Resource Optimization

Resource optimization is the set of processes and methods to match the available resources
(human, machinery, financial) with the needs of the organization in order to achieve
established goals. Optimization consists in achieving desired results within a set timeframe and
budget with minimum usage of the resources themselves. The need to optimize resources is
particularly evident when the organizations demands tend to saturate and/or exceed the
resources currently available.
When a company is managed using the philosophy of Intelligent Managementthen resource
optimization is strictly linked to the concept of constraint and asystemic vision of the
company. Indeed, without a systemic vision of the company we are unable to identify
the global effectiveness of resource allocation and we run the risk of using resources available
mainly to respond to emergencies that daily occur in the various parts of the organization.
Intelligent Management sees the structure of an organization as a network of projects which
cut across company functions, in contrast with the hierarchical view of a company divided
up into silos unable to recognize precise patterns and rules of interdependencies.
When we manage a company as a network of projects we must be able to allocate the
resources available in the most efficient way possible, always bearing in mind that we have to
achieve the global goal.
A project is itself a system: a network of elements (tasks) that are interconnected and
interdependent, that work together to achieve a precise goal. The fact that the tasks are carried
out by a pool of finite resources means that optimizing the sequence of tasks is a matter of
considerable complexity. (cf. the well-known problem of P vs NP).
A further level of complexity is due to the human factor connected with determining the length
of individual tasks. It is well known that if we are asked by our boss how long it takes us to
complete a certain task, we tend to protect ourselves by asking for considerably more time than
is strictly necessary. This is made worse by multitasking (the tendency to do several things in
parallel). While multitasking is very useful for computers it is decidedly counterproductive for
the human mind. Finally, there is the effect of the so-called student syndrome, in other words
whenever we have more time than we need to do something we will always put it off until the
last minute.
An efficient use of resources to carry out a project requires us to:

Have a shared vision of the global goal to be achieved (remove unnecessary protection from
individual tasks)
Eliminate multitasking (increased effectiveness in the tasks)
Identify the constraint (the critical chain) and protect it with a buffer of time (thus

protecting the project from variation)

Carefully manage the operational phases of the project (capitalize on time gained)
Carry out a statistical analysis of the project buffer consumption using Statistical Process
Control (SPC) (more effective project management)

The situation becomes more complex when multiple projects have to be managed, and
possibly by different people. When a resource becomes unavailable, lets say they are ill, ways
to take corrective actions must be available other than just delaying the related tasks. Although
ultimately the decision is taken by the project manager, the Information System can provide
useful information to support such decisions. The correct way to handle multi-projects is to
have a pool of resources with some degree of interchange ability and a way to communicate
through different projects so as to be able to do a partial reallocation of the tasks.