term for employees who are currently not assigned to a billable project but are available.
- Utilization Rate: The percentage of an employee’s available time that is used for productive, billable work.
Conclusion
The Initial Resource Forecast is the bridge between the project plan and the organizational reality. It translates “Tasks” into “People.”
By creating a clear, time-phased view of your needs, you move from “begging for help” to “managing demand.” You give the organization the data it needs to support you. A well-constructed forecast allows the Resource Manager to say, “I see you need a Tester in May; I will have one ready,” rather than “Why didn’t you tell me you needed a Tester yesterday?”
Final Checklist for this Template:
- Have you used “Generic Roles” rather than names?
- Did you separate Labor, Equipment, and Materials?
- Is the forecast Time-Phased (monthly/weekly)?
- Did you calculate FTEs correctly based on productivity assumptions?
- Have you identified the External vs. Internal mix?
- Is the “Peak Demand” clearly visible in the histogram?
Meta Description:
A comprehensive template for Initial Resource Forecasting. Learn to estimate labor hours, calculate FTEs, plan resource histograms, and manage staffing risks.
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