SCHEDULING RESOURCES

AND COSTS

The Resource Problem

 Resources

and Priorities

Project network times are not a schedule until

resources have been assigned.
o The implicit assumption is that resources will be available in
the required amounts when needed.
o Adding new projects requires making realistic judgments of
resource availability and project durations.

Types of Project Constraints

 Technical

Constraints related to the networked sequence in

which project activities must occur

 Resource

or Logic Constraints
Constraints

The absence, shortage, or unique interrelationship

and interaction characteristics of resources that
require a particular sequencing of project activities

Constraint Examples

Kinds of Resource Constraints

 People
 Materials
 Equipment
 Working

Capital

Resource Allocation Problem

A shortcoming of most scheduling procedures

is that they do not address the issues of
resource utilization and availability.

Scheduling procedures tend to focus on time

rather than physical resources.

Classification of a Scheduling Problem



Classification of Problem

Using a priority matrix will help determine if the project is time

or resource constrained

Time-Constrained Project: A project that must be

completed by an imposed date

Time is fixed, resources are flexible: if additional resources are

required to ensure project meets schedule, they may be
obtainable

Or a
 Resource-Constrained Project: A project in which the
level of resources available cannot be exceeded

Resources are fixed, time is flexible: inadequate resources will

simply delay the project.

Resource Allocation Methods



Limiting Assumptions

Splitting activities is not allowedonce an activity is start, it is

carried to completion.
Level of resource used for an activity cannot be changed.
Activities with the most slack pose the least risk.
Reduction of flexibility does not increase risk.
The nature of an activity (easy, complex) doesnt increase risk.

(Aside) From practical observation, the way many PMs

handle resource allocation is to assign people to
activities after the network has been MSProject-ized, and
then filter for person and put in additional links.

While easy to do, this is not theoretically correct and leads to

over-restrictive scheduling or inability to react to personnel
changes.

Time-Constrained Projects


Are projects that must be completed by an imposed date

Require the use of leveling techniques that focus on

balancing or smoothing resource demands by using
(positive) slack (i.e. delaying noncritical activities) to
manage resource utilization over the duration of the project

Peak resource demands are reduced.

Resources over the life of the project are reduced.

Fluctuation in resource demand is minimized.

Resource Loading

Resource loading describes the amounts of individual resources an

existing schedule requires during specific time periods.

The loads (requirements) of each resource type are listed as a

function of time period.

Resource loading gives a general understanding of the demands a

project or set of projects will make on a firms resources.

The project manager must be aware of the flows of usage for each
input resource throughout the life of the project.

It is the project managers responsibility to ensure that the required

resources, in the required amounts, are available when and where
they are needed.

Resource Leveling (Smoothing)

Resource leveling aims to minimize the periodby-period variations in resource loading by

shifting tasks within their slack allowances.
The purpose is to create a smoother distribution
of resource usage.
Resource leveling, referred to as resource
smoothing, has two objectives:
To determine the resource requirements so that they
will be available at the right time,
To allow each activity to be scheduled with the
smoothest possible transition across usage levels.

Resource Leveling (Smoothing)

Resource management is a multivariate,

combinatorial problem, i.e. multiple solutions with
many variables, the mathematically optimal
solution may be difficult or infeasible.

More common approach to analyzing resource

leveling problems is to apply some resource
leveling heuristics.

Resource Leveling Heuristics

Prioritizing resource allocation include applying

resources to activities:
with the smallest amount of slack
with the smallest duration
that start earliest
with the most successor tasks
requiring the most resources

Resource Leveling Steps

Create a project activity network diagram

Create a table showing the resources required
for each activity, durations, and the total float
available
Develop a time-phased resource loading table
Identify any resource conflicts and begin to
smooth the loading table using one or more
heuristics

Resource Loading Chart

Another way to create a visual diagram of

resource management problem is to use
resource-loading charts.
Resource conflicts can be seen in the resourceloading charts.
They are used to display the amount of
resources required as a function of time on a
graph.
Each activitys resource requirements are
represented as a block (resource requirement
over time).

Resource Loading Chart

Resource limit is set at 8 hourly units per day.
Display the amount of resources required as a function of
time.
4 B 5
Res = 2

0 A 4
Res = 6

5 D 9
Res = 7
1. Start with a
network diagram
4 C 7
Res = 2

9 E 11
Res = 3

11 F 12
Res = 6

Resource Loading Chart

Activity

A
B
C
D
E
F

Resource

6
2
2
7
3
6

Duration

4
1
3
4
2
1

ES

Slack

LF

0
4
4
5
9
11

0
0
4
0
0
0

4
5
11
9
11
12

2. Produce a table that shows the

duration, early start, late finish,
slack, and resource(s) required for
each activity.

Resource Loading Chart

Botanical Garden Example

Given the following project network, we would like to:
minimize total resources (rented backhoes) used
smooth capacity requirements (avoid large fluctuations)

Pre and Post Smoothing

Resource Allocation Methods

 Resource

Demand Leveling Techniques for TimeConstrained Projects

Advantages
o Peak resource demands are reduced.
o Resources over the life of the project are reduced.
o Fluctuation in resource demand is minimized.

Disadvantages
o Loss of flexibility that occurs from reducing slack
o Increases in the criticality of all activities

Resource-Constrained Projects

Are projects that involve resources that are limited in quantity or

by their availability
Scheduling of activities through use of heuristics (rules-of-thumb),
according to the following priorities.
o

Note- Heuristics do not guarantee optimal solutions, but they help

in finding a decent solution quickly

Start from beginning of project time and, when resources used

exceed the resources available, retain activities first by:
1. Minimum slack
2. Smallest (least) duration
3. Lowest activity identification number

and push the others out further in time

An unarticulated rule: in later periods, do not move activities
that have already started
Additional caveat: when considering activities not to delay,
consider the resources each activity uses.

Example: Resource Constrained Project



Assume we only have 3 people available to do the

following project, and we cannot afford to hire more.

Example of Resource-Constrained
Scheduling

Prior to Resource Balancing

ES
ESresource
resourceload
loadchart
chart (with
(withslack
slackin
ingray)
gray)

Start Shifting Activities Later to Satisfy

Resource Availability
Resource
-constrained schedule
6
Resource-constrained
schedulethrough
throughperiod
period556

We Now Consider the Resources

Available
Delay
Delayactivity
activity22by
by11period,
period,making
making2-to-3
2-to-3period
periodresourceresource-feasible
feasible
(still
(stillnot
notfeasible
feasiblefor
for3-to-4
3-to-4and
andbeyond.)
beyond.)

1
1

1
1

Resource Load Now Feasible

Final
Finalresource-constrained
resource-constrainedschedule
schedule
Still
Stillneed
needto
tore-compute
re-computeslack,
slack,given
givennew
newproject
projectend
enddate
date

Example in MS-Project
Go to tools: level resources
1. For resource-constrained leveling, use the default settings
2. For time-constrained, pick Level within Slack and ignore
the working messages that may be produced

Will produce a schedule with less fluctuation, but may still exceed
level limits

(Another) Computer Demonstration of

Resource-Constrained Scheduling


EMR Project

The development of a handheld electronic medical reference

guide to be used by emergency medical technicians and
paramedics

Problem

There are only eight design engineers who can be assigned to

the project due to a shortage of design engineers and
commitments to other projects.

This is the illustration from the book,

which has 2 grievous errorsCan anyone spot them?

EMR
Project:
Network
View of
Schedule
before
Resources
Leveled

EMR Project Prior to Leveling Resources

Time Constrained: Leveling Within Slack




We reduce the need for some overtime

but still have a large peak at the end, so this is
probably not acceptable

Leveling by Allowing the Project

Duration to Expand
If we take MS Projects leveling defaults
 Project duration will now be 57 working days instead of 45 working days.




Assuming a 1/2/08 start and no special holidays, we go from ending on 3/4 to 3/20

Resource usage between 5 to 8 engineers

Can insert leveling delay column in schedule view to see the shifts

Even manually make them without relying on MS algorithms.

The Impacts of ResourceConstrained Scheduling







Reduces delay but reduces flexibility

Increases sensitivity of the network
Increases scheduling complexity
Can break the sequence of events
May cause parallel activities to become sequential and
change the critical path

Splitting/Multi-tasking


A scheduling technique use to get a better project

schedule and/or increase resource utilization

Involves interrupting work on an activity to employ the resource on

another activity, then returning the resource to finish the
interrupted work

Is feasible when startup and shutdown costs are low (must include
them)

Although easy to put in with project software, both experts

would argue this is not a good approach.

Assigning Project Work



Factors to Consider:

Dont always pick the same people for the toughest

assignments.
Choose people with an eye to fostering their development
through participation on the project.
Pick people with compatible work habits and personalities but
who are not identical- can complement each other.
Mix team-up veterans with new hires to share experience and
socialize newcomers into the organization.
Select people who may need to learn work together on later
stages of the project or other projects.

Multiproject Resource Schedules

 Multiproject
Overall

Scheduling Problems

project slippage

o Delay on one project creates delays for other projects.

Inefficient

resource application

o The peaks and valleys of resource demands create

scheduling problems and delays for projects.
Resource

bottlenecks

o Shortages of critical resources required for multiple

projects cause delays and schedule extensions.

Multiproject Resource Schedules



Managing Multiproject Scheduling

Create project offices or departments to oversee the scheduling

of resources across projects.

Use a project priority queuing system: first come, first served for
resources.
o Prioritize based on perceived need- Internal projects more
likely to get slipped than client-facing ones.

Centralize project management: treat all projects as a part of a

mega-project.

Outsource projects to reduce the number of projects handled

internally.

Some Final Thoughts on Resources



We may not have a pure time-constrained or resource

constrained problem. A hybrid approach may be most
appropriate.

It may make sense to show management both extremes in order

to triangulate to the best solution

We have not explored revisiting activity dependencies,

outsourcing tasks, doubling effort to do a task twice as
fast (or halving effort to do twice as slow)

View Resources in MS Project




In Resource Graph can see the overage

Set resource availability via view: resource sheet

Defaults to increments of 50% but you can manually type in

different amount